PPG INSTITUTE OF TECHNOLOGY,

COIMBATORE

SUMMER INTERNSHIP PROGRAMME

“A STUDY ON HUMAN RESOURCES AND MARKETING DEPARTMENTS AT

ITC LTD, MUNGER”

Submitted by

RAVI MANDAL

Register No: 098001140048

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

in

DEPARTMENT OF MANAGEMENT STUDIES

PPG INSTITUTE OF TECHNOLOGY

COIMBATORE-641 035

AUGUST-2010

CONTENTS

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CHAPTER CONTENTS PAGE

NO

1 INTRODCTION
1.1 COMPANY PROFILE 1
1.2 PRODUCT PROFOLE 6

2 ITC Overview
2.1 VISION, MISSION 7

3 ORGANISATION STRUCTURE 10

4 FUNCTIONAL DEPARTMENT
4.1HUMAN RESOURCE DEPARTMENT 12
4.2COMMERCIAL DEPARTMENT 15
4.3PRODUCTION DEPARTMENT 17
4.4 ENGINEERING DEPARTMENT 28
4.5 SECURITY DEPARTMENT 29
4.6 MANAGEMENT INFORMATION SYSTEM 29
DEPARTMENT

5 SWOT ANALYSISI 30

6 FINDING 32

7 CONCLUSION 33

8 BIBLIOGRAPHY 34

9 ANNEXTURE 35

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1.1 COMPANY PROFILE

MUNGER AT A GLANCE

The township

Munger city is located in idyllic surroundings on the Southern bank of Ganga

River, in the north the city is flanked by high ranges of the ‘Pirpahar’ hills and on the south
Munger is enveloped by the Kali Hill. Asia’s first Railway workshop (148 years old) is in
Jamalpur which is also on south of Munger. There is a 250 years old Gun factory at
Munger. The Yogashram at Munger is Asia’s first authorized Yoga University. People
from India and abroad come here.

Within two decades of ITC coming into existence, the city has blossomed into a
regional urban centre of over 3 lakhs people from different parts of the country, making the
city a Mini Bharath. Direct train services at all four metros are available.

Employees of ITC

• Executives : 55

• Non-executives :1124

The general plan of Munger city covering approximately 3224sq km provides for
about 5, 00,000 Residential units. The city has a number of company run and public
schools dispersed in various sectors of the city.

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ITC LIMITED

ITC, Munger is the first plant of ITC LTD. Established in 1907 Munger, 180 kms
from Patna, Bihar. The plant spans over 20.04 acres. On 24th August the Company was
incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of India
Ltd. The Company manufactures and distributes cigarettes and smoking tobaccos and
specialty papers including cigarette tissue papers (Sole manufacturer in the country). Other
activities include tobacco leaf processing, printing and packaging, hotels, food and exports.
The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd.
and the Complementary Lithographic printing business of Printers (India) Ltd in 1953.

COMPANY HISTORY :-

 ITC limited started its business from a small manufacturing unit in Munger, Bihar
from 6th June 1907.

 The company was named “Imperial Tobacco Company of India Limited” and was
incorporated from 24th August 1910.

 In 1925, as a strategic move towards backward integration of cigarette division,

ITC’s Packaging and Printing Business (PPB) was set up.

 In 1953, Imperial was converted into a public limited company.

 In 1971,The company set up a marine exports division.

 In 1974, the ownership of ITC was Indianised and therefore the name was changed
to Indian Tobacco Company.

 In 1975, ILTC (Indian Leaf Tobacco Company) became a part of ITC.

 In 1975, the company started its hotel business under the name of “ITC Welcome-
Group Hotel Chola”.

 In 1979, the company entered into Paperboards Business by promoting

Bhadrachalam Paperboards Limited.

 In 1985, the company set up Surya Tobacco Co. in Nepal as an Indo-Nepal-British

joint venture.

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 In 1986, the company established ITC Hotels as a separate division.

 In 1990, the company set up an International Business Division (IBD), for export of
agri-commodities.

 In 1994, Mc. Kinsey was commissioned to study the business.

 In 2000, ITC's unique e-Choupal initiative was launched. ITC e-Choupal, the
largest Internet-based intervention in rural India, empowers over 3.5 million
farmers in 35,000 villages.

 In 2000, the company diversified its business further by entering into Wills
Lifestyle Retailing Business with Wills Sports Range of international quality
relaxed wear for men and women.

 In 2000, ITC InfoTech India Limited, a wholly owned subsidiary of ITC, was set
up to provide end-to-end IT solutions including e-enabled services and business
process outsourcing.

 In 2001, ITC formed the foods division.

 In 2002, Surya Tobacco Co. became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Pvt. Ltd.

 In 2002, ITC entered into manufacturing of safety match boxes.

 In 2003, In agarbattis and in 2005, introduced Essenza Di Wills.

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ITC Limited , MUNGER

ITC Munger started its journey on 6th June,1907. The company is a premier
manufacturing center in cigarettes, apart from other three factories located in Saharanpur,
Kolkata and Bangalore. It is one of the best with state-of-the art modern technology
equipped systems in manufacturing and printing with SAP implementation.

The company was started on account of ease of procurement of raw materials,

cheap labour, transportation and electricity supply.

 Raw materials- The tobacco leaves plantation was carried out in the
outskirts of Munger district, and was a major supplier of leaf tobacco to its
other divisions.

 Transportation- Munger, located on the outskirts of river Ganga, was well

connected to railways, roadways (NH-81), and railways that was directly
connected to ITC.

 Electricity- Munger had its own D.C. (direct current) plant in Lal Darwaza
popularly known as “Dhandaniya Company” by local people.

 Cheap Labour- The labour was cheap and easily available.

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BUSINESS SEGMENTS

 FMCG

• Cigarettes – Cigarettes & Smoking Mixtures.

• Others – Branded Packaged Foods (Staples, Biscuits,
Confectionery, Snack Foods and Ready to Eat Foods),
Garments, Educational and other Stationery, Matches,
Agarbattis and Personal Care products.

 Hotels – Hoteliering
 Paperboards, Paper & Packaging – Paperboards, Paper including
Specialty Paper and Packaging including flexible.
 Agri Business – Agri commodities such as rice, soya, coffee and leaf
tobacco.
 Other Business: - Other businesses of the companies include information
technology (IT) services, investments, golf, resorts and real estate.

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1.2 PRODUCT PROFILE

ITC Munger is producing cigarettes with filter and without filter.ITC Munger is
also preparing tobacco for the use of secondary units of Munger and Kidderpore. There is
also a printing and packaging plant which produce packet of cigarettes and others product.

PRODUCT –MIX PIECES or KG/DAY

Cigarette 36 Million Pieces

Tobacco 80000 KG

Cigarettes Packet 12 Million Pieces

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2.1. ITC: LEADING WITH A VISION, MISSION AND OBJECTIVE

VISION

Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the Company’s
stakeholders.

MISSION
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value

OBJECTIVE
• We build lasting relationships with customers based on trust and mutual benefit

• We uphold highest ethical standards in conduct of our business

• We create and nurture a culture that supports flexibility, learning and is proactive to
change

• We chart a challenging career for employees with opportunities for advancement

and rewards

• We value the opportunity and responsibility to make a meaningful difference in

people’s lives

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POLICIES OF ITC

QUALITY POLICY

We shall build and sustain a world-class organization, where quality is the hallmark
of every process and activity.

With the involvement and dedication of our human resource, we are committed to
achieve satisfaction of all our stakeholders, through innovation and continual
improvement.

SAFETY POLICY

• Safety of its employees and the people associated with it including those living in
the neighborhood of its plants and units

• Pursue safety efforts in a sustained and consistent way by establishing safety goals,
demanding accountability for safety performance and providing resources to make
safety programmers work

Green Triangle

Safety

By:- National Safety Council

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CBD Belapur, Navi Mumbai-400 614

Website: www.nsc.org.in

CORPORATE ENVIRONMENT POLICY

ITC LTD reaffirms its commitment to contributing towards a clean and sustainable
environment and continually enhancing its environmental performance as an integral part
of its business philosophy and values. Towards this commitment, we shall:

 Integrate sound environmental management practices in all our activities

 Conduct our operations in all environmentally responsible manners to comply with

applicable legal and other requirements related to its environmental aspects and
strive to go beyond

 Progressively adopt cleaner and energy efficient technologies

 Minimize waste generation and promote recovery, recycle and reuse

 Increase greenery in and around our plant

 Strive for continual improvement in our environmental performance by setting

challenging targets, measuring progress, taking corrective action and
communicating environmental information to all concerned

 Enhance environmental awareness amongst employees working for and on behalf

of us and the general populace around plants

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 Encourage our business associates to adopt similar approach for environmental
protection

Corporate Social Responsibility

Apart from providing primary medical, health and educational facilities to

the people living in and around its township, ITC has been undertaking several
initiatives to promote art & culture of the country with four sports Academics under
its fold, ITC continues to promote sports as an integral part of the company’s
corporate philosophy.

3. ORGANIZATIONAL STRUCTURE

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Classification by level and Greads
DESIGNATION GRADES LEVEL

Branch Manager C 3

Head of D,E 4
Department

Assistant E,F 5
Manager

Supretendend, Executive, executive G(TG1,TG2,TG 6

Engineering 3)

Assistant security H(H1,H2,H3 3

officer )

4.1 HUMAN RESOURCE DEPARTMENT

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Putting human energy to productive use of what personnel management is all

about. The tasks necessary to accomplish the organization’s purposes must be specified,
and broken down into workable units that can be performed by one individual. The efforts
of each individual must be co-ordinate with those of others Persons with the needed skills
and abilities to perform must be acquired. Once they must be motivated to perform. As
skills become obsolete, training in new skills must occur. Corrective actions must be taken
if work does not meet prescribed standards. Measures must be instituted to retain the
services of those who make a positive contribution.

Personnel management exists to perform these and related activities.

HIERARCHY IN HR DEPARTMENT

FUNCTIONS
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Recruitment

Procedure of recruitment:-

Internal recruitment –

• Job postings are done in the company

• It is displayed on the notice boards of various departments.

• It is only for special posts in the company

External recruitment-

In the month of May recruitment for E1 level jobs are advertised on-

• ITC’s website

• ITC magazines’-News’

• Employment News

Employee Services:-

It maintains the general welfare of employees on the job and assists them with
problems related to their security and personal well being.

1) Medical Services: Prevents diseases and physical ailments and cares for diseases,
ailments, and injuries incurred by employees on the job.

2) Recreation: Provides programmers and facilities for the enjoyment of employees of

the job and for making company employment more attractive and satisfying.

3) SCHOOL: ITC has a primary school for Employee’s child at ITC Park.

4) SPORTS AND GAMES: Competition in sports and games are conducted every year
among the employees. A Golf ground is also for managers.

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5) CONSUMERS CO-OPERATIVE SOCIETY: Consumers co-operative society is
available to meet the needs of the employees for supply of essential commodities.

6) CANTEEN: A pure and hygiene canteen is provided to cater the needs of the
employees. Tea, snacks lunch and dinner are providing to all employees.

7) COLONY/TOWNSHIP: The Company has well planned housing colony with 10

sectors each having about 280 quarters for various grades of employees.80 quarters for
managers at ITC Park and 200 quarters for others employees at shankarpur near from ITC.
Round the clock security arrangements are provided in the colony. And there are few guest
houses also.

8) WATER SUPPLY: Portable water is supplied from nearby Ganga River and is
supplied twice a day throughout the year. Separate water storage tanks are available for
each quarter.

9) BUS FACILITY: Different buses and cars are available for different sector employees
for going to plant. The bus runs timely for different shifts.

10) OTHER SERVICES: Every six month employees are given some gifts (rain coat and
other gifts). Holiday’s packages in which they are given total expenditure for themselves
and their family to go for holidays in any corner of India and they can stay in ITC’s hotels.

GENERAL ADMINISTRATION:-

Office general timings:

1) 7:00 am-4:00pm

2) 8:00 am- 5:00 p.m.

Shift timings:

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‘Early’ shift – 06:00 am – 02:30 pm

‘Late’ shift – 02:30 pm – 11:00 pm

‘Night’ shift – 11:00 pm – 06:00 am

The HR department aligns itself to create a proactive work environment for its
customers to enable them to perform and also act as change agents to prepare them for the
future by continual improvement and enhancement of their skills and knowledge through
motivating means.

4.2 COMMERCIAL DEPARTMENT

The complexities which exist in the management of ITC LTD, Munger has given a
distinct position to the head of the finance Department. Manager Finance He is a member
of the top management team and is entrusted with the responsibility of planning,
organizing and controlling the financial and controlling the financial affairs of the
company the finance function assumes greater importance in ITC due to its special features
like huge capital investment, longer gestation period lower profitability.

Finance Department renders specialized professional service by advising the head

of the organization as well as staff members on matters having financial implications.

HIERARCHY IN COMMERCIAL DEPARTMENT

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Stock Exchange Reuters Code Bloomberg

Functions

(a) Acceptance of cash and payment

(b) Maintenance of books on accounts completion of balance sheet and then Audit.

(c) Maintenance of stationary records like wages Act, Workmen compensation Act,
Bonus Act etc.

(d) Financial planning for adequate flow and balance of cash.

(e) Evaluation of capital project.

(f) Budgeting for the operational and capital activities

(g) Costing and pricing

(h) Working capital management for materials operating cost & getting money back
by selling to customers.

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Techniques of capital Budgeting used in ITC:-

1.) Payback period method

2.) Accounting rate of return method

3.) Net present value method

Finance department helps in efficient allocation of capital. It renders specialized

professional services by advising the head of the organization as well as staff members on
matters having financial implications.

4.3PRODUCTION DEPARTMENT

Production, Planning & Control (PPC)

Production, Planning & control are concerned with the organization and planning
of the manufacturing process. The highest efficiency in production is obtained by
manufacturing the required quantity of production, of required quality, at the required time,
by the best and most economical method.

Production, planning & control is a facilitation service to achieve this target.

Functions of PPC 
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1) Production, planning & control translates the market or sales forecasts into master
production plan work out the raw material & other input requirements & prepares
the detailed departmental production schedule for different time periods (annual,
quarterly, monthly, weekly & daily).

2) It establishes the basic relationship among production capacity, inventory levels

and sales rate for some period in the future. The objective of such planning is to
achieve optimum utilization of available resources.

3) Production, planning & control also prepare alternative plans to meet emergencies.

4) After planning in the second phase, operation is to be executed in accordance with

the production plan.

5) The third phase is a monitoring phase of production management, a phase where

actual performance is observed and recorded for the purpose of recording and / or
follows up. Actual performance is compared with the planned performance and,
when required, corrective action is taken. In some cases preplanning may be
necessary in view o the change situation and to ensure the effective utilization of
men & machines.

Main units of Process Flow & Supporting units

The main units of production in ITC are:-

 Manufacturing Cigarette Factory :-

 Primary Manufacturing Department

 Secondary Manufacturing Department

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 Printing & Packaging Factory :-

Some of the important supporting units are:-

1. Energy power Plant

2. Engineering

3. Slid Making

4. warehouse

5. Logistic

PROCESS FLOW OF PMD

LAMINA STEM

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Secondary Manufacturing Department

IN Secondary cigarettes prepared in these process:-

 Tobacco comes from CTS directly to Maker machine

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 Maker use WMS material to make cigarettes

 Final cut off goes to packer for packing

 Packer packs the cigarettes to use WMS in a process

 A laser printer print price of cigarettes as per packet

 Finally packed cigarettes go to shipping yard

Brands being produced -

– Wills Flake Filter, Gold Flake Filter, Gold Flake Filter Premium , Capstan
Filter

– Capstan Scissors

– Capstan Std, Scissors

SECONDARY PROCCESS FLOW

Tobacco
From
CTS
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Making Machine
WM
‘LOGA, MAR 8
MAX’ S

Packing Machine
WM ‘FOCKE’
S

Marshalling Yard

Shipping
Yard

Manufacturing Process of Makers

Process of LOGA MARK8 MAX

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Hopper

Main Feed Drum

Final Cut Off

Suction Chamber

Tipping Unit
Hydraulic WT
Control unit

Filter unit
Garniture

Cutter Area In Feed Unit

LOGA
can produce 9000 cigarettes per Min
MARK 8 MAX can produce 3000 Cigarettes per Min

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Manufacturing Process of Packer

Process of FOCKE

Feed Parceller
Section/SATU

Sealer Section J Conveyor

Shell Feed
HSW
Section

Link-up Section

Capacity: - FOCKE can pack 300 packets per min.

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Printing & Packaging Factory

Objective

– To supply packet to Secondary manufacturing department of cigarettes with

the desired attributes

Apart from that ITC Printing factory also prepares packets for these products:-

 For all ITC products

 Nokia mobile

 Motorola

 Black Dog Wine

 Mortine

 Hance Undergarments

 Goodnight

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Process Flow of PRINTING

PAPER
BANDAL

INFEED

COLOUR FINAL
BOX 1 CUT OFF

COLOUR
BOX 2 Q 100 WASTAG
CAMERAS E
COLOUR
BOX 3
DELIVERY
COLOUR
BOX 4
EMBOSSI
COLOUR NG
BOX 5

COLOUR CREASING
BOX 6

COLOUR CUTTING
BOX 7

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‘QUIS’ QUALITY CONTROL

The Research and Control Labs at ITC monitor all quality parameters of inputs and
products of different shops. A well-equipped Research & Control Laboratory has been
provided for testing, inspection, research and many other control functions, ensuring that
the customers get the best quality products. The R&C Laboratory has two major wings:

1. Chemical Wing: For testing actual composition of materials before further

processing.

2. Inspection Wing: Responsible for inspecting quality of saleable products.

Parameters of Checking

PMD

• Moisture content

• Quality ratio (measure of particle size)

• Fill value of cut tobacco

SMD

• Weight of cigarettes

• Circumference

• Cigarette Firmness

• Pressure Drop

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• End Stability

• Pack steal

QUALITY ASSURANCE SYSTEM

As a testimony to its commitment to excellence and enhanced customer

satisfaction, all the units of ITC Munger form PMD, SMD are accredited to the ISO
9001:2000 Quality Management Systems. In ITC Munger unwavering commitment to
environment protection, the ISO 14001:2004 Environment Management Systems is being
implemented across the plant. The Mills Zone has already been certified under these
standards, while audit has been successfully completed for Stage-1 certification of the
remaining production units. The Mills Zone has already received this certification, and the
remaining production departments have been successfully audited Stage-1 certification.

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4.4 ENGINEERING DEPARTMENT

The objective of industrial Engineering is to establish and review appropriate

methods, standards and programmers for improving production, operating and
maintenance practices in the plant.

The industrial engineering department is responsible for the following activities:-

 Development and review of organization structure and manpower needs.

 Methods Engineering

 Development of simplest work methods and processes ensuring effective utilization

of men, material and machines.

 Development of plant layout which is most economical to operate, and vet safe and
satisfying to employees.

 Waste reduction.

 Job evaluation, rate and norm setting.

 Apply network techniques for all major repair / construction jobs to minimize cost
and time overruns.

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 Application of value Engineering and linear programming and other Operation
Research techniques for optimizing the use of scare resources, blending of raw
materials and determining the most economical products mix etc.

4.5 SECURITY DEPARTMENT

Functions

 To Protect properties of Munger Factory

 To check incoming and outgoing material / persons

 To monitor Fire System Control

 Globe Intrusion Alarm System

 To check and control of ITC vehicle

4.6 MANAGEMENT INFORMATION SYSTEM DEPARTMENT

Functions

 Strategic planning for the organization (mission, vision, values, goals).

 Resource planning for the organization (people, revenue, technologies, facilities,

other,).

 Revenue development (obtaining and allocating funds for major activities).

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 Board and employee development (recruiting, training, organizing).

 Development of other resources (facilities, supplies, policies, procedures, etc.).

 Supervision and teamwork.

 Product and service development.

 Advertising and promotions.

 Processes (cross-functional).

5. SWOT ANALYSIS

STRENGTHS

 Proven capability to ramp up production during divisional contingency

 New and Standardized Technology

 Project Management

 Cross functional alignment towards unit objectives

 Responsiveness to change

WEAKNESS

 Skill and Literacy levels of employees

 Health and number of unallocable

 Access Control

 Transportation Infrastructure
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 Low productivity

 Entry tax

OPPORTUNITIES

 Long Term Agreement (LTA)

 New union formation

 Identified Investment plan

 Launch of new Segments/Brands

 Process Improvements

 Multiple avenues for CSR activities

THREATS

 Unpredictable local environment

 COTPA enforcement

 Increasing Naxalite movement in around Munger

 Municipality tax

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6. FINDINGS

FINDINGS

 The span of management and authority delegation is centralized.

 The company is guided by ethics

 Workforce is diverse

 ITC maintains good industrial relations. There have been no lockouts or strikes

for a very Long period

 The investment decisions of the firm are done by Payback period method, accounting

rate of return method, Net Present value method

 Productions department is trying to achieve high efficiency in manufacturing the

required quantity of product, at the required time, by the best and most economical

method

 Here, the working culture supports flexibility, learning and is proactive to change

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 ITC imparts training to create safety consciousness and to work safely to be a key

element of safety programs

 ITC is progressively adopting cleaner and energy efficient technologies.

 Training programs for employees are held regularly

 Modernizations of plant are done from time to time to keep pace with the latest trends

in Cigarettes making

7. CONCLUSION

ITC ltd is a profit making company. It boasts of its maximum indigenous

content in terms of equipment, materials and knows how. The continuous casting
shop, the fastest in country, is equipped with advanced level-3 automation and
control system. The fully automatic Making and Packing machine of ITC ltd
produces a wide range of products. It is the only continuous Making in India. The
machine of ITC ltd the widest in the country-produces high quality products.

Modernization of the plant is done from time to time to keep pace with the
latest trends in cigarettes’-making. ITC LTD is the largest cigarettes - maker in
India.

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8. BIBLIOGRAPHY

Sl.no Books Authors

1. Human Resources & Personal Management K. Ashwathappa

2. Production & Operation Management K. Ashwathappa

3. Company Manual

Website:-

www.itcportal.com

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