1 CHAPTER 1 INTRODUCTION
The balanced scorecard, a framework that links business strategies with day-to-day activities, is one solution that has worked wonders for many. A balanced scorecard aligns measures with strategies in order to track progress, reinforce accountability, and prioritize improvement opportunities. A balanced scorecard integrates four related perspectives: financial, customer, internal business processes and learning and growth. Each of the four perspectives is inter-dependent - improvement in just one area is not necessarily a recipe for success in the other areas.
But the fact is that, all the other perspectives are dependent on the learning and growth perspective. Measures in this perspective are lead indicators for improvements in the internal processes, customer and financial perspectives. The Learning & Growth Perspective focuses on the intangible assets of an organization, mainly on the internal skills and capabilities of the employees that are required to support the value-creating internal processes. The measurement of the level of satisfaction of the employees is an important factor. Everything stems from the vision of the company.
Every employee must be aligned with the vision of the organization. This is what helps the organization in achieving its goals. This is a very important aspect as far as any organization is concerned, because employees are the key to success. The vision was closely studied and broken down in order to understand the objectives and measures taken by the organization to remain successful and competent. The main aspects of the balanced scorecard, that is, employee satisfaction, employee retention and employee productivity were also studied, giving special emphasis to employee satisfaction.
1.1 Statement of the Problem
With more and more players emerging in the market, ITC needs to maintain its position and remain competent. In order to achieve this, the organization needs to identify new methods and initiative. It will be necessary to bring out effective learning and growth initiatives. The success of any organization depends on the level to which it is flexible and innovative. For this, the company‘s vision was studied closely and new measures were identified that will help the organization to remain the forerunner, in spite of the tough competition. In identifying new measures and in incorporating it, it was necessary to learn
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about the present level of employee satisfaction as well as how they feel about the measures that are already followed in the organization. So the measurement of employee satisfaction is essential to the management. It was also necessary to understand the employee retention level as well as the productivity of the employees in order to get a clear idea about the learning and growth aspect of the organization. The various other aspects of learning and growth were also identified and analysed.
1.2 Objectives of the Study
1) To give an overview about Balanced Scorecard.
2) To evaluate whether ITC is successful enough in implementing its vision through current strategies.
3)To analyse how effectively ITC Ernakulam Division is harnessing its employee capabilities for achieving organizational goals using learning and growth perspective of Balanced Scorecard.
1.3 Scope of the Study
The project provides a good understanding of the learning and growth aspect of the employees in the organization. So it helps to find out the effectiveness of the learning and growth process of the organization in achieving the goals of the organization. It also helps to study the measures that have already been taken towards achieving the vision of the organization. This also facilitates the understanding of employee satisfaction in the organization. The employee retention rate and the employee productivity were also measured. These aspects are very important as far as any organization is concerned, because employees are the key to success.
1.4 Research Methodology 1.4.1 Research Design :
Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project work together to try to address the central research questions. This study is a descriptive study. Here the researcher goes through the state of affairs existing in the company. The design chosen for the study is descriptive research design.
3 1.4.2 Research Approach :
Research Approach refers to the approach or the methodology that is adopted to conduct the research. The research approach that was used in the study was survey research and observation. Since ITC has branches that are spread across India, it is not possible to collect data from all the branches. Hence the researcher conducted a sample survey. The employees of the India Tobacco Division, Ernakulam were taken for the study. The learning and growth initiatives taken by the Company towards achieving their Vision were also studied.
1.4.3 Data Sources:
The data required for the research purpose was collected from: 1. Primary data source
2. Secondary data source Primary Data:
Primary data are collected by the researcher using various methods. The key point here is that the data collected is unique to the researcher and the research, until it is published, no one else has access to it. Methods used for collecting primary data were:
1. Questionnaire and 2. Personal interview Secondary Data:
Secondary data is the data that have been already collected and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all. The sources of secondary data were the HR department, annual report of the company, company website, journals, magazines and other published records of the company.
1.4.4 Research Instrument:
The research instrument used for the study is questionnaire. A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. A structured questionnaire was developed to collect all the relevant information from the employees.
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The questionnaire contains ten questions that were asked to measure the level of satisfaction of the employees regarding the various aspects of the organization. This was measured on a five point scale. Through this questionnaire, the satisfaction of the employees regarding the working environment, superior-subordinate relationship, importance given by the Company towards the learning and growth activities, training, performance appraisal system, pay package, salary increment policy, promotion activities and value addition to their career, were measured. The questionnaire also includes demographic questions like age of the respondent, years of experience, academic qualification and marital status. Thus the questionnaire includes all the factors that are necessary for measuring the employees‘ satisfaction in their workplace.
The other learning and growth aspect of the Company was studied by breaking down the Vision and then identifying the objectives and the measures taken by the Company for achieving the Vision.
1.5 Sampling Plan:
The determination of sampling unit, sample size and sampling procedure are given in the definite form under sampling plan.
1.5.1 Sampling Unit:
ITC has many marketing divisions which adopt the same managerial strategies. In order to study the learning and growth initiatives of ITC, we have selected the Ernakulam division as the sample.
1.5.2 Sampling Procedure:
As there are only 74 members in the pay roll of the Ernakulam division, it was decided to do a census survey in the division. Thus questionnaire was provided to all the employees and managerial people in the division.
The sampling procedure that is used here is the direct contact method. This is the method by which the researcher will have a direct face-to-face interaction with the respondents.
1.5.3 Research Period:
The time period of the research is 2 months, that is, from 17/05/2010 to 17/07 2010. In order to study the employee retention and productivity, the data for the past three years were also used.
5 1.6 Limitations of the Study
a. Since it is not possible to study all the branches of the company, there may be variations in the measures adopted.
b. The employees may be busy and so may not be able to give sufficient time for interview and for filling the questionnaire.
c. Being an outsider may also limit what is revealed to me. The employees may be guarded in their conversations.
d. Out of the four perspectives of the Balanced Scorecard, only the learning and growth perspective was studied.
e. Since the study requires more time and the support of the top management, only the objectives and measures of the learning and growth aspect could be identified.
f. Though it is a study on Balanced Scorecard, more emphasis is given to job satisfaction.
g. Even though there are three principal categories for the learning and growth perspective, only employee capabilities is measured.
1.7 Chapter Scheme
This project report is presented in 6 chapters.
i. First chapter contains introduction which includes statement of the problem, objectives of the study, scope of the study, research methodology, limitations of the study and chapter scheme.
ii. Second chapter consists of industry profile which contains international scenario, national scenario and the state scenario.
iii. Third chapter gives an overview about the profile of ITC Ltd which includes the history and growth of the company till now, future plans, financial performance of the company and the details of HR department etc.
iv. Fourth chapter contains theoretical background and it gives an overview about the concept of balanced score card, learning and growth and the various aspects involved. v. Fifth chapter includes data analysis and interpretation of data collected for this study. vi. Sixth chapter contains the findings, suggestions and conclusion of the research.
6 CHAPTER II
PROFILE OF FMCG INDUSTRY 2.1 International Scenario
The wide range of consumable goods provided by the FMCG industry turns over a large amount of money, while competition among FMCG manufacturers is become more and more fierce. Investors are putting more and more into the FMCG industry, especially in India, where the FMCG industry is the fourth largest sector, having a total market size of more than US$13.1 billion, and has doubled by 2010. In New Zealand as well, the FMCG industry accounts for 5% of Gross Domestic Product (GDP). The FMCG is an industry that is growing tremendously and has a lot of potential.
The factors that made the FMCG industry a highly competitive one are low operational cost, solid distribution networks, and emergence of new FMCG companies. In addition, the growth of the world‘s population is another responsible factor for the huge success of this particular industry. Some of the leading FMCG companies all over the world are Sara Lee, Nestlé, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Mars etc.
Fast Moving Consumer Goods Industry not only provide the necessary goods for day to day life, but the FMCG industry has also created tremendous job opportunities and careers. It is a stable, varied, and highly profitable industry, and the jobs it provide range from sales, supply chain, finance, marketing, operations, human resources, development, general management, and so on.
The working force within FMCG manufacturing in the UK accounts for 14% of the total workforce in UK.
Sales in the FMCG industry account for around £35.5 billion in 2010, spent on non-food UK products alone, in grocery retail sectors in UK. Including sectors such as Food, Drink and Pharmaceutical the output registered by FMCG accounts for 19% of the UK's GDP.
The market growth over the past 5 years has been phenomenal, primarily due to consumers‘ growing disposable income which is directly linked to an increased demand for
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FMCG goods and services. Indeed, it is widely acknowledged that the large young population in the rural and semi-urban regions is driving demand growth, with the continuous rise in their disposable income, life style, food habits etc. On the supply side, the wide availability of raw materials, vast agricultural produce, low cost of labour and increased organized retail have helped the competitiveness of players.
2.2 National Scenario
The Indian FMCG Industry
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income.The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up.
Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.
India - A Large Consumer Goods Spender
An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total
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individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.
Table 2.1 Showing the Top 10 Companies in FMCG Sector Sl. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
The companies mentioned are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India.The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category.
Amul, India's largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100
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FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk.
Dabur is among the top five FMCG companies in India and is a herbal specialist. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World. Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems.
The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space. There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.
Scope of FMCG Sector
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments, characterizes the sector.
This sector has a good growth potential. The FMCG sector in Indian has shown Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report.
10 Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mind-set of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future.
At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets
The following factors make India a competitive player in FMCG sector:
1) Availability of Raw Materials
Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.
2) Labour Cost Comparison
Low cost labour gives India a competitive advantage. India's labour cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost
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of production. Many MNC's have established their plants in India to outsource for domestic and export markets.
3) Presence across Value Chain
Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.
Analysis of Indian FMCG Sector Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
12 Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure
The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors. After two years of sinking performance of FMCG sector, now the sector now the demand is growing. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree.
Recent Developments in Fast Moving Consumer Goods (FMCG) Sector
FMCG sector is no doubt registering an uptrend in growth. According to CNBC, FMCG sector growth story will continue because of the positive budget. Nevertheless, there are some barriers to the growth of the sector. Indirect taxes constitute no less than 35% of the total cost of consumer products - the highest in Asia.
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CHAPTER – III COMPANY PROFILE 3.1 ITC Corporate Positioning Statement
―Enduring value. For the nation. For the Shareholder.‖
3.2 ITC 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.‖
3.3 ITC Mission
―To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.‖
ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 22 billion and a turnover of over US $ 5 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.
As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management
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and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
3.4 History of the Company
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.
This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then
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ITC's Hotels business has grown to occupy a position of leadership, with over 70 owned and managed properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.
ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at
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Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paper Kraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC InfoTech is one of India‘s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail) and THT (Travel, Hospitality and Transportation).
ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.
In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's
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entered the fast growing branded snacks category with Bingo! in 2007. In just six years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC‘s foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (InizioHomme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel Di Wills &Vivel range of soaps in February 2008.
18 3.5 Management Structure
Figure 3.1 Showing ITC’s Three-Tier Management Structure
At the top are Chairman and Board of Directors, who are responsible for the strategic supervision of ITC, its wholly owned subsidiaries and their wholly owned subsidiaries. The ITC board is a balanced board comprising Executive and Non-Executive Directors. The Board ensures that the Company has clear goals relating to shareholder value and its growth. It sets strategic goals and seeks accountability for their fulfilment. There are four board committees, namely, the Audit Committee, the Nominations Committee, the Compensation Committee and the Investor Services Committee.
At the second level is the Corporate Management Committee, which is responsible for the strategic management of the company's businesses within Board-approved direction/framework. It comprises all the Executive Directors and three or four key senior members of management.
Third level consists of divisional CEOs of each business assisted by their own divisional management committees. Corporate Functions of the Executive Management Team includes Planning and Treasury, Accounting, Legal, Secretarial, Human Resources, Communications, Internal Audit and Information Technology.
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The company‘s organizational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each of them." This three-tier governance structure ensures that:
For and on behalf of the shareholders the company believes in incorporating strategic governance in its work culture so as to ensure that despite being free from involvement in the task of strategic management of the Company, it can be conducted by the Board with objectivity, thereby sharpening and ensuring accountability of management;
With mundane tasks of everyday executive management being delegated the management remains focused on issues of immediate importance;
The Executive management of the individual businesses that are free of handling strategic management responsibilities of ITC as a whole is then able to channelize their energies and time in enhancing the effectiveness and overall growth of their individual units.
Corporate Governance as defined by ITC is a systemic process by which companies are directed and controlled to enhance their wealth-generating capacity. A company employs vast sums of societal resources during this process of wealth generation. ITC is of the firm belief that the governance process being followed should ensure that these resources are used optimally to meet the aspirations of its stakeholders and society. This is further reflected in the deep commitment of the company to contribute to the ‗Triple Bottom Line‘, which is the development of the nation‘s economic, ecological and social resources.
The company believes in empowering the executive management. But corporate governance ensures a system of checks and balances to ensure that these powers that are bestowed upon the executive management are used in a responsible manner so as to meet shareholder and societal expectations. The core strengths of ITC's governance philosophy are trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. The practice of each of these creates the right corporate culture that fulfils the true purpose of Corporate Governance.
Design
Looking at the structure and culture of ITC, it can be said that its design is based more or less on the Divisional Structure. ITC has a diversified presence in different industries and each of its businesses act as an autonomous unit which are coordinated by the top level, i.e.
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the board and corporate management committee. The divisional managers are responsible for performance and hold complete strategic and operating decision-making authority. The top management provides support services to the divisions. It acts as an external overseer, evaluating and controlling performance. Hence the top management is free from being concerned with the day-to-day operating details so they can pay attention to the long term. Big picture, strategic decision making is done at the top level.
3.6 Corporate Governance
Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognises the challenge of this new business reality in India.
Core Principles
ITC's Corporate Governance initiative is based on two core principles. These are:
(i) Management must have the executive freedom to drive the enterprise forward without undue restraints; and
(ii) This freedom of management should be exercised within a framework of effective accountability.
ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a
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mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.
Cornerstones
Corporate Governance is the cornerstone of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance.
a) Trusteeship :
ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected.
b) Transparency :
ITC believes that transparency means explaining Company's policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardising the Company's strategic interests. Internally, transparency means openness in Company's relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. They believe that transparency enhances accountability.
c) Empowerment and Accountability :
ITC believes that empowerment is a process of actualising the potential of its employees. Empowerment unleashes creativity and innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy.ITC believes that the Board of Directors are accountable to the shareholders, and
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the management is accountable to the Board of Directors. ITC believe that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value.
d) Control :
ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.
e) Ethical Corporate Citizenship :
ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, both internally within the organisation, as well as in their external relationships. ITC believe that unethical behaviour corrupts organisational culture and undermines stakeholder value.
23 The 3-tier governance structure thus ensures that:
(a) Strategic supervision (on behalf of the shareholders), being free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management.
(b) Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised; and
(c) Executive management of the divisional business, free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business.
Roles
The core roles of various entities at the 3 levels of corporate governance are as follows.
Board of Directors (Board):
The primary role of the Board of Directors is that of trusteeship to protect and enhance shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and their wholly owned subsidiaries. As trustees they will ensure that the Company has clear goals relating to shareholder value and its growth. They should set strategic goals and seek accountability for their fulfilment. They will provide direction, and exercise appropriate control to ensure that the Company is managed in a manner that fulfils stakeholder aspirations and societal expectations. The Board must periodically review its own functioning to ensure that it is fulfilling its role.
Non-Executive Directors are expected to play a critical role in imparting balance to the Board processes by bringing an independent judgement to bear on issue of strategy, performance, resources, standards of Company conduct, etc. The Board shall meet at least six times a year and as far as possible meetings will be held once in two months. The annual calendar of meetings shall be agreed upon at the beginning of each year.
Chairman – Yogesh Chander Deveshwar Executive Directors
24 ii) KrishnamoorthyVaidyanath
iii) KurushNoshir Grant
Non-Executive Directors i) Anil Baijal
ii) Shilabhadra Banerjee
iii) Angara VenkataGirija Kumar iv) SerajulHaq Khan
v) Sunil BehariMathur vi) Dinesh Kumar Mehrotra vii) Hugo Geoffrey Powell viii) Basueb Sen
ix) PillappakkamBahukutumbiRamanujam x) Anthony Ruys
xi) BalakrishnanVijayaraghavan
The Board have the following Committees whose terms of reference shall be determined by the Board from time to time:
Audit Committee:
To provide assurance to the Board on the adequacy of internal control systems and financial disclosures. The Head of Internal Audit will act as co-ordinator to the Audit Committee, but will be administratively under the control of the Director accountable to the Board for the Finance function.
Compensation Committee:
To recommend to the Board compensation terms for Executive Directors and the senior most level of management below the Executive Directors.
Nominations Committee:
To recommend to the Board nominations for membership of the CMC and the Board, and oversee succession for the senior most level of management below the Executive Directors.
25 Investor Services Committee:
To look into redressal of shareholder and investors grievances, approval of transmissions, sub-division of shares, issue of duplicate shares, etc.
3.7 Corporate Strategies
a) It sustains multiple drivers of growth, matching internal capabilities with emerging market opportunities
b) It pursues World class competitiveness in all businesses and across the entire value chain
c) Best-in-class in terms of: i) Internal Vitality
ii) Market Standing iii) Profitability
d) It follows a strategy of Organization and Governance processes, geared to manage multiple businesses.
3.8 ITC- Corporate Social Responsibility 1) Environmental
a) ITC has been Carbon Positive 3 years in a row.
b) Water Positive 6years in a row.
c) 100% solid waste recycling
2) Social
a) ITC's businesses generate livelihoods for over 5 million people.
b) ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged.
c) ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas.
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d) ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes.
e) The first ITC Sangeet Sammelan showcasing the best in Indian classical music was held in Delhi in 1971.
Being a responsible corporate citizen, ITC is doing so many activities for the welfare of society and darks as a responsible corporate leader without any gap. Some of its major societal activation for the welfare of different section of society is as follows-
a. Environment, health & safety (EHS)
b. Reaching out to society
c. Preserving national heritage.
d. Supporting sustainable development
a. Environment, health & Safety (EHS):
As a responsible corporate citizen, ITC accords the highest priority to environment, occupational health, and safety. It is committed to protecting the environment in which it operates. It is equally committed to ensuring very high standard of safety at the work place.
It is a relegations of ITC‖ high EHS standards that lit has been the recipient of several National and international awards- such as-
1) ISO 14000 2) Sword of honour
3) Royal society of prevention of accidents awards. 4) National safety awards.
5) The corporate Environment award.
6) The golden peacock environment management award. 7) Excellence in pollution control management.
8) Prashanna Patra Award.
27 b. Reaching Out to Society:
As a responsible corporate citizen, ITC promotes art, culture and education. Besides working for the protection and enrichment of the environment and over all social development, ITC also looks into:
1) Community development. 2) Education.
3) Protecting the environment.
c. Preserving National Heritage:
As a socially responsible corporate citizen, ITC endeavours to creates value for the Indian society in multiple ways, one of them being ―Preservation of India‖ rich culture heritage. ITC has made significant contribution to the promotion of Indian classical music, theatre, art and cuisine.
3.9 Social Initiative of ITC
E-Choupal is one of the major initiatives of ITC Limited, a large multi business conglomerate in India, to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. E-Choupal was conceived to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries. The programme involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.
The e-choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. ITC‘s Agri Business Division, one of India‘s largest exporters of agricultural commodities, has conceived e-choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis.
A powerful illustration of corporate strategy linking business purpose to larger societal purpose, e-Choupal leverages the Internet to empower small and marginal farmers – who constitute a majority of the 75% of the population below the poverty line. By providing them with farming know-how and services, timely and relevant weather information,
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transparent price discovery and access to wider markets, e-Choupal enabled economic capacity to proliferate at the base of the rural economy.
Today 4 million farmers use e-Choupal to advantage – bargaining as virtual buyers‘ co-operatives, adopting best practices, matching up to food safety norms. Being linked to futures markets is helping small farmers to better manage risk. e-Choupal has been specially cited in the Government of India‘s Economic Survey of 2006-07, for its transformational impact on rural lives.
ITC‘s strategic intent is to develop e-Choupal as a significant two-way multidimensional delivery channel, efficiently carrying goods and services out of and into rural India. By progressively linking the digital infrastructure to a physical network of rural business hubs and agro-extension services, ITC is transforming the way farmers do business, and the way rural markets work.
Table 3.1 Showing Details of E-Choupal
e-Choupal Now
States covered 10
Villages covered 40,000 No. of e-Choupals 6,500 Farmers e-empowered 4 million
ITC Limited has now provided computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited. This online access enables farmers to obtain information on mandi prices, and good farming practices, and to place orders for agricultural inputs like seeds and fertilizers. This helps farmers improve the quality of their products, and helps in obtaining a better price. Each ITC Limited kiosk having Internet access is run by a sanchalak — a trained farmer. The computer is housed in the sanchalak's house and is linked to the Internet via phone lines or by a VSAT connection. Each installation serves an average of 600 farmers in the surrounding ten villages within about a 5 km radius. The sanchalak bears some operating cost but in return earns a service fee for the transactions done through his
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Choupal. The warehouse hub is managed by the same traditional middle-men, now called samyojaks, but with no exploitative power due to the reorganisation. Indeed these middlemen make up for the lack of infrastructure and fulfill critical jobs like cash disbursement, quantity aggregation and transportantion.
Since the introduction of e-Choupal services, farmers have seen a rise in their income levels because of a rise in yields, improvement in quality of output, and a fall in transaction costs. Even small farmers have gained from the initiative. Customized and relevant knowledge is offered to the farmers despite heterogeneous cultures, climates and scales of production. Farmers can get real-time information despite their physical distance from the mandis. The system saves procurement costs for ITC Limited. The farmers do not pay for the information and knowledge they get from e-Choupals; the principle is to inform, empower and compete. At the same time ITC Limited has obtained benefits from the programme:
1. elimination of non value added activities
2. differentiated product through identity preserved supply chains 3. value added products traceable to farm practices
4. e-market place for spot transactions and support services to futures exchange
3.10 Working Areas of ITC Ltd
ITC is into eight (8) major areas of production, distribution and servicing. These are as follows-
A. FMCG - Cigarettes and Tobacco, Foods
B. Hotels.
C. Packaging
D. Paper board & Specialty paper
E. Information Technology (IT)
F. Life style retailing
G. Agro-Exports
30 A. FMCG
Cigarettes and Tobacco:
ITC buys nearly 50% of all cigarettes types tobacco grown in India. It has been India ―single largest integrated sources of quality tobacco for customer‖ in 37 countries over the last 6 decades. ITC‘s Comprehensive and sophist6icated R&D facilities cover all aspects of cultivation. Processing and packaging. ITC processes and delivers 100 million Kg of high quality tobacco per annum. ITC also co-operates with government agencies to develop new varieties of tobacco and to develop new areas for tobacco cultivation.
Tobacco Division
The company started in the year 1910 with the cigarettes business and devoted the first six decades to the cigarettes business only which it later on expanded to other divisions as well. Today ITC Ltd is the market leader in this segment with its wide range of brands like Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
Foods
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. ITC has stood for quality products for over 98 years to the Indian consumer and several of its brands are today internationally benchmarked for quality.
The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research.
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Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bengaluru.
Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 99 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business.
The Foods business is today represented in 4 categories in the market. These are:
i) Ready To Eat Foods ii) Staples
iii) Confectionery iv) Snack Foods
B. Hotels:
ITC entered into hotels field in 1975. ITC have 46 hotels across 42 destinations all over India.
ITC-Welcomgroup - Redefining the Fine Art of Hospitality
ITC's foray into the hotels business began in 1975. Inspired by the vision to promote India's rich tourism heritage and also contribute to the nation's then scarce foreign exchange earnings, ITC's hotels business set about to create a unique value proposition that would redefine the fine art of hospitality. Since then ITC-Welcomgroup has emerged as one of India's premier hospitality chains offering hotels, resorts and palaces. They have over 100 hotels in more than 80 destinations. A select few among ITC‘s hotel properties are also associated with Starwood‘s Sheraton brand with which ITC has enjoyed a three decade partnership.
ITC-Welcomgroup properties are classified under 4 distinct brands:
a) The Luxury Collection
32 c) Fortune Hotels
d) WelcomHeritage
ITC Hotel – Luxury Collection
World Class Hospitality with an Indian Soul
Super deluxe and premium hotels, located at India‘s most important cities, offering an unmatched and unique blend of luxury and Indian hospitality.
ITC‘s seven Luxury Collection hotels offer a luxurious window into the ambience and architectural splendour of ancient dynasties. The seamless amalgam of history, the cultural ethos of different regions in India and the mood of today‘s vibrant India, create some of the most enriching experiences anywhere in the world.
WelcomHotels - Warm and Caring
WelcomHotels, synonymous with customer centricity and efficiency, make stays special for today‘s discerning business and leisure traveller.
Focussed on unique service design, the ITC-Welcomgroup Sheraton Hotels provide five-star comfort blended with warmth, reflecting the true essence of Indian hospitality. At ITC-Welcomgroup‘s Sheraton Hotels in Jaipur, Chennai and New Delhi, the warmth of personalised service makes every visit memorable.
Hotels of ITC
1) ITC Maurya, New Delhi 2) ITC Maratha, Mumbai
3) ITC Royal Gardenia, Bengaluru 4) ITC Windsor, Bengaluru
5) ITC Grand Central, Mumbai 6) ITC Sonar, Kolkata
7) ITC Kakatiya, Hyderabad 8) ITC Mughal, Agra
9) Sheraton Rajputana Hotel, Jaipur 10) Sheraton Chola Hotel, Chennai
33 12) Sheraton Park Hotel and Towers, Chennai 13) WelcomeHotel Rama International, Aurangabad 14) WelcomeHotel Vadodara, Vadodara
15) WelcomeHotel Grand Bay, Visakhapatnam
C. Packaging: -
ITC also producing packaging items like- Flip top boxes, car board outers, shells and slides, soft cup and strap labels, bundle wraps, flap boxes, inner frames, coupon inserts and variety and folding crotons.
The major unit (factory) which is producing packaging items- one is munger (Bihar) and other is Tiruvottiyar near Chennai.
D. Paper Board and Specialty Paper:-
ITC has now integrates sits paperboard & specialty paper business into its newly created (PSPD), to how new strategic & operational synergies. ITC is one of the world‖ most modern and contemporary manufactures of packaging (paper board) boards, with a manufacturing capacity of over 2,00,000 tones par year (1) packaging board coasted folding box boards, solid bleached sulphates board, white unit chipboard, liquid packaging board (2) cast coated papers and boards. The division also produced quality-
(a) Printing & Writing papers
(b) Eco- friendly papers
(c) Photo copier papers.
Specialty paper:-ITC is the premier manufacturer of specialty paper in India, with a diversified product. Range ITC‘s specialty paper are used in the manufacturer of cigarettes, decorative laminates. Electrical equipment, fireworks and automotive factory filters. They are also used for fire printing, packaging and carbonizing.
The division pioneered the manufacturer of specialty paper for Indian cigarette industry in 1949. It currently offers a comprehensive range of cigarette Tissues; plug Wray, tipping base, printed tipping papers and metalizing base.
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ITC's Paperboard products include: Packaging boards - coated folding box boards, solid bleached sulphate boards, white lined chipboards, liquid packaging boards, poly extruded coated boards for food and barrier packaging, cast coated papers and boards.
E. Information Technology (IT):-
ITC has recently spun off its 20 year old information system division into a wholly owned subsidiary to aggressively pursue growth opportunities in this sector. ITC Infotech India Ltd offer a powerful customer value proposition based on its in depth domain‘s know ledge gained from the experience of servicing a range of internal & external customers across diverse domains. –FMCG, hoteliering, packaging, paper boards, specialty papers, international trading etc.
ITC Infotech
ITC's wholly owned information technology subsidiary, ITC Infotech, is one of India's fastest growing IT and IT-enabled outsourced solutions providers. The Company leverages domain knowledge from its parent's market-leading position in Manufacturing, CPG & Retail and Travel & Hospitality, as well as in other domains like Banking, Financial Services & Insurance, to devise business solutions for global customers. ITC Infotech is a US $ 64 million company with over 1,700 employees. In addition to IT Solutions, Services and Co-sourcing, the Company has a joint venture with ClientLogic in the BPO space that offers a technical helpdesk with over 2,500 employees. ITC Infotech has offices in the United States, Europe and the Asia Pacific, serving Fortune-listed customers across 42 countries.
F. Life Style Retailing: -
ITC also manufacturing readymade garments range of international quality of relaxed wear under the brand name ―wills sport‖. It has 48 retail outlet across 38 cities in the country. Recently he also lunched another brand name ―John Players‖ offers complete range of contemporary men‘s wear- like shirts, Trousers, t-shirts & denims. It also lunches in Nov. 2002 under brand name ―the Classes Collection‖.
Lifestyle Retailing Business Division
ITC‘s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores providing the Indian
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consumer a truly 'International Shopping Experience' through world-class ambience, customer facilitation and clearly differentiated product presentation.
G. Agro-Exports:-
ITC international business division (IBD) is doing Exports activities of agriculture products and processed foods etc. They export the following items to UK, US and to other European countries- Soya meal, rice, aqua products, peanuts, coffee, wheat, sesame seeds, black pepper, processed and frozen fruits and vegetables.
Agri Business
In the year 1990, the company leveraged its agri – sourcing competency & thus set up the agri business division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 now extending to 10 states covering over 4 million farmers & the company‘s vision is to have a network of 20,000 e-Choupals, thus extending coverage to villages representing one sixth of rural India. ITC's Agri Business Division is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion) .
ITC's Agri business is progressively aligning its commodity portfolio with the sourcing needs of the Company's Foods business to generate higher order value from its agri procurement infrastructure.
ITC's Agri Business Division is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crore (Rs. 10 billion). Its domestic sales of agri-products are in excess Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports of:
a)Feed Ingredients - Soyameal
b)Food Grains - Rice (Basmati &Non Basmati), Wheat, Pulses
c) Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil
d) Marine Products - Shrimps and Prawns
e) Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products, Fresh Fruits
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f) Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and other Seed Spices H. GROUP COMPANIES Subsidiaries 1) ITC Infotech 2) Surya Nepal Pvt Ltd 3) Landbase
4) King Maker Marketing Inc., Usa
5) Technico Pty Ltd, Australia
6) Russell Credit Ltd
7) Wimco Ltd
8) Srinivasa Resorts Ltd
9) Fortune Park Hotels Ltd
10) Bay Islands Hotels Ltd
11) Gold Flake Corporation Ltd
Joint Ventures
1) Maharaja Heritage Resorts Ltd
2) ITCFiltrona
Associate Companies 1) Gujarat Hotels Ltd
37 3.11 Details of the Ernakulam Division
This branch/division of ITC is called the Indian Tobacco Division (ITD). They have a number of other divisions all over India. This is a division mainly aimed at the marketing activities of the FMCG products of the Company. There are five sections and each section takes care of one of the five areas.
The five sections are: Cigarettes, Foods, Personal Care, Modern Trade, and Stationary.
Branch Manager
Assistant Manager
Area Manager
Area Executive
