First few decades, primarily focussed on Cigarettes and Leaf Tobacco businesses, ITC's Packaging & Printing Business was set up in 1925.In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai -'ITC-Welcomgroup Hotel Chola‘. 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. Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.In 1979, ITC entered the Paperboards business and in 1990 entered into specialty papers business by acquiring a specialty paper firm- Tribeni tissues limited. Also in 1990, set up agri business division for export of agri commodities.In 2000, started providing IT solutions through ITC Infotech India Limited.2000 onwards entered into apparels business and personal care products.
Comprises of watershed and agricultural development, women emp, primary education and livestock development.
ITCs social forestry programme simultaneously addresses the livelihood problems of marginal farmers and the ecological imperative of regenerating biomass and nurturing depleted soils. In an innovative move ,linking these farmers need for income to the wood fibre needs of its paperboards business, ITC has enabled them to convert their wastelands to pulpwood plantation-a commercially viable land use alternative that can end their marginalisation.
Two main objectives:Achieve self sufficiency& improve productivityProvide agri farmers a viable alternative land use option
TC believes that economic empowerment of women transforms them into powerful agents of social change.The need of the hour is to diversify rural livelihoods. Towards this end, ITC has forged an empowering partnership with rural women – the most effective development workers. ITC’s intervention leverages micro-credit and skills training to generate alternate employment opportunities. Increased income in the hands of rural women means better nutrition, health care and education for their children. Working with NGOs, ITC has organised village women into micro-credit groups. Group members make monthly contributions to create a savings corpus. The corpus is used to extend soft loans to group members, thereby eliminating the stranglehold of the moneylender. The system of mandatory contribution further strengthens the savings habit, leading to capital augmentation
ITC provides training to group members to handle bank accounts and understand the nuances of government development programmes. Empowered groups function autonomously and take their own decisions, including sanction of loans to fellow-members and collection of repayments. Well-managed micro-credit groups with no default records receive further support from ITC in the form of seed money for self-employment activities
. Low Productivity Trap of Chikankari Workers Unorganised Extreme poverty Illiteracy Stranglehold of money lenders High interest rates on loan Long chain of intermediaries Labour model for work Social stigma Lack of skills and competency Gender bias
Spurred by India’s need to generate foreign exchange, ITC's International Business Division (IBD) wascreated in 1990 as an agri-trading company aiming to “offer the world the best of India's produce.”Initially, the agricultural commodity trading business was small compared to international players. By1996, the opening up of the Indian market had brought in international competition. Large internationalcompanies had better margin-to-risk ratios because of wider options for risk management and arbitrage.For an Indian company to replicate the operating model of such multinational corporations would haverequired a massive horizontal and vertical expansion. In 1998, after competition forced ITC to explore theoptions of sale, merger, and closure of IBD, ITC ultimately decided to retain the business. The Chairmanof ITC challenged IBD to use information technology to change the rules of the game and create acompetitive business that did not need a large asset base.
Choupal : ‘A village meeting Place’Vendors and customers come together to do business transactions e-choupal: A virtual market place where farmers can transact directly with a processor and can realize better value for their produce. The e-Choupal initiative directly links the rural farmers with the company for the procurement of agriculture and aquaculture products, such as soybeans, coffee, and prawns.
Rural India is a difficult business location. Transport, electric power, and information infrastructure are inadequate. Business practices are underdeveloped or outdated. Lack of access to modern resources has resulted in an under-trained workforce. Rural society is structured around subsistence and is unprepared for modern products and services. These constraints, along with many others, have dissuaded most companies from taking on the challenge of rural commerce. Over dependence on intermediaries : Because supply was very high as compared to demand. And since the entire supply chain was being controlled by intermediaries who tried to gain more profit at the cost of farmer’s effort the bargaining power of farmers was very low which ultimately led to lower margins for them Low Productivity : Had decreased due to weak physical as well as social infrastructure Low risk taking ability: Due to lack of customized knowledge advise Weak Market Orientation: They do not have access to real time information
ITC also initiated the ChoupalPradarshanKheth (ChoupalDemonstration Field) programmeto improve yields with ademonstration plot of land forevery village cluster. Acceptedbest practices have been putinto practice along with highquality fertilisers and seeds, andcomparisons made with yieldsfrom control plots to encouragefarmers to switch to improvedfarming inputs and methods.This programme is one aspect ofITC’s commitment to improvedagricultural yield, and issupplemented by the provision ofhigh quality seeds and fertilisers,both at the e-Choupal and atthe ITC rural retail centre, theChoupalSagar (CS).
Corporate Social Responsibility
Shivani Patel (53)
Himali Amin (54)
Namita Rajan (56)
Saurabh Singh (57)
Palak Kalia (58)
Aswini Paleri (59)
Ankit Modi (60)
Ashish Thakor (61)
‘The only company in the world
water positive &
solid waste recycling positive’
• Incorporated on August 24th 1910 with the name of Imperial Tobacco Company of India
• 1970- Indian Tobacco Company, 1974- I.T.C. Ltd. and 2001- ITC Ltd.
• Headquartered at J.L. Nehru road, Kolkata
• VISION – to sustain its position as one of India’s most admired and valuable companies
Triple Bottom Line
• A turnover of over US
$ 7 billion and a
of nearly US $ 35
• Direct employment to
more than 29,000
• Total shareholder’s
funds grew at a
compound rate of 26%
per annum over the
last 15 years.
• Carbon Positive seven
years in a row.
• Water Positive for ten
• Solid Waste Water
Recycling five years.
• Environment, Health
in ITC conform to
• Livelihoods for over 5
• e-choupal benefitting
over 4 million farmers.
• Social and Farm
Rs. in Crores 2010-11 2011-12 2012-13
Corporate Social Responsibility spends 45 62 82
Average Profit After Taxes for three
immediately preceding Financial Years(FY)
3,482 4,104 5,070
CSR spends as a % of Average Profit After
Taxes for three immediately preceding FYs
1.29% 1.51% 1.62%
Mission: Sunehra Kal
Integrated Watershed Development
Issue: Struggle with erratic rainfall patterns
Example: Ranjangaon area near Pune district in Maharashtra, it was under
severe draught during kharip season of 2009.
Facilitates building, reviving and maintaining water harvesting structures as
well as management of water resources to reverse land degradation,
provide critical irrigation and increase agricultural productivity.
Integrated Watershed Development
Helped conserve soil and moisture for over 1,17,000 households covering 28
districts across seven states (Andhra Pradesh, Karnataka, Madhya Pradesh,
Maharashtra, Rajasthan, Orissa and Tamil Nadu).
Partnership either with NABARD(National Bank for Agriculture and Rural
Development) or various state governments.
• 1.21 billion population(2011 censes)
• 87.2 million living in rural area
• 70% of India's rural population owns cattle
• Livestock plays an important role in the economy of rural
• Milk yields are abysmally low due to poor quality stock
• ITC Choupal livestock Development
ITC Choupal Livestock Development
• Programe aims at assisting cattle-owners
to upgrade their low-yielding indigenous
stock through cross-breeding by artificial
• 299 Cattle Development Centers managed by
trained local community members
• ITC trains and equips technicians to provide an
integrated package consisting of artificial
insemination, cattle health and nutrition, pregnancy
and post-natal services.
• Comprehensive animal
husbandry services are
provided right at the
doorstep through Cattle
managed by trained local
• Backward linkages are
also being strengthened
for dairy inputs,
particularly cattle feed
Livestock Development Now
Animal husbandry services (Artificial Insemination
Beneficiary farmers 3,62,106
Cattle Development Centres 299
Next step in this direction
• Project Gomukh in
- an integrated dairy
program that aims
and solutions at
every stage of the
dairy value chain
An alternative means of livelihood for the
The project will promote the Eucalyptus &
Casuarina Plantation under the Social
Forestry Programme in West, East
Godavari and Visakhapatnam districts for
the development of small and marginal
tribal and weaker section farmers through
To create awareness among the Tribal & Weaker section communities
towards promotion, benefits, of Eucalyptus & Casuarina Plantation.
Carbon Sequestration through Reforestation of severely degraded land
To provided alternative employment opportunities, good market linkages
with the paper industry for the pulp wood growers for marketing their
To free the farmers from the bondages of the middle men and to sell their
produce at a reasonable price directly to the paper mills.
A growing Need…
• Wood is the major raw material for pulp and paper industry.
• ITC, launched a major plantation programme in 1982.
• ITC, initiated a Biotechnology based Tree Improvement Programme (TIP)
by promoting clonal plantation.
• Tribal Farmers undertake the plantation and its maintenance in their own
• Sangha’s (Mandal Samakhyas - MS) would oversee the project activity
implementation in their region, which includes awareness / training /
resource provision and distribution.
• ITC would provide sapling / financial resources.
Wonders of Clonal Technology
Clonal technology primarily envisages
taking advantages of the natural variation in
tree species for immediate gains in
productivity and quality from plantations.
The field tested and proven superior
genotypes are multiplied through vegetative
propagation in greenhouses under controlled
ITC Bhadrachalam clones comprise natural as well as control
pollinated hybrids of Eucalyptus and Subabul (Leucaena).
High rate of survival of clonal plantation.
High rate of productivity.
Reduced land requirements.
Cost & work effciency.
Additional income for farmers.
Project Working Area:
10 Mandals in East Godavari District
5 Mandals in West Godavari District
10 Mandals in Visakhapatnam District
• ITC’s afforestation mission goes beyond regenerating
wastelands and forest.
• Under this initiative superior planting stock is supplied to
farmers. Here a free technical extension service is
• ITC offers attractive buy back arrangements for mature
ITC: Carbon Positive
Apart from other advantages, large scale greening
effort plantation have the potential to sequester
millions of tonnes of carbon dioxide, and create a
potential Green House Gas.(GCH)
ITC has been placed in unique position of being
eligible to create ‘ Certifiable CO2 Credits’.
Venture funds provided by ITC have already
spawned hundreds of women entrepreneurs.
Their earnings, ranging from Rs 70 to Rs 150
per day, not only supplement household
incomes but also significantly enhance their
Pickle-making, fish-processing, vermicomposting, spice processing and agarbatti-
rolling in rural areas and chikankari, garment-sewing, driving and computer-aided
secretarial training in semi-urban areas are some of the examples
Formation of micro-
Capacity building to
Promotion of savings to
Internal lending to
External loaning for
Organisation of women
into production groups
Skills training & up-
gradation to enhance
for modern designs
Capability building for
value addition in work
Marketing channel for
Chikankari in Hardoi :A Case study Promoting Rural Women Entrepreneurs
Structure of Micro enterprise
SHG SHG SHG
Member Member MemberMember
Chikankari Value Chain
• 35 % illiterate
• 15 % Reaching high school
• 7% Completing graduation
• Lack of infrastructure , funds
and quality talent.
1. Improving infrastructure in Government schools.
2. Providing supplementary education to support
children with school learning and exam
3. Building community and parental involvement with
• ITC-sponsored NGOs also conduct teacher training
programmes to raise the standard of teaching in
government-run primary schools.
Primary Education Now
Government Schools assisted through
infrastructural support 973
Students being covered
Supplementary Learning Centers (cumulative)
• ITC launched its Classmate
brand in 2003 with the
• Classmate is the lead
provider of all student
• To improve educational
• 482 libraries and resource
centers is supported
• 421 schools are covered
under Roaming Laptops
• Establishment of International Business Division
• Agri-trading Company
• Opening of Indian market
• Entry of international competition
• Option of sale, merger or closure of IBD
• Chairman: ‘Use of Information technology’
• Blending of shareholder value creation and social development
• Launch of ‘e-choupal’
Origins of ‘e-choupal’
What is ‘e-choupal’
To bring efficiency to ITC’s procurement process
Increased empowerment of rural farmers
Choupal : ‘A village meeting Place’
Vendors and customers come together to
do business transactions
New Business Model: e-choupal
Over dependence on intermediaries
Low risk taking ability
Weak market orientation
Rural India is a
‘Mandi System’: Operation Process
Players of e-choupal
• Critical Element
• Act as a familiar
for the farmers and
• Acts as a link
• Provide info on
• Critical Element
• Act as a familiar
for the farmers and
• Acts as a link
• Provide info on
Network of e-Choupals, information centers equipped
with a computer connected to the Internet, located in
rural farming villages
Farmers use the services of the sanchalak (the centre
operator) to find the price their produce can fetch at
different places, via the computer
“Empowered” to make an informed decision on when
and at which procurement centre to sell their produce
for maximum profit
E-Choupal in Detail
To improve yields with a
demonstration plot of land
Best practices have been put into practice
along with high quality fertilisers and seeds
Comparisons made with yields from control
Choupal Pradarshan Kheth (Choupal
Demonstration Field) programme
Previous day’s mandi closing
price- Fair Average Quality (FAQ)
Mandi prices are communicated
to the sanchalak through the e-
Sanchalak inspects the
produce and based on his
assessment of the quality makes
Sanchalak performs the quality
tests in the
farmer’s presence and must
justify any deductions
If the farmer chooses to sell , the
sanchalak gives him a note
Farmer takes the note from the
sanchalak and proceeds with his
crop to the nearest ITC
Chemist visually inspects and
verifies the assessment of the
Farmer then collects his
payment, also reimbursed for
transporting his crop
Right price for
Recognition: Farmers are
not simply agricultural
About 2.5% over
the mandi system
Benefits of E-choupal
Other benefits of E-choupal
The ITC Green Centre Project
The ITC Green Centre houses the headquarters of ITC’s Hotels Business
and was declared the worlds largest Platinum rated Green Building when
it was certified in 2004.
The facility is built with 4 floors
with one basement and one
mezzanine floor. The total built up
area is 15799 sq.mt., out of which
9294 sq.mt. is conditioned
area .It was awarded the LEED
Platinum rating under LEED 2.1
NC in 2004. The building is
operational for 5 days a week and
for about 10 hours per day.
Not only they have designated
smoking zones in convenient
locations with their own exhaust
fans, but the copy-printer room in
the building has its own
separate exhaust as well. Moreover,
90% of all regularly occupied areas
have access to
Heat Island Effect
Storm Water Management
Water Efficient Landscaping
Innovative Waste Water Technologies
The building adopts a rectangular L
Energy & Atmosphere
Materials and Resource
Storage and Collection of Recyclables
Environment Tobacco Smoke Control
• “We had a cost over-run of 12 per cent,” adding that
similar projects undertaken after this one saw reduced
costs of 4-7 per cent.
• "Actually, now the cost of such a building would be
lower than that of a normal office building,” – Khatri
ITC commitment to the environment is manifest in its constant
endeavour to enlarge its positive carbon footprint.
This is achieved not only through enhanced energy conservation,
but also through use of renewable energy sources and expanding
carbon sequestration through its large scale Social and Farm
ITC is also constantly expanding its renewable energy portfolio.
More than 38% of its energy consumption is now met from
renewable sources, and this is expected to touch 50% in the next
Improved utilisation of carbon neutral fuels such as biofuels in the
Paperboards and Specialty Papers Business and the
commissioning of 13.8 MW wind power projects in Maharashtra
and Tamil Nadu contributed to increased utilisation of renewable