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  • 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).

Transcript

  • 1. Corporate Social Responsibility By:- 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 carbon positive, water positive & solid waste recycling positive’
  • 2. Introduction • Incorporated on August 24th 1910 with the name of Imperial Tobacco Company of India Limited. • 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
  • 3. Triple Bottom Line Economic • A turnover of over US $ 7 billion and a market capitalisation of nearly US $ 35 billion. • Direct employment to more than 29,000 people. • Total shareholder’s funds grew at a compound rate of 26% per annum over the last 15 years. Environmental • Carbon Positive seven years in a row. • Water Positive for ten years • Solid Waste Water Recycling five years. • Environment, Health and Safety Management Systems in ITC conform to international standards. Social • Livelihoods for over 5 million people • e-choupal benefitting over 4 million farmers. • Social and Farm Forestry • Watershed Development • Sustainable Community Development
  • 4. CSR Spend 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%
  • 5. CSR Initiatives Undertaken
  • 6. Mission: Sunehra Kal Andhra Pradesh Orissa Maharashtra Kerala Madhya Pradesh Karnataka Bihar Tamil Nadu Rajasthan Uttar Pradesh West Bengal
  • 7. 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.
  • 8. 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.
  • 9. Livestock Development • 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 India • Milk yields are abysmally low due to poor quality stock • ITC Choupal livestock Development
  • 10. ITC Choupal Livestock Development • Programe aims at assisting cattle-owners to upgrade their low-yielding indigenous stock through cross-breeding by artificial insemination.
  • 11. • 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.
  • 12. At doorstep • Comprehensive animal husbandry services are provided right at the doorstep through Cattle Development Centers managed by trained local community members • Backward linkages are also being strengthened for dairy inputs, particularly cattle feed
  • 13. Result Livestock Development Now Animal husbandry services (Artificial Insemination doses) 12,67,371 Beneficiary farmers 3,62,106 Cattle Development Centres 299
  • 14. Next step in this direction • Project Gomukh in Munger - an integrated dairy management program that aims at providing customized services and solutions at every stage of the dairy value chain
  • 15. Social & Farm Forestry
  • 16. AIM:  An alternative means of livelihood for the rural community.  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 sangha concept.
  • 17. Objective  To create awareness among the Tribal & Weaker section communities towards promotion, benefits, of Eucalyptus & Casuarina Plantation.  Carbon Sequestration through Reforestation of severely degraded land mass.  To provided alternative employment opportunities, good market linkages with the paper industry for the pulp wood growers for marketing their produce.  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.
  • 18. 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 lands. • 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.
  • 19. 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 environmental conditions.
  • 20.  ITC Bhadrachalam clones comprise natural as well as control pollinated hybrids of Eucalyptus and Subabul (Leucaena).  Advantages:  High rate of survival of clonal plantation.  High rate of productivity.  Reduced land requirements.  Cost & work effciency.  Additional income for farmers.
  • 21. Project Working Area:  10 Mandals in East Godavari District  5 Mandals in West Godavari District  10 Mandals in Visakhapatnam District
  • 22. Greening Wasteland • 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 provided. • ITC offers attractive buy back arrangements for mature plantations.
  • 23. 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’.
  • 24. Women Empowerment Initiative by ITC limited
  • 25. 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 self-esteem. 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
  • 26. microfinance microenterprise Extensive mobilisation of women Formation of micro- credit groups Capacity building to handle cash transactions, bank accounts, government office, etc Promotion of savings to create corpus Internal lending to meet consumption needs External loaning for productive purposes Chikankari Organisation of women into production groups Introduction of revolving fund Skills training & up- gradation to enhance employability External consultancy for modern designs Capability building for value addition in work Marketing channel for finished goods Chikankari in Hardoi :A Case study Promoting Rural Women Entrepreneurs
  • 27. Structure of Micro enterprise Enterprise Coordinator Designer Sanchalika Production Group (50 women) SHG SHG SHG Member Member MemberMember Info flow NGOITC
  • 28. Chikankari Value Chain Production group orders orders orders orders Finished goods NGO Partner Customers Finished goods ITC
  • 29. Primary Education • 35 % illiterate • 15 % Reaching high school • 7% Completing graduation • Lack of infrastructure , funds and quality talent.
  • 30. Primary Education 1. Improving infrastructure in Government schools. 2. Providing supplementary education to support children with school learning and exam preparation. 3. Building community and parental involvement with school education.
  • 31. Primary Education • 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 3,19,812 Supplementary Learning Centers (cumulative) 3,011
  • 32. Primary Education • ITC launched its Classmate brand in 2003 with the notebooks category. • Classmate is the lead provider of all student stationery needs.
  • 33. Primary Education • To improve educational outreach • 482 libraries and resource centers is supported • 421 schools are covered under Roaming Laptops programme
  • 34. ITC’s ‘e-choupal’
  • 35. 1990 • Establishment of International Business Division • Agri-trading Company 1996 • Opening of Indian market • Entry of international competition 1998 • Option of sale, merger or closure of IBD • Chairman: ‘Use of Information technology’ 2000 • Blending of shareholder value creation and social development • Launch of ‘e-choupal’ Origins of ‘e-choupal’
  • 36. 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
  • 37. Why ‘e-choupal’ Over dependence on intermediaries Lower margins Low Productivity Low risk taking ability Weak market orientation Rural India is a difficult business Location Under-trained workforce
  • 38. Before ‘e-choupal’: Mandi System
  • 39. ‘Mandi System’: Operation Process Inbound Logistics Display and Inspection Auction Bagging and weighing Payment Outbound Logistics Limitations
  • 40. Players of e-choupal • Critical Element • Act as a familiar and approachable human interface for the farmers and villagers • Acts as a link • Communicates daily prices • Provides logistical services • Provide info on trading transactions • Critical Element • Act as a familiar and approachable human interface for the farmers and villagers Sanchalak • Acts as a link • Communicates daily prices • Provides logistical services • Provide info on trading transactions UpSanchalak Samyojak
  • 41. 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
  • 42. 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 plots Choupal Pradarshan Kheth (Choupal Demonstration Field) programme
  • 43. E-choupal Stages
  • 44. Pricing Previous day’s mandi closing price- Fair Average Quality (FAQ) price Mandi prices are communicated to the sanchalak through the e- Choupal portal Inspection & Grading Sanchalak inspects the produce and based on his assessment of the quality makes appropriate deductions 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 Weighing & Payment Farmer takes the note from the sanchalak and proceeds with his crop to the nearest ITC procurement hub Chemist visually inspects and verifies the assessment of the sanchalak Hub Logistics Farmer then collects his payment, also reimbursed for transporting his crop E-choupal Process
  • 45. Right price for their crops Recognition: Farmers are not simply agricultural producers, but integral partners Income increase: About 2.5% over the mandi system Benefits of E-choupal
  • 46. Weather Agricultural Best Practices Customized Quality Solutions Intelligent product Development Other benefits of E-choupal
  • 47. 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 open-able windows.
  • 48. Key Features Sustainable Site Alternative Transportation Heat Island Effect Storm Water Management Water Efficiency Water Efficient Landscaping Innovative Waste Water Technologies The building adopts a rectangular L North East Energy & Atmosphere Envelope Hot Water Ozone Depletion Materials and Resource Storage and Collection of Recyclables Regional Materials Indoor Environmental Quality CO2 Monitoring Environment Tobacco Smoke Control
  • 49. Results • “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
  • 50. Renewable Energy 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 Forestry Programmes 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 4-5 years. 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 energy.
  • 51. Example • Solar Photovoltaic Technology