PRODUCT ANALYSIS OF ITC Ltd.

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A MINOR PROJECT REPORT
On
PRODUCT ANALYSIS OF ITC
Submitted in partial fulfillment of requirement of Bachelor of
Business Administration (B.B.A) General
BBA III Semester (E) (A)
Batch 2011-2014
Submitted To: Submitted By:
Mr. Sanjeev Verma Monika Kadam
Assistant Professor Enrollment No.
02124501711
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI

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PROJECT COMPLETION CERTIFICATE
This is to certify that the Project Work titled “Product Analysis of ITC” is a
bonafide work of Monika Kadam, Enrollment No. : 02124501711 carried out
in partial fulfillment for the award of degree of BBA (G) of Jagannath
International Management School under my guidance. This project work is
original and not submitted earlier for the award of any degree / diploma or
associate ship of any other University / Institution.
Signature of the Guide:
Name and Official Address of the Guide:
Place:
Date:

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DECLARATION
I, Monika Kadam being a student of BBA third semester of JAGANNATH
INTERNATIONAL MANAGEMENT SCHOOL hereby declares that the project
report under title “PRODUCT ANALYSIS OF ITC” is my own work. All care
has been taken to keep this report error free and I sincerely regret for any
unintended discrepancies that might have crept into this report. I shall be
highly obliged if errors (if any) be brought to my attention.
Thank You
(Monika Kadam)

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ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I
would like to extend my sincere thanks to all of them.
I am highly indebted to Mr. Sanjeev Verma for their guidance and constant
supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to express my gratitude towards my parents & member of
Jagannath International Management School for their kind co-operation
and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities.

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CONTENT
S NO. DESCRIPTION PAGE NO.
Listof tables 7
Listof figures 8 - 9
1. Executive Summary 10
2. Introduction to the topic 12
3. Objectives 14
4. Literature Review 15
5. ResearchMethodology 69
6. Analysis & Interpretation 70
7. Limitations 82
8. Conclusion 83
9. Bibliography 84

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LIST OF TABLES
S NO. TABLE TITLE PAGE NO.
1. 2.1 Product Range 45
2. Table 3.1 Market Stand Of ITC Ltd. 73
3. Table 3.2 Ready to Eat category 75
4. Table 3.3 Share of ITC Ltd. In Biscuit industry of India 77-78
5. Table 3.4 Share of ITC in Snacks Industry Of India 78-79

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LIST OF FIGURES
S NO. FIGURE TITLE PAGE NO.
1.
Figure 2.1 ITC products
27
2. Figure 2.2 Food business 32
3. Figure 2.3 Lifestyle Retailing 33
4. Figure 2.4 Personal care products 35
5. Figure 2.5 Education & Stationary products 36
6. Figure 2.6 Mangaldeep Dhoop 38
7. Figure 2.7 Authentic Indian cuisines 40
8. Figure 2.8 ITC Hotels – Luxury Collection 40
9. Figure 2.9 Welcom Hotels 41
10. Figure 2.10 Fortune Hotels 41
11. Figure 2.11 Welcom Heritage a chain of palaces,
forts, havelis
42
12. Figure 2.12 ITC Green centre 43
13. Figure 2.13 Carton Board Packaging 50
14. Figure 2.14 Tobacco packaging 50
15. Figure 2.15 Farmer empowerment through e-
Choupals
52
16. Figure 2.16 Choupal Saagar 54
17. Figure 2.17 Choupal Fresh 54

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18. Figure 2.18 Choupal Pradarshan Khet 55
19. Figure 2.19 Sanchalaks 58
20. Figure 2.20 Green Leaf Processing plants 61
21. Figure 2.21 Tobacco cultivation 62
22. Figure 2.21 ITC's foray into the spices business 63
23. Figure 2.22 State-of-the-art spices grinding and
sterilization
63
24. Figure 2.23 'Naga Chilli' crop. 64
25. Figure 2.24 Agri Inputs (Fertilizer) 65
26. Figure 2.25 ITC Infotech 66
27. Figure 3.1 The Product Mix of ITC 70
28. Figure 3.2 Reason For Purchasing 71
29. Figure 3.3 Effectiveness Of Advertisement 72
30. Figure 3.4 Customer Satisfaction 72
31. Figure 3.5 The Availability of the Product 72
32. Figure 3.6 Market Share- Ready To Eat 75
33. Figure 3.7 Market Share- Confectionery 76
34. Figure 3.8 Market Share- Staples 77
35. Figure 3.9 Market Share - Biscuits 78
36. Figure 3.10 Market Share - Snacks 79
37. Figure 3.11 Product Mix of ITC Ltd. 81

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EXECUTIVE SUMMARY OF THE PROJECT
This topic has been chosen to study the Product Analysis of ITC Ltd. There
are certain prospective on which a company sells their products in to the
market and diversifies their business. This project has been a great learning
experience for me; at the same time it gave me enough scope to implement
my analytical ability. Full project gives an insight about the strategies and its
various aspects. It is purely based on whatever the researcher learned at
Jagannath International Management School. All the topics have been
covered in a very systematic way. The language has been kept simple so that
even a layman could understand. The whole theoretical part is covered with
relation to the product. It helped to understand the various concepts of
marketing.
The project describes the analysis of various products of ITC and its various
aspects.
Product analysis is assessment of student learning through the examination of
student products such as student portfolios, assignments, or writings. The
type of analysis used may range from a comparison of student products with
pre-determined quality standards, to narrative descriptions, and subjective
assessments of quality.
ITC is an Indian public conglomerate company headquartered in Kolkata,
West Bengal, India. Its diversified business includes four segments: Fast
Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging
and Agri Business. ITC's annual turnover stood at $7 billion and market
capitalization of over $34 billion. The company has its registered office in
Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry
with Imperial Tobacco of the United Kingdom, but it is now fully independent,
and was rechristened to India Tobacco Company in 1970 and then to I.T.C.
Limited in 1974.
Its businesses and brands are focused almost entirely on the Indian markets,
and despite being most well-known for its tobacco brands such as Gold Flake,
the business is now diversifying into new FMCG (Fast Moving Consumer
Goods) brands in a number of market sectors including cigarettes, hotels,

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paper, agriculture, packaged foods and confectionary, branded apparel,
personal care, greetings cards, Information Technology, safety matches,
incense sticks and stationery. Examples of its successful new FMCG products
include:
 Aashirvaad - India's most popular atta brand with over 50% market
share. It is also present in spices and instant mixes.
 Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.
 Bingo! - a new introduction of finger snacks.
 Kitchens of India - pre-prepared foods designed by ITC's master chefs.
 Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on
some pasta products).
ITC promoting their brands through advertisement campaign as well as
door to door promotion.
ITC is also focusing on Retailers and Wholesalers to promote their brand.
The demand for some of their product is low, because people don’t know
about their brands very well.
ITC knows their strength and weakness in the personal care market, so they
are applying new concept to overcome their weaknesses.
ITC is now offering more margins, exciting offers and long credit period to
retailers and wholesalers.

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CHAPTER - I
INTRODUCTION TO THE TOPIC
Product
In general, the product is defined as a "thing produced by labor or effort" or
the "result of an act or a process", and stems from the verb prod4ruce, from
the Latin prōdūce(re) '(to) lead or bring forth'. Since 1575, the word "product"
has referred to anything produced. Since 1695, the word has referred to "thing
or things produced".
In economics and commerce, products belong to a broader category of
goods. The economic meaning of product was first used by political economist
Adam Smith.
In marketing, a product is anything that can be offered to a market that might
satisfy a want or need. In retailing, products are called merchandise. In
manufacturing, products are purchased as raw materials and sold as finished
goods. Commodities are usually raw materials such as metals and agricultural
products, but a commodity can also be anything widely available in the open
market. In project management, products are the formal definition of the
project deliverables that make up or contribute to delivering the objectives of
the project. In insurance, the policies are considered products offered for sale
by the insurance company that created the contract.
A related concept is sub-product, a secondary but useful result of a production
process.
Dangerous products, particularly physical ones that cause injuries to
consumers or bystanders may be subject to product liability.
Classification of Product
A product can be classified as:-

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1. Tangible Product - A tangible product is a physical object that can be
perceived by touch such as a building, vehicle, gadget, or clothing.
2 Intangible Product - An intangible product is a product that can only be
perceived indirectly such as an insurance policy.
What Is Product Analysis?
Product analysis is assessment of student learning through the examination of
student products such as student portfolios, assignments, or writings. The
type of analysis used may range from a comparison of student products with
pre-determined quality standards, to narrative descriptions, and subjective
assessments of quality. Product analysis is the systematic examination of
instructional products, such as student or client created objects, portfolios,
assignments, or writings, to assess the effectiveness of program activities or
services.

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OBJECTIVES
 To find the product's design specification are based on the
requirements of the target market and the manufacturing facilities
available are up to it.
 The product's target market & what are their needs.
 The product's performance; i.e., how suitable it is for its end use and
what are its aftercare requirements.
 The quality of the fibers, and manufacture: e.g., how adequate are the,
fastenings and seam allowance.
 The product's aesthetic appeal or stylistic qualities.
 The product's price. To know whether it gives value for money.
 Any safety or moral issues. Whether the product conform to safety
regulations. And its impact on the environment.

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CHAPTER - II
ITC PROFILE
INTRODUCTION
ITC Limited (BSE: 500875) or ITC is an Indian public conglomerate company
headquartered in Kolkata, West Bengal, India. Its diversified business
includes four segments: Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards, Paper & Packaging and Agri Business. ITC's annual turnover
stood at $7 billion and market capitalization of over $33 billion. The company
has its registered office in Kolkata. It started off as the Imperial Tobacco
Company, and shares ancestry with Imperial Tobacco of the United Kingdom,
but it is now fully independent, and was rechristened to India Tobacco
Company in 1970 and then to I.T.C. Limited in 1974.. ITC is rated among the
World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine 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.
ITC has a diversified presence in FMCG (Fast Moving Consumer Goods),
Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and
Information Technology. While ITC is an outstanding market leader in its
traditional businesses of Hotels, Paperboards, Packaging, Agri-Exports and
Cigarettes, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.
ITC is one of India's foremost private sector
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

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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 and acknowledged service skills in hoteling. Over
time, the strategic forays into new businesses are expected to garner a
significant share of these emerging high-growth markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products.
The ITC group's contribution to foreign exchange earnings over the last ten
years amounted to nearly US$ 4.9 billion, of which agri exports constituted
56%. The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy, which has
already become the subject matter of a case study at Harvard Business
School, is expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd,
provides IT services and solutions to leading global customers. ITC Infotech
has carved a niche for itself by addressing customer challenges through
innovative IT solutions.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek a
corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating

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capabilities in a globalizing environment to consistently reward more than 4,
08, 000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is expressively
captured in its corporate positioning statement: "Enduring Value. For the
Nation. For the Shareholder."
History
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively
Indianite, the name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970 and
then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer
Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education and Stationery Products, Incense Sticks and Safety
Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business
and Information Technology - the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'.
The Company's 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.
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

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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-Welcom group Hotel Chola'
(now renamed My Fortune, Chennai). 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 ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection,
Welcom Hotels, Fortune Hotels and Welcom Heritage.
In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards Limited. 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. In August 2002, Surya Tobacco became a subsidiary of ITC

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Limited and its name was changed to Surya Nepal Private Limited (Surya
Nepal). In 2004, the company diversified into manufacturing and exports of
garments.
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 10 states covering over 4 million farmers. Also, through the
'Choupal Pradarshan Khet' initiative, the agri services vertical has been
focusing on improving productivity of crops while deepening relationship with
the farming community.
ITC launched line of premium range of notebooks under brand Paperkraft in
2002. To augment its offering and to reach a wider student population, the
Classmate range of notebooks was launched in 2003. Classmate over the
years has grown to become India's largest notebook brand and has also
increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. In 2008, ITC
positioned the business as the Education and Stationery Products Business
and launched India's first environment friendly premium business paper under
the 'Paperkraft' Brand. 'Paperkraft' offers a diverse portfolio in the premium
executive stationery and office consumables segment. In 2010, Color Crew
was launched as a new brand of art stationery.
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

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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 'Wills Signature', taking the event forward to consumers.
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 - Banking
Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG),
Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.
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
entered the fast growing branded snacks category with Bingo in 2007. In
2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles
market. In just over a decade, the Foods business has grown to a significant
size under seven 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

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initiative. ITC now markets popular safety matches brands like iKno,
Mangaldeep and Aim.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked
the manifestation of its partnership with the cottage sector. Mangaldeep is a
highly established national brand and is available across a range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa.
ITC entered the Personal Care Business in 2005. In seven years, the
Personal Care portfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills',
'Vivel' and 'Superia' brands which have received encouraging consumer
response and are also being progressively extended nationally.
In 2010, ITC launched its hand rolled cigar, Armentieres, in the Indian market.
Armentieres cigars are available exclusively at tobacco selling outlets in select
hotels, fine dining restaurants and exclusive clubs.
THE ITC WAY
ITC is a board-managed professional company, committed to creating
enduring value for the shareholder and for the nation. It has a rich
organizational culture rooted in its core values of respect for people and belief
in empowerment. Its philosophy of all-round value creation is backed by
strong corporate governance policies and systems.
ITC’s corporate strategies are:
 Create multiple drivers of growth by developing a portfolio of world class
businesses that best matches organizational capability with opportunities in
domestic and export markets.
 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,
Paperboards & Packaging, Agri Business and Information Technology.

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 Benchmark the health of each business comprehensively across the criteria of
Market Standing, Profitability and Internal Vitality.
 Ensure that each of its businesses is world class and internationally
competitive.
 Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC are various
businesses.
 Create distributed leadership within the organization by nurturing talented and
focused top management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and
systems to catalyze the entrepreneurial energies of management by striking
the golden balance between executive freedom and the need for effective
control and accountability.
RESEARCH & DEVELOPMENT
ITC is committed to delivering world-class products and services. This
requires a clear focus on continuously striving to create a higher value to
customers by achieving excellence in all Company's operations. Business
excellence calls for a passionate focus on technology, products, services,
processes and an operating environment firmly anchored to an impregnable
foundation of Quality.
ITC firmly believes that quality is not a specifically assignable task. It needs to
be firmly rooted and institutionalized in the culture and value system of the
Company. ITC nurtures a culture of striving for continuous improvement in
quality, be it in products, services, systems or performance. The Company is
committed to the establishment of systems and processes to promote
organizational creativity and innovation.
ITC's development of its Integrated Quality Management System (IQMS) is
based on its strong foundation of implementing ISO 9001:2000, ISO 14001,

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OHSAS 18001, SA 8000, HACCP (for Foods) and IQRS (performance rating
and benchmarking of the quality management system). Likewise, ITC's
strategic initiatives for developing its people have been based on participative
management concepts like QC (Quality Control), TQM (Total Quality
Management), KSS (Kaizen Suggestion Scheme), 5S, Six Sigma.
All ITC manufacturing units have ISO quality certification. Almost all contract
manufacturing units in the Foods Business and all large hotels have food
safety and quality systems certified by accredited 'third party' in accordance
with 'Hazard Analysis Critical Control Points' (HACCP) standards.
Additionally, the quality of all FMCG products of the Company is regularly
monitored through 'Product Quality Rating System' (PQRS). The Leaf
Tobacco and Printing & Packaging businesses have achieved world-class
ratings in the 'International Quality Rating System' (IQRS) for business
excellence in which key processes are rated against international benchmarks
and certified by accredited 'third party' independent assurance providers.
FORBES RANKING
ITC features on the Forbes Global 2000 rankings for 2007 at position 1256.
ITC is the only Indian FMCG company that features on the Forbes Global
2000 rankings for 2009 at position 987.
ITC also featured on the Forbes World's Most reputable Companies List at
position 95.
STRENGTHS
ITC leveraged it traditional businesses to develop new brands for
new segments. For example, ITC used its experience of transporting
and distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.

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ITC is a diversified company trading in a number of business sectors
including cigarettes, hotels, paper, agriculture, packaged foods
and confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.
WEAKNESSES
The company's original business was traded in tobacco. ITC stands
for Imperial Tobacco Company of India Limited. It is interesting that a
business that is now so involved in branding continues to use its original
name, despite the negative connection of tobacco with poor health and
premature death.
To fund its cash guzzling FMCG start-up, the company is still dependent
upon its tobacco revenues. Cigarettes account for 47 per cent of the
company's turnover, and that in itself is responsible for 80% of its profits. So
there is an argument that ITC's move into FMCG (Fast Moving Consumer
Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco
brand is the largest FMCG brand in India - and this single brand alone holds
70% of the tobacco market.
OPPORTUNITIES
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others)
can be developed using strategies of market development, product
development and marketing penetration.
ITC is moving into new and emerging sectors including Information
Technology, supporting business solutions.
E-Choupal is a community of practice that links rural Indian farmers using the
Internet. This is an original and well thought of initiative that could be used in
other sectors in many other parts of the world. It is also an ambitious project
that has a goal of reaching 10 million farmers in 100,000 villages.
ITC leverages e-Choupal in a novel way. The company researched the tastes
of consumers in the North, West and East of India of atta (a popular type of
wheat flour), then used the network to source and create the raw materials
from farmers and then blend them for consumers under purposeful brand
names such as Aashirvaad Select in the Northern market, Aashirvaad MP

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Chakki in the Western market and Aashirvaad in the Eastern market. This
concept is tremendously difficult for competitors to emulate.
Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate
into the country's premier FMCG business.
Per capita consumption of personal care products in India is the lowest in the
world offering an opportunity for ITC's soaps, shampoos and fragrances under
their Wills brand
THREATS
The obvious threat is from competition, both domestic and international. The
laws of economics dictate that if competitors see that there is a solid profit to
be made in an emerging consumer society that ultimately new products and
services will be made available. Western companies will see India as an
exciting opportunity for themselves to find new market segments for their own
offerings.
ITC's opportunities are likely to be opportunities for other companies as well.
Therefore the dynamic of competition will alter in the medium-term. Then ITC
will need to decide whether being a diversified conglomerate is the most
competitive strategic formation for a secure future.
DIVERSIFICATION
ITC has been a leader in the tobacco business, but it realize from the
upcoming trends that remaining with a single business is not a noble thought,
moreover the company was threatened of the anti-tobacco campaign.
Therefore the company decided to venture into InfoTech with ITC InfoTech,
foods via Kitchens of India, greeting cards through Expressions and lifestyle
retailing through Wills Sport. Each of these is intended to draw revenues of at
least Rs.250 crore by 2005.
ITC was a cash rich company with a liquidity of Rs.8816 million in the
cigarette business, even though the company understood the need and
usefulness of diversification. The writer in the article is mainly concerned with
the way ITC spreads its wings in the lifestyle segments, he writes:”
Forty-five stores in 34 cities in just under a year, selling an expensive fashion
brand of relaxed-wear. If retail swamp-out and brand salience were the goals,
ITC’s Wills Sport would be on a victory lap already.”

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The company has started its retail stores not only in Indian metros but also in
the small towns like Ranchi, Jabalpur, Gwalior, Belgaum, Ernakulum etc. the
article also talks about the strong market campaign done by the company, it
also describe how the company has used its brand image to attract the Indian
youth. It also tells about the strategy adopted by the company to differentiate
itself in this segment, like the company is outsourcing its designs form the
American Design Intelligence Group (ADIG), a , US-based garment and retail
consultancy. Now it has its own six-member team, even as it continues a tie-
up with Science & Designs, an Italian fashion design house – through which it
keeps a watch on hot western labels such as Banana Republic and Armani
Exchange.
List Of Products & Businesses
1. FMCG
 Cigarettes & Cigars
 Foods
 Lifestyle Retailing
 Personal Care
 Education and Stationery
 Safety Matches
 Agarbattis
2. Hotels
3. Paperboards & Packaging
 Paperboards and Specialty Papers
 Packaging

27
Figure 2.1 ITC products
4. Agri- Business
 Agri Commodities & Rural
 Services
 E-choupal
 Leaf Tobacco, Spices & Agri Inputs
5. Information Technology

28
ITC BUSINESSES
FMCG
It is ITC's strategic intent to secure long-term growth by synergizing and
blending the diverse pool of competencies residing in its various businesses
to exploit emerging opportunities in the FMCG sector.
The Company’s institutional strengths – deep understanding of the Indian
consumer, strong trademarks, deep and wide distribution network, agri-
sourcing skills, packaging know-how and cuisine expertise – continue to be
effectively leveraged to rapidly grow the new FMCG businesses.
Over the last few years, ITC has rapidly scaled up presence in its newer
FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing,
Education and Stationery products, Personal Care products, Safety Matches
and Incense Sticks (Agarbatti) with Segment Revenues growing at an
impressive compound annual growth rate of 38% during the last 5 years.
The Company’s unwavering focus on quality, innovation and differentiation
backed by deep consumer insights, world-class R&D and an efficient and
responsive supply chain will further strengthen its leadership position in the
Indian FMCG industry.
CIGARETTES & CIGARS
Armenteros Hand rolled Cigars
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, ITC has a leadership position in every segment of the
market. ITC’s highly popular portfolio of brands includes Insignia, India Kings,
Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan,
Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.
The Company has been able to consolidate its leadership position with single
minded focus on continuous value creation for consumers through significant
investments in creating & bringing to market innovative product designs,
maintaining consistent & superior quality, state-of-the-art manufacturing
technology, & superior marketing and distribution. With consumers &

29
consumer insights driving strategy, ITC has been able to fortify market
standing in the long-term, by developing & delivering contemporary offers
relevant to the changing attitudes & aspirations of the constantly evolving
consumer.
ITC's pursuit of international competitiveness is reflected in its initiatives in
overseas markets. In the extremely competitive US market, ITC offers high-
quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC
has become a key player in the GCC markets through its export operations.
ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru,
Munger, Saharanpur, Kolkata and Pune, with cutting-edge technology &
excellent work practices benchmarked to the best globally. An efficient supply-
chain & distribution network reaches India's popular brands across the length
& breadth of the country.
Awards
ITC's Cigarettes business has been winning numerous awards for its quality,
environmental management systems and product excellence:
 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter
of Cigarettes for 2008 by the Tobacco Board based on previous three years'
performance.
 Occupational Health and Safety Award 2007 for Excellence in Safety
Management to the Bengaluru, Saharanpur and Kolkata factories from the
Royal Society for Prevention of Accidents (ROSPA), U.K.
 5 Star Health and Safety Rating in 2007 from the British Safety Council to the
Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of
Honour" for Bengaluru & Saharanpur factories in 2006.
 Greentech Gold Award for excellence in Safety Management for the year
2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the
high level of performance that the units have achieved in Environment Health

30
and Safety (EHS). Saharanpur along with Kolkata and Munger factories were
honoured with the Gold award and the Bengaluru Factory with the Platinum
Award in 2006.
 Greentech Gold Award for Excellence in Environment Management 2007 to
the Bengaluru, Kolkata and Munger factories.
 Safety Innovation Award for 2007 and 2006 for Innovative Safety
Management System to the Bengaluru Factory from the Institution of
Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC
Karnataka Chapter.
 Golden Peacock Award for Occupational Health and Safety from the Institute
of Directors, New Delhi; Award for Outstanding Performance in Environment
Health and Safety from the CII and the Suraksha Puraskar Award from the
National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st
National Security Today Award" in the category of Best Maintained Fire Safety
System in 2005.
 Occupational Health and Safety Gold Award from the ROSPA, UK; the
Winners Trophy - Safety Health and Environment Award from the CII Eastern
region; National Award for Excellence in Water Management and Innovative
Project Award Initiatives for Energy Conservation from the CII to the Munger
factory in 2007 and also the Excellence in Water Management Award from
CII-GBC for 2006.
 All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001,
for their Environment Management Systems, OHSAS 18001 for their
Occupational Health and Safety Management Systems (OHSMS) and the ISO
9000-2000 for Quality Management Systems. The Kolkata factory is the first
cigarette factory in India to be awarded the SA 8000 Certificate for Social
Accountability by Det Norske Veritas (DNV) in June 2004.
ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first
independent R&D Centre in India to get ISO 9001 accreditation and certified
with ISO 14001 for Environment Management Systems by DNV. The R&D

31
Centre is also certified for the standard ISO/IEC17025:2005, by National
Accreditation Board for Testing and Calibration Laboratories (NABL). This
certification is awarded for "General requirement for the competence of
Testing & Calibration Laboratories".
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 100 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. 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 100 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

32
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
 Ready To Eat Foods
 Staples
 Confectionery
 Snack Foods
In order to assure consumers of the highest standards of food safety and
hygiene, ITC is engaged in assisting outsourced manufacturers in
implementing world-class hygiene standards through HACCP certification.
The unwavering commitment to internationally benchmarked quality standards
enabled ITC to rapidly gain market standing in all its 7 brands:
Figure 2.2 Food business
LIFESTYLE RETAILING
ITC's Lifestyle Retailing Business Division has established a nationwide
retailing presence through its Wills Lifestyle chain of exclusive specialty
stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills
Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear,
fashion accessories and Essenza Di Wills - an exclusive range of fine
fragrances and bath & body care products and Fiama Di Wills - a range of

33
premium shampoos and shower gels. Wills Lifestyle has also introduced Wills
Signature designer wear, designed by the leading designers of the country.
With a distinctive presence across segments at the premium end, ITC has
also established John Players as a brand that offers a complete fashion
wardrobe to the male youth of today. With its brands, ITC is committed to
build a dominant presence in the apparel market through a robust portfolio of
offerings.
Figure 2.3 Lifestyle Retailing
Awards
ITC's Lifestyle Retailing Business has won numerous awards for its quality,
marketing and product excellence:
LRBD has won several Images Fashion Awards over the years:
 2009: Most admired Fashion Brand of the year - Fashion Forward – Wills
Lifestyle
 2007: Most Admired Fashion Campaign - John Players
 2005: Most Admired Shirt Brand of the Year - John Players
 2004: Rising Star Brand of the Year - John Players
 2003: Most Admired Exclusive Brand Retail Chain of the Year - Wills Lifestyle
 2002: Most Admired Women's Wear Brand of the Year - Wills Sport
 2001: The Most Admired Brand Launch of the Year - Wills Sport
The Most Admired Exclusive Brand Retail Chain of the Year - Wills Lifestyle.
 "Retailer of the Year (Fashion and Lifestyle)"
Award at Reid & Taylor Awards for Retail Excellence in 2011

34
 "Best Retail Marketing Campaign of the Year" Award at Reid & Taylor Awards
for Retail Excellence in 2011
 Award for Customer and Brand Loyalty in Retail Sector category at the 4th
Loyalty Summit, 2011
 Retailer of the Year Award to Wills Lifestyle in Fashion & Lifestyle category at
Asia Retail Congress 2008.
 Wills Lifestyle rated amongst the top 5 Luxury brands in the country in a
Global Luxury Survey conducted by TIME Magazine.
 Front runner Award - 2007 to Wills Lifestyle in the Retail category by Real
Estate Observer & Trammel Crow Meghraj.
 Super brand 2006 awarded to Wills Lifestyle by the Super brands Council of
India.
 The "Best Supply Chain Practices Award 2006" for time-effective and cost-
efficient Logistics management in Organized Retail. The awards were
organized by Retailers Association of India (RAI) in association with ITW
Signode - the International leaders in packaging solutions.
 The Division's Product & Quality Testing facilities were awarded the
prestigious accreditation by the National Accreditation Board of Laboratories
of the Department of Science and Technology, GOI (affiliated to the
International Laboratories Accreditation Cooperation - Geneva) in 2006. This
accreditation is awarded after rigorous procedures confirmed that LRBD's
Testing facilities truly conform to international standards in terms of quality
and technical competence. The Division also obtained ISO
9001:2000certification in the area of Receipt, Storage & Distribution of
Merchandise / Finished Goods by Det Norske Veritas, Netherlands.
 NID Awards for Design Excellence for Best Packaging Design in the FMCG
Category for John Players.

35
 Award for Customer and Brand Loyalty in Retail Sector category at the 2nd
Loyalty Summit.
In line with ITC's aspiration to be India's premier FMCG Company, recognized
for its world-class quality and enduring consumer trust, ITC forayed into the
Personal Care business in July 2005. In the short period since its entry, ITC
has already launched an array of brands, each of which offers a unique and
superior value proposition to discerning consumers. Anchored on extensive
consumer research and product development, ITC's personal care portfolio
brings world-class products with clearly differentiated benefits to quality-
seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills',
'Vivel Ultra Pro', 'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extended nationally.
ITC's state-of-the-art manufacturing facility meets stringent requirements of
hygiene and benchmarked manufacturing practices. Contemporary
technology and the latest manufacturing processes have combined to
produce distinctly superior products which rank high on quality and consumer
appeal.
Extensive insights gained by ITC through its numerous consumer
engagements have provided the platform for its R&D and Product
Development teams to develop superior, differentiated products that meet the
consumer's stated and innate needs. The product formulations use
internationally recognized safe ingredients, subjected to the highest standards
of safety and performance.
Figure 2.4 Personal care products

36
EDUCATION & STATIONERY
ITC made its entry to the education and stationery business with its Paperkraft
brand in the premium segment in 2002; and later expanded into the popular
segment with its Classmate brand in 2003. By 2007, Classmate became the
largest Notebook brand in the country. Together, Classmate and Paperkraft
offer a range of products in the Education & Stationery space to the
discerning consumer, providing unrivalled value in terms of product & price.
Classmate and Paperkraft have become a natural extension of the consumer.
Meticulous understanding of consumer needs helped creating a relevant and
comprehensive portfolio satisfying the needs of different sets of consumers.
ITC is the manufacturer of India's first Ozone treated environment friendly
Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its
knowledge of image processing, printing and conversion garnered from
Packaging & Printing Business with its brand building and trade marketing &
distribution strengths resident in its FMCG business to offer superior value
products to consumers.
Paperkraft Business paper and the papers used in Classmate and Paperkraft
notebooks are superior in quality and environment-friendly. Other offerings
available in education and Stationery range are safe and certified non-toxic.
Figure 2.5 Education & Stationary products
SAFETY MATCHES
As part of its strategic initiative to create multiple drivers of growth in the
FMCG sector, ITC commenced marketing safety matches sourced from the
small-scale sector. The Matches business leverages the core strengths of ITC

37
in marketing and distribution, brand building, supply chain management and
paperboard & packaging to offer Indian consumers high quality safety
matches.
ITC's range of Safety matches includes popular brands like Aim, Aim Special,
Aim Premium and i Kno. With differentiated product features and innovative
value additions, these brands effectively address the needs of different
consumer segments. ITC also exports regular and premium safety matches
brands to markets such as Middle East, Africa and the USA. The successful
acquisition of Wimco Ltd., a subsidiary of ITC has consolidated the market
standing of the Company's Matches business through synergy benefits
derived through combined portfolio of offerings, improved servicing of
proximal markets and freight optimization. Through its participation, ITC aims
to enhance the competitiveness of the small and medium scale sectors
through its complementary R&D based product development and marketing
strengths, especially the breadth and depth of the Company's trade marketing
and distribution.
AGGARBATTIS
As part of ITC's business strategy of creating multiple drivers of growth in the
FMCG sector, the Company commenced marketing Agarbattis (Incense
Sticks) sourced from small-scale and cottage units in 2003. This Business
leverages the core strengths of ITC in nation-wide distribution and marketing,
brand building, supply chain management, manufacture of high quality
paperboards and the creation of innovative packaging solutions to offer Indian
consumers high quality Agarbattis. With its participation in the business, ITC
aims to enhance the competitiveness of the small and medium scale sectors
through its complementary R&D based product development and strengths in
trade marketing and distribution.
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Durbar, Anushri etc. New launches include
Fragrance of Temple – Gold Tradition & Silver Edition; Champa, Tarangini &
Malligai in an attractive pouch format.

38
The pouch format of packaging is increasingly becoming popular. To meet
this need of the market Mangaldeep has launched three variants – Champa,
Tarangini & Malligai. Each of them has been designed keeping the relevant
market needs in mind. The products have received a tremendous response
not only from the consumers and also by the trade.
Fragrance of Temple is a flagship sub brand in the Mangaldeep portfolio.
Superior fragrance, high quality sticks and differentiated packagings are some
of the highlights of Fragrance of Temple. New launch included Fragrance of
Temple – Gold Edition & Fragrance of Temple – Silver Edition. Both packs are
industry first gold/silver metalized plastic pack. Fragrance of Temple – Silver
Edition has won the prestigious "IFCA Star Award 2011" which recognizes
Packaging Excellency in terms of design, development, innovation and
creativity.
Mangaldeep Dhoop, made with Natural Ingredients, is available in specific
markets and is fast emerging as a key player in North India. Having varied
consumer offers and differentiated product offerings, Mangaldeep Dhoop is
fast emerging a force to reckon with. New launches include Sandal & Mogra
variants as well as 3in1 offering in a singular pack.
Figure 2.6 Mangaldeep Dhoop
The Business continues to work on various exciting new offerings to the
consumers and is planning to launch them in the near future.

39
In line with ITC's Triple Bottom Line philosophy of every business contributing
to the nation's economic, environmental and social capital, Mangaldeep
agarbattis are manufactured by small scale and cottage units, providing
livelihood opportunities for more than 12,000 people. Six out of 17
Mangaldeep Agarbatti manufacturing units are ISO 9000 certified.
Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an
ITC initiative to improve the quality of raw agarbatti production and provide
better value realization for women rollers. Under the project, ITC has
extended support to NGOs in states and like Bihar, Tripura, Tamil Nadu, who
are setting up agarbatti units, training village women in rolling agarbattis and
employing them in these units. In the latest initiative, ITC signed a MoU with
Orissa Government run Orissa Rural Development and Marketing Society
(ORMAS) for marketing raw incense sticks in the state- a move that is
expected to provide employment opportunities to over 3000 rural women.
HOTELS
ITC Hotels, India's premier chain of luxury hotels was launched on October
18, 1975, with the opening of its first hotel - Chola Sheraton (now rechristened
as My Fortune) in Chennai. Since then the ITC Hotels brand has become
synonymous with Indian hospitality. With over 100 hotels in more than 90
destinations, ITC Hotels has set new standards of excellence in the hotel
industry in Accommodation, Cuisine, Environment and Guest Safety.
A leader in the premium hospitality segment, ITC Hotels have had the
privilege of hosting world leaders, Heads of State and discerning guests from
across the world and within.
As one of India's most dynamic hospitality chains, ITC Hotels has set
standards for excellence in the hotel industry by pioneering the concept of
branded accommodation. The chain has developed three brands of
accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate
between the needs of various travelers and provide high levels of service.
First to introduce branded cuisine, its restaurants Bukhara, Dakshin and
DumPukht are renowned for their delicious and authentic Indian cuisines from

40
the different regions of India. ITC Hotels also showcases international cuisine
in its specialty restaurants West View and Pan Asian.
Figure 2.7 Authentic Indian cuisines
ITC Hotels has strategically customized its hotels and appropriately
categorized them to fulfill the service and budgetary needs of travellers. With
its exclusive strategic tie up with Starwood for its top of the line premium
brand the 'Luxury Collection', the group is strengthening its international
marketing stance. ITC Hotels was also instrumental in bringing the 'Sheraton'
brand to India, with which it enjoyed a three-decade exclusive partnership.
ITC Hotel's properties are classified under four distinct brands:
ITC Hotels – Luxury Collection
Figure 2.8 ITC Hotels – Luxury Collection
In 2007, ITC Hotels entered a new phase in its collaboration with Starwood
Hotels & Resorts. ITC Hotels now has an exclusive tie-up with Starwood in
bringing its premium brand, the 'Luxury Collection', to India. These are super

41
deluxe and premium hotels located at strategic business and leisure locations.
The ten hotels which are part of this collection are: ITC Grand Chola in
Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata,
ITC Grand Central in Mumbai, ITC Windsor &ITC Gardenia in Bengaluru, ITC
Kakatiya in Hyderabad and ITC Mughal in Agra and ITC Rajputana in Jaipur.
Welcom Hotels offer five-star hospitality for the discerning business and
leisure traveller. Currently there are three hotels under this brand namely,
Welcom Hotel Rama International Aurangabad, Welcom Hotel Vadodara and
Welcom Hotel Grand Bay Vishakhapatnam. Two other Welcom Hotel
Sheratons - Sheraton Park Hotel and Towers, Chennai and Sheraton New
Delhi offer warm, comforting services to the global traveller and a chance to
connect.
Figure 2.9 Welcom Hotels
Figure 2.10 Fortune Hotels

42
Fortune Hotels operates mid-market to upscale properties in the first-class,
full-service business hotel segment all over India, in major metros, mini
metros, state capitals and business towns, promising business and leisure
travelers a wide choice of destinations and accommodation. Fortune Hotels
currently has hotels operating in Ahmedabad, Chennai, Gurgaon, Indore,
Jaipur, Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi Mumbai,
Ooty, Port Blair, Pune, Tirupati, Trivandrum, Vapi, Vijayawada,
Vishakhapatnam, Hyderabad, Lavasa, Noida, Manipal, Bengaluru,
Mussoorie, Goa, Thane, Gandhi Nagar and Mysore while several more
hotels are expected to be commissioned soon in other key locations in India.
Figure 2.11 Welcom Heritage a chain of palaces, forts, havelis
Welcom Heritage brings together a chain of palaces, forts, havelis and resorts
that offer a unique experience. Welcom Heritage endeavors to preserve
ancient royal homes and the historical Indian grandeur and opulence for the
future Indian generations. Welcom Heritage provides a fine range of hotel
services inside these architectural legacies present in Rajasthan, Madhya
Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal,
Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya,
Arunachal Pradesh, Uttar Pradesh, Maharastra, Kerala, Andhra Pradesh and
Puducherry.

43
Welcom Environ
Welcom Environ is ITC Hotels' vision for a green world. It's a multi-faceted
programme started in order to propagate environmental causes in the cities
where ITC Hotels' hotels are located. With the guiding principle of 'Reduce,
Reuse and Recycle', each hotel has its own programme, encompassing local
participation, creating awareness among employees and internal
conservation.
ITC Green Centre
The ITC Green Centre in Gurgaon, the headquarters of ITC's Hotels Business
is the physical expression of this commitment to sustainability - Ecological,
Social and Economic. This building is one of the world's largest green
buildings with space of over 170,000 square feet and the first non-commercial
Figure 2.12 ITC Green centre
complex in the country to be awarded the United States Green Building
Council-Leadership in Energy and Environmental Design's (USGBC-LEED)
platinum rating - the highest in the order.
At ITC Green Centre, energy consumption has been reduced significantly
through design integration. The building has been designed to maximize the
effect of natural light during daytime, largely eliminating the need for artificial
ones. At the same time, the window glass, while allowing light inside, does not

44
allow heat. This not only keeps the office cool from inside during the day, but
also decreases the load on air-conditioners. Again, there is minimum exterior
lighting to limit night sky pollution. The water consumption has dropped by 40
per cent and, with a water re-cycling plant; the building is now a zero water
discharge building.
ITC Hotels - Empowering Differently-abled people
ITC Hotels has established that if provided with an opportunity to work and
become self-sufficient, people who are differently abled can significantly
contribute to the workplace, families and the community. ITC Hotels has taken
a positive step in this direction by employing people who are differently abled
across its hotels. ITC Hotels believes that everyone should be treated with
sensitivity and empathy. The models it has created have been effective and
have succeeded in sensitizing other employees to the needs of those
differently-abled. Keeping in mind their specific skills, over 100 differently
abled have been employed in diverse functions like housekeeping,
teleworking, bakery and as musicians. Special badges for the visually
impaired, whistles for hearing impaired employees to use in an emergency
and sign language classes for the staff to communicate with them are just a
few examples of how ITC Hotels has created an atmosphere of sensitivity and
caring.
ITC Hotels has also published a booklet aimed at sharing experiences with
the rest of the corporate world and laying down a step-by-step guide to
demystify the perceived complexities around employing persons with
disabilities.
PAPERBOARDS & PACKAGING
PAPERBOARDS & SPECIALITY PAPERS
ITC's Paperboards and Specialty Papers Division is India's largest,
technologically advanced and most eco-friendly, paper and paperboards
business. The business caters to a wide spectrum of packaging, graphic,
communication, writing, printing and specialty paper requirements through its

45
four world-class manufacturing units, 7 sales offices and a network of more
than 50 dealers in India, along with an international trade network of 18
distributors / agents and 4 finishing operations close to the market for
providing faster service to the customers. Having pioneered many specialty
applications, ITC's Paperboards and Specialty Papers business enjoys market
leadership in the value-added paperboards segment, and also has a
significant share of the Indian fine papers market. It is the largest exporter of
coated boards from India.
The product range includes:
Table 2.1 Product Range
PACKAGING
Virgin Recycled
Folding Box Boards Coated Duplex White back
 Solid Bleached Boards Coated Duplex Grey back
 Coated High Burst Liner
SPECIALITY
 Liquid Packaging Antifungal Coated Boards
 Cupstock Food Grade Packaging Board
 Barrier Coated Carton boards Cast Coated Boards
 Biodegradable Coated Carton boards
PAPERS
 Woodfree fine papers Unbleached Kraft base
 Opaque papers Pharma Inserts Niche papers Superfine
Printing
 Cigarette Tissues Decor Surface, Printing & barrier
papers
 Electrical insulation papers Absorbent Kraft
GRAPHICS

46
 Art boards Playing card boards
Ivory boards Cigarette Tissues
ITC takes great pride in servicing a large cross-section of industry
requirements - from cigarette tissues to FMCG cartons, from electrical
insulation papers to PLA Coated Boards, from decorative laminate base to
writing and printing papers and much more. ITC straddles the entire spectrum
of paperboards - from 100% virgin, food-grade boards which are from
renewable and sustainable resources to 100 % recycled boards
Some of ITC's prominent paperboard brands are:
 Folding Box Boards: Cyber XL Pac, Cyber Cypak, Cyber Propac,
Cyber Premium, Pearl XL Pac
 Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte
Persona, Carte Lumina, Safire XL Pac, Digiart
 Poly coated boards: Indobev, Indobarr
 PLA Coated boards: Omegabev, Omegabarr, Omegawrap
 Recycled boards: Eco Blanca, Eco Natura
 Fine Papers: AlfaZap, Alfa Plus, Hi Brite, Paperkraft , Alfazine, Perma
White
Each of the units specializes in a range of products. Together, these units
produce close to 5, 50,000 TPA of paper and paperboards that meet stringent
quality requirements across the world. All four manufacturing units are ISO
9001; ISO 14001 and OHSAS 18001 certified and meet strict Environment,
Health and Safety norms.
The unit in Bhadrachalam is India's largest integrated pulping and paperboard
manufacturing unit. It boasts of equipment supplied by internationally
renowned suppliers for pulping processes, paper machines, web detection &
inspection systems, and finishing & packing lines. Currently the unit produces
high-end virgin and recycled boards for packaging and graphic applications,
and fine printing papers. The Bhadrachalam unit manufactures and uses pulp
made from ozone bleaching process known as light ECF process. The use of

47
ozone technology significantly reduces the load of toxins in the effluent
discharged, and helps customers get a brighter, stronger product that is also
environmentally responsible with the BOD (Biochemical oxygen on demand)
and COD (Chemical oxygen on demand) level way below the National
Standards Limits. PM 4 & PM 5 of Unit Bhadrachalam is BRC – IOP certified
for food grade boards.
The Kovai unit currently focuses entirely on recycled boards, servicing
requirements for both grey back and white back recycled boards, The Kovai
unit is a benchmark in environmental performance - helping ITC turn solid
waste recycling positive by consuming more paper waste generated than is
generated internally. This is done by collecting waste from households and
institutions and recycling it at this facility.
The Tribeni unit specializes in fine papers and tissues and the product range
from this unit comprises opaque papers for fine printing like the Bible,
dictionaries, cigarette tissues, medical grade papers, anti-rust papers,
electrical insulation papers, decor surface, printing and barrier papers. The
Bollaram unit manufactures specialty boards such as cast coated papers and
boards, poly extrusion coated barrier boards and C2S art boards and ivory
boards. This unit is BRC- IOP certified for food grade boards.
Customers are at the core of the business. This is reflected in the diverse
range of products, grades and value added services. There is a strong focus
on partnering customers to co-create and deliver superior solutions,
enhancing their competitive advantage.
All the 4 units of ITC PSPD are FSC-CoC (Forest Stewardship Council- Chain
of Custody) certified enabling it to provide a diverse range of
paperboards/paper with FSC certificate which is a gold standard in wood
certification for ethical and legal sourcing.
The Business' quality philosophy is reflected at every stage - from the
selection of clones used for growing pulpwood to world-class manufacturing

48
facilities to the finishing and packing lines. It embraces the relevant skills and
competencies of employees, managers and specialists as well.
A dedicated network of regional sales offices, an extensive dealer and agent
network in India and across the globe along with close to market finishing and
stock holding facilities enable ITC's Paperboards and Specialty Papers
business to reach out to customers faster, to service them better. With the
division-wide implementation of Enterprise Resource Planning (ERP) in 2009,
the business also offers customers an enriched experience through enhanced
connectivity and web-access to many of the services that were handled
offline.
ITC's commitment beyond the market finds a strong expression in the Social
and Farm forestry programmes spearheaded by the business. These
programmes help create man hours of employment for the rural poor, besides
being a sustainable source of high-quality raw material for the business. ITC's
Research and Development efforts in creating disease resistant, high yielding
clones help farmers realize greater yields in a shorter time - from land that
may be otherwise unproductive. More than 1, 24,000 hectares of planted area
stands testimony to ITC's commitment to sustainable forestry.
Working towards credible certification of its environmentally responsible
processes and products, ITC is the first Indian company to be invited to
become a member of the WWF GFTN programme. With this membership,
ITC has committed to bring larger volumes of its products and its operations
under credibly certified schemes like FSC.
Supporting the cause of clean technology, ITC is a front-runner in introducing
environment-friendly Elemental Chlorine Free (ECF) technology, and more
recently, Ozone bleaching in India. ITC's focus on being a carbon-positive,
water-positive, zero-solid waste disposal organization leads it to constantly
develop ways of reducing, reusing and recycling. ITC has been ‘Carbon
Positive’ for six years in a row, ‘Water Positive’ for nine consecutive years and
‘Solid Waste Recycling Positive’ for the last four years.

49
ITC's Paperboards and Specialty Papers business has also been a first-mover
in the field of collecting and recycling post-consumer waste from residential
localities, corporate and educational institutes through its WOW programme.
ITC reaches out directly to consumers with its Wealth Out of Waste (WOW)
campaign that has been successfully implemented in select locations across
southern India, and has plans to expand into other locations across the
Country.
PACKAGING
ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia. It converts over 70,000 tonnes of paper,
paperboard and laminates per annum into a variety of value-added packaging
solutions for the food & beverage, personal products, cigarette, liquor and
consumer goods industries.
The Division, which was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business, is today India's most sophisticated packaging
house. State-of-the-art technology, world-class quality and a highly skilled and
dedicated team have combined to position ITC as the first-choice supplier of
high value added packaging.
The Division supplies value-added packaging to ITC's various FMCG
businesses. Its client list includes several well-known national and
international companies like Nokia, Colgate Palmolive, Pernod Ricard,
Diageo, British American Tobacco, Philip Morris International, Agio Cigars,
UB Group, Tata Tetley, Tata Tea, Reckitt Benckiser, Radico Khaitan, Akbar
Brothers, Surya Nepal, VST Industries, etc.
With three packaging factories at Tiruvottiyur near Chennai (in the South),
Munger in Bihar (in the East), and Haridwar (in the North of India), the
Company offers a comprehensive product range in packaging backed by its
packaging expertise over the decades and cutting edge technology making it
truly a "One stop shop for Packaging".

50
 Product Lines
 ITC's Packaging Business has 3 major product lines
 Carton Board Packaging
 Printed Cartons
 Fluted cartons
 Flexible Packaging
 Tobacco Packaging
Figure 2.13 Carton Board Packaging
Carton Board Packaging: ITC occupies a leadership position in catering to the
needs of the liquor, mobile phones & food. ITC offers a range of value
additions for carton board packaging such as UV offset printing, Foil
Stamping, Embossing, Window patching & lined cartons, etc.
Flexible Packaging: is an area of high growth, supported with investments in
technology and equipment from world class suppliers. ITC offers a completely
integrated solution for laminates from Pre-press, In-house Blown Film, Cast
film, Extrusion Lamination, Hot Melt Coating, specialty pouching and bag
making. This is backed by in house cylinder making and pre-press support.
Figure 2.14
Tobacco packaging

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Tobacco packaging: ITC offers a range of products line including flip top
boxes (Square, Round, Beveled and Pillow Pack Hinge lids etc.), Outers, Soft
Cup labels, Pack inserts, Printed cork tipping, printed overwraps, inner
frames. ITC makes value added shoulder boxes for cigars and cigarettes. ITC
supplies packaging for over 80 billion cigarettes a year domestically, and
supplies packaging for 15 billion cigarette sticks a year for the export market
to leading tobacco majors.
Innovation & New Product Development
ITC has enhanced the value of some of the most favored brands with superior
look-and-feel packaging, using the best raw materials and process
combinations, and an in-house pre-press Design Centre.
A Product Introduction Process team pioneers packaging innovations. The
team uses a unique process to pilot the client's packaging through its
manufacturing system. Specifications are evolved based on clients' needs
based on which a variety of packaging solutions is generated. The efficacy of
the packaging is tested simulating the client's factory conditions. ITC has
contemporary laboratories for its 3 product lines for testing packaging
requirements.
Green Packaging
ITC Packaging has pioneered offering of Green Packaging which includes
usage of raw material from sustainable sources and conversion of the same in
a facility which is 100% powered by renewable energy (Wind Energy). This
clean energy initiative along with the other sustainability initiatives helps the
Packaging Business to significantly contribute to ITC being a carbon Positive,
Water Positive and Solid Waste Recycling Positive Company.
AGRI BUSINESS
AGRI COMMODITIES & RURAL
ITC's pre-eminent position as one of India's leading corporates in the

52
agricultural sector is based on strong and enduring farmer partnerships that
has revolutionized and transformed the rural agricultural sector. A unique rural
digital infrastructure network, coupled with deep understanding of agricultural
practices and intensive research, has built a competitive and efficient supply
chain that creates and delivers immense value across the agricultural value
chain. One of the largest exporters of agri products from the country, ITC
sources the finest of Indian Feed Ingredients, Food Grains, Marine Products,
Processed Fruits, Coffee & Spices.
ITC's Agri Business Division is the country's second largest exporter of agri-
products. It currently focuses on exports and domestic trading of:
 Feed Ingredients - Soyameal
 Food Grains - Rice (Basmati), Wheat
 Marine Products - Shrimps and Prawns
 Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits,
Organic Fruit Products, Fresh Fruits
 Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger,
Celery and other Seed Spices
Farmer empowerment through e-Choupals
Figure 2.15 Farmer empowerment through e-Choupals
ITC's unique strength in this business is the extensive backward linkages it
has established with the farmers. This networking with the farming community
has enabled ITC to build a highly cost effective procurement system. ITC has

53
made significant investments in web-enabling the Indian farmer. Christened
'e-Choupal', ITC's empowerment plan for the farmer centres around providing
Internet kiosks in villages. Farmers use this technology infrastructure to
access on-line information from ITC's farmer-friendly website
www.echoupal.com. Data accessed by the farmers relate to the weather, crop
conditions, best practices in farming, ruling international prices and a host of
other relevant information.
e-Choupal today is the world's largest rural digital infrastructure.
The unique e-Choupal model creates a significant two-way multi-dimensional
channel which can efficiently carry products and services into and out of rural
India, while recovering the associated costs through agri-sourcing led
efficiencies. This initiative now comprises about 6500 installations covering
nearly 40,000 villages and serving over 4 million farmers. Currently, the 'e-
Choupal' website provides information to farmers across the 10 States of
Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan,
Karnataka, Maharashtra, Andhra Pradesh and Tamil Nadu. Over the next 5
years it is ITC's Vision to create a network of 20,000 e-Choupals, thereby
extending coverage to 100,000 villages representing one sixth of rural India.
Supporting the e-Choupal network are ITC's procurement teams, handling
agents and contemporary warehousing facilities across India, enabling its Agri
Business to source identity-preserved merchandise even at short notice. ITC's
processors are handpicked, reliable high quality outfits who ensure hygienic
processing and modern packaging. Strict quality control is exercised at each
stage to preserve the natural flavour, taste and aroma of the various agri
products.
Choupal Saagar
Following the success of the e-Choupal, the Company launched Choupal
Saagar, a physical infrastructure hub that comprises collection and storage
facilities and a unique rural hypermarket that offers multiple services under
one roof. This landmark infrastructure, which has set new benchmarks for

54
rural consumers also incorporates farmer facilitation centres with services
Figure 2.16 Choupal Saagar
such as sourcing, training, soil testing, health clinic, cafeteria, banking,
investment services, fuel station etc. 24 'Choupal Saagars' have commenced
operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
ITC is engaged in scaling up the rural retailing initiative to establish a chain of
100 Choupal Saagars in the near future.
Choupal Fresh
Figure 2.17 Choupal Fresh
Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its
extensive backward linkages with farmers and supply chain efficiencies. It
focuses on stocking fresh horticulture produce like fresh fruits and vegetables.
Choupal Fresh retail stores are currently operational at Hyderabad. The
company has also set up a complete cold chain for ensuring the availability of
fresh products in the market, besides directly sourcing farm fresh produce
from the farmers.

55
Choupal Pradarshan Khet
Figure 2.18 Choupal Pradarshan Khet
In line with its mission of improving the quality of life in rural India, ITC's Agri
Business has launched a flagship extension programme called 'Choupal
Pradarshan Khet' (CPK) or demonstration plots to help farmers enhance farm
productivity by adopting agricultural best practices. Started in 2005-06, the
crop portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram,
mustard, sunflower and potato. This initiative, has covered over 70,000
hectares and has a multiplier impact and reaches out to 1.6 million farmers.
Processed Fruits
In line with its strategy of achieving a higher order of value capture, the
business also focuses on the value added segment, steadily enhancing its
basket of offerings with several new products. These include frozen foods,
IQF (individually quick frozen) fruits, niche products like baby-food quality
purees and high brix pulp and organic purees. ITC seeks to focus on this
segment and exploit the market opportunity for tropical fruits and fruit
products, where India has a natural advantage of growing the complete range,
including exotic varieties. In Processed Fruits category, ITC exports from
HACCP certified plants to Western Europe, North Africa, West Asia, Japan
and North America, a wide range of Processed Fruit products made from
Mango (Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC
is the leading Indian exporter of Organic Fruit Products certified to European

56
(EC 2092/91) and US (NOP) Standards.
Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP
certified farmer groups & retailed through prominent supermarkets like
Sainsbury's and Albert Heijn in Europe and Daiei in Japan.
Marine Products
ITC has been a significant exporter of seafood from India since 1971. It
exports frozen as well as cooked shrimps and other seafood products to
Japan, USA and Europe. Its well-known brands include Gold Ribbon, Blue
Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.
A Customer Centric Approach
ITC's Agri Business Division continues to use innovation as its core strategy
to retain its position as the one-stop shop for sourcing agri-commodities from
India. Besides setting benchmarks in quality, reliability and value-added
services, ITC is a trendsetter in customer care particularly in commodity
trading. Major customers include Cargill, Marubeni, Toepfer, among others,
who source agriculture commodities and food products from India. Customers
can log onto www.itcabd.com, and readily access information on crop
production and forecast, market updates, the latest shipment status and the
prevailing foreign exchange rates.
Sourcing for ITC
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. The business has commenced
procurement of chipstock potatoes, one of the critical raw materials in the
manufacture of the Company's 'Bingo!' brand of potato chips. The acquisition
of Technico, an Australian company with technology leadership in the
production of early generation seed potatoes, helped the business access a
ready pipeline of new high-yielding varieties of chipstock potato seeds.

57
E-CHOUPAL
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.
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.
The Value Chain - Farm to Factory Gate:
'e-Choupal' also unshackles the potential of Indian farmer who has been
trapped in a vicious cycle of low risk taking ability, low investment, low
productivity, weak market orientation, low value addition, low margin, low risk
taking ability. This made him and Indian agribusiness sector globally
uncompetitive, despite rich & abundant natural resources.
Such a market-led business model can enhance the competitiveness of Indian
agriculture and trigger a virtuous cycle of higher productivity, higher incomes,
and enlarged capacity for farmer risk management, larger investments and
higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for
industrial goods so necessary for the continued growth of the Indian economy.
This will create another virtuous cycle propelling the economy into a higher
growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, 'e-Choupal'
leverages Information Technology to virtually cluster all the value chain
participants, delivering the same benefits as vertical integration does in

58
mature agricultural economies like the USA.
'e-Choupal' makes use of the physical transmission capabilities of current
intermediaries - aggregation, logistics, counter-party risk and bridge financing
-while dis - intermediating them from the chain of information flow and market
signals.
Figure 2.19 Sanchalaks
With a judicious blend of click & mortar capabilities, village internet kiosks
managed by farmers - called sanchalaks - themselves, enable the agricultural
community access ready information in their local language on the weather &
market prices, disseminate knowledge on scientific farm practices & risk
management, facilitate the sale of farm inputs (now with embedded
knowledge) and purchase farm produce from the farmers' doorsteps (decision
making is now information-based).
Real-time information and customized knowledge provided by 'e-Choupal'
enhance the ability of farmers to take decisions and align their farm output
with market demand and secure quality & productivity. The aggregation of the
demand for farm inputs from individual farmers gives them access to high
quality inputs from established and reputed manufacturers at fair prices. As a
direct marketing channel, virtually linked to the 'mandi' system for price
discovery, 'e-Choupal' eliminates wasteful intermediation and multiple
handling. Thereby it significantly reduces transaction costs.

59
'e-Choupal' ensures world-class quality in delivering all these goods &
services through several product / service specific partnerships with the
leaders in the respective fields, in addition to ITC's own expertise.
While the farmers benefit through enhanced farm productivity and higher farm
gate prices, ITC benefits from the lower net cost of procurement (despite
offering better prices to the farmer) having eliminated costs in the supply
chain that do not add value.
The Status of Execution:
Launched in June 2000, 'e-Choupal', has already become the largest initiative
among all Internet-based interventions in rural India. 'e-Choupal' services
today reach out to over 4 million farmers growing a range of crops - soya
bean, coffee, wheat, rice, pulses, shrimp - in over 40,000 villages through
6500 kiosks across ten states (Madhya Pradesh, Haryana, Uttarakhand,
Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Kerala
and Tamil Nadu).
The problems encountered while setting up and managing these 'e-Choupals'
are primarily of infrastructural inadequacies, including power supply, telecom
connectivity and bandwidth, apart from the challenge of imparting skills to the
first time internet users in remote and inaccessible areas of rural India.
Several alternative and innovative solutions - some of them expensive - are
being deployed to overcome these challenges e.g. Power back-up through
batteries charged by Solar panels, upgrading BSNL exchanges with RNS kits,
installation of VSAT equipment, Mobile Choupals, local caching of static
content on website to stream in the dynamic content more efficiently, 24x7
helpdesk etc.
Going forward, the roadmap includes plans to integrate bulk storage, handling
& transportation facilities to improve logistics efficiencies.
As India's 'kissan' Company, ITC has taken care to involve farmers in the

60
designing and management of the entire 'e-Choupal' initiative. The active
participation of farmers in this rural initiative has created a sense of ownership
in the project among the farmers. They see the 'e-Choupal' as the new age
cooperative for all practical purposes.
This enthusiastic response from farmers has encouraged ITC to plan for the
extension of the 'e-Choupal' initiative to altogether 15 states across India over
the next few years. On the anvil are plans to channelize other services related
to micro-credit, health and education through the same 'e-Choupal'
infrastructure.
Another path-breaking initiative - the 'Choupal Pradarshan Khet', brings the
benefits of agricultural best practices to small and marginal farmers. Backed
by intensive research and knowledge, this initiative provides Agri-extension
services which are qualitatively superior and involves pro-active handholding
of farmers to ensure productivity gains. The services are customized to meet
local conditions, ensure timely availability of farm inputs including credit, and
provide a cluster of farmer schools for capturing indigenous knowledge. This
initiative, which has covered over 70,000 hectares, has a multiplier impact and
reaches out to over 1.6 million farmers.
LEAF TOBACCO, SPICES & AGRI INPUTS
Leaf Tobacco
ITC pioneered the cultivation and development of Leaf Tobaccos in India.
Nearly a century of creating customer delight ensures that globally, ITC's Leaf
Tobacco business is synonymous with being "The One Stop Shop for Quality
Indian Tobaccos". The Leaf Tobacco business' partnership with the farmer is
also almost 100 years old. In a spirit that truly embodies the Company's
"commitment beyond the market", ITC has helped the Indian farmer grow
quality leaf tobaccos and linked him to global markets.
ITC is the largest buyer, processor and exporter of leaf tobaccos in India -
creating a global benchmark as the single largest integrated source of quality

61
tobaccos. Serving customers in 50 countries across more than 70
destinations, ITC co-creates and delivers value at every stage of the leaf
tobacco value chain.
ITC buys nearly 50 per cent of all cigarette tobacco types grown in India. It
has a team of experienced, highly skilled and professional buyers and
classifiers who source and segregate tobaccos to exacting customer
specifications. A large inventory base of quality tobaccos provides an edge in
serving customers through product customization, portfolio rationalization,
product bundling and value added services. This strategic direction insulates
customers from crop fluctuations, a key 'winning proposition' acknowledged
worldwide.
Figure 2.20 Green Leaf Processing plants
ITC's comprehensive and sophisticated R&D facilities cover all aspects of
cultivation, product development and processing through fundamental and
applied research. Thus, ITC's value proposition to its customers is "On Time
In Full" delivery of quality tobaccos spanning across all tobacco types at
competitive prices.
ITC's Green Leaf Processing plants at Chirala and Anaparti in Andhra
Pradesh, the tobacco hub of India, are benchmarked with the best in the
world. State-of-the-art technology, shared product knowledge base,
sophisticated process and quality controls enable ITC to process and deliver
120 million Kgs of high quality tobaccos annually. These factories have
integrated warehousing complexes that match international standards in
hygiene, infestation control and monitoring.

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Figure 2.21 Tobacco cultivation.
ITC's quality emanates from its intimate involvement with the tobacco farmers
in India. Effective reach mechanisms help transfer 'best practices' from the lab
to the land. With an extensive presence in rural India, ITC's Leaf Tobacco
business maps critical Soil, Crop and Process control parameters across
cultivated areas. Intermediation through a dedicated pool of trained managers
in critical areas like soil testing, varietal improvements, vermicomposting,
nutrient management and post-harvest management results in a superior agri
output. These initiatives position ITC as an integral part of India's agricultural
landscape. ITC's collaboration with related Government agencies has helped
develop new varieties of tobaccos and explore new areas for tobacco
cultivation.
SPICES
In pursuit of new drivers of growth, ITC is aggressively exploring strategic
growth opportunities by innovatively blending and extending the Company's
proven competencies in the procurement and processing of agricultural
products, storage, supply chain and sales management. Closely dovetailing
with this strategic endeavor, ITC's Leaf Tobacco business has successfully
ventured into spices and has made inroads into various other streams of
business.

63
Figure 2.21 ITC's foray into the spices business
ITC's foray into the spices business is an endeavor to provide quality
differentiation across the value chain from the farmer to the customer. In order
to ensure sustainable growth, the business is working closely with farmers,
NGOs and Self Help Groups for developing a reliable farm-to-factory spices
supply chain. Farm interventions are designed to "produce the buy" rather
than "buy whatever is produced".
Figure 2.22 State-of-the-art spices grinding and sterilization
With the current portfolio of Chilli, Turmeric, Coriander, Pepper, Cumin,
Nutmeg, Mustard, Fennel, and Fenugreek, the business is setting up a state-
of-the-art spices grinding and sterilization facility to support growth in the
domestic and export markets. The business is now well positioned to expand
the product range to include value added products such as oleoresins. Also,
catering to a niche customer base spread worldwide, the business has
forayed into Organic and Pesticide Residue Free Spices.

64
Figure 2.23 'Naga Chilli' crop.
Focus on special growing programmes for organic spices and IPM chillies
have helped the business access premium export markets like Japan, US and
the European Union. The business has entered into a unique tripartite
agreement with the Spices Board and the State Government of Nagaland for
developing the 'Naga Chilli' crop. The customers derive value from "quality
assured" and "identity preserved" spices at globally competitive prices. This
foray will further boost ITC's efforts to export India's agricultural produce.
ITC's spices business also provides supply chain support to the Company's
Foods business.
AGRI INPUTS
ITC's Agri Inputs business actively encourages the farming community to use
judicious combination of organic and chemical inputs towards integrated crop
management (ICM) for sustainable agriculture with focus on productivity and
quality. The business concentrates in:
 Restoring soil fertility and improving input use efficiency through prudent use
of eco-friendly agri inputs.
 Educating the farmers on use of eco-friendly inputs through demonstrations,
direct contact and mass campaigns.
 Extending the benefits of Integrated Nutrient and Pest Management practices
to multitude of farmers.
 Offering a platter of nutritive and quality agricultural produce free from harmful
chemicals.

65
From seed treatment, organic soil management (including plant protection
and nutrition through all stages of growth) to grain storage with non-toxic
residue-free pest management, ITC’s Agri Inputs business focuses on the
entire crop cycle with a wide range of products under the following three
brands:
 Addressing soil fertility and crop nutrition in line with the concept of
Integrated Nutrient Management that includes Organic manures and
bio products.
 Addressing crop protection by adherence to the principles of Integrated
Pest Management. Presently consisting of Neem based pesticides, this
line would further expand to bio pesticides and natural metabolites.
 Addressing the problem of storage pests with eco – friendly solution
consisting of bio- pesticides.
Figure 2.24 Agri Inputs (Fertilizer)
Till date nearly 150,000 hectares have been covered and farmers have
already experienced improved yield, quality and marketability apart from
savings in non-usage of harmful chemical inputs across different crops. The
initiative has provided earning opportunity to nearly 50,000 families of
landless labourers and women self-help groups through supply of raw

66
materials, classified as Non-Forest Timber Products to ITC.
The business is continuously roping in the best small-scale industries
/entrepreneurs to manufacture eco-friendly agri inputs under ITC's direct
supervision. This has helped in capacity building and creating employment
opportunities for skilled people in the rural sector.
INFORMATION TECHNOLOGY
Formed in 2000, ITC Infotech has today carved a
niche for itself in the arena of global IT services and solutions. The company
has established technology Centers of Excellence (CoE) to deepen
capabilities and incubate cutting-edge technical competencies. A robust
outsourcing model, comprehensive suite of differentiated solutions & services
and focus on excellence in execution has provided the company a leadership
position in chosen domains.
ITC Infotech’s customer centric go-to-market approach is organized by
industry verticals. The company services industries including, Banking
Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG),
Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.

Figure 2.25 ITC Infotech
The company enjoys the rare advantage of having a practitioner's expertise in
some of these industry verticals, which has in part been bequeathed by parent

67
ITC Limited, which runs market leading businesses in these verticals. While
an enterprise range of technology capabilities and world class quality
processes form the foundation of ITC Infotech's cutting-edge IT service
strength, a sharp domain focus ensures that IT services delivery always
places business needs ahead of technology.
ITC Infotech provides IT solutions by addressing customer pain points through
innovative solutions, optimizing their IT landscape and maximizing returns
from IT investments. The company focuses on developing deep and
differentiated capabilities to enhance expertise in specific industry domains,
business solutions and technologies. This steadfast focus on delivering
enduring value to customers has formed the bedrock of the ITC Infotech’s
growth strategy. The company has been successful in attaining differentiation
in niches and continues to gain competitive advantage and strengthen market
standing. ITC Infotech's leadership capabilities also accrue from business
critical engagements with leading organizations across five continents, and a
service delivery footprint spanning over 140 countries.
ITC Infotech conforms to the highest standards in international process
quality, with ISO 27001, ISO 9001, CMMi Level 3 and BS 7799 accreditations.
These reflect the company's ongoing enterprise-wide focus to ensure that
every engagement, program and project delivers international quality
consistently.
ITC Infotech nurtures its employees through numerous training and
development programmes to help them actualize their potential. The
overarching objective is to ensure for each individual, a wholesome and
challenging job profile, thereby constantly aligning individual aspirations to
organizational needs. ITC Infotech offers global careers, global exposure and
a diversity of opportunities to create business and technology leaders of
tomorrow.
The company became the first Indian IT company to receive the prestigious
Social Accountability (SA) 8000:2008 certification. SA8000 is widely accepted
as the most viable and comprehensive international workplace management

68
system.
Industry Recognition
 Premier analyst and market research agencies have recognized ITC
Infotech's position as the preferred IT partner. The company has been:
 Featured amongst Top 100 Global Outsourcing Companies in the
Leaders category - International Association of Outsourcing
Professionals
 Ranked amongst Top 10 Specialty Application Development Providers
- Global Services, CMP Media
 Named amongst major Indian global service providers for PLM
implementation and engineering services - ARC Advisory
 Listed as a leading Player in CRM & CPG Space, and mentioned
amongst top service providers for Radio Frequency Identification
(RFID) and SAP - Forrester
 Featured among cool vendors in application services, hype cycle for IT
Outsourcing and mentioned in reports on PLM Services Providers -
Gartner
 Referred to as a Key Offshore Testing Services Provider - AMR
Research
ITC Infotech won the Architecture Award of Excellence
2010 from Steve Towers & John Zachman, acclaimed pioneers in the field of
BPM & EAI.

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RESEARCH METHODOLOGY
Research and experimental development is creative work undertaken
systematically to increase the stock of knowledge, including knowledge of
humanity, culture and society, and the use of this stock of knowledge to
devise new applications (OECD (2002) Frascati Manual: proposed standard
practice for surveys on research and experimental development, 6th edition. It
is used to establish or confirm facts, reaffirm the results of previous work,
solve new or existing problems, support theorems, or develop new theories. A
research project may also be an expansion on past work in the field. To test
the validity of instruments, procedures, or experiments, research may
replicate elements of prior projects, or the project as a whole. The primary
purposes of basic research are documentation, discovery, interpretation, or
the research and development of methods and systems for the advancement
of human knowledge. Approaches to research depend on epistemologies,
which vary considerably both within and between humanities and sciences.
There are several forms of research: scientific, humanities, artistic, economic,
social, business, etc.
TYPES OF DATA:
 PRIMARY DATA: - Primary Data is data that has not been previously
published, i.e. the data is derived from a new or original research study
and collected at the source, e.g., in marketing, it is information that is
obtained directly from first-hand sources by means of surveys,
observation or experimentation
 SECONDARY DATA: - Secondary data, is data collected by someone
other than the user. Common sources of secondary data for social
science include censuses, organizational records and data collected
through qualitative methodologies or qualitative research.
ANALYSIS
In this project secondary data is used. Therefore no sampling is used here.

70
CHAPTER – III
ANALYSIS & INTERPRETATION
ANALYSIS OF MARKETING ACTIVITIES
1.The Product Mix of ITC
Figure 3.1 The Product Mix of ITC
ITC had launched nearly all the products range off Non tobacco Products;
they are very aggressive in their distribution of such products. The existing
network of ITC’s Cigarettes distribution is being used extensively for the sales
all products of ITC Food division. They are trying to capitalize the market by
associating the products with the ITC brand.
2. ITC Pricing strategy
The pricing of the ITC food division depends upon the Customers’ demand
schedule, the cost function and the competitors’ price. The pricing of the
company is such that it caters to the need of all income groups of people but
special provision has been kept for Low and middle income group, and their

71
pricing are competitive with respect to other players like Britannia, Parle and
Brisk farm. The company follows the Going rate pricing that is the price of the
product depends upon the competitors price. The firm chooses pricing more
or less the same as Market leader.
3.ITC Promotional activities
A particular budget is allocated for the promotion of the products, the local
promotion scheme is decided by the Area Sales Managers, it give its
suggestion to the District office and that is forwarded to the Head Quarter in
Kolkata. In another promotional scheme for Biscuits a particular number of
cases is given freely to the distributors according to the amount of sale they
make, this was a drop down promotion i.e., of the number of free cases that a
particular distributors gets, off them ascertain part is reserved for the retailers
and customer if they buy a certain level of biscuit quantity.
4. ITC Distribution
Buoyed by a strong distribution network ITC is likely to retain its market share
in the cigarettes business; the ban on advertisements is likely to work in favor
of ITC thanks to the recall factor. The company's reliable distribution network
also ensures superior inventory turnover than its peers.
CONSUMERBUYING DECISION
The main driver in attracting the consumers is quality of the product itself with
nearly65% of the people surveyed citing it as the main criterion for choosing
the product, followed by past experience of the consumer with the brand
(17.6%). Price was third criterion with a percentage of 11.7% of the people
surveyed gave importance during buying.
0
20
40
60
80
Price Quality Promotion Past Experience
ReasonFor Purchasing
Percentage

72
Figure 3.2 Reason For Purchasing
An effective advertisement will attract more and more customer to buy, helps
in the brand and image formation, and informative in telling the USP
of the product.
Figure 3.3 Effectiveness Of Advertisement
The above graph shows the experience of the customer after using the
product i.e., whether they were satisfied with the product as a whole. The
higher the satisfaction level higher will be the chances that the customer will
buy the same brand again and again that leads to the building of the Brand
loyalty.
Figure 3.4 Customer Satisfaction
0
5
10
15
20
25
30
Highly Affective Affective Somewhat Affective Not Affective
No Of Customers
0
20
40
60
80
Extremely Satisfied Satisfied Somewhat Satisfied Not Satisfied
No. of Customers
88%
12%
Yes
No

73
Figure 3.5 The Availability of the Product
The Availability of the Product itself determines the effectiveness and the
penetration of the distribution channel of that particular brand among the
people.
MARKET STAND OF ITC LTD.
SEGMENT DOMINANCE REVENUE
(%)
PBIT (%)
CIGARETTES 70% SHARE 77 87
PAPERBOARD
& PACKAGING
PACKAGING
BOARD –NO. 1 IN
ASIA
7 10
AGRI-
BUSINESS
ONE OF THE
LARGER
EXPORTERS FROM
INDIA
7 4
HOTELS ITC GROUP RANKS
NO. 2
4 5
FMCG
(OTHERS)
20% SHARE OF
GREETING CARDS
MARKET,
‘AASHIRVAAD’ATTA
IS NO.1 IN
BRANDED
SEGMENT
4 (7)
Table 3.1 Market Stand Of ITC Ltd.
MARKET POSITIONING
 Market capitalization of over US $ 33 billion.
 Turnover of US $ 7 billion.

74
 It’s Agri-Business is one of India’s largest exporters of agricultural
products.
 One of the country’s biggest foreign exchange earners (US $ 3.2
billion).
MARKET & COMPETITION
Indian Foods market is a monopolistic market. There are many competitors in
all the categories and although they all have similar products available at
similar prices, they are trying to prove themselves different through their
marketing strategies. However, entry to this business is easy and ITC has
utilized this fact very efficiently to their benefit as they entered into the several
categories among this Foods business.
Ready To Eat
ITC entered into the branded and packaged foods business in with the launch
of Kitchens of India brand. In 2004, the company launched KoI brand fruits
and spice conserves and cooking pastes. The fruits and spice conserves,
were developed jointly with Karen Anand, a food expert. Priced at Rs.70,
these were targeted at the premium segment. The KoI cooking pastes, which
were priced at Rs.30 fo ra 100g pack, also targeted the high-end market.
Multi-purpose cooking pastes were also launched under the Aashirvaad brand
and these were priced at Rs.10 for 80g pack. The manufacturing of these
products was outsourced to contract manufacturers for saving the operating
cost.
ITC entered the branded spices market in 2005 and the Instant Mix segment
in 2006, both under the Aashirvaad Brand. As on April 2006, the total turnover
in the Indian ready-to-eat and ready-to-cook segments was only around
Rs.700 million, but it continued to post an annual growth of 20%. By early
2006, though ITC had captured a 35% market share in the ready-to-eat
segment, MTR was the clear market leader with close to 60% in market
share. ITC exported 40-50% of KoI brand products (in terms of volumes) to
the US, Canada, the UK, Switzerland, and Australia.
In May 2006, ITC planned to introduce ten more varieties under the KoI brand
within a price range of Rs.35 to Rs.98. In 2007, some new products have

75
been launched under Ready To Eat category like chutneys, curries,
conserves, biryanis (Noor Mahal, Bhori Biryani and some new range of
products under Gharana (Paneer Malai, Keema Mutter). After launching all
these products ITC FOODS is looking to share 50 to 60% of market by 2008-
2009.Following are the major competitors ITC is competing with in Ready to
Eat category:
BRANDS DESCRIPTION
Gits Gits produces the selected range of popular ready to cook
and instant foods that cover a range of ethnic Indian
cuisine-and where the recipes have "Global pallete
acceptance".
Haldirams Offers packaged Bhelpuri chats such as SevPuri, Chana
Masala, Samosa, Pakoras, Alu Tikki, Pao Bhaji, Gol
Gappa, Dhokla among others.
Ethnic Kitchens Offers packaged sweets, syrups, namkeens, cookies,
pickles, aloo Masala, Bhujia, Bhelpuri, Chana Dal, Kajui
Ladoo and many more items.
MTR MTR foods currently comprise twenty-two delicious and
completely authentic Indian curries, gravies and rice.
Priya Foods Priya has a range of popular traditional recipes starting
from Dal Makhani, Navaratan Kurma to Palak Paneer,
Paneer Butter Masala, Punjabi Chhole and Rajma Masala
along with true southern delicacies like Andhra Veg Pulav,
Mango Dal, Gongura Dal.
Table 3.2 Ready to Eat category:

76
Figure 3.6 Market Share- Ready To Eat
Confectionery
Confectionary market in India is about Rs.2500 crore. It is loosely divided into
seven categories:
1. Hard boiled candies
2. Toffies
3. Eclairs
4. Chewing gum
5. Bubble gum
6. Mints
7. lozenges
ITC has currently in market with its two brands “Mint-o” and “Candyman”.
ITC’s Mint-O fresh secured a 17% share of Indian cough lozenges market
ahead of former leader Perfetti which only achieved 14.3% with chloromint.
The Indian giant marked the confectionary sector in 2002 and hasonly two
brands “mint-o fresh” and “Candyman”. But in overall confectionary market
they arelagging behind having just 3% market share as compared to market
leader Perfetti with more than37% market and providing larger number of
brands.
48%
35%
8%
9%
ITC
MTR
KOHINOOR
Others(Gits, Priya
Foods, etc,.)

77
Figure 3.7 Market Share- Confectionery
Staples
ITC entered the staples market in 2002 with wheat flour under the Aashirvaad
brand. In 2003, ITC extended the Aashirvaad brand to edible salt. By early
2006, ITC had a 40% market share in the Rs.6 billion packaged flour
business. Its closest competitor HLL’s Annapurna brand was trailing behind
with a market share of 18%. The market was growing at 12%. Under its
Aashirvad brand ITC FOODS also launched salt, mixers, ready to cook
pastes. In the Rs.4 billion organized salt market (as of 2006), Tata Salt was
the market leader with a 28% market share. ITC had only a 5% share of the
market. Other players in this business are HLL (Knorr Annapurna), Nirma
(Shudh), Marico Industries (Saffola), etc.
3%
37%
11%7%
42%
ITC
Perfetti Van Melle
Cadbury
Nestle

78
Figure 3.8 Market Share- Staples
Biscuits
Indian biscuit market is estimated to be around 5000 crore. Biscuit industry in
India in the organized sector produces around 60% of the total production, the
balance 40% being contributed by the unorganized bakeries. ITC with its
premium product, SUNFEAST, is acquiring a big share of market. Within few
years, they are able to get 12% share of the market.
BRITANIA ITC
Ltd.(Sunfeast)
PARLE PRIYAGOLD
Tiger
Nutrichoice
Junior
Good Day,
50 50,
Treat
Pure Magic,
Milk Bikis
Good Morning.
Marie
Dream cream
Milky Magic
Fit kit
Choco Nut
Butter Nut
Parle-g
Krack-Jack
Monaco
Kreams
Hide and Seek
Milk Shakti
Butter Bite
Classic Cream
Butter Lite
Big Boss
Marie Lite
Magic Gold
Table 3.3 Share of ITC Ltd. In Biscuit industry of India
21%
11%
7%
61%
ITC
HLL
Pillsbury
Others(Sri Lal Mahal,
Local Brands, etc,.)

79
Figure 3.9 Market Share - Biscuits
Snacks
Snacks industryoverview
Snacks industry in India is worth Rs.1800 Crores of and growing at 10% is
one of the largest markets in the world, out of which potato chips holds the
major market share of around 85%.
PRODUCT PRICE
(ITC Ltd.)
PRODUCTPRICE
(FRITO LAY)
PRODUCT PRICE
(HALDIRAM)
Bingo
Rs.5
Rs.10
Rs.20
Lays
Rs.5
Rs.10
Rs.20
Lehar Namkeen
Rs.5
Rs.20
Kurkure
Rs.5
Rs.10
Rs.20
Namkeen
Rs.5
Rs.10
Rs.20
12%
10%
38%
32%
8% ITC Ltd.
Priyagold
Britania
Parle
Others(Bonn, Anmol,
etc,.)

80
Table 3.4 Share of ITC in Snacks Industry Of India
Figure 3.10 Market Share - Snacks
STRATEGIES OF ITC
Corporate Strategies
 Sustain multiple drivers of growth.
 Pursue world class competitiveness in all businesses.
 Best-in-class.
 Organization & governance.
 Blend core competencies & leverage ITC umbrella strengths.
Marketing Strategies
1. Pricing Strategy:
 Market follower.
2. Promotional Strategy:
16%
45%
27%
12%
ITC Ltd.
Frito Lay
Haldiram
Others

81
 Local promotional schemes- Area Sales Manager.
 National schemes- Depending upon the project allocated.
3. Distribution Strategy:
 Strict compliance standards, low profit margins, intense
competition, high customer-service expectations.
 Fast &effective sales ordering processes.
PRODUCT MIX OF ITC

82
Figure 3.11 Product Mix of ITC Ltd.
LIMITATIONS
ITC FMCG
FOOD
CIGARETTES
LIFESTYLE
RETAILING
EDUCATION &
STATIONARY
PERSONAL CARE
SAFETY MATCHES
AGARBATTI
PAPERBOARD &
PACKAGING
SPECIALLY PAPER
PACKAGING
HOTELS
WELCOME
GROUP
WELCOME
HERITAGE
FORTUNE
THE LUXURY
COLLECTION
AGRI BUSINESS
RURAL
SERVICES
LEAF
TOBACCO
SPICES
AGRI INPUT

83
 Skill set shortage
 Maintaining high quality standards
 Lack of talent pool
 Unable to do primary research
 Confidentiality
 Enhanced risk management
 Time constraint

84
CONCLUSION
 ITC promoting their brands through advertisement campaign as well as
door to door promotion.
 ITC is also focusing on Retailers and Wholesalers to promote their
brand.
 The demand for some of their product is low, because people don’t
know about their brands very well.
 ITC knows their strength and weakness in the personal care market, so
they are applying new concept to overcome their weaknesses.
 ITC now offering more margins, exiting offers and long credit period to
retailers and wholesalers.

85
BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in
details the following books magazines/ journals and websites have been
referred. All the material detailed below provides effective help and a guiding
layout while designing this text report.
 www.itcportal.com
 www.wikipedia.org
 www.moneycontrol.com
 www.economictimes.indiatimes.com
 www.moneycontrol.com
 www.google.co
 www.bseindia.com
 www.perfettivanmelle.in
 www.cadburyindia.com
 www.nestle.in
 www.rediff.com
 www.thehindubusinessline.com
 www.kitchensofindia.com
 www.aashirvaad.com
 www.bingeonbingo.com
 www.mycandymanclub.com
 www.sunfeastharabanao.co
 Economic times

PRODUCT ANALYSIS OF ITC Ltd.

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