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Imperial Tobacco Company of

India Limited (ITC).

ITC. Touching your life. Everyday

Presented by

Tithi Ray

Surya Sarthi Ghosh

Suvadip Saha

Supratik Mukherjee

Subrata Mahapatra

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INTRODUCTION

ITC Limitedwhich previously stood for Imperial Tobacco Company

one of India's foremost private sector companies with a market

capitalization of nearly US $ 18 billion and a turnover of over US $

4.75 billion. 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 hoteliering. continues in its traditional businesses of Cigarettes, Hotels,

Paperboards, Packaging and Agri-Exports, it is gaining market share in

its nascent businesses of Packaged Foods & Confectionery, Branded

Apparel and Greeting Cards.


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Contd..

ITC's wholly owned Information Technology subsidiary, ITC

InfoTech India Limited, is pursuing emerging opportunities in

providing end-to-end IT solutions, including e-enabled services

and business process outsourcing. ITC's Agri-Business is one of India's largest exporters of

agricultural products.

ITC's Agri-Business is one of India's largest exporters of

agricultural products.

http://en.wikipedia.org/wiki/IT-enabled_serviceshttp://en.wikipedia.org/wiki/Business_process_outsourcinghttp://en.wikipedia.org/wiki/Business_process_outsourcinghttp://en.wikipedia.org/wiki/IT-enabled_services

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Hotel

Cigarettes

IncenseSticks

PersonalCare

SafetyMatches

Agricultural

Industry

Information

Technology

Paperboards

Packaged Foods

Stationery

BrandedApparel


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Strategy of Organisation to manage diversity of

Portfolio

Formal 3-tiered governance structure:Board of Directors :

Comprising executive (4) and non-executive directors (11)

Strategic supervision

Corporate Management Committee :

Comprising executive directors and senior managers

Strategic management

Divisional Chief Executive & Divisional Management Committee :

Executive management


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Board of directors


ChairmanY.C Deweshwar

Executive Director

Anup Singh K.vaidyanath

Non Executive Director

Anil Baijal, R.K.Kaul,s.H Khan,S.B.Mathur, D.K Mehrotra, H.G.Powell, P.B Ramanujam, Anthony ,

B Vijayraghwan, Basudev Sen

Key persons

of tobacco Kurush N Grant, T.V Ramaswamy, Hemant Malik, R Tandon

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Vision: Sustain ITCs position as one of Indias most

valuable corporations through world class performance,

creating growing value for the Indian economy and the

Companys stakeholders. Mission: To enhance the wealth generating capability of

the enterprise in a globalizing environment, delivering

superior and sustainable stakeholder value.


VISION & MISSION

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Values

ITC's Core Values are aimed at developing acustomer-focused, high-performanceorganisation

Customer Focus we are always customer focusedand will deliver what the customer needs in terms ofvalue, quality and satisfaction.

ITC. Touching your life. Everyday.

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ENDURING VALUE

Expressing concern and desire to help, is the spirit ofITCs rural development initiatives. A social missionreaching out to join hands, convert old relationships into

new partnerships, put on the ground solutions that bringlasting benefits to society.

.

ITC regards corporations as critical tools of socialdevelopment, and considers public - private - people

partnershipsbringing together community,government and businessas the only sustainable basisfor social sector and infrastructure development.


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Corporate Social ResponsibilityEnvironmental

1. ITC has been Carbon Positive 3 years in a row.

2. Water Positive 6years in a row.

3. 100% solid waste recycling

Social

1. ITC's businesses generate livelihoods for over 5 million people.

2. ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure

benefiting over 4 million farming families.

3. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an

estimated 35 million person days of employment among the disadvantaged.

4. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of

dry lands and moisture-stressed areas.

5. ITC's Sustainable Community Development initiatives include women empowerment,

supplementary education, integrated animal husbandry programmes.

6. The first ITC Sangeet Sammelan showcasing the best in Indian classical music was held inDelhi in 1971 ITC. Touching your life. Everyday

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CORPORATE SOCIAL

RESPONSIBILITY

Healthcare services havebeen provided to over45,000 mothers-at-riskand children below 5

Women join their ITCsupported self-help

cow artificiallyinseminated at ITCs

cattle development centre

ITC assists rural familiesto construct low cost

sanitary units for theirhomes

develop water and forestresources to enhance soil

fertility,

adopt soil and water

management practices,the teachers at village

ITC SupplementaryLearning Centre

persuaded parents tosend children to eveningcoaching classes at the

Centre

ITC offers facilitation tofarmers to form agri-

business societies, poolknowledge and

resources, improveproductivity and quality

Over 8 years, ITC hasassisted nearly 2,700

families to construct theirown sanitary units.

apply superior farming

methods to improvequality and quantity offarm ields.


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Business

FMCG

PAPERBOARDS & PACKAGING

AGRI-BUSINESS

HOTELS INFORMATION TECHNOLOGY

GROUP OF COMPANIES


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FMCG


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ITC's Packaging & Printing Business is the largest value added converter of

paperboard packaging in South Asia.

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,etc

Product Lines

ITC's Packaging Business has 3 major product lines

Carton Board Packaging

Flexible Packaging

Tobacco Packaging

ITC Packaging has also pioneered offering ofGreen Packaging which

includes usage of raw material from sustainable sources and converting it in a

facility which is 100% powered by renewable WIND ENERGY.

Packaging

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PRODUCT LINES OF ITCS PACKAGING

BUSINESS

FLEXIBLE PACKAGING

TOBACCO PACKAGING

CARTON PACKAGING

GREEN PACKAGING
http://www.classmateideasforindia.com/

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CLASSMATE-an ITC product

ITC launched its Classmate brand in 2003 with the notebooks category. By

2007, Classmate became the largest Notebook brand in the country. The papers used in Classmate and Paperkraft notebooks are superior in quality

and environment-friendly.

Classmate papers are safe and certified non-toxic.

Classmate added new products to its portfolio which now consists of

notebooks, pens, pencils, mechanical pencils, math instruments, erasers and

sharpners.
http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products/colour-crew.aspxhttp://www.classmateideasforindia.com/http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products/classmate.aspxhttp://www.classmateideasforindia.com/

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CLASSMATE SHARPNERS CLASSMATE PENS

CLASSMATE NOTEBOOKS CLASSMATE GEOMETRY

BOX
http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products/colour-crew.aspxhttp://www.classmateideasforindia.com/http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products/classmate.aspx

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PAPERKRAFT

Paperkraft Paper Stationery

Paperkraft Markers

Paperkraft is the lead provider of all premium executive stationery needs. The Paperkraft range of products aims at satisfying the stationery and office

consumables needs of office executives and working professionals.

The current Paperkraft portfolio includes Premium Business Paper, Paper

Stationery, Markers and Highlighters.

Paperkraft Premium Business Paper

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Introduction

ITC Welcomgroup, India's premier chain of luxury hotels was

launched on October 18, 1975, with the opening of its first hotel -

Chola Sheraton in Chennai

Over 100 hotels in more than 80 destinations

Second largest hotel chain in India

The group today operates under several distinct brands:ITC - Luxury Collection Hotels

WelcomHotel Sheraton Hotels

Fortune Hotels, which has 54 hotels with 4446 rooms in 41 cities

across India

Welcome group of Heritage Hotels

Its restaurants Bukhara, Peshawari, Dakshin, DumPukht and

Kebabs & Kurries are well known cuisine brands today.

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Achievements

ITCs new luxury hotel in Bengaluru, the ITC Hotel Royal

Gardenia was conferred the highest rating for green buildings in

the worldthe LEED India Platinum Rating.

This recognition makes it the worlds largest platinum ratedhotel and is yet another manifestation ofITCs leadership in

Sustainability Practices

It is the only company in the world to be carbon positive, water

positive and solid waste recycling positive.

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Reports on Itc Hotels

for the year 2010 The aftermath of the terrorist attack in Mumbai inNovember 2008, the swine-flu pandemic and the general squeeze oncorporate travel combined to adversely affect the performance of theIndian hotel industry during the year 2010

The impact was particularly severe during the first half withoccupancies and average room rates witnessing steep declines

Given the adverse business environment, Companys hotels businessposted a 9% decline in Net Revenues during the year though thebusiness maintained its leadership position in terms of operatingefficiency

The chairman is still hopeful about investing in this sector because TheWorld Travel and Tourism Council (WTTC) estimates that the Indiantravel and tourism industry will grow at 12% annually until 2019,requiring an additional 50,000 rooms over the next 2 to 3 years

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Future Plan of Action The company is planning to invest $2 billion in hospitality

business in next few years which is one of the thrust areas for investment of ITCalong with FMCG and paper. It may be noted that the hotel division of ITC has aturnover of over Rs 1,000 crore.

Construction activity of the new super luxury properties at Chennai and Kolkata areprogressing satisfactorily

In pursuit of Companys Triple Bottom Line' objectives, the business has and willbe investing in wind energy to provide clean power to its Mumbai property, theITC Maratha. Additionally, solar energy is being used to produce steam at the ITCMaurya, New Delhi and the ITC Royal Gardenia, Bengaluru.

ITC Hotels , is foraying into retail mall and service apartments. Most of the new

mega hotel projects of the company will have luxury retail space and serviceapartments. It will be part of ITC's strategy to de-risk the hotel business ashospitality is highly seasonal business. The company would introduce the newbusiness model in ITC Grand Chola in Chennai(40,000 square feet of luxury retailspace).

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ITC info-tech


Formed in 2000, ITC Infotech has today carved a niche for itself in the arena ofglobal IT services and solutions.

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.

ITC Infotech's leadership capabilities also accrue from business criticalengagements with leading organisations across five continents, and a service

delivery footprint spanning over 140 countries.

This section also aims at the motive of people first and has got many awards and

recognition nder its belt.

The company became the first Indian IT company to receive the prestigious

Social Accountability (SA) 8000:2008 certification. SA8000 is widely acceptedas the most viable and comprehensive international workplace management

system.

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Group of Comapanies

SUBSIDIARIES

1. ITC INFOTECH2. SURYA NEPAL PRIVATE LIMITED.

3. LANDBASE

4. WIMCO LIMITED

5. KING MAKER MARKETING INC.,USA

6. TECHNICO PTY LIMITED.,AUSTRALIA

7. RUSSELL CREDIT LIMITED.

8. SRINIVASA RESORTS LIMITED

9. FORTUNE PARK HOTELS LIMITED

10.BAY ISLANDS HOTELS LIMITED11.GOLD FLAKE CORPORATIONS LIMITED


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JOINT VENTURES

1. MAHARAJA HERITAGE RESORTS LIMITED

2. ITC FILTRONA

ASSOCIATE COMPANIES

1. GUJRAT HOTELS LIMITED

2. INTERNATIONAL TRAVEL HOUSE


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The BCG Matrix for ITC Ltd.

Stars

Hotels

Paperboards/

Packaging.Agri business.

?

FMCG- Others

ITC Infotech

Cows

FMCG-Cigarettes

Dogs

Branded apparelPackaged foods


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ITC Ltd - BCG Matrix

MARKET SHARE

GR

OWTH

Question mark

Dog

FMCG-Cigarettes

ITC Infotech

FMCG-FoodsAgri BusinessHotelsPaperboards &Packaging

P t l i

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Pest analysis


POLITICAL

Huge burden of VAT

Excise duty raised by union budget by 5 %

Ban on communication Luxury tax in 10 states

Smuggling

100% FDI allowed

ECONOMICAL

Bidee : cigarette ratio-10:1

Profit margin is high Other forms of cheap tobacco intake

SOCIO -CULTUR

AL

Becoming status symbol

Companions mounted by W.H.O.

Changing attitudes towards tobacco

May 31 is no tobacco day Change in life style

TECHNICAL

State-of-the-art factories

Cheap labour supply

Development of IQMS

Adapting other concepts like QC,TQM, KSS, 5 S, 6 sigma

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SWOT Analysis

StrengthCigarette market is 22,000 cr and ITC has

lions share in it

Strong brand recognition and product

portfolio

Distribution network

Management

WeaknessDependence on tobacco revenues

Negative Connection of Tobacco

Opportunity

Low per capita consumption

Of personal care products

Rural MarketE-Choupal

Filter cigarette segment of less than 60mm

size

Threat

Competition both Domestic & International

Increasing Tax on cigarettes

Excise duty on unfiltered cigarettes less than60mm in length was increased 387% last year

Hike was 142% for those between 61mm and

70mm long.

Regulatory restrictions on cigarettes

Ban on smoking


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STRENGTHS

1. Managing diverse business. Itc has 105 subsidiaries connected with its various operations.

2. Wealth of local knowledge & international expertise helps it to be globally competitive.

3. High quality standard products & services

4. Excellent export earnings

5. ITC used its experience of transporting and distributing tobacco products to remote and distant parts

of India to the advantage of its FMCG products

6. Excellent brand making capability helping it to diversify it into retailing ,it & hotels segments

7. Agri-export segment showing excellent growth of 28 %

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WEAKNESS

1. Diversification into various lines which are unrelated

2. High competition from established brands which has resulted in reduction in profit margins.

3. Steep increase in cigarette taxes has adversely affected the revenue earned as the revenue is mainly

earned from cigarettes

4. Due to high price of cigarette, consumers are switching to other cheaper forms of tobacco

5. Its hotel industry has still not created a big share in the market size

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OPPORTUNITIES

1. Big untapped market available for cigarettes , hotels , it, retail garment, packaging & agriculturalproducts

2. Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can bedeveloped using strategies of market development, product development and marketingpenetration.

3. Per capita consumption of personal care products in India is the lowest in the world offeringan opportunity for ITC's soaps, shampoos and fragrances under their Wills brand

4. Proper publicity of the hotels would increase its brand image & revenue.

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THREATS

1. Negative publicity for smoking could affect its cigarette segment

2. Government is under huge pressure from public organizations for banning tobacco products whichcould affect it adversely

3. High competition from established brands on all fields be it hotels, FMCG, Agribusiness

4. Competition from unbranded products

5. Due to terrorist attacks the tourism industry has taken a back seat which would affect the hotel

segment

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TOWS MATRIX


Strengths Weaknesses

OpportunitiesMarket expansion

Promotion

AwarenessAffordability

Emphasize on personal

care

ThreatsDiversification

Strategic alliances with

international players

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Future SWOT of ITC


Strength

BrandMore advanced distribution

network(ERP,SCM)

Management:- CRM

Increase in disposable income

Weakness

Entry of other playersHealth awareness

Opportunity

Increasing retail market

Rural market

Increasing e-commerce

Threat

Bargaining power of suppliers

Bargaining power of customers

Smuggling

Ban on smoking

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Porters 5 forces

moderatebargaining power

of customer

High bargainngpower of supplier

High threats ofnew entrants

High rivalry

Low substitutesdue to strict laws


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Market share of ITC Ltd.

Outstanding market leader

Cigarettes, Hotels, Paperboards,

Packaging and Agri-Exports.Gaining market share

Nascent businesses of Packaged Foods& Confectionery, Branded Apparel andGreeting Cards.

Source: Annual Accounts/E uit researchITC. Touching your life. Everyday

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FROM ANNUAL REPORT 2010

S t i G d N t S l f ti

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Segment wise Gross and Net Sales from operations

Quarter ended31.12.2010

Quarter ended31.12.09

Twelve Monthsended

31.03.2010

SegmentRevenue

a) FMCG - Cigarettes - Gross 5236.26 4422.53 17283.03

- Net 2772.60 2398.95 9321.15

- Others - Gross 1104.19 891.75 3641.68

- Net 1102.13 890.01 3633.90

Total FMCG -Gross 6340.45 5314.28 20924.71

-Net 3874.73 3288.96 12955.05

b) Hotels - Gross 303.25 264.51 910.81

- Net 281.63 247.65 850.71

c)Agri Business- Gross 1066.74 905.16 3862.14

- Net 1066.74 905.16 3862.14

d)

Paperboards,Paper &Packaging -Gross 916.67 845.31 3233.61

- Net 877.33 811.80 3107.79Total - Gross 8627.11 7329.26 28931.27

- Net 6100.43 5253.57 20775.69

Less : Inter-segment revenue- Gross 661.84 667.82 2671.67

- Net 646.94 654.01 2622.50

Gross sales /Income fromoperations 7965.27 6661.44 26259.60

Net sales / Income from operations 5453.49 4599.56 18153.19

S t i P fit d C it l l d

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SegmentResults

a) FMCG - Cigarettes 1532.95 1309.84 4938.12

- Others (73.60) (86.03) (349.51)

Total FMCG 1459.35 1223.81 4588.61

b) Hotels 88.60 76.29 216.64

c) Agri Business 141.08 104.08 436.36

d)

Paperboards,

Paper &Packaging 191.42 201.41 684.26

Total 1880.45 1605.59 5925.87Less : i) Interest (Net) 22.96 10.87 53.36

ii) Other un-allocable income net of un-allocable expenditure

(173.78) (106.30) (142.80)

Profit Before Tax 2031.27 1701.02 6015.31

Tax Expense 642.19 556.85 1954.31

Profit After Tax 1389.08 1144.17 4061.00

Capital Employed

a) FMCG - Cigarettes * 2960.79

- Others 1666.35

Total FMCG 4627.14

b) Hotels 2457.35

c) Agri Business 1579.56

d)

Paperboards,Paper &Packaging 3711.27

Total Segment Capital Employed 12375.32

Segment wise Profit and Capital employed

Expenditure Gross and Net Income and Profit

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Quarter ended

31.12.2010

Quarter ended

31.12.2009

Twelve Monthsended

31.03.2010GROSS INCOME 8218.56 6868.86 26862.98

NET SALES (1)5453.49 4599.56 18153.19

OTHEROPERATINGINCOME

(2)

60.25 48.30 229.05

NET INCOME(1+2)

(3)

5513.74 4647.86 18382.24

EXPENDITUREa)

(Increase) / decrease in stock-in-trade and work in progress(58.72) (49.92) 175.24

b) Consumption of raw materials 1816.11 1555.85 5797.96

c) Purchase of traded goods 290.45 187.98 998.20

d) Employees cost 277.34 222.79 1002.77

e) Depreciation 168.10 154.87 608.71

f) Other expenditure 1159.27 1023.52 4105.02

g)Total

(4)3652.55 3095.09 12687.90

PROFIT FROM OPERATIONS BEFORE OTHER INCOME AND INTEREST(3-4) (5) 1861.19 1552.77 5694.34

Expenditure, Gross and Net Income and Profit

from Operations

Other Income, Net Interest, Tax Expense and

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OTHER INCOME (6) 193.04 159.12 374.33PROFIT BEFORE INTEREST (5+6) (7) 2054.23 1711.89 6068.67

INTEREST (Net) (8)22.96 10.87 53.36

PROFIT AFTER INTEREST AND BEFORE TAX (7-8) (9) 2031.27 1701.02 6015.31

TAX EXPENSE (10)642.19 556.85 1954.31

NET PROFITAFTER TAX (9-10)

(11)

1389.08 1144.17 4061.00

PAID UPEQUITY SHARECAPITAL

(12)

770.59 379.53 381.82

(Ordinaryshares of Re. 1/-each)

RESERVES

EXCLUDINGREVALUATIONRESERVES

(13)

13628.17

EARNINGS PERSHARE (Rs.)

(14)

- Basic (Rs.) 1.81 1.50 5.34

- Diluted (Rs.) 1.78 1.50 5.31

Other Income, Net Interest, Tax Expense andEarnings per Share

Public Shareholding vs Promoters and

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Public Shareholding vs. Promoters and

Promoter Group Shareholding


PUBLIC SHAREHOLDING (15)

- NUMBER OF SHARES 7679054641 3780578142 3803475806

-PERCENTAGE OFSHAREHOLDING 99.65 99.61 99.61

PROMOTERS ANDPROMOTER GROUPSHAREHOLDING

(16)

Nil Nil Nil

a) Pledged / EncumberedN.A. N.A. N.A.

b) Non - encumbered N.A. N.A. N.A.

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Financial analysis


Key Economic Indicators

2009-10

Rs. Crores

Gross Turnover 26260

Market Capitalisation 100475*

Profit Before Tax 6015

Profit After Tax 4061

EPS - Rs (Equalised for 95-96) 10.73

Net Worth 14064

Book Value per Share (Rs.) 36.8

Capital Employed 14957

ROCE % 40.6

* Market Capitalisation as on 31/3/10

H1 S t R

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H1 Segment Revenue

Rs crs

Half Year Half Year Golyended ended (%)

30.09.2008 30.09.2007

1. Segment Revenue (Net)

a) FMCG - Cigarettes 3552 3211 10.6%- Others 1449 1126 28.7%

Total FMCG 5001 4337 15.3%

b) Hotels 467 412 13.4%

c) Agri Business 2699 2127 26.8%

d) Paperboards, Paper & Packaging 1306 1038 25.8%Total 9473 7915 19.7%

Less : Inter-segment revenue 1810 1351 34.0%

Net sales / Income from operations 7663 6564 16.7%


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Segment Dominance Contribution %Revenue PBIT

Cigarettes 70% share 77.0% 87.7%

Paper &Packg.

Packaging board No. 1in Asia

7.3% 10.7%

Agri

business

1of the largest xporters

from India

7.0% 3.7%

Hotels ITC Group ranks No.2 4.3% 5.4%

FMCG(Others)

20% share of greetingcards market,

'Aashirvaad' atta isNo.1 in brandedsegment

4.4% -7.5%

Source: Equity research reportsITC. Touching your life. Everyday

5

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CAGR during FY 2005-2008

Category CAGR Growth parametersCigarettes 10.9 % Pricing power

Hotels 22.7% Inward traffic, occupancy

Paper 17.2 % Capacity utilization, valueadded products

Agri

business

34.3 % E-choupal, choupal sagar,

FMCG-Others

60.2 % Fast track, decent share.

Source: Equity research reportsITC. Touching your life. Everyday

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ITCs corporate strategies

Create multiple drivers of growth by developing a portfolio of world class businesses

that best matches organizational capability with opportunities in domestic and exportmarkets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology.

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 ITCs 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 balancebetween executive freedom and the need for effective control and accountability.

COMPETITOR ANALYSIS

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COMPETITOR ANALYSIS The cigarette market in India has 3 players

Godfrey Phillips India (GPI), a Philip Morris affiliate,13%

of market share

Vazir Sultan Tobacco (VST), a BAT affiliate, 13% of the

total market share

Golden Tobacco Company (GTC) with 8% of the market

share.

Domestic competitors

Kanhayya tobacco

MR tobacco

Sapna enterprises

Sudarshan tobacco

ITC still attains a gigantic market share of 66%ITC. Touching your life. Everyday

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HRM POLICY

ITC believes that all its employees must live with social and economic

dignity and freedom, regardless of nationality, gender, race, economic

status or religion.

ITC upholds international human rights standards, does not condone

human rights abuses, and creates and nurtures a working environment

where human rights are respected without prejudice.

The Corporate Human Resources function conducts non-

discrimination reviews annually on a sample basis with unit heads and

through on-site assessments.

ITC Unit has appropriate systems and checks to ensure compliance

with the Policy and statutory provisions, including means for filing of

grievances, collective bargaining agreements and minutes from worker

meetings.


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CONTD..

ITC does not employ any person below the age of eighteen years in the

workplace. ITC prohibits the use of forced or compulsory labour at all

its units. No employee is made to work against his/her will or work as

bonded/forced labour.

All major changes in operations involving work processes, manning

norms and other productivity linked issues are carried out after

discussions with the employees and the recognized unions at each

location.

ITC is committed to providing a safe and healthy work environment to

all its employees. These policy guidelines on HIV/AIDS are an

endorsement of this commitment and, in particular, of the Company's

commitment to specific programmes and actions in response to the

HIV epidemic.


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OPERATIONS AND

LOGISTICS Operation management emphasis the current programs of an

organizations and planning which essentially deals with the future and

two intimately related activities.

A distinction should be made between planning and forecasting .

Planning departments are key in critiquing strategies ,crystallizing

goals ,setting objectives, maintain control.

NEEDS FOR STRATEGY:

1) resources are finite

2) uncertainty about competitive strength and behavior3)when commitment is irreversible


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Contd

Logistic/supply chain management enabling technologies cover a wide

spectrum of technology that facilitates smooth flow of goods and

services and related information as well as integration of business

processes.

The overall competitiveness of industry would increase by having

proper operations and logistic managements.


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Research and development

ITC is committed to delivering world class product and services. this

requires clear focus on continuously striving to create a higher value to

customers by achieving excellence in all companies operations.

ITC development of its integrated quality management system (IOMS)

is based on its strong foundation of implementing

ISO9001:2000,ISO14001,OHSAS18001,SA8000,HACCP(for foods)

and IQRS(Performance rating and benchmarking of the quality

management system.

ITC R&D centre are at

bengalure,hyderabad,bhadrachalam,rajamundry,the company has

assembled a pool of world class scientist focused on providing the

requiste R&D support system.


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Contd

ITC research and developed facilities Rajahmundry in AP cover

all aspects of tobacco crop cultivation. its collaboration with the

central tobacco board research institute and tobacco board ITC

pioneered FCV tobacco cultivation in India and introduced theburley and HDBRG varieties.


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Information system in ITC

IT plays a very critical role in driving the ITC business

strategies.

IT is an enabler of the business process to ensure business

growth through efficient management of operations in the valuechain.

IT creates new business process or restructure the current

business process to enhance customer service availability ,

efficient manufacturing / supply chain operations etc


Recommendation

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Recommendation

Improved security for hotel guests.Floor access control in hotels through key card system.

Precision analysis of products in Food Business.

Process optimisation for product development in Food Business.

Automation of lighting controls.

Use of Solar energy for hot water generation and outside area illumination.

Installation of PNG (Piped Natural Gas) fuelled generator sets and PNG

fired calendar and tumbler drier machines in hotel laundries.

Improvements to reduce heat gain/cooling losses from building envelops in

hotels.Impact of measures for reduction of energy consumption and consequent

impact on the cost of production of goods.


CONCLUSION

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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 of their product in very low, because peopledont know about their brands very well.

ITC knows their strength and weakness in the personal caremarket, so they are applying new concept to overcome theirweaknesses.

ITC now offering more margins, exiting offers and long credit

period to retailers and wholesalers.


.

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