HISTORY AND EVOLUTIONITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, 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.. The Company now stands rechristened 'ITC Limited'.

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The ITC ProfileITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld 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 Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,14,000 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."

ITC is involved in following businesses:

Cigarettes: ITC is the market leader in cigarettes in India and has a wide range of popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio.

Packaging: ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. It was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It offers a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries.

Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai which was rechristened Hotel Chola. Today ITC-Welcomgroup with over 70 hotels is one of the foremost hotel chains in India.

Paperboards: In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards. ITC's Paperboards business has a manufacturing capacity of over 360,000 tonnes per year and is a market leader in India across all carton-consuming segments.

Greeting, Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate" are widely distributed brands across India. The Paperkraft designer stationery range consists of notepads & multi subject notebooks in hard, soft covers & multiple binding formats including spirals, wiros etc. ITC's Greeting & Gifting products include Expressions range of greeting cards and gifting products.

Safety Matches: ITC's brands of safety matches include iKno, Mangaldeep, VaxLit, Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITC also exports premium brands to markets such as Europe, Africa and the USA.

Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.

Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). In 2002, ITC entered into the popular segment with its men's wear brand, John Players. In 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products.

Food: ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the "Kitchens of India" brand. In 2002 it expanded into Confectionery, Staples and Snack Foods segments. ITC's brand in Food category include: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!.

Agri Exports: ITC's International Business Division (IBD) is the country's second largest exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Foodgrains (Rice, Wheat, Pulses), Coffee & Spices, Edible Nuts, Marine Products, and Processed Fruits.

e-choupal: The e-Choupal model of ITC has been very effective in tackling the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. ITC's e-Choupal won the Stockholm Challenge 2006 award is for using information technology for the economic development of rural communities.

Performance

ITC Ltd. completed yet another year of strong performance with Gross Turnover for the year growing by 20.2% to ` 19505 crores. Net Turnover at ` 12369 crores grew by 26.3% driven by the non-cigarette FMCG businesses, higher agri-business revenues and the continuing strong performance by the Hotels business. The non- cigarette portfolio grew by 37.6% during the year and now accounts for 52.3% of the Company's Net Turnover. Pre-tax profit increased by 20.1%

to ` 3927 crores, while Post-tax profit at ` 2700 crores registered a growth of 20.8%. Earnings Per Share for the year stands at ` 7.19.

Organization

ITC 's Chairman is Mr. Y.C. Deveshwar .

SWOT Analysis ITCITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. This SWOT analysis is about ITC. 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, 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).

StrengthsITC 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.

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.

WeaknessesThe 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 dependant 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 subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone hold 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. Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm

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 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.

ThreatsThe 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.

Code of Conduct

Applicable to all directors, senior management and employees of the Company

PreambleITC’s Code of Conduct was circulated to the employees more than five years back and is posted on the Company’s corporate website. This Code has now been re-drafted for better presentation. This Code is derived from three interlinked fundamental principles, viz. good corporate governance, good corporate citizenship and exemplary personal conduct.

PhilosophyITC is a professionally managed organisation and the core value underlying our corporate philosophy is "trusteeship". We believe this organisation has been handed to us by the various stakeholders in "trust" and we as professionals are the "trustees" of these stakeholders. It is therefore our responsibility to ensure that the organisation is managed in a manner that protects and furthers the interests of our stakeholders. We recognise society as an important stakeholder in this enterprise and therefore it is part of our responsibility to practise good corporate citizenship.

It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we must build ITC into an institution whose dynamism and vitality are anchored in its core values.

Corporate Governance PolicyThe Corporate Governance Policy is the apex level instrument guiding conduct of the affairs of the Company and clearly delineates the roles, responsibilities and authorities of the key entities in the governance structure of the Company. This Code forms an integral part of the Company’s Governance Policy. The directors, senior management and employees must adhere to the Corporate Governance Policy of the Company.

Good Corporate CitizenshipIn the conduct of the Company’s business, the practice of good corporate citizenship is a prerequisite and embraces the following:

Dealing with People in the Organisation

In dealing with each other, directors, senior management and employees shall uphold the values which are at the core of our HR Philosophy - trust, teamwork, mutuality and collaboration, meritocracy, objectivity, self respect and human dignity. Indeed, these values form the basis of our HR management systems and processes. In selection and recruitment, while meritocracy will be a prime criterion, managers will scrupulously consider all factors that go towards securing the interests of the Company. ITC will focus on meritocracy, equity and upholding of Company values in all people processes including performance management systems, appraisals, remuneration and rewards.

A Gender Friendly Workplace

As a good corporate citizen, ITC is committed to a gender friendly workplace. It seeks to enhance equal opportunities for men and women, prevent/stop/redress sexual harassment at the workplace and institute good employment practices.

ITC maintains an open door for reportees; encourages employees to report any harassment concerns and is responsive to employee complaints about harassment or other unwelcome and offensive conduct. A Grievance Committee on Gender Issues has been constituted to enquire into complaints and to recommend appropriate action, wherever required.

ITC demands, demonstrates and promotes professional behaviour and respectful treatment of all employees.

Relationships with Suppliers and Customers

All directors, senior management and employees shall ensure that in their dealings with suppliers and customers, the Company’s interests are never compromised. Accepting gifts and presents of more than a nominal value, gratuity payments and other payments from suppliers or customers will be viewed as serious breach of discipline as this could lead to compromising the Company’s interests.

Legal Compliance

It is the Company’s policy to comply fully with all applicable laws and regulations. Ensuring legal and regulatory compliance is the responsibility of the Chief Executives of the Businesses and the Divisional Management Committees. The Company cannot accept practices which are unlawful or may be damaging to its reputation. Divisional Management Committees must satisfy themselves that sound and adequate arrangements exist to ensure that they comply with the legal and regulatory requirements impacting each business and identify and respond to developments in the regulatory environment in which they operate. In the event the implication of any law is not clear, the Company’s Legal Department shall be consulted for advice.

Health and Safety

The Company attaches great importance to a healthy and safe work environment. ITC is committed to provide good physical working conditions and encourages high standards of hygiene and housekeeping. Particular attention should be paid to training of employees to increase safety awareness and adoption of safe working methods, particularly designed to prevent serious or fatal accidents.

Environment Policies

The Company believes that commitment to sustainable development is a key component of responsible corporate citizenship and therefore deserves to be accorded the highest priority. Accordingly, the Company is committed to Best Practices in environmental matters arising out of its business activities and expects each business to fully demonstrate this commitment.

In addition to complying with applicable laws and regulations, Businesses must establish procedures for assessing the environmental effects of their present and future activities. They should adopt Best Practices in their environmental policies and procedures.

Personal ConductAll directors, senior management and employees have the obligation to conduct themselves in an honest and ethical manner and act in the best interest of the Company at all times. They are expected to demonstrate exemplary personal conduct through adherence to the following:

Avoidance of Conflict of Interest

All directors, senior management and employees must avoid situations in which their personal interest could conflict with the interest of the Company. This is an area in which it is impossible to provide comprehensive guidance but the guiding principle is that conflict, if any, or potential conflict must be disclosed to higher management for guidance and action as appropriate.

Transparency and Auditability

All directors, senior management and employees shall ensure that their actions in the conduct of business are totally transparent except where the needs of business security dictate otherwise. Such transparency shall be brought about through appropriate policies, systems and processes, including as appropriate, segregation of duties, tiered approval mechanism and involvement of more than one manager in key decisions and maintaining supporting records. It shall be

necessary to voluntarily ensure that areas of operation are open to audit and the conduct of activities is totally auditable.

Protection of Confidential Information

No director, senior management and employee shall disclose or use any confidential information gained in the course of employment/ association with the Company for personal gain or for the advantage of any other person. No information either formally or informally shall be provided to the press, other publicity media or any other external agency except within approved policies.

Company Facilities

No director, senior management and employee shall misuse Company facilities. In the use of Company facilities, care shall be exercised to ensure that costs are reasonable and there is no wastage.

Leading by Example

The organisation’s directors and senior management set the professional tone for the Company. Through both their words and their actions, the organisation’s leadership conveys what is acceptable and unacceptable behaviour. ITC’s directors, senior management and employees must constantly reinforce through their actions and behaviour that ITC’s stated beliefs of responsible corporate citizenship are rooted in individual conviction and personal integrity.

WaiversAny waiver of any provision of this Code of Conduct for a director, senior management or employee must be placed for approval before the Company’s Board of Directors/ Corporate Management Committee, as appropriate.

Non AdherenceAny instance of non-adherence to the Code of Conduct / any other observed unethical behaviour on the part of those covered under this Code should be brought to the attention of the immediate reporting authority, who shall in turn report the same to the Head of Corporate Human Resources.

* Senior management for the purpose of this Code would mean the following:- Managers at Grade ‘A’ & its equivalent, and above- Divisional & SBU Chief Executives- Corporate HODs* This Code of Conduct, as adopted by the Board of Directors of the Company on 26th March, 2005,    was amended on 29th March, 2006.

New Delhi: Two Indian companies ITC and Ruchi Soya were among the world's 50 fastest

growing consumer firms during the June 2009-June 2010 period, according to the latest annual report by market research firm Deloitte. According to the 4th annual report "Global powers of the consumer products industry 2011," by the firm, India's ITC Ltd, which sells cigarettes, food and personal care products besides presence in hospitality and paper segments, has been ranked 15th in the list, while edible oil maker Ruchi Soya stood at the 20th position.

The Deloitte report identified 250 largest consumer products companies, based on data available for the 12-month period between June 2009 and June 2010.

During the period, ITC's net sales stood at USD 4.04 billion at a growth rate rate of 17.2 per cent, while Ruchi Soya grew by 14.3 per cent with an annual sales of USD 3.01 billion.

FoodsITC 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 is today represented in 4 categories in the market. These are:

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 6 brands:

Personal CareIn line with ITC's aspiration to be India's premier FMCG company, recognised 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 UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

 

 

HARDWARE & NETWORKING FACILITIES

In present scenario network has become an asset for any organization. ITC is an educational Institute and has a goal to produce Industry compatible product in order to reduce the gap between Industry and Education. To fulfill this goal and to have a live industrial working environment, ITC has adopted new,techniques like wireless networking, fibre optics connectivity, structure ,cabling and much more since last few years and has developed a rugged and high speed multi environment network. Now a days corporate sectors need information at fingertips at higher speed with high security and large storage. To fullfil the present need, new technologies in the field of networking have evolved like video conferencing, VoIP with high speed band width is supported by wireless technique, fibre optics connectivity and many more. ITC has added IBM-Blade Server, VM Ware Virtualization & bunch of virtual servers into its hardware family Recently we have improvised our Hardware and Networking Infrastructure with following Our Network Infrastructure ,consists of :

VLAN using Layer 2 Switch for better network management.

IP SAN BOX of EMC2 with capacity of 3 TB having RAID 5 architecture for Bulk Storage For Backup & Disaster Recovery ( Bare Metal System Recovery of All Network Widows Computer ) for Multiple Servers and Unlimited Clients, we have purchased Retrospect of EMC2.

Generator of Cummings of 35 KVA with Auto start facility for uninterrupted conduct of DOEACC Practical Examinations.

Cigarettes

           Armenteros Handrolled Cigars

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke.

The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution.

All initiatives are therefore worked upon with the intent to fortify market standing in the long term.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune. These factories are known for their high levels of quality, contemporary technology and work environment. 

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.

ITC vision to provide educational access to all students from all areas has resulted in a surge of students enrolling with ITC. In order to accommodate for such an increase, ITC has expanded its facilities, courses and affiliations to ensure that the level of education provided remains at its highest. Such expansion and growth has resulted in ITC receiving impressive audit ratings as well as achieving a 100% growth rate in certified exams.

Technology obsolesce in information technology is prevailing at very high level and, therefore, there is a prudential need to prepare all students/ teachers on latest state of art technology. It would not be out of place to note that without going for any survey, ITC needs to put in huge efforts to implement the technology to tune with industry requirement. Efforts will be needed in terms of finance, R&D, Interpersonal communication etc.

Future Plan for implementation:

Cloud Computing

Information Security

Storage and Disaster Recovery

Sun Academy Courses

Quality Assurance and Testing

Computer Graphics and Animation

E-Business

Enterprise Resource Planning (ERP)

System Control & Audit

ITC has garnered international acclaim for its high standard of IT courseware and teaching. It success relies on the incredible combination of various affiliations, courses, and facilities that the ITC provides. The methodology by which ITC executes all tasks concerning these three categories streamlines and optimizes the workflow, providing a worthwhile experience for all those involved. This methodology has led to a number of recognitions and awards from several IT organizations.

2007:  Ms.Divyesh K. Sangani of ITC Selected as one of Advisory Board Members of

Autodesk        Inc., USA  ITC conferred for the Award of Instructor from Autodesk

2005: Since 1995, Every Year, ITC is conferred with Commendation Certificate by

DOEACC        Society

2004:  ITC Conferred with Award for Excellence in Electronics by MCIT (formerly DoE),

Govt.of       India Recognizing ITC as the Best run Level In statute for the year 2002-2003

2001: ITC DOEACC Level Trainee of 1999-2000 batch Ms Hetal Panchmation achieves

the        first position in the National Project Competition organized by DOEACC Society at Pune

2001: ITC Conferred with Award for Excellence in Electronics by MCIT (formerly DoE),

Govt. of       India recognizing ITC as the Best run Level Institute for the year 1999-2000

1998: Rotary Club of Anand ,a member of Rotary Internationl has awarded Certificate

Appreciation to Ms Divyesh Sangani, in recognition of his excellent vocational services to        the society

1998: ITC DOEACC Level Trainee of 1997-98 batch MS Gargi patel achieves the first

position in

the National Project Competition organized by DOEACC Society at Chennai

1998: ITC conferred with Award for Excellence in Electronics by MCIT (formerly DoE),

Govt. of       India recognizing ITC as the Best run Level Institute for the year 1996

1997:  ITC DOEACC Level Trainee of 1995-96 batch Ms Preeti Chaudhary achieves the

first        position in the National Project Cometition organized by DOEACC Society at New Delhi

1992:  International Awards from Autodesk Inc. USA for Excellence in the Area of

Curriculum,        Instruction, Facilities & Equipments