ITC LimitedorITCis an Indianconglomerateheadquartered inKolkata,
West Bengal.Its diversified business includes five segments:Fast
Moving Consumer Goods(FMCG), Hotels, Paperboards, Paper &
Packaging and Agri Business.In 2012-13, ITC's annual turnover was
US$ 8.31 billionand at the end of the same year, itsmarket
capitalizationwas US$ 45 billion.It employs over 25,000 peopleat
more than 60 locations across India and is part ofForbes 2000list.
Company has been in scandals regarding funding of Political Parties
to gain monopoly in Indian Cigarette market.ITC claims that it is
the only company in the world of comparable dimensions to be Carbon
Positive, Water Positive and Solid Waste Recycling Positive. ITC
Limited completed 100 years on 24 August 2010.
HistoryChange in name: ITC was formed on 24 August 1910 under
the name Imperial Tobacco Company of India Limited. Later the name
was changed to India Tobacco Company Limited in 1970 and then to
I.T.C. Limited in 1974. Finally, the company changed its name to
'ITC Limited' on September 2001. The earlier decades of the
company's activities centered around the tobacco industry. Since
1964 conclusive epidemiological evidence of the deadly effects of
tobacco consumption has led to a sharp decline in official support
for producers and manufacturers of tobacco, in spite of its large
contribution to the agricultural, fiscal, manufacturing and
exporting sectors of the economy. Viewing the changes in the
business dynamics in the tobacco industry, the company starting
looking to other venues for earning revenue. In 1970s, it started
to enter non-tobacco businesses and in the same period it started
reducing the foreign equity holding in the company to 40%.In 1975,
the company entered Hotel business with the acquisition of a hotel
in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. In
1979, ITC entered the Paperboard business by promoting ITC
Bhadrachalam Paperboards Limited,which today has become the market
leader in India. In 1985, ITC set up Surya Tobacco Co. in Nepal as
an Indo-Nepali and British joint venture. Since inception, its
shares have been held by ITC, British American Tobacco and various
independent shareholders in Nepal. In 2002, Surya Tobacco became a
subsidiary of ITC Limited and its name was changed to Surya Nepal
Private Limited. ITC's first rural mall, christened 'Choupal
Saagar' was inaugurated in August 2004 at Sehore. On the rural
retail front, 24 'Choupal Saagars' are now operational in the 3
states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000,
ITC forayed into the Greeting, Gifting and Stationery products
business with the launch ofExpressionsrange of greeting cards. A
line of premium range of notebooks under brandPaperkraftwas
launched in 2002. To reach a wider student population, a range of
notebooks was launched under brandClassmatein 2003. Classmate over
the years has grown to become Indias largest notebook brand. Years
2007 - 2009 saw the launch of Children Books, Slam Books, Geometry
Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC
repositioned 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. ITC also entered the Lifestyle Retailing
business with the Wills Sport range of casual 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 2000, ITC spun off its
information technology business into a wholly owned subsidiary,ITC
InfotechIndia Limited, to more aggressively pursue emerging
opportunities in IT and IT-enabled services area. ITC's foray into
the Foods business began in August 2001 with the introduction
ofKitchens of Indiaready-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).In 2003 witnessed the introduction of Sunfeast as the
Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007. In 2002, ITC
entered Safety Matches business with acquisition of WIMCO Limited.
ITC now markets safety matches brands like iKno, Mangaldeep and
Aim.ITC's entered Agarbattis (incense sticks) business in
2003.ITC's popular agarbattis brands include Spriha and
Mangaldeep.ITC introduced Essenza Di Wills, a range of fragrances
and bath & body care products for men and women in July 2005.
The company launched 'Fiama Di Wills' range of Shampoos, Shower
Gels and Soaps in 2007. The Company also launched the 'Superia'
range of Soaps and Shampoos in the mass-market segment in 2007 and
Vivel De Wills & Vivel range of soaps and shampoos in 2008.
Products and Brands[edit]
Tobacco products[edit]Cigarettes: In 2012-13, ITC earned a
revenue of Rs. 27,136 crores from the business of Cigarettes (56%
of total revenue). In the same year, this segment contributed to
profits of Rs. 8,694 crores (82% of total profits).[3]ITC Ltd sells
80 percent of the cigarettes in the India, where 275 million people
use tobacco products.[14]Its major cigarette brands areW.D. &
H.O. Wills,Gold Flake Kings,Gold Flake Premium,Gold Flake Super
Star,Navy Cut,Insignia,India Kings,Classic (Verve, Menthol, Menthol
Rush, Regular,Citric Twist, Mild & Ultra Mild),555,Benson &
Hedges,Silk Cut,Scissors,Capstan,Berkeley,Bristol,Lucky
Strike,Players,FlakeandDuke & Royal.[15][16]
Other businesses Foods: ITC is India's largest seller of branded
foods with sales of over Rs. 4,600 crore in 2012-13.[17]It is
present in 4 categories in Foods business: Staples, Snack Foods,
Ready To Eat Foods and Confectionery.[18]Its major food brands
areKitchens of India;Aashirvaad,Mint-o,Sunfeast
biscuits,Candyman,Bingo!chips,Yippee!andSunfeast Pasta.[18]
Lifestyle Apparel:Wills LifestyleandJohn Playersbrands. Wills
Lifestyle was accorded the Superbrand status and John Players was
included in the top 10 Most Trusted Apparel Brands 2012 by The
Economic Times.[4] Personal Care: (Fiama Di Wills,Vivel,Essenza Di
Wills,SuperiaandEngagebrands in perfumes, haircare and
skincare)[19][20] Stationery:Classmate,PaperKraftandColour
Crewbrands.[21]Launched in 2003,Classmatebecame the largest
notebook brand in India in 2007.[22][23] Safety Matches and
Agarbattis:Ship,[24]i KnoandAimbrands of
matches;[25]MangaldeepIncense Sticks (agarbattis).[26] Hotels:
ITC's hotels (under brands includingWelcomHotel) have evolved into
being India's second largest hotel chain with over 90 hotels
throughout India.[27]ITC is also the exclusive franchisee inIndiaof
two brands owned by Sheraton International Inc.- The Luxury
Collection andSheratonwhich ITC uses in association with its own
brands in the luxury 5 star segment. Brands in the hospitality
sector owned and operated by its subsidiaries includeFortune Park
Hotels andWelcomHeritage Hotels.[27] Paperboard, Specialty Paper,
Graphic and other Paper; Packagingand Printing for diverse
international and Indian clientele. Infotech(through its fully
owned subsidiaryITC InfotechIndia Limited which is a SEI CMM Level
5 company)
Shareholding and listings[edit]ITC's equity shares are listed
onBombay Stock Exchange,National Stock Exchange of IndiaandCalcutta
Stock Exchange.[28][29]The company'sGlobal Depository
Receipts(GDRs) are listed on theLuxembourg Stock
Exchange.[30]Shareholders (as on 31-March-2013)Shareholding[4]
Foreign companies (mainlyBritish American Tobacco
Company)30.54%
Foreign Institutional Investors (FII)19.68%
Banks, Financial Institutions, Insurance Companies and Mutual
Funds33.44%
Bodies Corporate04.91%
Public and Others11.13%
GDRs00.30%
Total100.00%
Employees[edit]As per the Annual report of the company, it had
25,960 employees as on 31 March 2013,[4]out of which 3,043 were
women.[6]It spent Rs. 2,145 crores on Employee benefits during the
FY 2012-13.[3]During the same year, its attrition rate was
12%.[6]Its ChairmanY C Deveshwarhas won renowned awards and
recognitions including Padma Bhushan from Govt. of
India[4][31][32]and 7th best performing CEO in the world by Harvard
Business Review.[33]Meera Shankar, Indian ambassador to USA between
2009 and 2011, joined the board of ITC Limited as the first woman
director in its history.[34]She is an additional non-executive
director of the company.[35]
Initiatives e-Choupal:ITC'sAgri-Businessis one of India's
largest exporters of agricultural products. ITC is one of the
India's biggest foreign exchange earners (US $5.4 billion in the
last decade). 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 atHarvard Business School, is expected to
progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing
reach.[36]The company places computers with Internet access in
rural farming villages; the e-Choupals serve as both a social
gathering place for exchange of information (choupal means
gathering place in Hindi) and an e-commerce hub. What began as an
effort to re-engineer the procurement process for soy, tobacco,
wheat, shrimp, and other cropping systems in rural India has also
created a highly profitable distribution and product design channel
for the companyan e-commerce platform that is also a low-cost
fulfillment system focused on the needs of rural India. The
e-Choupal system has also catalyzed rural transformation that is
helping to alleviate rural isolation, create more transparency for
farmers, and improve their productivity and incomes.[citation
needed]ITCe-choupalcreatively leverages information technology to
set up a meta-market in favour of India's small and poor farmers,
who would otherwise continue to operate and transact in
'un-evolved' markets.As of July 2010, services through
6500Echoupalacross 10 states, reach more than 4 million farmers in
about 40,000 villages. Free access to Internet is also opening
windows ofruralIndia to the world at large.ITCe-choupalis now being
regarded as a reliable delivery mechanism for resource development
initiatives. Its potential is being tested through pilot projects
inhealthcare, educational services,water managementandcattle
healthmanagement with the help of several service providers
includingnon-governmental organizations. In 2008, this initiative
was recognised in the list of "Innovations to make markets more
inclusive for the poor" in World Development Report Sep-2008 by
World Bank.[37] Philanthropy:Classmate notebooks were launched with
the initiative of contributing 1 rupee towards the education of
poor children,from every four notebooks it sold.Classmate, has
launched a programme calledClassmate Ideas for India challenge. The
programme would be a part of the company's centenary
initiative.[38]The nation-wide programme would invite ideas of the
youth, who have the potential to transform India. Classmate Ideas
for India challenge plans to reach out to 25 lakh students across
30 cities, 500 schools and 200 colleges across the country.[39] ITC
Sangeet Research Academy: It is a Hindustani classical music
academy established in 1977 and located in Kolkata.[40]Some noted
musicians are associated with this academy.[41]
Awards and recognitions[edit] ITC features on theForbes Global
2000rankings for 2012 at position 841.[5]In the same rankings, the
company's market value placed it as the 184th largest company in
the world.[5]Forbes has also included the company in Asia's Fab 50
Companies list.[42] In 2013, ITC was ranked the third most admired
company in India byFortune.[43] In 2011, all of ITCs super premium
luxury hotels were accorded LEED Platinum certification, making ITC
Hotels the Greenest Luxury Hotel Chain in the World.[44][45] In
2010, ITC was ranked 6th amongst global consumer goods companies in
sustainable value creation during 2005-09, byBoston Consulting
Group.[46] It received the National Award for Excellence in
Corporate Governance from the Institute of Company Secretaries of
India in 2007.[1][47] In 2006, ITC's e-Choupal program won the
Stockholm Challenge Award 2006 in the Economic Development
category. This program enables over 3.5 million farmers to access
crop-specific and customised information in their native village
habitat and language.[48][49]
ITCs businesses and associated value chains support5 million
livelihoods. The only companyin the world to be carbon positive,
water positive&solid waste recycling positivetransforming
livesand LandscapeeconomicENVIRONMENTALS O C I A LWe believe that
our corporate strategy which embraces societal development as an
integral part of our mission ofwealth creationfor our stakeholders
ensures the long term sustainability of ourbusiness
enterprise.Going forward, competitiveness and profitability will be
increasingly linked to the ability of business to makecarbon
reductionand the creation of sustainable livelihoods an integral
part of their value proposition to consumers.Y C DeveshwarChairman,
ITC LimitedInspired by the opportunity to contribute to a more
secure and sustainable future, ITC Limited hasstructured innovative
businessmodels that leverage its brands, technological capability,
agri-sourcingstrengths and an unmatched tradedistribution networkto
create unique opportunitiesfor sustainable livelihoods.
An ExemplaryContributionto theTriple Bottom LineA portfolio of
businesses of tomorrow encompassingFMCG, Paperboards &
Packaging,Agri & Foods Business,HotelsandInformation
Technology.A turnover ofover US $ 7 billionand amarket
capitalisationof over US $ 45 billion.Total Shareholder Returns,
measured in terms of increase in market capitalisation
anddividends, grew at a compound rate of around27% per annumover
the last 17 years.The new FMCG businesses support the
competitiveness, technology upgradation andmarket reach of over150
Small and Medium Enterprises (SMEs).ITC Group provides direct
employment to nearly30,000 people.ITC has beenCarbon Positive8
years in a row (sequestering/storing 1.5 timesthe amount of CO2
that the Company emits). Water Positivefor 11 consecutive years
(creating over 2 times moreRainwater Harvestingpotential than ITCs
net consumption). Solid Waste Recycling Positivefor the last 6
years.AllEnvironment, Health andSafety Management Systemsin ITC
conformto international standards.ITCs businesses generate
livelihoods forover 5 million people.ITCs globally recognised ITC
e-Choupal initiative is the worlds largest
ruraldigitalinfrastructure benefitingover 4 million farmers.ITC
Choupal Social & Farm Forestry initiative has greenedover
1,60,000 hectares,creatingover 70 million person-days of
employmentamong the disadvantaged.ITC Choupal Watershed Development
initiative brings precious water toover 1,26,000hectaresof drylands
and moisture-stressed areas.ITCs SustainableCommunity
Developmentinitiatives includewomens empowerment,supplementary
education, integrated animal husbandry programmes.
ITCs aspiration to create enduring value for the nation and its
stakeholders is manifest in its robust portfolio of traditional and
greenfield businesses encompassingFast MovingConsumer Goods (FMCG),
Hotels, Paperboards &Specialty Papers, Packaging, Agri
Business, and Information Technology. Thisdiversifiedpresence in
the businesses of tomorrow is powered by a strategy to pursue
multiple drivers of growth based on its proven competencies,
enterprise strengths and strongsynergiesbetween its businesses. The
competitiveness of ITCs diverse businesses rests on the strong
foundations of institutional strengths derived from its deep
consumer insights, brand-building capability, cutting-edge Research
& Development, world-class manufacturing infrastructure,
quality and innovation, extensive rural linkages, efficient trade
marketing and distribution network and dedicated human resources.
ITCs ability to leverage internal synergies residing across its
diverse businesses lends a unique source of competitive advantage
to its products and services. Today, ITC is the countrys leading
FMCG marketer, the clear market leader in the Indian Paperboard and
Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide- reaching Agri Business, the second
largest Hotel Chain in India and a trailblazer in green
hoteliering. ITC Infotech, a wholly-owned subsidiary, is one of
Indias fast-growing IT companies in the mid- tier segment. This
portfolio of rapidly growing businesses considerably enhances ITCs
capacity to generate growing value for the
Indianbeconomy.Acknowledged as a global exemplar in sustainability,
ITC is also the only enterprise in the world, of comparable
dimensions to be carbon positive, water positive, and solid waste
recycling positive for several years in a row. As a testimony to
its commitment to a low carbon growth path, over 41% of the total
energy requirements of ITC are met from renewable sources. ITCs
businesses and value chains generate sustainable livelihoods for
over 5 million people, many of whom live at the margin in rural
India.The World of ITC
Page 5
FMCGBranded Packaged FoodsPersonal Care ProductsCigarettes &
CigarsLifestyle ApparelEducation & Stationery
ProductsAgarbattis & Safety MatchesCreatingworld-class Indian
brands
Page 6
Paperboards & Specialty PapersAn icon of environmental
stewardshipPackaging & PrintingIndias largest convertor of
paperboards into packagingAgri BusinessPioneering rural
transformation
Page 7
HotelsThe greenest luxury hotel chain in the worldInformation
TechnologyOne of Indias fastest growing mid-tier IT
companiesR&DCreating tomorrows game changers
The ITC e-Choupal initiative is a powerful illustration of a
unique business model that delivers large societal value by
co-creating markets with rural communities. A network of village
internet kiosks e-Choupals enable even small and marginal farmers
in rural India, who are de-linked from the formal market, to access
real-time weather and price information, and relevant knowledge and
services to enhance farm productivity, quality and command better
prices improving their competitiveness and capacity to manage risk.
Complementing this digital infrastructure is Choupal Pradarshan
Khet customised agri-extension services, demonstration plots and
training programmes that enable farmers to access best practices
and diversify crop portfolios. The ITC e-Choupal initiative has
emerged as an efficient two- way channel for a variety of goods and
services, and raised farmer incomes, creating sustainable
livelihoods. ITC e-Choupal rural digital-physical
infrastructure
ITC e-Choupal the worlds largest rural digital infrastructure
Empowering over 4 million farmers
Catalysed by the ITC e-Choupal network, ITCs Farm to Food
Products value chain has emerged as a very successful example of
value chain augmentation. Supported by the ITC Choupal Integrated
Watershed Development and ITC Choupal Livestock Development
Programmes, the Farm to Food Products value chain has brought a new
vibrancy to rural economies by making farming a sustainable
livelihood even for the smallest Indian farmer. Eliminating
intermediaries and multiple handling, farmers gain from a
transparent and efficient procurement channel, substantially higher
incomes and crucial market linkages. Effective soil and moisture
conservation strengthens farming systems, increases productivity
and thus farm incomes. ITC, for its part, is able to directly
source high quality, identity-preserved agri-products providing it
with a strong foundation for its agri-based FMCG businesses. By
drawing on ITCs business synergies and expertise, coupled with its
branding and distribution strengths, its growing portfolio of
branded packaged foods is able to offer differentiated products to
customers across the country. Linking farmers to ITCs world-class
brands like Aashirvaad, Bingo!, Yippee! and Sunfeast ensures that a
larger part of consumer spends reaches them. ITCs Farm to Food
Products Value Chain
ITCs Farm to Food Products Value Chain Building competitiveness
throughout the agri value chain
ITC Choupal Social & Farm ForestryThe ITC Choupal Social
& Farm Forestry Programme innovatively converges business needs
and social purpose growing renewable plantations that
simultaneously provide a viable livelihood option for wasteland
owners, create a sustainable raw material source for ITCs Paper
& Paperboards Business and bring multiple environmental
benefits. To ensure commercial viability of these plantations, ITC
invested in extensive R&D to develop fast-growing clonal
saplings that are disease resistant and have a higher rate of
survival in harsh conditions. Tribals and marginal farmers are
assisted with loans, subsidised clonal stock and extension services
through Social Forestry, while Farm Forestry targets farmers with
investible incomes. ITC offers a buy-back guarantee for their
produce, though growers are free to sell to the highest bidder in
the open market. ITC could have chosen the easier route of
importing pulp, rather than the more difficult option of mobilising
tribals and marginal farmers which involved long gestation and
substantial investment exposure. However, adopting this more
challenging route has not only created a source of sustainable
livelihoods for a large number of poor families, but has generated
large-scale green cover that contributes significantly to
groundwater recharge, soil conservation and carbon sequestration.
ITC has introduced an agro-forestry model that combines tree
growing with crop production. This model ensures both food and wood
security and helps in the conservation of precious natural
resources. ITCs afforestation programme has been conferred the
Forest Management certification from the Forest Stewardship
Council, in line with ITCs commitment to achieving internationally
benchmarked standards for responsible wood sourcing.
ITC Choupal Social & Farm Forestry ProgrammeGreening over
1,60,000 hectares & providing over 70 million person - days of
employment
ITCs Tree to Textbook Value ChainWith the ITC Choupal Social
& Farm Forestry Programme as its bedrock, ITCs Tree to Textbook
value chain is an exemplary model of linked prosperity that
delivers on all three dimensions of the triplebottom line. While
the programme beneficiaries profit from their previously
unproductive assets, for marginal and tribal wasteland owners, ITCs
Social Forestry Programme has played a transformational role by
bringing them out of the vicious cycle of poverty. ITC benefits
from a renewable and secure source of pulpwood for its Paper &
Paperboards Business which in turn provides strategic sourcing to
its packaging and other FMCG businesses. A key plank in ITCs
climate change mitigation strategy, the large-scale green cover
created by the plantations has brought significant environmental
benefits and has played a vital role in ITCs carbon positive
status. Along with clean processes like elemental chlorine free and
ozone bleaching technologies employed by ITCs Paper &
Paperboards Business, the Programme has contributedto the Companys
green credentials. As a result, ITCs Education & Stationery
Products Business has been able to strengthen its brand value by
offering eco-friendly Classmate notebooks made by small and medium
enterprises,and Paperkraft business stationery, as well as enabled
ITCsPackaging Business to offer green options to its clients.
ITCs Tree to Textbook Value ChainDelivering on all three
dimensions of the triple bottom line
Recognising the vital role of water and irrigation in the
ruraleconomy, ITC supports watershed development projectsin
water-stressed areas, providing precious water resourcesfor
agriculture, rural communities and livestock. The focusis on
building, reviving and maintaining water harvestingstructures as
well as implementing other measures whichhelp to reverse land
degradation, provide critical irrigationand increase agricultural
productivity. Adopting a participatoryapproach, ITC works with NGOs
to mobilise local communitiesto form water user groups. These
groups are trained tocarry out the entire spectrum of activities
from planning toexecution and maintenance of water harvesting
structures.The groups are also trained to formulate regulations
andfix water user charges which go towards creating a fundused to
maintain existing structures and build new ones.ITC has also
entered into public-private partnerships withseveral state
governments and NABARD, bringing togethergovernment and corporate
resources to undertake watersheddevelopment projects with
considerably greater scale andimpact. Currently, these projects are
targeting to covernearly 1,45,000 hectares in some of Indias most
drought-prone regions.ITC Choupal Integrated Watershed
Development
Page 17
ITC Choupal Integrated Watershed Development InitiativeBringing
over 1,26,000 hectaresunder soil & moisture conservation
Page 18
Livestock plays an important role in the economy ofrural India
with over 70% of households owning milchanimals. The ITC Choupal
Livestock DevelopmentProgramme aims at assisting cattle-owners to
upgradetheir low-yielding indigenous stock through cross-breedingby
artificial insemination. Comprehensive animalhusbandry services are
provided right at the doorstepthrough Cattle Development Centres
managed by trainedlocal community members. Cross-bred yields
aresignificantly higher than indigenous stock,
generatingsubstantial supplementary incomes from surplus milksales
and paving the way for dairying to emerge as aviable livelihood
option.Taking the next step in this direction, ITC has
recentlylaunched Project Gomukh in Munger an integrateddairy
management programme that aims at providingcustomised services and
solutions at every stage ofthe dairy value chain. As part of the
Project, a state-of-the-art milk processing plant is being
constructed toprocess 2,00,000 litres per day.ITC Choupal Dairy
Development
Page 19
ITC Choupal Dairy Development InitiativeAnimal husbandry
servicesto over 8,00,000 cattle
Page 20
ITC believes that economic empowerment of womenstrengthens
families and societies. It has therefore launchedthe ITC Choupal
Womens Empowerment Programme toprovide sustainable economic
opportunities to poor womenin rural areas. ITC assists them to form
micro-credit self-help groups so that they can build up small
savings andfinance self-employment and micro-enterprises. A
largenumber of women earn incomes as self-employed workersor as
partners in micro-enterprises. In particular, incensestick rolling
projects have emerged as profitable micro-enterprises as a result
of the linkage with ITCs incensesticks brand, Mangaldeep. The
project in Munger is showingthe way with focused business
development services fromITC, women rollers have set up a
co-operative to manageproduction of raw incense sticks and a
producers companyto run a scenting-cum-packaging unit.Enabling
women to earn independent incomes has a positiveimpact on their
families and communities as it is spentlargely on childrens
education, health and nutrition, andis a catalyst for gendering
development.ITC Choupal Womens Empowerment Programme
Page 21
ITC Choupal Womens Empowerment ProgrammeEconomically
empoweringover 40,000 women
Page 22
The ITC Choupal Supplementary Education Programmeaddresses the
lack of quality primary education in ruralcommunities. Aiming to
strengthen the government primaryschools vast network by stemming
drop-outs, increasingenrolments and enabling more children to
complete school,ITC has set up Supplementary Learning Centres that
offeradditional coaching to back up learning and help children
tokeep up in class. The Programme also provides
infrastructuralassistance to Government schools such as furniture,
books,teaching aids, classrooms and toilets.ITC also supports
outreach projects, including mobile librariesthat foster the
reading habit and a roaming laptop programmethat promotes computer
skills and interactive learning.ITC Choupal Supplementary Education
Programme
Page 23
ITC Choupal Supplementary Education ProgrammeEducatingover
3,00,000 rural children
Page 24
Reflecting its commitment to a green growth strategy,ITC has
been in the vanguard of the green building movementin India. Its
first environmentally efficient construction the ITC Green Centre
in Gurgaon, headquarters of ITCsHotels Division was one of the
first and largest commercialbuildings in the world to receive
Platinum LEED* certificationfrom the US Green Building Council (
USGBC ) in 2004. Itwas hailed as a monument to the future by
Hillary RodhamClinton, former US Secretary of State, on her visit
to theITC Green Centre during her first official trip to India
in2009. During its re-certification in 2012, the USGBC identifiedit
as the highest Platinum certified green building in theworld.Green
buildings continue to be a vital plank in ITCs agendafor positive
environmental action. Every new ITC constructionis designed in
accordance to internationally benchmarkedgreen building norms. All
its premium luxury hotels areLEED Platinum certified and several
factories have receivedPlatinum Green Factory Building
certification.ITC Green Centre* Leadership in Energy &
Environmental Design
Page 25
ITC Green Centre a monument to the futurePioneering the Green
Buildingmovement in India
Page 26
ITC has redefined the fine art of hospitality in myriad
waysthrough its hotel chain that spans a network of more than
90hotels in over 70 locations. The groups super-premium
luxuryhotels the iconic ITC Hotels not only offer
unmatchedhospitality but have also set new standards of excellence
incuisine, guest experiences and environmental performance.The
worlds first and largest green hotel chain, ITC Hotelssignature
properties have created new benchmarks in responsiblehoteliering by
delivering a unique value proposition, ResponsibleLuxury that
integrates international green best practices withcontemporary
design, harnessing every element of nature inan inspired setting to
create a footprint that contributes tobeing planet positive.Every
hotel in the ITC Hotels luxury chainis LEED* Platinum
certifiedToday, all ITC Hotels are certified green buildings,
havingreceived the US Green Building Councils prestigious
LEEDPlatinum certification, further reinforcing their commitment
toperform to the highest standards of energy, water and
wasteefficiency. ITC Grand Chola in Chennai is the worlds
largestLEED Platinum certified Green Hotel.The Responsible Luxury
commitment of ITC Hotels is manifestedin its own carbon, water and
waste sensitive operations andby its contributions to ITCs larger
social investments inafforestation, water harvesting and waste
recycling, providingsustainable livelihoods to many.ITC Hotels the
worlds Greenest Luxury Hotel chain* Leadership in Energy &
Environmental Design
Page 27
ITC HotelsRedefining Hospitalitywith Responsible Luxury
Page 28
Renewable Energy at ITCIn line with its conscious strategy to
lower its carbonfootprint, ITC has steadily enlarged its clean
energyportfolio. Currently, renewable sources and carbon
neutralfuels provide more than 41% of the Companys totalenergy
consumption. ITC aims to raise this to 50% inthe near
future.Several of the Companys factories and premium luxuryhotels,
including its new iconic property in Chennai, ITCGrand Chola, as
well as the ITC Infotech Park are 100%powered by wind
energy.Renewable energy sources in ITC comprise the following:Black
liquor waste from the pulping process andwaste wood biomass from
chipping operations in theBhadrachalam Unit of ITCs Paperboards
& SpecialtyPapers Business.Locally sourced chip/sawdust and
deoiled branas boiler fuel in the Kovai Unit.Wind Energy farms for
Packaging & Printing, FMCG,Hotels and Paperboards &
Specialty PapersBusinesses.Improved utilisation of carbon neutral
biofuels in thePaperboards & Specialty Papers Business and the
fullyear operations of wind power projects in Maharashtraand Tamil
Nadu contributed to increased utilisation ofrenewable energy.
Page 29
Renewable Energy at ITCOver 41% of ITCs total energyconsumption
is metfrom renewable sources
Page 30
In line with its commitment to creating larger environmentaland
societal value through collaborative action, ITC launchedits Wealth
Out of Waste (WOW) initiative a few years agoto promote resource
conservation and recycling. WOWcreates awareness about the
importance of Reduce-Reuse-Recycle in protecting and restoring the
environment amongthe general public, school children, corporates
and peoplefrom every walk of life. It also inculcates the habit of
sourcesegregation and provides recyclables for a number
ofindustries, eg. paper, glass, plastic, etc.Today WOW is
operational in Hyderabad, Chennai, Bangalore,Cochin, Coimbatore,
Trichy, Erode, Madurai, Vijayawada,Rajahmundry and Guntur. Over 3
million citizens, 5,00,000school children, 350 corporates, more
than 1,000 commercialestablishments and about 200 industries across
South Indiaare supporting WOW, which helps augment green
cover,conserves scarce natural resources, makes surroundingsclean
and healthy. The initiative has also created
livelihoodopportunities for over 4,000 underprivileged people,
includingrag pickers and municipal workers.WOWWealth Out of
Waste
Page 31
Creating a Positive EnvironmentalFootprint through Waste
RecyclingITCs Wealth Out of Waste ( WOW ) Initiative
Page 32
A unique manifestation of ITCs credo of putting India Firstfinds
expression in the ITC Sangeet Research Academy.Established in 1977
to carry on the rich tradition of HindustaniClassical music, the
Academy is a one-of-a-kind institutionpreserving a priceless
national heritage.Recognised as the finest repository of this
musical genre,it is the worlds first and only professionally
managed modernGurukul.ITC Sangeet Research Academy A corporate
tribute to the rich traditionof Hindustani Classical music
Page 33
Empowering the differently abledWhen provided with opportunities
to work and become self-sufficient, people who are differently
abled can contribute tothe workplace, their families and the
community. ITCs HotelsDivision has taken a positive step in this
direction by employingdifferently abled people across their hotels.
Committed to theprinciple that everyone should be treated with
sensitivity andempathy, ITC Hotels has created models which have
beeneffective and have succeeded in sensitising other employees
tothe needs of those differently abled. Keeping in mind
theirspecific skills, a large number of differently abled people
havebeen employed in diverse functions like housekeeping,
teleworking,bakeries and as musicians.Special badges for the
visually impaired, whistles for hearingimpaired employees to use in
an emergency and sign languageclasses for the other staff to
communicate with them are justa few examples of how ITC Hotels has
created an atmosphereof sensitivity and caring. For its substantial
contribution to thecause of promoting employment opportunities for
differentlyabled people over an extended period of time, the NCPEDP
ShellHelen Keller Award was conferred on ITC Hotels.
Page 34
Ranked top among companies Most Active in CSR in the
NielsenCorporate Image Monitor 2012-13 and among the top 5 Most
AdmiredCompanies in IndiaWorld Business and Development Award 2012
for ITCs Socialand Farm Forestry Programmes, presented at the Rio +
20United Nations SummitAIM Asian CSR Award for ITCs contribution in
creating sustainablelivelihoods and fostering economic growth for
rural communitiesCII Water Excellence Award for ITCs Integrated
WatershedDevelopment ProgrammeCII Best Environmental Practices
Award for ITCs WOW(Wealth Out of Waste) initiativeSAM/SPG
Sustainability Leadership Award conferred onMr Y C Deveshwar,
Chairman, ITC Limited12th Businessworld FICCI Corporate Social
Responsibility Awardin the Large Enterprise category for ITCs
Social Investment initiativesFICCI Outstanding Vision Triple Impact
Corporate Award, presentedby the Honble Prime Minister of India, Dr
Manmohan SinghSelect National & Global Recognitionfor ITCs
Sustainability Initiatives
Page 35
FICCI Award for Outstanding Achievement in Rural &
CommunityDevelopment, presented by the then Honble Finance Minister
ofIndia, Shri Pranab MukherjeeDevelopment Gateway Award for ITC
e-Choupals contribution toInformation & Communication
Technologies for DevelopmentStockholm Challenge Award for the ITC
e-Choupal initiativeInaugural World Business Award in recognition
of ITCs significantefforts to create sustainable livelihood
opportunities and enduringwealth in a developing
countryUNESCO-Water Digest Corporate Social Responsibility Crown
Awardfor Water PracticesTERI Corporate Social Responsibility Award
for the ITC e-ChoupalinitiativeAsian CSR Award for Environmental
ExcellenceITC was ranked 2nd among the top companies in India and
7th inAsia in the Asian Sustainability Rating released by CSR
AsiaUNIDO Award at the International Conference on Sharing
InnovativeAgribusiness SolutionsITC is the first Indian company to
gain membership to the WorldWildlife Fund Global Forestry &
Trade Network ( WWF-GFTN ) for itsresponsible forestry
initiativesNCPEDP ( National Centre for Promotion of Employment for
DisabledPeople ) Shell-Helen Keller Award for the ITC-Welcomgroup
chain
TC Limited Corporate CitizenshipITC Limited (ITC) is one of
India'sforemostprivate sector companieshavinga diverseportfolioof
businesses. Thecompanyhas beenundertakingseveralCSRinitiativesover
the years andbeen appreciated for themglobally.
CSR initiatives of ITCITC Limited (ITC) is one of India's
foremost privatesectorcompanies having a diverse portfolio of
businesses. The company has been undertaking several CSR
initiatives over the years and been appreciated for them globally.
The case discusses ITC's CSR initiatives and focuses on its
approach. The company's innovative ways and heavy investments to
achieve the 'triple bottom line' are discussed. The question to be
look forward "Is it taking the right initiatives andsetting
standardsto follow?"About ITCITC is one of India's foremost private
sector companies with amarket capitalisationof over US $ 30 billion
and a turnover of US $ 6 billion. 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."CSR philosophy of ITCInspired by the overarching vision of
making a contribution to the national goals of sustainable
development and inclusive growth, ITC has innovatively crafted
unique business models that synergise long-term shareholder value
creation with enhancing societal capital. This commitment is
reflected when ITC measures accomplishments not only in terms of
financial performance but also by the transformation ITC has
consciously engendered to augment the social capital of the nation.
in ITC's 'Triple Bottom Line' approach of contributing to the
economic, environmental and social capital of the country.
Envisioning a larger societal purpose has always been a hallmark of
ITC. The company sees no conflict between the twin goals of
shareholder value enhancement and societal value creation. The
challenge lies in fashioning a corporate strategy that enables
realisation of these goals in a mutually reinforcing and
synergistic manner.As a corporate citizen with enduring
relationships in rural India, ITC has a history of collaboration
with communities and government institutions to enhance farm
productivity and the rural resource base. ITC's commitments in
agricultural R&D and knowledge sharing have spanned vital
aspects of competitiveness - efficient farm practices, soil and
water management.ITC is committed to a national agenda of raising
agricultural productivity and making the rural economy more
socially inclusive. ITC believes that the urgency and scale of
these tasks make market linked solutions and innovations more
effective and sustainable than capital intensive approaches.Let's
put India FirstITC's philosophy revolves around goal congruence
with the national goals of sustainable development and inclusive
growth. Various environmental & Social initiatives are taken by
ITC to ensure sustainable growth. Some of the key initiatives taken
by ITC for improvement of livelihood of disadvantaged sections of
society and the reach of initiatives in mentioned in table
belowInitiativesMilestones
e - Choupal4 million farmers empowered,6,500 e - Choupals
installed
Social & Farm Forestry114,428 hectares greened,generating
51.48 million person - days of employment
Watershed Development56,951 hectaresbrought under soil and
moisture conservation
Women's Empowerment15,378 women members1183 self - help
groups
Livestock Development176 Cattle Development Centres3,520
villages covered annually
Primary Education252,329 children coveredthrough 2,334
Supplementary Learning Centres
Rworld will showcase CSR practices and case studies of
corporates. CSRworld will also highlight projects whichseeksupport
and funding from CSR budgets. To include your case study or to list
your project, contact CSRworld [email protected]
CSRworldCSRworld is a forum for CorporateSocial Responsibilitywhich
aims to create an ecosystem for furthering meaningful CSR practice
in India. CSRworld will highlight case studies and CSR practices of
corporates as well as showcase projects which need support and
funding.read..ConceptsThis section will contain more or less
unchanging information on definitions, approaches, and models of
CSRansweringthe basic questions of - What ? Why ? How ? When ?
Where ? Who ? During the long and distinguished history of the
"company" or businesses / corporates in India and other parts of
the world,business leadershave been trying to make a positive
impact on the society, communities around them and the world, in
some way or the other.read..ArticlesCorporate Social
Responsibilityby Prof. N. R. ShethFormerDirector, IIM,
Ahmedabadread..A concept Paper on CSR inDisasterRisk Reductionby
Dr. R. K. DaveSenior Specialist(Policies & Plans),National
DisasterManagement Authority, New Delhiread..TalkCorporate Social
Responsibilityby Mr. N. R. Narayana MurthyChairmanEmeritus,
Infosyson the occasion of an award by Chirmule Pratishthan at
Puneread..ITC Limited Corporate Citizenshipe-Choupal : Rural
digital-physical infrastructureIn 2000, harnessing the empowering
force ofinformation technologyand its scalabilty, ITC launched
e-Choupal - a knowledge portal providing farmers with a range of
information and services. Designed to enable them to bargain
collectively and enhance their transactive power, e-Choupal became
the much needed and easily adoptable tool farmers had been waiting
for. Today e-Choupal is a vibrant and rapidly growing zone of
business and interaction for over 4 million farmers.Today 4 million
farmers use e-Choupal to advantage - bargaining as virtual buyers'
co-operatives, adoptingbest practices, matching up to food safety
norms. Being linked tofutures marketsis helping small farmers to
better manage risk. e-Choupal has been specially cited in the
Government of India's Economic Survey of 2006-07, for its
transformational impact on rural lives.ITC'sstrategic intentis to
develop e-Choupal as a significant two-way multidimensional
delivery channel, efficiently carryinggoods and servicesout of and
into rural India. By progressively linking the digital
infrastructure to a physical network of rural business hubs and
agro-extension services, ITC is transforming the way farmers do
business, and the way rural markets work.The network of 6,500
e-Choupal centres spread across 40,000 villages has emerged as the
gateway of an expanding spectrum ofcommoditiesleaving farms -
wheat, rice, pulses, soya, maize, spices, coffee, aqua-products.
The reverse flow carries FMCG, durables, automotives andbanking
servicesback to villages.
Social & Farm forestryITC's social &Farmforestry program
emerged in response to its challenge to source effective pulp wood
from sustainable sources to enhance its competitiveness. Instaed of
taking easier route to importing pulp, ITC innovatively leveraged
it's pulpwood requirements to provide sustainable livelihood
opportunities to poor and tribal marginal farmers, by assisting
them to convert their private wastelands into productive pulpwood
plantations. High yielding, disease resistant and site specific
clones are developed in ITC's research center.This program has not
only created sustainable source of livelihood for a large no. of
disadvantaged sections of society but has also bought in a
multiplicity of benefits by creating a large green cover that
contributes significantly to groundwater recharge, soil
conservation and carbon sequestration.Integrated Watershed
DevelopmentRecognising the vital role that role plays in the rural
economy, ITC promotes watershed projects in waterstressed areas
providing precious water resources for agriculture and rural
communities and livestock. Based on a participatory approach, the
programme facilitates building, reviving and maintaining water
harvesting structures as well as management of water resources to
reverse land degradation, provide critical irrigation and increase
agricultural productivity.The phenomenal example of this was the
Ranjangaon ara near Pune district in Maharashtra, it was under
severe draught during kharip season of 2009 with virtuallyno rains
in the project area, farmers and cattle were adversely affected.
ITC's watershed programme became the only source of livelihood for
more than 350 farmers who participated daily in the work.In another
first of its kind agreement in the country, ITC signed MOU with the
government of Maharashtra to implement NREGA in 2 blocks of Jalna
district on an integrated watershed programme basis covering 50
villages.Integrated Agricultural DevelopmentThe programme promotes
a combination of solutions for optimizing water management and
enhancing farm productivity. Farmers are motivated to form
agri-business centers, enabling them to pool knowledge and
resources, have access to quality inputs on time and improve
productivity and quality.A total of 20 agri-business centers
provided timely agri-iputs to around 1077 members.To help farmers
capture additional value from their holdings, ITC promoted crop
diversification with good market linkages. Organic spces, medicinal
and aromatic plants were promoted under this initiative.ITC Limited
Corporate CitizenshipLivestock DevelopmentThe programme assists
small landless farmers to upgradelivestockquality through
cross-breeding byartificial inseminationto boost milk productivity
by a factor of 6 to 9 times, lading to a threshold increase in
household incomes and thereby an improvement in their economic
status. Following graph shows average increase in milk productivity
due to cross breeding:The programme also provides integrated animal
husbandry services that include pre and post natal interventions.
Vaccinations and heath services are provided to more than 1.7 lakh
cattle.Women's empowermentITC'sinitiativeprovide
sustainableeconomicopportuinities to poor women in rural areas by
assisting them to formself help groupsthat enable them to build
small savings and finance self employment and micro-enterprise. The
programme has demonstrated that extra incomes in the hands of women
lead to positive changes in human development since it is largely
invested in children's education, health and nutrition.The total
turnover of women managedmicro enterpriseswas Rs. 61.14 lakhs, the
bulk of which was accounted by the sale of raw agarbattis and
chikankar garments.
Universal EducationThe programme is aimed at increasing chances
of employability either through impartingtrainingin skills orbetter
education.The programme provides infrastructure support to
government run primary schools and coaching through Supplementary
learning centers to stem drop-outs and enable more children to
complete school and move on to higher classes.In order to increase
enrolment, poor children receive school uniforms and text/exercise
books. A network of rural libraries andresource centersenrich the
process of learning for these children. An innovative initiative of
roaming laptop programme is also provided to government schools in
rural areas.Awards and Recognitions1. The inaugural Worls Business
Award in 2004 Recognises companies which have made significant
efforts to createsustainablelivelihood opprtuinities and enduring
wealth in developing countries. Sponsored by UNDP, ICC and Business
leader's forum jointly2. The development Gateway award in 2005 For
trailblazing e-Choupal. ITC is first Indiancompanyand second in the
world to receive this award for its contribution towards
development initiatives.3. The Stockholm Challenge Award For using
information technology in economic development of rural areas:
e-Choupal4. The corporate social responsibility Crown award For
water practices from UNESCO and water digest5. TERI corporate award
for social responsibility 2008 For integrated watershed programme
implemented in 7 states.6. Golden Peacock Awards for 'Corporate
Social Responsibility (Asia)' in 20077. Annual FICCI Outstanding
Vision Corporate Triple Impact Award in 20078. United Nations
Industrial Development Organisation (UNIDO) Award9. Readers' Digest
Pegasus AwardKey CSR related decision-makers in the companyY. C.
DeveshwarChairman
S. BanerjeeMember
H. G. PowellMember
A. RuysMember
B. SenMember
B. VijayaraghavanMember
B. B. ChatterjeeSecretary
