Itc Ltd Ajyplassignmnt

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Introduction

ITCIndia Limited

Type: Public (BSE: ITC)

Founded: August 24, 1910Radha Bazar Lane, Kolkata, India

Headquarters: Virginia House, Kolkata, India

Key people: Y C Deveshwar, ChairmanK Vaidyanath, Director, CFO: Partho

Chatterjee

Industry: Tobacco, Foods, Hotels

Products: Cigarettes, Packaged Food, Hotels, Apparel

Revenue: $4.75 billion USD (2006)

Employees: 20,000 (2006)

Website: http://www.itcportal.com


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ITC is one of India's foremost private sectors companies.

ITC is today, a diversified multi-business conglomerate with a market

capitalisation of US $ 35 billion and a turnover of over US $ 7 billion.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards &

SpecialtyPapers,Packaging, AgriBusiness, Packaged Foods & Confectioner,

Information Technology, Branded Apparel, Greeting Cards, Safety Matches

and other FMCG products.


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

products. ITC is one of the country's biggest foreign exchange earners (US $

2.8 billion in the last decade).

ITC's wholly owned Information Technology subsidiary, ITC InfoTech

India Limited, is aggressively pursuing emerging opportunities in providing

end-to-end IT solutions, including e-enabled services and business process

outsourcing.

ITC's production facilities and hotels have won numerous national and

international awards for quality, productivity, safety and environment

management systems.

ITC was the first company in India to voluntarily seek a corporate

governance rating.


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THE ITC VISION

Sustain ITC's position as one of India'smost valuable corporations throughworld class performance, creatinggrowing value for the Indian economy

and the Company's stakeholdersTo enhance the wealth generatingcapability of the enterprise in aglobalizing environment, deliveringsuperior and sustainable stakeholdervalue

THE ITC MISSION

CORPORATE STRATEGIES:

ITC is a board-managed professional company, committed to creating enduring

value for the shareholder and for the nation. It has a rich organisational culture

rooted in its core values of respect for people and belief in empowerment. Its

philosophy of all-round value creation is backed by strong corporate governance

policies and systems.

ITCs corporate strategies are :

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

businesses that best matches organisational capability with opportunities in

domestic and export markets.

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.

Create distributed leadership within the organisation by nurturing talented

and focused top management teams for each of the businesses.


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

Paperboards & Packaging, Agri Business and Information Technology

Enhance the competitive power of the portfolio through synergies derived by

blending the diverse skills and a capability residing in ITCs various

businesses.

Continuously strengthen and refine Corporate Governance processes and systems

to catalyses the entrepreneurial energies of management by striking the golden

balance between executive freedom and the need for effective control and

accountability


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ITC Pricing Strategy:The pricing of the ITC food division depends upon the Customers demand

schedule, the cost function and the competitors price. The pricing of the company

is such that it caters to the need of all income groups of people but special

provision has been kept for Lowand middle income group, and their pricing are

competitive with respect to other players like Britannia, Parle and Briskfarm. The

company follows the Going rate pricing that is the price of the product depends

upon the competitors price. The firm chooses pricing more or less the same as

Market leader.


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ITC Promotional Activities:

A particular budget is allocated for the promotion of the products, the local

promotion scheme is decided by the Area Sales Manager, it give its suggestion to

the District office and that is forwarded to the Head Quarter in Kolkata. In another

promotional scheme for Biscuits a particular number of cases is given freely to the

distributors according to the amount of sale they make, this was a drop down

promotion i.e. of the number of free cases that a particular distributors gets, off

them a certain part is reserved for the retailers and customer if they buy a certain

level of biscuit quantity.

ITC Distribution:

Buoyed by a strong distribution network ITC is likely to retain its market share in

the cigarettes business; the ban on advertisements is likely to work in favor of ITC

thanks to the recall factor. The company's reliable distribution network also

ensures superior inventory turnover than its peers.


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MARKETING STRATEGIES:

FUTURE STRATEGIES:

No new investments in cigarettes

New ventures in agri business

Pricing Strategy :

Market Follower.

Promotional Strategy :

Local Promotional Schemes Area Sales

Manager.

National Schemes - Depending upon the budget

allocated.

Distribution Strategy :

Strict compliance standards, low profit margins,

intense competition, high customer-service

expectations.

Fast and effective sales ordering processes.


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High degree of promotion

Use their distribution network to reach rural areas

Bypass attack through economy and budget hotels

Distribution and pricing of food products

Tie ups and acquisitions to boost IT business

POLICY ON HUMAN RIGHTS:

ITC believes that all its employees must live with social and economic dignity andfreedom, regardless of nationality, gender, race, economic status or religion. In the

management of its businesses and operations therefore, ITC ensures that it upholds

the spirit of human rights as enshrined in existing international standards such as

the Universal Declaration and the Fundamental Human Rights Conventions of the

ILO.

Policy:

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.

Implementation:

The Corporate Human Resources function of ITC is responsible for the Human

Rights Policy design, implementation and updation. The policy is implemented at

all locations of ITC through a set of separate policies and procedures covering each

of the main constituents of human rights applicable at the workplaces.


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Monitoring & Audit:

The assessment procedures for different constituents of this policy are defined

against each specific policy.

It is ITC's policy:

1. To align and integrate Social Investments / CSR programmes with the

business value chains of your Company and make them outcome oriented.

To support creation of on and off-farm sustainable livelihood sources

thereby empowering stakeholder communities to conserve and manage their

resources.

2. To implement Social Investments / CSR programmes primarily in the

economic vicinity of your Company's operations with a view to ensuring the

long term sustainability of such interventions.

3. To contribute to sustainable development in areas of strategic interest

through initiatives designed in a manner that addresses the challenges faced

by the Indian society especially in rural India.

4. To collaborate with communities and institutions to contribute to the

national mission of eradicating poverty and hunger, especially in rural areas,

through agricultural research and knowledge sharing, superior farm and agri-extension practices, soil and moisture conservation and watershed

management, conservation and development of forest resources,

empowering women economically, supplementing primary education and

POLICY ON SOCIAL

INVESTMENTS / CSR:


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participating in rural capacity building programmes and such other

initiatives.

5. To encourage the development of human capital of the Nation by expanding

human capabilities through skills development, vocational training etc. and

by promoting excellence in identified cultural fields.

The lifecycle of all IT assets spanning from acquisition to disposal shall be managed

in a manner which conforms to sound environmental norms as detailed in the IT E-

Waste guidelines. This includes :

Preferential dealing with IT vendors having sound E-Waste management

processes

Extending the useful life of IT assets to postpone / minimize generation of E-

Waste

Responsible disposal processes conforming to regulatory requirements and

best practices.

It is ITC's policy that its food products should provide nutritious, tasty, hygienic and

convenient options to the consuming public.

ITC will offer food products across multiple categories, price points, delivery formats

and segments as dictated by the needs of the consumer.

IT E-WASTE POLICY:

ITC FOOD PRODUCTS

POLICY:


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ITC's portfolio of food products will be continuously improved and modified to -

1. offer new products that meet the aspiration of the changing consumer,

2. offer food products with affordable and appropriate nutrition,

3. drive reduction of sodium, sugar and fat in Products,

4. offer trans-fat free products,

5. follow the highest standards in nutrition labeling and reporting.

POLICY FRAMEWORK AND STRATEGIES:As with all laws, ITC's Food products will adhere to all legal and regulatory

requirements as prescribed from time to time.

To offer new products that meet the aspiration of the changing consumer

As the aspiration of the consumer changes, new products will be developed and

launched to meet the taste, nutrition and convenience expectations of future

consumers.

1. To offer products with affordable and appropriate nutrition

Recommendations of the National Institute of Nutrition (NIN), India, will be

referred to, to assess nutritional appropriateness of ITC's food products.

Efforts will be made to offer products with appropriate nutrient density for

mass consumption, including catering to the needs of those sections of the

society who are economically disadvantaged.

2. To offer products with micro-nutrient fortification

ITC's food products will be suitably fortified with micro-nutrients (iron, calcium,

zinc, iodine, folic acid, other vitamins and minerals) wherever feasible. ITC's

R&D will continue to carry out suitable research programmes to make fortified

nutrients more biologically available and functional.


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3. To drive reduction of sodium, sugar and fat in products

ITC's R&D will endeavour to find solutions aimed at reducing fat, sugar and

sodium ("FSS") in food products, without impacting the taste profile of the

product. In addition to scientific solutions, ITC will also adopt the Adaptation

Methodology to reduce these ingredients in a gradual manner. Guidelines will

be made and tangible targets will be set for the new product development

teams to reduce the above ingredients in the new products. ITC will

endeavour to introduce such Reduced FSS products in the market by year

2013.

4. To offer Trans Fat Free Products

To disclose added trans-fats, if any, in all food products. To work towards not

using any hydrogenated oil in all food products by the year 2015.

5. To offer functional food products with focus on India-specific metabolic

disorders

ITC, with well-researched functional ingredients, will endeavour to make

functional food products suitable for consumption by Indians who suffer from

metabolic disorders. ITC will release such functional products to the

consumer, only after fully understanding the mechanism of action of the

functional ingredients at the molecular level. Integrative biology approaches

will be employed to study these ingredients' efficacy.

6. To follow responsible marketing and consumer communication

practices

Apart from complying with all local laws and regulations, advertisements ofITC's food products will also adhere to the ASCI Code. All product

communication to the consumer will appropriately represent the products.

Internal audits will be done on marketing practices and, if needed, corrective

action will be taken. Efforts will be made to promote nutritious foods and

educate the rural consumer in food hygiene.


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7. To create and sustain R&D focus in development of new products and

processes

ITC's R&D organisation is structured to research exploratory subjects and

applied research subjects. ITC's R&D infrastructure is of international

standards, and has been certified with ISO 14001-2004 for EHS and ISO

17025 NABL for analytical processes. There are more than 100 scientists

conducting R&D on several food related platforms..

8. To follow the highest standards of hygiene and manufacturing practices

in all delivery formats

ITC Hotels R&D endeavours to practice GHP & GMP (Good HygienePractices & Good Manufacturing Practices) along with ISO 22000 food safety

management system implementation with PAS 220 relevant applications. ITC

hotels will stringently follow all applicable regulatory requirements, with

particular focus on risk minimization and elimination.

9. To collaborate with experts and institutions

ITC believes in collaborating with outside experts to upgrade the knowledge

of its personnel with a view to guiding the food business in developing

products with balanced nutrition and functional ingredients. ITC will continue

to collaborate with national and international institutions for scientific research

and specific projects. ITC believes in using an Open Innovation policy in

developing its R&D for food products.

10.To ensure widespread accessibility of healthy products through pricing

and distribution:

ITC will ensure the widest accessibility to its healthy food products through

ensuring national geographic distribution across both urban and rural centres,

using its FMCG distribution infrastructure and its e-choupal related rural

distribution reach. ITC will also ensure accessibility across demographics

through adopting a portfolio approach across all relevant price segments.


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SWOT

ANALYSIS:

Strength

BrandManagement

Weakness

Unrelateddiversification

Opportunity

Rural market

E-choupal

Threats

Increasing tax in

Cigarettes

Health hazard


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Training and Development

An ever changing, highly competitive global landscape necessitates the

development of a strong, customer responsive world-class company empowered by

its vision, values and vitality. ITC has consistently fostered a culture that rewards

continuous learning, collaboration and development across the organisation to be

future-ready and to meet the challenges posed by ever- changing market realities.

ITC's Learning & Development vision reinforces this agenda by seeking to build

ITC's talent and leadership pipeline and enhance organisational capability to

compete, win in the marketplace and create enduring value for our stakeholders and

society.

ITC's Learning & Development initiatives include core programmes straddling

various dimensions of Leadership, Capability Enhancement and Skill(s)

Development along with customised programmes that address diverse capability-

building needs at various levels of the organisation. These programmes cover not

just functional competencies but behavioural inputs as well, to ensure

comprehensive development of our human resources.


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Focused programmes aimed at ensuring meaningful induction of talent into the

organisation, initiatives to address current and future capability requirements of the

organisation, platforms to understand what the future holds for us in terms of

technology and process advancement and development inputs to enhance

managerial and leadership capability of our resources are the mainstay of our

Learning & Development agenda.

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Itc Ltd Ajyplassignmnt