An introduction to ITC Ltd. Kolkata,India

Type Public (BSE:ITC)

Founded24 August 1910Radha Bazar Lane, Kolkata, India

Headquarters Kolkata, India

Key people Yogesh Chander Deveshwar, Chairman,

K. Vaidyanath, Director, Partho Chatterjee, CFO

Industry Tobacco, foods, hotels, stationery, greeting cards

Products Cigarettes, packaged food, hotels, apparel

Revenue ▲ $4.75 billion USD (2006)

Employees 21,000 (2007)

Website www.itcportal.com

ITC Limited which previously stood for Imperial Tobacco Company of India

Limited, is an Indian conglomerate with a turnover of US $ 4.75 billion. It ranks third in pre-

ttax profit among India's private sector corporations. The company has its registered office in

Kolkata. The company is currently headed by Yogesh Chander Deveshwar. It employs over

20,000 people at more than 60 locations across India and is listed on Forbes 2000. The Training

Centre of the company is in Munger, Bihar. ITC is also known as "Chatkal" (especially in

Munger).

List of products & brands:

ITC has a diversified presence in

CIGARETTES : W. D. & H. O. Wills, Gold Flake, Navy Cut, Insignia, India Kings,

Classic Verve , Classic, Silk Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

HOTELS : ITC Welcome group Hotels, Palaces and Resorts is India's second largest

hotel chain with over 80 hotels. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, ITC Welcome group is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India.

PAPERBOARDS & SPECIALTY PAPERS : ITC Bhadrachalam Paperboards Limited &

ITC Tribeni Tissues Division are now under one roof - Paper Boards and Specialty Papers

Division. There are 4 Units under one umbrella - Bhadrachalam, Tribeni, Bollarum and Kovai.

ITC PSPD India's Largest Packaging Solution provider with In-Packaging & Printing Business:

house film manufacturing capabillty. Multi-locational manufacturing facilities to cater to

domestic and export requirements.Product Range includes Cartons (Folding & Fluted), Flexibles

(Ree ls & Pouches), Shoulder Box, HL's & CBO, Printed Cork Tipping, Gaywraps. ITC PPB.

AGRICULTURAL INDUSTRY : Agri-Business, Leaf Tobacco, Gold Ribbon, Blue

Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.

PACKAGED FOODS & CONFECTIONERY : Kitchens of India, Aashirvaad, Sunfeast,

Mint-O, Candyman, Bingo Snacks.

BRANDED APPAREL : Wills Lifestyle, John Players, Miss Players.

TOILETRIES : Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel.

EDUCATION & STATIONARY PRODUCTS : Expressions,Classmate, Paperkraft.

INFORMATION TECHNOLOGY : ITC Infotech.

SAFETY MATCHES : iKno, Mangaldeep, VaxLit, Delite(Discontinued) and Aim Brands

acquired from Wimco (Western India Match Company): Ship , Homelite (Swedish Matches).

INCENSE STICKS : Mangaldeep, Spriha,Yantra.

While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging

and Agri-Exports, it is gaining market share in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel and Greeting Cards. ITC's wholly owned Information Techno-

logy subsidiary, ITC Infotech India Limited, is pursuing emerging opportunities in Providing

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

ITC's Agri-Business is India's second largest exporter of agricultural

products. ITC is one of the India's biggest foreign exchange earners (US $ 2 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 at

Harvard Business School, is expected to progressively create for ITC a huge rural distribution

infrastructure, significantly enhancing the Company's marketing reach.

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 company an

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 alleviat

rural isolation, create more transparency for farmers, and improve their productivity and income.

Corporate philanthropy

ITC E-choupal creatively 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 2007, Sanjay Kant & Ritesh services, through 6400

Echoupal across 8 states, reach more than 4 million farmers in about 40,000 villages. ITC

intends scaling up the initiative with 20,000 choupals and 700 saagars to reach 10 million

farmers in 100,000 villages by 2010. Free access to Internet is also opening windows of rural

India to the world at large. ITC e-choupal is now being regarded as a reliable delivery

mechanism or resource development initiatives. Its potential is being tested through pilot projects

in healthcare, educational services, water management and cattle health management with the

help of several service providers including non-governmental organizations.

CSR ACTIVITIES:

Environment

· ITC has been ‘Carbon Positive’ three years in a row (sequestering/storing twice the amount of CO2

than the Company emits). Water Positive’ six years in a row (creating three times more Rainwater Harvesting potential than ITC's net consumption).

· Close to 100% solid waste recycling.

· All Environment, Health and Safety Management Systems in ITC conform to the best international standards.

Social

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

· ITC's globally recognized e-Choupal initiative is the world's largest rural digital infrastructure

benefiting over 4 million farming families.

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

35 million person days of employment among the disadvantaged.

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

Drylands and moisture-stressed areas.

· ITC's Sustainable Community Development initiatives include women empowerment, supplementary

education, integrated animal husbandry programmes.

Preserving National Heritage

As a socially responsible corporate citizen, ITC endeavours to create value for the Indian

Society in multiple ways, one of them being preservation of India's rich cultural heritage. ITC has made

significant contribution to the promotion of Indian classical music, theatre, art and cuisine.

E-Choupal

ITC’s Agri Business Division, one of India’s largest exporters of agricultural commodities,

has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers

around the world on a sustainable basis. The e-Choupal model has been specifically designed to tackle

the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms,

weak infrastructure and the involvement of numerous intermediaries, among others ‘e-Choupal’ also

unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability

> low investment > low productivity > weak market orientation > low value addition > low margin > low risk

taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich &

abundant natural resources. Such a market-led business model can enhance the competitiveness of

Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for

farmer risk management, larger investments and higher quality and productivity.

Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary

for the continued growth of the Indian economy. This will create another virtuous cycle propelling the

economy into a higher growth trajectory.

ITC To Develop Infrastructure In Rural Schools

ITC Limited plans to provide infrastructure facilities at select rural Government schools in the district under its “Project Classmate”

“ITC has undertaken this project as part of its corporate social responsibility” Sanjay Sreenivas,

Branch Manager, ITC Limited, said “By the end of this financial year, at least 15 schools in the district will

be covered under this project” he added.

A survey of nearly 50 schools conducted by ITC in Coimbatore revealed that most of them were

in need of facilities such as girl’s toilets, benches and desks, black board and play materials. Fifty-two

schools had been identified in Mettupalayam and Karamadai blocks. The project had already started in

about five schools.“The company will look at schools outside Coimbatore Corporation limits”, said P.A.

Naresh, Chief Educational Officer, Coimbatore.

“Through this project, we aim to provide access to primary education and retain students

in primary and middle schools”, Mr. Sreenivas said. Though the company had been involved in several

social activities through its ‘project classmate’ it is focusing on education in a concerted manner, he

asserted.

The company had tied up with a Chennai based non-governmental organization (NGO),

V-Excel, to carry out its activities in the district. Similarly, they had identified Malapuram district in Kerala

for project classmate. A continuous impact assessment would also be done for the project. This was like

a feedback to assess the progress of the project, Mr. Sreenivas explained. Several organizations had

similar activities for schools. But they merely acted as facilitators. “When corporate get in to such

activities, they do it with their own resources”, Mr. Naresh said.ITC To Develop Infrastructure In Rural

Schools.

CSR AWARDS

CII-ITC Sustainability Award 2008CII-ITC Centre of Excellence for Sustainable Development

The ceremony was held on 12th December 2008 as part of the 3rd Sustainability Summit: Asia 2008.

Two NTPC Stations, Farakka and Faridabad have been awarded the CII –ITC Sustainability Award 2008

in the category “Certificate of Commendation for strong Commitment.”

Intel-AIM Corporate Responsibility Award

Asian Forum on Corporate Social Responsibility

The award was given during the two day conference of Asian Forum on CSR on 20th -21st November,

2008 in Singapore.

ITC Foods gets into CSR with the 'Sunfeast Hara Banao Campaign'

On (23 December 2004 4:00 pm) MUMBAI: ITC in a corporate social endeavour has unveiled its environmental awareness programme

'Sunfeast Hara Banao Campaign'. The campaign had a registered participation of over 70,000 students

from over 100 schools spread across Mumbai. The environmental campaign, which extended for a period

of six (06) months culminated in an inter school project contest, which was inaugurated by Ravi Naware,

ITC divisional chief executive foods business at 'The Club' in Andheri today. The campaign essentially showcased the creativity of over 70,000 children between

the age group of 11-15 years. The exhibits displayed by the participants were based on their learning's

gained through various environmental awareness activities carried out as a part of the 'Sunfeast Hara

Banao campaign'. Speaking on the occasion Naware said, 'We believe that corporate social

Responsibility is not an externalized activity nor is it only philanthropy. It is an internal process reflecting

the soul of the Company. Initiative such as 'Sunfeast Hara Banao Campaign' is oriented towards this

governing philosophy'.

ITC Foods along with award winning environmentalist Sunjoy Monga, have designed this

campaign which focuses at bringing to light factors deteriorating our environment. Over the last six

months a detailed programme was undertaken orientating school children on topics such as: Reduction

in usage of plastic bags: School children were given practical lessons on the disadvantages of plastic

bags and the adversities faced thereof (Plastic bags is one the leading damaging components of the

environment), recycling of plastic to minimize usage of plastic bags.

Use of alternative materials: Step-by-step instruction in using alternate material such as waste paper to a

make paper bags instead of plastic bags

Encourage butterfly gardens: A team of experts educated and introduced children to the concept of

'Butterfly Gardens', wherein special plants are grown whereby creating a natural habitat for butterflies to

breed

Signature Drive: A pledge from people in support of Sunfeast Hara Banao Campaign for a better

tomorrow. A total of about two million signatures have been obtained by the students as a part of the

drive As recognition of their efforts, about 2000 participants have been presented gifts during the

'Sunfeast Hara Banao Campaign'. The winning schools in the inter-school project competition will recieve

trophies, prizes and certificates.

ITC's e-Choupal wins ‘Corporate Social Responsibility Award 2004’

Indian Tobacco Company (ITC) recently won the 'Corporate Social

Responsibility Award 2004' from The Energy and Resources Institute (TERI) for its e-Choupal

initiative. The award is designed to encourage social responsibility processes within the

corporate sector. ITC e-Choupal, an information technology-based intervention in rural India,

has already received several national and international awards as a transformation model for

rural India. Earlier, it has won the 'World business award ' instituted in support of the United

Nations' Millennium Development Goals and also the Wharton-Infosys 'Enterprise business

transformation award 2004' for the Asia-Pacific region. The curriculum of the Harvard Business

School now includes a case study on the ITC e-Choupal movement and how it is transforming

Indian agriculture.

AWARD ITC WINS GOLDEN PEACOCK GLOBAL FOR CSR

ITC has won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May 12, 2005 by Dr Ola Ullsten, former Prime Minister of Sweden, who also headed the jury 13 May 2005 : ITC has won the `Golden Peacock Global Award for Corporate Social

Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on

May 12, 2005 by Dr Ola Ullsten, former Prime Minister of Sweden, who also headed the jury.

The Golden Peacock Global Award for CSR aims to stimulate organisations to rapidly accelerate

the pace of stakeholder-oriented improvement processes. Its primary objective is to encourage

competitiveness in corporate governance and corporate social responsibility. ITC received the

award for two of its unique initiatives that are impactfully transforming lives and landscapes in

rural India - ITC's e-Choupal and social and farm forestry.

ITC's e-Choupal empowers over 3.5 million farmers by enabling them to readily

access crop-specific, customised and comprehensive information in their native village habitat

and language. Vernacular websites relating to each agricultural crop that ITC deals in, created by

the Company, provide ready and real-time information to even marginal farmers on the

prevailing Indian and international prices and price trends for their crop, expert knowledge on

best farming practices, and micro-level weather forecast. This significantly improves the farmer's

decision-making ability, thereby helping him better align his agricultural produce to market

demand, secure better quality, productivity and improved price discovery. The e-Choupal model

and movement helps aggregate demand by creating a virtual producers' co-operative, thus

facilitating access to higher quality farm inputs at lower costs for the farmer. ITC e-Choupal also

creates a two-way direct marketing channel for rural India, eliminating 13 May 2005 : ITC has

won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging

Economies for 2005'. The Award was presented in London on May 12, 2005 by Dr Ola Ullsten,

former Prime Minister of Sweden, who also headed the jury. The Golden Peacock Global Award

for CSR aims to stimulate organisations to rapidly accelerate the pace of stakeholder-oriented

improvement processes. Its primary objective is to encourage competitiveness in corporate

governance and corporate social responsibility ITC received the award for two of its unique

initiatives that are impactfully transforming lives and landscapes in rural India - ITC's e-Choupal

and social and farm forestry.

ITC's e-Choupal empowers over 3.5 million farmers by enabling them to

readily access crop-specific, customised and comprehensive information in their native village

habitat and language. Vernacular websites relating to each agricultural crop that ITC deals in,

created by the Company, provide ready and real-time information to even marginal farmers on

the prevailing Indian and international prices and price trends for their crop, expert knowledge

on best farming practices, and micro-level weather forecast. This significantly improves the

farmer's decision-making ability, thereby helping him better align his agricultural produce to

market demand, secure better quality, productivity and improved price discovery. The e-Choupal

model and movement helps aggregate demand by creating a virtual producers' co-operative, thus

facilitating access to higher quality farm inputs at lower costs for the farmer. ITC e-Choupal also

creates a two-way direct marketing channel for rural India, eliminating.

ANALYSIS

From the given CSR of ‘Imperial Tabacoo Company’ of India Limited (ITC), we conclude that ITC Ltd is well developed company of India. ITC has a diversified presence in cigarettes, hotels, paper -brand, specialty papers, agriculture industry, packed food and confectionery, branded appareal, toiletries, Education and stationary products, information technology, safety matches and incense sticks etc. ITC serves The people through these products and brands.ITC's businesses generate livelihoods for over many million people. ITC has made significant contribution to the promotion of Indian classical music, theatre, art and cuisine. ITC is helping many poor children who do not go to school. ITC has won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May12, 2005 by Dr. Ola Ullsten, former Prime Minister of Sweden, who also headed the jury. ITC play very important role in reformation in tourism, education, agriculture and also in information technology. But on the other side It is also manufacturing cigarettes which affect our youth genration. The production of cigarettes is not in the favour of welfare of the sociaty.

UNIVERSITY SCHOOL OF MANAGEMENT

KUK

AN ASSIGNMENT ON

CORPORATE SOCIAL RESPONSEBILITY OF ‘ITC’ LTD, INDIA

Submitted to: Submitteted by: Mr. Ajay Solkhe Salim Deen Satter Faculty MBA(G) Pre.- A University school of management Roll No. -78 kuk

DETAILED CONTENTS

S.No. Page No.

(1) What is CSR?

(2) Introduction to ITC, Ltd. 1

(3) List of products and brands 2

(4) Corporate philanthropy 4

(5) CSR activities 4

(6) ITC infrasturcture in RuralSchool 6

(7) CSR Awards 7

(8) ITC’s e-choupal 8

(9) ‘Golden Peacock Global’ for SCR 9

(10) Analysis 11

What is CSR?

CSR stands for ‘Corporate Social Responsebility’. Social responsibility is important in the case of business also

Social responsibility of business refers to all such duties and obligation of the business directed towards the welfare of the society.

All the activity of the business should be such that it will not harm ,rather they will protect and contribute to the interest of society.

Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps to satisfy the expectation of the different interest groups.

Public Image Government Regulation Survival and Growth Employee satisfaction Consumer Awareness

Now, in this assignment, CSR of ITC (Imperial Tabacoo Company) Ltd. has been discussed on the next pages. First of all, we study the brief discussion on the introduction of the company, such as products and brands, main branches, key persons, position and other activities of that company. After that corporate social responsebility is discussed.