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ITC is one of India's foremost  with a market  !"
#$%&'and a (!#$)*%. 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 Business World and among India's Most Valuable
Companies by Business Today. ITC ranks among +,-%.
/('0p"1+,,
in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks
among ,).'!2compiled by Business Week. As one of India's
most valuable and respected corporations, ITC is widely perceived to be +++"
+. ITC "3)4... at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 54634...77+, fulfill the aspirations of
its stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its 2

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They have an abiding commitment to world-class quality. Their deep market
insight; cutting-edge technology; a pervasive culture of innovation has made
them create a mark in the industry. The ITC Brand has made India proud through
its several products and services.

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ITC was +(2(3:4%&%. under the name of ,9'
p"!++,. Its beginnings were humble. A leased office on Radha
Bazar Lane, Kolkata, was the centre of the Company's existence. The Company
celebrated its 16th birthday on (2(3:4%&3;, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum
of Rs 310,000. This decision of the Company was historic in more ways than one.
<=7'22!2+!(>("+,!((.
The Company's headquarter building, 'Virginia House', which came up on that plot
of land two years later, would go on to become one of Kolkata's most venerated
landmarks. The Company's ownership progressively Indianised, and the name of
the Company was changed to *9*p*+%&6:. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting &
Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened ,9p+,*

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ITC's Corporate Governance initiative is based on two core principles. These are :

—? Management must have the executive freedom to drive the enterprise

forward without undue restraints; and 
—? This freedom of management should be exercised within a framework of
effective accountability.




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ITC͛s mission is to (+77<722" of
its portfolio of businesses in a progressively globalizing environment. As one of
India͛s premier corporations employing a vast quantum of societal resources, ITC
seeks to fulfill a larger role by enlarging its contribution to the society of which it
is a part. The trusteeship role related to social and environmental resources,
aligned to the pursuit of economic objectives, is the cornerstone of ITC͛s
Environment, Health and Safety philosophy. ITC͛s EHS philosophy cognizes for the
twin +!+!+((*

In the multi-business context of ITC, Corporate Strategies are designed to create

enduring value for the nation and the shareholder, through leadership in each
business and the attainment of world-class competitive capabilities across the
value chain. The objective of leadership extends to all facets of business
operations including Environment, Health and Safety.





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1.?Sustaining ITC͛s position as one of India͛s most valuable

corporations.
2.?Achieving leadership in each of the business segments within a
reasonable time frame.
3.?Achieving a Return On Capital Employed (ROCE) in excess of the
Company͛s cost of capital, at all times.
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ITC Echoupal creatively leverages information technology to set up a meta-market in favor
of India's small and poor farmers, who would otherwise continue to operate and transact in
'un-evolved' markets.

As of July 2007, ITC Echoupal 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
eChoupal is now being regarded as a reliable delivery mechanism for 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.
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%*?Though the first six decades of the Company's existence were primarily devoted to the
2<7++ of the p2+!9' businesses, the
Seventies witnessed the beginnings of a ! that would
usher in momentous changes in the life of the Company.

3*?ITC's =22B2( was set up in 1925 as a 2'=<+

2 for ITC's Cigarettes business. It is today India's most sophisticated packaging
house.

5*?In 1975 the Company launched its 8'( with the acquisition of a hotel in Chennai
which was rechristened ,9pA2(8p7,* The objective of ITC's entry into
the hotels business was rooted in the !2(!7
. ITC chose the hotels business for its potential to:
—? 727!!2C72,
—? (!(( and
—? 22+++".
Since then ITC's Hotels business has grown to occupy a position of leadership, with over 90
owned and managed properties spread across India.

:*?In 1979, ITC entered the '+ '( by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India. Bhadrachalam
 Paperboards amalgamated with the Company effective March 13, 2002 and became a
Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the '+B
#". ITC's paperboards' technology, productivity, quality and
manufacturing processes are '7'7<+* It has also
made an immense contribution to the development of Sarapaka, an economically backward
area in the state of Andhra Pradesh. It is directly involved in education, environmental
protection and community development. In 2004, ITC acquired the paperboard
manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil
Nadu. The Kovai Unit allows ITC to (<7+(++
+<++(2*

)*?In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and
a major supplier of tissue paper to the cigarette industry. The merged entity was named the
Tribeni Tissues Division (TTD). To 72+
"2, TTD was merged with the Bhadrachalam Paperboards Division to form the
'+B#" in November 2002.

;*?Also in 1990, leveraging its agri-sourcing competency, ITC set up the 2(
for export of agri-commodities. The Division is today one of Y
  
ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya
farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers.
ITC's !(, christened 'Choupal Saagar' was inaugurated in August 2004 at
Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of
Madhya Pradesh, Maharashtra and Uttar Pradesh.

6*? In 2000, ITC launched a line of high A("22+ under the brand name
'C'. In 2002, the product range was enlarged with the introduction of !
<4(27'=+#'=* In the same year, ITC also launched
,C
('77,, a vernacular range of greeting cards in eight languages and
,C=!,, a range of premium stationery products. In 2003, the company
rolled out ,p,, a range of notebooks in the school stationery segment. This way it
established itself as a brand for students and is performing excellently due to its A("
+2".
@*?ITC also entered the Lifestyle Retailing business with the A# 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 Ap!< (2002) and A
p('!2<(2003). ITC also initiated a foray into the popular segment with its
men's wear brand, D7", in 2002. In 2006, Wills Lifestyle became title partner of the
country's most premier fashion event - A!"+7A= - that has gained
recognition from buyers and retailers as the 223!!7
72+(". To mark the occasion, ITC launched a special 'Celebration
Series', taking the event forward to consumers. In 2007, the Company introduced '

"'- a fashion brand in the popular segment for the young woman.

&*?In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
9p!7++4 to more 22"((22(s in
this area. Today ITC Infotech is one of India͛s fastest growing global IT and IT-enabled
services companies and has established itself as a key player in offshore outsourcing,
providing outsourced IT solutions and services to leading global customers ="
!( - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R
(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and
Media & Entertainment.

%.*? ITC's foray into the Foods business is an outstanding example of successfully '+2
(<+!'(2<7. It
began in August 2001 with the introduction of ,7!+, ready-to-eat Indian
gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the
launch of the brands  and p+" confectionery and 7+atta(wheat
flour). 2003 witnessed the introduction of #(!as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with 2E in 2007. In
just seven years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an '+'(
7, a rapidly 2<2=7 and a solid market standing.

%%*? ITC's foray into the marketing of 2'0=1in 2003 marked the
!!7<772. ITC's popular agarbattis
brands include #7 and
2+ across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
%3*? ITC introduced  A, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005.  4 the signature range under  
A provides a comprehensive grooming regimen with distinct lines for men ( 
8) and women ( ). Continuing with its tradition of bringing world class
products to Indian consumers the Company launched 'A', a premium range of
Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively.
The Company also launched the '#(' range of Soaps and Shampoos in the 
=2 at select markets in October 2007 and /A & /range of
soaps in February and /range of shampoos in June 2008.

9p(
+
1.? During 2002-03, ITC crossed significant milestones both in the 2 of FMCG products
launched as well as the '+7!+'(. Investment in people systems, trade
marketing expertise and product development enabled the launch and national rollout
of several FMCG products spanning Apparel, Packaged Foods, Greeting Cards and
Stationery, Safety Matches and Incense Sticks (Agarbatti). The business model in each of
these product categories 22"'+!7
(77(. Manufacturing is outsourced largely to small and medium
enterprises (SMEs). Such a model enables ITC to participate effectively in 272
7'" of these SMEs, thereby enhancing the competitiveness of the entire value
chain. ITC is engaged in further expanding its distribution and delivery bandwidth to
serve as a springboard to cater to a much wider range of FMCG products©
 2.? In a country where 200 million people are
engaged in farming or related activities, ITC is
developing its internationally competitive agricultural
business by empowering, not eliminating, the
independent small farmer. Its business model centers
around the +"!<=!
+==, known as p7(, throughout
agricultural areas in India. An e-Choupal is a high-tech
version of the traditional "choupal," or "village
gathering place" in Hindi, where farmers are provided
with the latest weather reports, local and international
produce prices, and farming best practices. Costing US$ 3,000 - 6,000 each to set up,
they also serve as procurement and purchase points, allowing farmers not only to sell
their produce to ITC, but also to buy agricultural inputs and consumer goods for daily
household use. The premise of ITC's expanded business model '=<+24
!!(277+(7!+(!
!47'"+(29p,++++. The e-Choupal network,
by deploying IT innovatively, reorganizes the roles of these intermediaries by leveraging
their strengths in physical transmission of goods; yet disinter mediating them in the flow
of information along the chain. In the process several non-value-adding activities in the
traditional farm to factory leg of the value chain, such as redundant transportation,
bagging, handling and labor, are eliminated.
This reorganization of the role of middlemen results in lower procurement costs for ITC,
despite having to pay higher prices to the farmers. Transaction costs are also minimized
for the farmer by buying output at the farmers' doorstep, and through transparent
pricing and weighing practices. On the marketing front, ITC is able to maintain and grow
the trust of its farmers by enhancing their productivity and wealth. ITC leverages this
position of trust among farmers, as well as its distribution capabilities, to market its own
consumer good brands and those of partner companies offering products and services
that ITC does not. Sales of consumer goods through the e-Choupals have been
particularly successful because the cost-savings associated with dealing directly with the
manufacturer allow Sanchalaks to offer goods at lower prices than other village-level
traders or retailers can afford to do.
9
## 

p(2 <7
CFp G

The p C (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston
Consulting Group analysis) is a chart that had been created by Bruce Henderson for the
Boston Consulting Group in 1970 to help corporations with analyzing their business
units or product lines. This helps the company allocate resources and is used as an
analytical tool in brand marketing, product management, strategic management, and
portfolio analysis.

## 

# 

Õ? Hotels Õ? FMCG- Others

Õ? Paperboards/ Õ? ITC Infotech
Packaging.
Õ? Agri business.

p< 2

Õ? FMCG-Cigarettes

9p-2'( 

V? Market leadership
V? Powerful brands across segments
 V? Leadership in all segments - geographic & price
V? Extensive FMCG distribution network
m? Direct servicing of 1,00,000 markets & 2 million retail outlets
V? World-class state-of-the-art technology and products
m? Investment - Rs.10 billion in six years
V? Exciting long term growth potential

Growth Potential:

V? Cigarettes account for only 15% of tobacco consumed in India unlike world
pattern of 85% due to prolonged punitive taxation
m? Cigarettes (15% of tobacco consumption) contribute nearly 85% of
Revenue to the Exchequer from tobacco sector
V? Of the 58% of adult Indian males who consume tobacco, barely 15% can afford
cigarettes
V? Biri : Cigarettes ratio = 10 : 1
V? Annual per capita adult cigarette consumption in India is appx. one tenth world
average : 141
V? Future growth depends on relative rates of growth of per capita income and
moderation in taxes

9p-'++( 

V? Market leader in growth segment - value added coated boards

V? World-class contemporary technology
Õ? Elemental Chlorine Free (ECF) Pulp Mill fully operational ʹ only one of its
kind in India meeting world-class environmental standards
V? Internationally competitive quality and cost
V? Social farm forestry in mill command area to improve access to cost effective
fibre & to attain self-sufficiency
Õ? Biotech research based high yielding Clones ʹ effectiveness tested in
nearly 68,000 hectares
V? Fully integrated operations with in-house pulping capacity at appx. 1.10 lac MT
Õ? Expansion programme underway; source of sustainable competitive
advantage
9p-2+"( 

V? Farm linkages in 14 states covering Soya, Wheat,

Rice, Marine products, Coffee etc.
V? Unique CRM programme in commodity exports
V? Leveraging IT for the transformational ͚e-
Choupal͛ initiative
m? Rural India͛s largest Internet-based intervention
m? Over 38000 villages linked through around 6400 e-Choupals servicing over
3.5 million farmers
V? Distinctive sourcing capability for ITC͛s Foods business


9p-8( 


V? 9pA2( a leading hotel chain in India

Õ? Strategy to establish presence in key business locations to complete the
chain achieved in end 2004
Õ? Over 5200 rooms under 4 distinct brands


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V? Capacity expansion underway at Bangalore and Chennai; plans for other locations
also being progressed
V? Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income
@ 45%) amongst the 3 leading chains
V? Leverages unique service proposition and international alliance with Starwood
Hotels & Resorts
Õ? ͚Luxury Collection͛ / ͚Sheraton͛



#A 9"9p*
ITC 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. 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:

ͻAashirvaad - India's most popular atta brand with over 50% market share. It is also
present in spices and instant mixes.

ͻMint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

ͻBingo! - a new introduction of finger snacks.

ͻKitchens of India - pre-prepared foods designed by ITC's master chefs.

ͻSunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta
products).
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fragrances under
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that has a goal of
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farmers in 100,000
villages.
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another, making the industry quite *Customer switching costs are
competitive.
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With the global downturn throwing up opportunities to take over valuable assets
at attractive price, diversified conglomerate ITC

Limited on Thursday said it is considering acquisitions, mainly in the hospitality

sector.

"We are looking for operations to buy assets, particularly in hotel area. We will buy
where asset prices are feasible and we are looking at all categories ranging from
three to seven star hotels," ITC Chairman Y C Deveshwar said on the sidelines of a
CII summit here.

He said the company has resources to expand and will take the opportunity of
economic slowdown to acquire assets as asset value at present is very attractive.

"In fact, we are looking this (economic slowdown)as an opportunity to grow. In

every adversity there is an opportunity," Deveshwar added.

Asked if the slowdown had impacted the company's expansion plans, he said,
"There are no plans to cut back on investments. We will stick to our capex plan
because we would not sacrifice our long-term focus. We are going to accelerate
our investment."

Last year, the company had said it plans to invest about Rs 15,000 crore in the next
five to seven years in areas such as hotels, agri-business and FMCG.

Deveshwar, however, conceded the economic slowdown has affected the

company.

"We are also impacted of course as we are not insulated from the economy. But we are
not sacrificing our long-term goals," he said.
?? ?  ? %? ? ?? ?
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KOLKATA: ITC Ltd͛s lifestyle retailing business division is planning to expand its retail footprint further
by setting up more Wills Lifestyle, John Players and Miss Players stores across the country. It has also
embarked on an active exercise to create a stronger brand and retail identity for Wills Lifestyle, which
it wants to position as a more international and inspirational brand.

Towards this end, ITC has piloted a new concept with FRCH Design of the US, a specialist in store and
mall design. Three concept stores have already been launched, two in Mumbai and one in Delhi. It is
also working with the UK͛s Elemental Design and The Friedman Group from the US in areas like
product presentation, visual merchandising and retail training.

͞We want to make the Wills Lifestyle brand more upscale, international and personalise the
experience for the customer,͟ Atul Chand, V-P, sales and marketing, ITC͛s lifestyle retail business
division, told ET.

As per Mr Chand, plans are on to increase the number of Wills Lifestyle stores from 250 to 400 by the
end of 2008-09. ͞These stores will come up on the lines of the concept store, which has been
designed taking the cultural context, customer profile, etc, in mind,͟ he said.
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These are the words from the mouth of the editor of business today Sanjoy Narayan. This is
very true in the context of ITC. ITC has been a leader in the tobacco business, but it realize from
the upcoming trends that remaining with a single business is not a noble thought, moreover the
company was threatened of the anti-tobacco campaign. Therefore the company decided to
venture into InfoTech with ITC InfoTech, foods via Kitchens of India, greeting cards through
Expressions and lifestyle retailing through Wills Sport. The revenue generation also is very high
from each of these products. .ITC was a cash rich company with a liquidity of Rs.8816 million in
the cigarette business, even though the company understood the need and usefulness of
diversification.ITC by spreading its wings in the lifestyle segments has opened forty-five stores
in 34 cities in just under a year, selling an expensive fashion brand of relaxed-wear. This way it
has gained a victory lap through its Wills Sport Brand.

The company has started its retail stores not only in Indian metros but also in the small towns
like Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. thus the company adopted strong
market campaign, and used its brand image to attract the Indian youth. The strategies adopted
by the company has helped it to differentiate itself in this segment, like the company is
outsourcing its designs to The American Design Intelligence Group (ADIG), a San Francisco, US-
based garment and retail consultancy. Now it has its own six-member team, even as it
continues a tie-up with Science & Designs, an Italian fashion design house ʹ through which it
keeps a watch on hot western labels such as Banana Republic and Armani Exchange.

Thus by adopting these strategies ITC will surely maintain its success and add many more new
sub-brands to its corporate group-ITC.

Finally any strategy that a company takes is to earn revenues. The given below table clearly
shows the success of ITC in terms of Rs. Crores.


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