A MINI PROJECT ON

“ITC LTD”
A Mini project Report submitted to Jawaharlal Nehru Technology University, Kakinada,
in Partial Fulfilment for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

K REVANTHI
(Regd.No.16JD1E0023)

Under the Guidance of

Mr. KJNV. NARASA REDDY, MBA, (Ph.D).

DEPARTMENT OF BUSINESS ADMINISTRATION

ELURU COLLEGE OF ENGINEERING & TECHNOLOGY-ELURU

(Affiliated to JNTU, Kakinada and Approved by AICTE)

Duggirala(V), Pedavegi(M) ELURU-534004.
 ELURU COLLEGE OF ENGINEERING & TECHNOLOGY
(Affiliated to JNTU, Kakinada and Approved by AICTE)
Duggirala(V), Pedavegi(M) ELURU-534004.

CERTIFICATE

This is to certify that the Mini Project Report on “ITC LTD” a

bonafide work done by Ms K REVANTHI , (Reg No. 16JD1E0023) a part of
M.B.A., II-semester curricular activity of Jawaharlal Nehru Technological
University Kakinada, under my supervision. The data has been collected by the
candidate from authentic sources and the analysis results will be used for
academic purpose only.

Mr. KJNV NARASA REDDY

Head of the Department of MBA

A Project Report on ITC LTD
Company Profile:-
ITC is one of India's foremost private sector companies with a market capitalisation of US $ 45
billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies,
Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among
India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most
Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by
Business Week.

Multiple Drivers of Growth:-

ITC’s aspiration to create enduring value for the nation and its stakeholders is manifest in its
robust portfolio of traditional and greenfield businesses encompassing Fast Moving Consumer
Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and
Information Technology. This diversified presence in the businesses of tomorrow is powered
by a strategy to pursue multiple drivers of growth based on its proven competencies, enterprise
strengths and strong synergies between its businesses.
The competitiveness of ITC’s diverse businesses rest on the strong foundations of institutional
strengths derived from its deep consumer insights, cutting-edge Research & Development,
differentiated product development capacity, brand-building capability, world-class
manufacturing infrastructure, extensive rural linkages, efficient trade marketing and
distribution network and dedicated human resources. ITC’s ability to leverage internal
synergies residing across its diverse businesses lends a unique source of competitive advantage
to its products and services.

Within a relatively short span of time, ITC has established vital brands like Aashirvaad,
Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, mint-o, Kitchens of India in
the Branded Foods space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell Renew, Engage
and Superia in the Personal Care products segment; Classmate and Paperkraft in Education &
Stationery products; Wills Lifestyle and John Players in the Lifestyle Apparel
business; Mangaldeep in Agarbattis and Aim in the Safety Matches segment. This growth has
been rated by a Nielsen Report to be the fastest among the consumer goods companies operating
in India.

Creating Enduring Value:-

Today ITC is the country's 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 India's fast-growing IT
companies in the mid-tier segment. This portfolio of rapidly growing businesses considerably
enhances ITC's capacity to generate growing value for the Indian economy.

ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC Group’s
contribution to foreign exchange earnings over the last ten years amounted to nearly US$ 6.0
billion, of which agri exports constituted 57%. The Company's 'e-Choupal' initiative has enabled
Indian agriculture significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy has already become the subject
matter of a case study at Harvard Business School apart from receiving widespread global
acclaim.

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

more than 31,000 people and the Company's Businesses and their value-chains generate around 6
million sustainable livelihoods many of whom live at the margin in rural India.

Global Exemplar in Sustainability:-

Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the world,
of comparable dimensions to be carbon-positive, water-positive, and solid waste recycling
positive. A testimony to its commitment to a low carbon growth path - over 41 % of the total
energy requirements of ITC is met from renewable sources. All ITC's premium luxury hotels are
LEED (Leadership in Energy and Environmental Design) Platinum certified making it the
"greenest luxury hotel chain" in the world. ITC's Paperboards and Paper business is an icon of
environmental stewardship.

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.

The Company continuously endeavours to enhance its wealth generating capabilities in a

globalising environment to consistently reward more than 4,63,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.
History and Evolution

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianised, the name of the
Company was changed from Imperial Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving
Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the
full stops in the Company's name were removed effective September 18, 2001. The
Company now stands rechristened 'ITC Limited,'where ‘ITC’ is today no longer an acronym or
an initialised form

A Modest Beginning:-

The Company's 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 August 24,
1926, 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. It was to mark the beginning of a long and eventful journey into India's future.
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.

1925: Packaging and Printing: Backward Integration:-

Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging &
Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes
business. It is today India's most sophisticated packaging house.

1975: Entry into the Hospitality Sector - A 'Welcom' Move:-

The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup
Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into the hotels
business was rooted in the concept of creating value for the nation. ITC chose the Hotels
business for its potential to earn high levels of foreign exchange, create tourism infrastructure
and generate large scale direct and indirect employment. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection, WelcomHotels, Fortune
Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with an upcoming super
premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up
with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-
star 'WelcomHotel' brand and the mid-market to upscale 'Fortune' brand

1979: Paperboards & Specialty Papers - Development of a Backward Area:-

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. 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 Paperboards
& Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. 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
improve customer service with reduced lead time and a wider product range.

1985: Nepal Subsidiary - First Steps beyond National Border:-

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.

1990: Paperboards & Specialty Papers - Consolidation and Expansion:-

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 harness strategic and operational synergies, TTD was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers
Division in November 2002.

1990: Agri Business - Strengthening Farmer Linkages:-

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. 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. Also, through the 'Choupal
Pradarshan Khet' initiative, the agri services vertical has been focusing on improving
productivity of crops while deepening the relationship with the farming community.
2000: Lifestyle Retailing - Premium Offerings:-

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Wills Signature', taking the event forward to consumers.

2000: Information Technology - Business Friendly Solutions:-

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today
ITC Infotech is one of India's 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 across key focus verticals - Banking Financial Services
& Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering
Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation &
Logistics

2001: Branded Packaged Foods - Delighting Millions of Households:-

ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of'Kitchens of India' ready-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). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC entered the fast
growing branded snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast
Yippee! to enter the Indian instant noodles market. In just over a decade, the Foods business has
grown to a significant size under seven distinctive brands, with an enviable distribution reach, a
rapidly growing market share and a solid market standing.

2002: Education & Stationery Products - Offering the Greenest products:-

ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To augment
its offering and to reach a wider student population, the Classmate range of notebooks was
launched in 2003. Classmate over the years has grown to become India's largest notebook
brand and has also increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens and
Pencils under the 'Classmate' brand. In 2008, ITC positioned 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. In 2010, Colour Crew was
launched as a new brand of art stationery.

2002: Agarbattis & Safety Matches - Supporting the Small and Cottage
Sector:-
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno,Mangaldeep and Aim.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector. Mangaldeep is a highly established national brand and
is available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood and
'Fragrance of Temple'

2005: Personal Care Products - Expert Solutions for Discerning Consumers:-

ITC entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio has
grown under'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have
received encouraging consumer response and have been progressively extended nationally. In
May 2013, the business expanded its product portfolio with the launch of Engage - one of India's
first range of 'couple deodorants'

2010: Expanding the Tobacco Portfolio:-

In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restaurants
and exclusive clubs.

Core Values:-
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation
which creates value for all its stakeholders:

Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as individuals and
teams.

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.

Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation
We will constantly pursue newer and better processes, products, services and management
practices.

Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our
goals, we will make no compromise in complying with applicable laws and regulations at all
levels.

Corporate Strategies
ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organizational 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.

ITC’s corporate strategies are :

 Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
 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.
 Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC’s various businesses.
 Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
  Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

Corporate Governance:-

Preamble

Over the years, ITC has evolved from a single product company to a multi-business corporation.
Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels,
packaging, paper and paperboards and international commodities trading. Each of these
businesses is vastly different from the others in its type, the state of its evolution and the basic
nature of its activity, all of which influence the choice of the form of governance. The challenge
of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each
of its businesses and yet strengthens the unity of purpose of the Company as a whole.

Since the commencement of the liberalization process, India's economic scenario has begun to
alter radically. Globalization will not only significantly heighten business risks, but will also
compel Indian companies to adopt international norms of transparency and good governance.
Equally, in the resultant competitive context, freedom of executive management and its ability to
respond to the dynamics of a fast changing business environment will be the new success factors.
ITC's governance policy recognizes the challenge of this new business reality in India.

Definition and Purpose

ITC defines Corporate Governance as a systemic process by which companies are directed and
controlled to enhance their wealth generating capacity. Since large corporations employ vast
quantum of societal resources, we believe that the governance process should ensure that these
companies are managed in a manner that meets stakeholders aspirations and societal
expectations.

Core Principles

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.
 ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested
in the executive management is not only not misused, but is used with care and
responsibility to meet stakeholder aspirations and societal expectations.
Cornerstones
From the above definition and core principles of Corporate Governance emerge the cornerstones
of ITC's governance philosophy, namely trusteeship, transparency, empowerment and
accountability, control and ethical corporate citizenship. ITC believes that the practice of each of
these leads to the creation of the right corporate culture in which the company is managed in a
manner that fulfils the purpose of Corporate Governance.

Trusteeship:

ITC believes that large corporations like itself have both a social and economic purpose. They
represent a coalition of interests, namely those of the shareholders, other providers of capital,
business associates and employees. This belief therefore casts a responsibility of trusteeship on
the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder
value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other
stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely,
that the rights of all shareholders, large or small, are protected.

Transparency:
ITC believes that transparency means explaining Company's policies and actions to those to
whom it has responsibilities. Therefore transparency must lead to maximum appropriate
disclosures without jeopardizing the Company's strategic interests. Internally, transparency
means openness in Company's relationship with its employees, as well as the conduct of its
business in a manner that will bear scrutiny. We believe transparency enhances accountability.

Empowerment and Accountability:

Empowerment is an essential concomitant of ITC's first core principle of governance that
management must have the freedom to drive the enterprise forward. ITC believes that
empowerment is a process of actualizing the potential of its employees. Empowerment unleashes
creativity and innovation throughout the organization by truly vesting decision-making powers at
the most appropriate levels in the organizational hierarchy.

ITC believes that the Board of Directors are accountable to the shareholders, and the
management is accountable to the Board of Directors. We believe that empowerment, combined
with accountability, provides an impetus to performance and improves effectiveness, thereby
enhancing shareholder value.

Control:

ITC believes that control is a necessary concomitant of its second core principle of governance
that the freedom of management should be exercised within a framework of appropriate checks
and balances. Control should prevent misuse of power, facilitate timely management response to
change, and ensure that business risks are pre-emptively and effectively managed.
Ethical Corporate Citizenship:
ITC believes that corporations like itself have a responsibility to set exemplary standards of
ethical behavior, both internally within the organization, as well as in their external relationships.
We believe that unethical behavior corrupts organizational culture and undermines stakeholder
value.

The Governance Structure

Flowing from the philosophy and core principles, Corporate Governance in ITC shall take place
at three interlinked levels, namely -

 Strategic supervision by the Board of Directors

 Strategic management by the Corporate Management Committee
 Executive management by the Divisional Chief Executive assisted by the Divisional
Management Committee

It is ITC's belief that the right balance between freedom of management and accountability to
shareholders can be achieved by segregating strategic supervision from strategic and executive
management. The Board of Directors (Board) as trustees of the shareholders will exercise
strategic supervision through strategic direction and control, and seek accountability for effective
strategic management from the Corporate Management Committee (CMC). The CMC will have
the freedom, within Board approved direction and framework, to focus its attention and energies
on the strategic management of the Company. The Divisional Chief Executive, assisted by the
Divisional Management Committee, will have the freedom to focus on the executive
management of the divisional business.

The 3-tier governance structure thus ensures that:

 Strategic supervision (on behalf of the shareholders), being free from involvement in the
task of strategic management of the Company, can be conducted by the Board with
objectivity, thereby sharpening accountability of management.
 Strategic management of the Company, uncluttered by the day-to-day tasks of executive
management, remains focused and energized; and
 Executive management of the divisional business, free from collective strategic
responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and
effectiveness of its business.
Vision & Mission
Vision:-
 Sustain ITC’s position as one of india’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s
stakeholders.

 Mission:-
 To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value.

Organizational chart
Roles
The core roles of the various entities at the three levels of Corporate Governance will be as
follows:

Board of Directors (Board):

The primary role of the Board of Directors is that of trusteeship to protect and enhance
shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and their
wholly owned subsidiaries. As trustees they will ensure that the Company has clear goals
relating to shareholder value and its growth. They should set strategic goals and seek
accountability for their fulfillment. They will provide direction, and exercise appropriate control
to ensure that the Company is managed in a manner that fulfills stakeholder aspirations and
societal expectations. The Board must periodically review its own functioning to ensure that it is
fulfilling its role.

The ITC Board will be a balanced Board, consisting of Executive and Non-Executive Directors,
the latter including independent professionals. Executive directors, including the Executive
Chairman, shall not generally exceed 1/3rd of the total strength of the Board. The Non-Executive
Directors shall comprise eminent professionals, drawn from amongst persons with experience in
business / finance / law / public enterprises. Directors shall be appointed / re-appointed for a
period of three to five years, and in the case of Executive Directors up to the date of their
retirement, whichever is earlier. The Board shall determine from time to time the retirement age
for both Executive and Non-Executive Directors. The Board shall specify the maximum number
of company Directorships which can be held by members of the ITC Board.

Non-Executive Directors are expected to play a critical role in imparting balance to the Board
processes by bringing an independent judgement to bear on issues of strategy, performance,
resources, standards of Company conduct, etc.

The Board shall meet at least six times a year and as far as possible meetings will be held once in
two months. The annual calendar of meetings shall be agreed upon at the beginning of each year.
As laid down in the Articles of Association of the Company, the quorum for meetings shall be
one third of members and decisions shall be taken by simple majority, unless statutorily required
otherwise. Meetings shall be governed by a structured agenda. All major issues included in the
agenda shall be backed by comprehensive background information to enable the Board to take
informed decisions. Agenda papers, as far as practicable, shall be circulated at least three
working days prior to the meeting. Normally items for the Board Agenda, except those
emanating from Board Committees, shall have been examined by the CMC. Minutes shall be
circulated within 15 working days of the meeting and confirmed at the next meeting. Board
decisions shall record the related logic as far as practicable.

The Board shall have the following Committees whose terms of reference shall be determined by
the Board from time to time:
Audit Committee:

To provide assurance to the Board on the adequacy of internal control systems and financial
disclosures. The Head of Internal Audit will act as co-ordinator to the Audit Committee, but will
be administratively under the control of the Director accountable to the Board for the Finance
function.

Compensation Committee:

To recommend to the Board compensation terms for Executive Directors and the seniormost
level of management below the Executive Directors.

Nominations Committee:

To recommend to the Board nominations for membership of the CMC and the Board, and
oversee succession for the seniormost level of management below the Executive Directors.

Investor Services Committee:

To look into redressal of shareholder and investors grievances, approval of transmissions, sub-
division of shares, issue of duplicate shares, etc.

Sustainability Committee:

To review, monitor and provide strategic direction to the Company's sustainability practices
towards fulfilling its triple bottom line objectives.

Terms of Reference of the Board Committees shall include:

 Objectives, Role, Responsibilities

 Authority / Powers
 Membership & Quorum
 Chairmanship
 Tenure
 Frequency of Meetings
The composition of these Committees will be as follows:-

Committee Members Chairman

Non-Executive Directors of the Company, as may be One of the
decided by the Board. The Director responsible for the Independent
Audit
Finance function, Head of Internal Audit and Directors, to be
Committee
representative of Statutory Auditors shall be Invitees determined by the
with the Company Secretary as the Secretary. Committee.
One of the
Independent
Compensation Non-Executive Directors of the Company, as may be
Directors, to be
Committee decided by the Board.
determined by the
Board.
The Executive Chairman and Non-Executive
Nominations
Directors of the Company, as may be decided by the Executive Chairman.
Committee
Board.
One of the Non-
Investor
Directors of the Company, as may be decided by the Executive Directors,
Services
Board, with the Company Secretary as the Secretary. to be determined by
Committee
the Board.
The Executive Chairman and Non-Executive
Sustainability
Directors of the Company, with the Company Executive Chairman.
Committee
Secretary as the Secretary.

Normally meetings of the Board Committees shall be convened by their respective Chairmen.
However, any member of the Committee may, with the consent of the concerned Chairman,
convene a meeting of the Committee.

The Chairmanship of Board Committees shall be for two years at a time.

Signed minutes of Board Committee meetings shall be tabled for the Board's information as soon
as possible. However, issues requiring Board's attention / approval should be tabled in the form
of a note to the Board from the Committee Chairman. In the event there are no issues to be
brought before the Board by the Audit Committee, the Committee Chairman shall submit a 'NIL'
report to the Board.
Executive Chairman of ITC:
The Executive Chairman of ITC shall operate as the Chief Executive for ITC as a whole. He
shall be the Chairman of the Board and the CMC. His primary role is to provide leadership to the
Board and CMC for realising Company goals in accordance with the charter approved by the
Board. He shall be responsible for the working of the Board, for its balance of membership
(subject to Board and Shareholder approvals), for ensuring that all relevant issues are on the
agenda, for ensuring that all directors are enabled and encouraged to play a full part in the
activities of the Board. He shall keep the Board informed on all matters of importance. He shall
preside over the General Meetings of shareholders. As Chairman of the CMC he will be
responsible for its working, for ensuring that all relevant issues are on the agenda, for ensuring
that all CMC members are enabled and encouraged to play a full part in its activities.

Executive Director:
 As a member of the CMC, contribute to the strategic management of the Company's
businesses within Board approved direction / framework.
 As Director accountable to the Board for a business / function (Line Director), assume
overall responsibility for the strategic management including governance processes and
top management effectiveness for businesses / functions reporting to him.

It is clarified that in the context of the multi-business character of the Company, an

Executive Director is in the nature of a Managing Director for those businesses and
functions reporting to him.
 As Director accountable to the Board for a wholly owned subsidiary, or its wholly owned
subsidiary (Line Director), act as the custodian of ITC's interest and be responsible for
their governance in accordance with the charter approved by the Board.
 As Director accountable to the Board for a particular corporate function (Line Director),
assume overall strategic responsibility for its performance.

Divisional Management Committee (DMC):

Executive management of the divisional business to realise tactical and strategic objectives in
accordance with CMC / Board approved plan. Composition of the DMC shall be determined by
the Line Director with the approval of the CMC. The Divisional CEO shall convene and chair
the DMC meetings. If the Divisional CEO, for any reason, is not in a position to convene a
required DMC meeting, he shall in writing delegate the power to convene and chair the required
meeting to one of the DMC members identified by name. Such delegation should be either for a
specific meeting or for meetings to be held during a specific period of time. It cannot be a
general, open-ended delegation. The key functions of the Division shall be represented on the
DMC. Normally the Divisional Financial Controller, in addition to being a member, shall act as
the Secretary to the DMC and will be responsible for circulation and custody of agenda notes and
minutes. The DMC shall generally meet at least once a month to review Divisional performance
and related issues. Quorum for meetings shall be 50% of the members subject to a minimum of
three members. Decisions will be taken by simple majority. Minutes of meetings shall be tabled
before the CMC for its information. Agenda items shall be backed by comprehensive notes from
the relevant member / invitee. Agenda papers, as far as practicable, shall be circulated at least
three days prior to the meeting.

Divisional CEO:
The Divisional CEO shall function as the Chief Operating Officer with executive responsibility
for day-to-day operation of the Divisional business, and shall provide leadership to the
Divisional Management Committee in its task of executive management of the Divisional
business.

Board Committees

Audit Committee
Mr. A. Baijal
Mr. S. B. Mathur
Mr. P. B. Ramanujam
Mr. K. Vaidyanath

CSR & Sustainability Committee

Mr. Y. C. Deveshwar
Mr. A. V. Girija Kumar
Mr. R. Lerwill
Mr. A. Ruys
Ms. M. Shankar

Nomination & Compensation Committee

Mr. Y. C. Deveshwar
Mr. S. H. Khan
Mr. S. S. H. Rehman
Ms. M. Shankar
Mr. K. Vaidyanath
Stakeholders Relationship Committee
Mr. A. V. Girija Kumar
Mr. K. N. Grant
Mr. K. Vaidyanath

Independent Directors Committee

Mr. A. Baijal
Mr. S. H. Khan
Mr. S. B. Mathur
Mr. P. B. Ramanujam
Mr. S. S. H. Rehman
Ms. M. Shankar

Code of Conduct

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

ITC's Code of Conduct is derived from three interlinked fundamental principles, viz. good
corporate governance, good corporate citizenship and exemplary personal conduct.

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

It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we must
build ITC into an institution whose dynamism and vitality are anchored in its core values.
Corporate Governance Policy
The Corporate Governance Policy is the apex level instrument guiding conduct of the affairs of
the Company and clearly delineates the roles, responsibilities and authorities of the key entities
in the governance structure of the Company. This Code forms an integral part of the Company's
Governance Policy. The directors, senior management and employees must adhere to the
Corporate Governance Policy of the Company.

Good Corporate Citizenship

In the conduct of the Company's business, the practice of good corporate citizenship is a
prerequisite and embraces the following:

Dealing with People in the Organisation

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

A Gender Friendly Workplace

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

Sexual harassment includes unwelcome sexually determined behaviour such as: unwelcome
physical contact; a demand or request for sexual favours; sexually coloured remarks; showing
pornography and any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.

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

ITC demands, demonstrates and promotes professional behaviour and respectful treatment of all
employees.
Relationships with Suppliers and Customers
All directors, senior management and employees shall ensure that in their dealings with suppliers
and customers, the Company's interests are never compromised. Accepting gifts and presents of
more than a nominal value, gratuity payments and other payments from suppliers or customers
will be viewed as serious breach of discipline as this could lead to compromising the Company's
interests.

Legal Compliance

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

Health and Safety

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

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

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

Personal Conduct

All directors, senior management and employees have the obligation to conduct themselves in an
honest and ethical manner and act in the best interest of the Company at all times. They are
expected to demonstrate exemplary personal conduct through adherence to the following:
Avoidance of Conflict of Interest
All directors, senior management and employees must avoid situations in which their personal
interest could conflict with the interest of the Company. This is an area in which it is impossible
to provide comprehensive guidance but the guiding principle is that conflict, if any, or potential
conflict must be disclosed to higher management for guidance and action as appropriate.

Transparency and Auditability

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

Protection of Confidential Information

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

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

Leading by Example
The organisation's directors and senior management set the professional tone for the Company.
Through both their words and their actions, the organisation's leadership conveys what is
acceptable and unacceptable behaviour. ITC's directors, senior management and employees must
constantly reinforce through their actions and behaviour that ITC's stated beliefs of responsible
corporate citizenship are rooted in individual conviction and personal integrity.
Corporate Social Responsibility Policy
Philosophy
Recognizing that business enterprises are economic organs of society and draw on societal
resources, it is ITC's belief that a company's performance must be measured by its Triple Bottom
Line contribution to building economic, social and environmental capital towards enhancing
societal sustainability. ITC believes that in the strategic context of business, enterprises possess,
beyond mere financial resources, the transformational capacity to create game-changing
development models by unleashing their power of entrepreneurial vitality, innovation and
creativity. In line with this belief, ITC will continue crafting unique models to generate
livelihoods and environmental capital. Such Corporate Social Responsibility ("CSR") projects
are far more replicable, scalable and sustainable, with a significant multiplier impact on
sustainable livelihood creation and environmental replenishment. These initiatives are
independent of the normal conduct of ITC's business. Programmes, projects and activities
(collectively "CSR Programmes") carried out in this regard are the subject matter of this Policy.

CSR Policy

It is ITC's policy:

1. To direct ITC's CSR Programmes, inter alia, towards achieving one or more of the
following - enhancing environmental and natural capital; supporting rural development;
promoting education; providing preventive healthcare, providing sanitation and drinking
water; creating livelihoods for people, especially those from disadvantaged sections of
society, in rural and urban India; preserving and promoting sports;
2. To develop the required capability and self-reliance of beneficiaries at the grass roots,
especially of women, in the belief that these are prerequisites for social and economic
development;
3. To engage in affirmative action interventions such as skill building and vocational
training, to enhance employability and generate livelihoods for persons from
disadvantaged sections of society;
4. To pursue CSR Programmes primarily in areas that fall within the economic vicinity of
the Company's operations to enable close supervision and ensure maximum development
impact;
5. To carry out CSR Programmes in relevant local areas to fulfil commitments arising from
requests by government/regulatory authorities and to earmark amounts of monies towards
"Enterprise Social Responsibility (ESR)" activities and to spend such monies through
ESR/CSR Cells of such administrative bodies of the government and/or directly by way
of developmental works in the local areas around which the Company operates;
6. To provide equal opportunities to beneficiaries of the Company's CSR Programmes as
vendors or employees on merit;
 7. To promote sustainability in partnership with industry associations, like the
Confederation of Indian Industry (CII) through the CII-ITC Centre of Excellence for
Sustainable Development, in order to have a multiplier impact.

Implementation
To implement the Company's CSR Programmes through Company personnel or through external
implementing agencies or through ITC Education Trust, ITC Rural Development Trust, ITC
Sangeet Research Academy, ITC Bhadrachalam Education Trust, Tribeni Tissues Education
Society (and other Trusts, Foundations and Section 8 companies that may be established by the
Company from time to time). In such cases, the Company will specify the CSR Programmes
which may be undertaken by those Trusts in accordance with their Objects and administrative
and accounting processes laid down in the respective Trust Deeds/ Memoranda and Articles of
Association.

Governance
1. Every year, the CSR and Sustainability Committee will place for the Board's approval, a
CSR Plan delineating the CSR Programmes to be carried out during the financial year
and the specified budgets thereof. The Board will consider and approve the CSR Plan
with any modification that may be deemed necessary.
2. The Corporate Management Committee (CMC) will assign the task of implementation of
the CSR Plan within specified budgets and timeframes to such persons or bodies as it
may deem fit.
3. The persons/bodies to which the implementation is assigned will carry out such CSR
Programmes as determined by the CMC within the specified budgets and timeframes and
report back to the CMC on the progress thereon at such frequency as the CMC may
direct.
4. The CMC shall review the implementation of the CSR Programmes once a quarter and
issue necessary directions from time to time to ensure orderly and efficient execution of
the CSR Programmes in accordance with this Policy.
5. Once every six months the CMC will provide a status update to the CSR and
Sustainability Committee on the progress of implementation of the approved CSR
Programmes carried out during the six month period. It shall be the responsibility of the
CSR and Sustainability Committee to review such reports and keep the Board apprised of
the status of implementation of the same.
6. At the end of every financial year, the CSR and Sustainability Committee will submit its
report to the Board.

CSR Expenditure
CSR expenditure will include all expenditure, direct and indirect, incurred by the Company on
CSR Programmes undertaken in accordance with the approved CSR Plan. Moreover, any surplus
arising from any CSR Programmes shall be used for CSR. Accordingly, any income arising from
CSR Programmes will be netted off from the CSR expenditure and such net amount will be
reported as CSR expenditure.
IT E-Waste Policy
ITC's achievements across all three dimensions of the "Triple Bottom Line" - economic , social
and environmental is well known and recognized globally. Being a pioneer in environmentally
sustainable operations ( e.g Carbon and Water positive , solid waste recycling positive), we need
to meet demanding standards of responsible waste management in all aspects of our operations.

With pervasive use of electrical and electronic equipments in our daily operations, disposal of
obsolete equipments is increasingly posing a threat to our environment . There is therefore a need
to handle such disposals - referred to as E-Waste - in a responsible manner in line with emerging
global best practices and standards.

IT E-Waste is a subset of E-Waste and covers the following IT equipments

Sl.
Category Items
No.

1. Computers Server / Desktop computer (CPU, Monitor, Keyboard and

Mouse), Laptop, Notebook, Dumb terminal, etc or similar
items

2. Printer & Accessories Printer, Scanner, Printer Cartridge, Toner, etc or similar
items

3. Network equipments Routers, Switches, Patch panel, Modem, Converter, VSAT

equipments, etc or similar items

4. IT Accessories TV Tuner box, Floppy, CD and DVD, Pen Drive, External

Hard disk, External CD / DVD writer, DAT Drive, Speaker,
Laptop Battery, Hand Held device, VC equipments, Data
Cartridge, etc or similar items

5. Associated Electrical Power cable, Data cable, UPS, etc or similar items
items
IT E-WASTE POLICY

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 E-WASTE MANAGEMENT GUIDELINES

REGULATORY ENVIRONMENT

 Different government bodies have published regulatory framework for handling E-waste.
Similarly, different trade and industry bodies are also evolving the best practices to deal
with IT E-Waste. CIO Office will scan the evolving code of practice and keep updating
this policy document (supported by Corporate EHS) in line with the best practices for
disposal of IT E-Waste. This will be done once a year, or more frequently if deemed
necessary.
 The appropriate government bodies, e.g., Ministry of Environments & Forests / Central
or State pollution control boards in India, etc. have initiated the process of approving and
authorizing E-Waste Recyclers. CIO Office shall identify authorized Recyclers, publish a
list of such E-Waste Recyclers and enter into appropriate agreements covering all aspects
of the E-Waste disposal. The list of authorized Recyclers and the agreed terms and
conditions will be circulated to the DMMs.

IT E-WASTE MINIMIZATION PROCESS

 It shall be the endeavor of every user to maximize utilization of all IT assets to their full
productive life. Apart from internal re-use, option to extend use outside ITC through
donation to bonafide philanthropic institutions will also extend the useful life of IT assets.
 Only such IT assets which are non-operational and can not be reused for any other
alternate purpose should be considered as IT E-waste for disposal. The DMM will certify
this position.
COMPLIANCE REPORTING
As part of Quarterly IT Policy Compliance, the DMM shall report the Division's compliance to
E-Waste Policy to the CIO, who in turn will present Companywide consolidated status to the
Corporate IT Steering Committee.

Abbreviations
CIO Chief Information Officer

DMM Divisional MIS Manager

CITPC Central IT Purchase Committee

ITSS IT Shared Services

CASP Corporate Accounting & System Policies

Food Products Policy

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.

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. offer food products with micronutrient fortification,
4. drive reduction of sodium, sugar and fat in Products,
5. offer trans-fat free products,
6. offer functional food products with focus on India specific metabolic disorders,
7. follow a strict code for making product functional claims,
8. follow the highest standards in nutrition labelling and reporting,
9. follow responsible marketing and consumer communications practices,
10. create and sustain R&DÂ focus in development of new products and processes,
11. follow the highest standards of hygiene and manufacturing practices in all delivery
formats,
12. collaborate with experts and institutions and
13. ensure widespread accessibility to healthy products through appropriate pricing and wide
distribution.
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.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.
7. To follow a strict code for making product functional claims

ITC will conduct clinical trials in India by using Indian subjects to study the efficacy of
its functional foods. Experts' opinion will be taken to design the clinical studies and
suitable statistical methods will be employed to interpret the clinical study data. Indian
Council of Medical Research (ICMR) guidelines will be referred to and followed in all
clinical studies. Functional claims will be made only after statistical significance is
observed.

8. To follow the highest standards in nutrition labelling and reporting

ITC's packaged food products' labelling will be comprehensive with good clarity on the
contents of all macro and micro-nutrients. The nutrient content will be compared with the
NIN recommended Daily Value (DV) and the percentage in the product will be reported.

9. To follow responsible marketing and consumer communication practices

Apart from complying with all local laws and regulations, advertisements of ITC'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.

10. To create and sustain R&Dfocus 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.
ITC will continuously strive to contemporise its R&D infrastructure to meet changing
nutrition needs.

11. To follow the highest standards of hygiene and manufacturing practices in all
deliveryformats

ITC Hotels R&D endeavours to practice GHP & GMP (Good Hygiene Practices & 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.

12. 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.

13. 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.

The ITC Leadership

Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee
of shareholders, carries the responsibility for strategic supervision of the Company. The strategic
management of the Company rests with the Corporate Management Committee comprising the
wholetime Directors and members drawn from senior management. The executive management
of each business division is vested with the Divisional Management Committee (DMC), headed
by the Chief Executive. Each DMC is responsible for and totally focused on the management of
its assigned business. This three-tiered interlinked leadership process creates a wholesome
balance between the need for focus and executive freedom, and the need for supervision and
control.

Corporate Management Committee

Members
Y C Deveshwar Nakul Anand P V Dhobale
Chairman Executive Director Executive Director

K N Grant Anand Nayak T V Ramaswamy

Executive Director Human Resources R&D, Projects, EH&S

S Sivakumar K S Suresh Rajiv Tandon

Agri & IT Businesses Legal Finance
 B B Chatterjee
Secretarial

ANANDNAYAK

Anand Nayak, Head of Human Resource Development for ITC, has been with the Company
for 41 years. He has handled senior HR assignments in the Company's various Divisions and has
been Head of Human Resource Development since 1996. He is also responsible for overall
supervision of ITC's Social Development Initiatives. A post-graduate in Personnel Management
and Industrial Relations from XLRI, Jamshedpur, Nayak has spent his entire professional career
with ITC. He is also a Director on the Board of ITC Infotech.

TVRAMASWAMY

T V Ramaswamy heads Research & Development for the Company. He is also responsible for
overall supervision of Environment, Health and Safety. In addition, he is in charge of the Central
Projects Organisation.
Prior to this Ramaswamy was the Chief Operating Officer of the Cigarette Brands and Supply
Chain of the Tobacco Division. After completing his graduation in Engineering from the then
Madras University and post graduation in Management from Jamnalal Bajaj Institute of
Management Studies, Ramaswamy joined ITC as a Management Pupil in 1974 in the Technical
Function. During his tenure in the Company, he has handled a wide range of responsibilities in
Operations across India and has also managed the Tobacco Division's R&D from 1992 to 1996.
Thereafter, he was the Managing Director of Surya Tobacco Co. Pvt Ltd (now known as Surya
Nepal Pvt Ltd) till 2001.

He is a Trustee of ITC's Superannuation Funds.

S SIVAKUMAR

S Sivakumar is the Divisional Chief Executive of the Agri Business Division. He is also the
Chairman of Technico Agri Sciences Limited and Vice Chairman of ITC Infotech India Limited
and its subsidiaries in the UK and USA.

Topper of the Class of 1983 from the Institute of Rural Management Anand, (IRMA), Sivakumar
served a farmers' cooperative for six years before joining ITC in 1989.

Sivakumar has conceptualised the path-breaking ITC e-Choupal model, and is spearheading its
roll out across rural India.

Sivakumar is a Director on the Board of Indo-US Knowledge Initiative in Agriculture. He is a

Member of the Private Sector Committee of the Consultative Group on International Agricultural
Research (CGIAR), and a Member of Research Advisory Committee of India’s National
Academy of Agricultural Research Management (NAARM). He is also an active member of the
management committees of various industry bodies and several taskforces of Government of
India.

K S SURESH

K S Suresh is General Counsel of ITC. A lawyer by qualification and training, he joined the
Company in 1990 after being in private practice, and took charge of the Legal function in 1998.
With wide ranging expertise and experience in corporate laws as well as litigation, he has guided
many important legal issues to successful resolution for the Company.

RAJIV TANDON

Rajiv Tandon, Chief Financial Officer, is a Fellow Member of The Institute of Chartered
Accountants of India with over 30 years of experience. He has held various positions in ITC
including Executive Vice President - Finance & MIS of the Tobacco Division, Executive Vice
President - Corporate Finance, Finance Advisor and member of the Management Committee of
Agri Business and Tobacco Division.

He is a Director on the board of ITC Infotech India Ltd. and its subsidiaries in the UK and the
USA. He is also on the Board of several other subsidiaries/group companies of ITC.
He has held several important positions in various industry bodies including Chairman of the
Expert Committee on Banking and Finance (Indian Chamber of Commerce), Member -Taxation
and Company Law Committee (Confederation of Indian Industry) and is currently Member -
Managing Committee (Bengal Chamber of Commerce & Industry).

B B CHATTERJEE

B B Chatterjee, Executive Vice President & Company Secretary, is a Chartered Accountant,

Company Secretary and a Law Graduate, and has over 33 years experience in Corporate laws.

Chatterjee joined ITC in 1983 and is on the Boards of various ITC subsidiaries including ITC
Infotech India Ltd. and its subsidiaries in the UK and the USA, Surya Nepal Pvt. Ltd., Nepal and
WelcomHotels Lanka (Pvt.) Ltd., Sri Lanka.

Chatterjee is on the Executive Committee of the Indian Chamber of Commerce Calcutta and the
Managing Committee of The Bengal Chamber of Commerce & Industry (BCCI). He is also
Chairman of the Corporate Governance Committee of BCCI. Chatterjee has served on the
Central Council and the Secretarial Standards Board of the Institute of Company Secretaries of
India.

Divisional Management Committees

 India tobacco division

 Foods Division
 Lifestyle Retailing Business Division
 Personal care Products Strategic Business Unit
 Education & Stationery products Strategic Business Unit
 Matches & Agarbatti strategic Business Unit
  Hotels Division
 Paperboards & speciality paper Division
 Packing & Printing Strategic Business Unit
 Agri Business Division
 Agri Business Diision –LTD

India tobacco division

Sanjiv Puri, Divisional Chief Executive

Sanjiv Puri is the Divisional Chief Executive, ITD, ITC Limited. An engineering graduate
from the Indian Institute of Technology, Kanpur, he joined ITC in 1986 and has handled a
wide range of responsibilities in eCommerce, Operations and as a business head. Mr. Puri has
led ITC Infotech India Ltd., a wholly owned subsidiary of ITC, as Managing Director from
May 2006 to August 2009. He has been on the Boards of ITC Infotech India Limited and its
wholly owned subsidiaries in UK and USA. Prior to his assignment at ITC Infotech, Mr Puri
was the Managing Director of Surya Nepal Pvt Ltd, a subsidiary company of ITC in Nepal. He
is the Non Executive Chairman & Director of ATC Limited and Director on the Boards of
King Maker Marketing Inc., USA and Tobacco Institute of India. He is also a member of the
Board of Governors, Media Research Users Council (MRUC)
Foods Division

Chitranjan Dar, Divisional Chief Executive

C Dar joined the Foods Business in August 2008. He started his career in ITC's Packaging
and Printing business in 1981. Dar is an engineer from IIT, Delhi and an MBA from IIM,
Ahmedabad. In 1998, he was seconded to the then ITC Bhadrachalam Paperboards Limited as
head of Marketing and was elevated to the Board of ITC-BPL in 1999. He also took over
responsibilities of the Materials function in 2001. In 2003, he joined the Lifestyle Retailing
Business Division as its CEO and continued in that role till he moved to the Foods business as
Chief Operating Officer. In August 2009, he took over as Divisional Chief Executive of the
Foods business.

Lifestyle Retailing Business Division

Atul Chand, Divisional Chief Executive

Atul Chand is the Chief Executive of ITC's Lifestyle Retailing Business Division. He has
been with this business since its early days and spearheaded several strategic initiatives to
create strong lifestyle brands and actualize the business growth objectives.

Atul has popularised fashion by associating Wills Lifestyle with the prestigious India Fashion
Week and by championing the country's largest ever Corporate - Designer tie-ups, to retail
the co-creations in the stores nationally.

Before assuming charge as the Chief Executive in 2008, Atul was the Vice President -
Marketing & Retail. In this role he anchored the creation of new Brands, established a
nationwide Retail footprint, pioneered new concepts and redefined excellence in Customer
Shopping experience.

An MBA from IMT Ghaziabad with an Economics Honours degree from Delhi University and
schooling from St. Columbas Delhi, Atul joined ITC in 1988 in the Marketing function of the
Tobacco Division.

During his tenure in the division, he handled a wide range of responsibilities in Brand
management, Sales and was given the charge of pioneering Trade Marketing in ITC in the mid
90s. He had various stints in different geographies, held national roles and was responsible for
driving the FMCG business in North India. In 2001, Atul moved to ITC's new initiative in
Lifestyle Retailing, to head the Marketing & Retail function.

Atul is a member of the CII National Committee on Retail and a Board member of Retail
Association of India. He is associated with several industry forums and actively participates at
management institutes.

Personal Care Products strategic Business Unit

Sandeep Kaul, SBU Chief Executive

Sandeep Kaul is the Chief Executive of the Personal Care Products SBU. A Mechanical
Engineer from BIT, Ranchi Kaul completed his MBA from IIM Ahmedabad and joined ITC
in the Marketing function in the India Tobacco Division in 1990. Between 1990 and 1999
Kaul handled a variety of assignments in both Sales as well as Brand Management and has
worked in various parts of the country. As Brand Manager he has been responsible for
management of leading ITC brands like India Kings, Classic, Gold Flake and Scissors. He has
also been Branch Manager at ITC's Delhi and Bengaluru branches. From 1999 to 2001 he
headed the Market Research group.

Since 2001 Kaul has been involved with various new business initiatives in the FMCG space.
He has been involved since inception of the Personal Care Business in 2002 and has been
responsible for the development and execution of the launch of this new business of ITC.
Education & Stationery Products Strategic Business unit

Chand Das, SBU Chief Executive

Chand Das is the Chief Executive of ITC's Education & Stationery Products Business. Das,
an engineer from IIT Kanpur and an MBA from the Indian Institute of Management
Bangalore, joined ITC in 1980. Prior to that he was with L&T for a year. In his 34-year
management career with the Company, he has held multiple positions in Marketing, Business
Development & General Management. Before moving to ITC's Education and Stationery
Business, Das was Vice President, Customer Care, Packaging & Printing Business of the
Company.

Das is an active member of the Pan-IIT Alumni India Board and one of founding members of
the IIT Alumni Centre, Chennai. He is also member of the Madras Management Association
and a charter member of TIE (The Indus Entrepreneurs). Das is a certified CEO-Coach by the
Coaching Foundation of India.

Matches &Agarbatti strategic Business Unit

V M Rajasekharan, SBU Chief Executive

V M Rajasekharan is the Chief Executive of the Matches & Agarbatti Strategic Business
Unit. He joined ITC's Packaging and Printing Division in 1986. Before joining ITC, he
worked with M. M. Rubber's BOPP division from 1980 to 1986 after graduating in Chemical
Engineering from Annamalai University.

He has held various responsibilities in operations, domestic sales, planning and technology
development in the Packaging and Printing Division. He was on the management committee
of that Division before taking over as the Chief Executive of the Agarbattis business at its
inception. He additionally took over as the Chief Executive of the Safety Matches SBU in
December 2010.

Hotels Division

N Anand, Executive Director and Divisional Chief Executive

Nakul Anand was appointed a Director on the Board of ITC on January 3, 2011. He holds
responsibility of the Hospitality, Travel & Tourism Businesses of ITC. He continues to Chair
the DMC of the Hotels Business. An Economics Honours graduate from Delhi University
with an AMP degree from Bond University, Australia, he joined ITC Hotels' Management
Training Programme in the summer of 1978 and also served as the Managing Director of
erstwhile ITC Hotels Ltd. during the period 2003-05.

In a career that spans over three decades, Anand has been acknowledged for his vision and
commitment. Leveraging the significant learning of sustainable excellence within ITC, he
pioneered the concept of 'Responsible Luxury' in the hospitality industry that led to the LEED
Platinum certification of all ITC super premium luxury hotels, making it the 'Greenest Luxury
Hotel Chain in the world'. Anand is widely recognised for excellent people management and
team-building abilities. He has formulated value-based strategies to create a unique quality
control model. His dynamic leadership and passion for the business is recognised and
acknowledged by his peers. He is presently the President of the Hotel Association of India.

.Paperboards & Speciality Paper Division

S K Singh, Divisional Chief Executive

Sanjay Singh is Divisional Chief Executive, ITC Paperboards and Specialty Papers Division.
Prior to this he was the Chief Operating Officer of the business. A chemical engineer from IIT
Kanpur, Singh joined the erstwhile ITC Bhadrachalam Paperboards Limited as a management
trainee in 1977 and rose to become a whole time director in 1999. Consequent to the merger of
ITC Bhadrachalam Paperboards Limited with ITC Limited in March 2002, he took charge of
the Paperboards & Specialty Papers Division as Executive Vice President (Manufacturing)
with responsibility for Bhadrachalam, Tribeni, Kovai and Bollaram units. He has played a
vital role in the implementation of TPM and Lean manufacturing in all the units.
Packing & Printing Strategic Business Unit

R Senguttuvan, SBU Chief Executive

R Senguttuvan is the Chief Executive of the Packaging and Printing Business. A Mechanical
Engineer with a PGDM from IIM Bangalore, he joined ITC in 1991 as Assistant Materials
Manager. He became Works Manager of the Tiruvottiyur factory and then Vice President of
the Packaging & Printing Business before taking charge as Chief Executive. Senguttuvan is
also a member of the Governing Council of the All India Management Association.

Agri Business Division

S Sivakumar, Divisional Chief Executive

S Sivakumar is the Divisional Chief Executive of the Agri Business Division. He is also
the Chairman of Technico Agri Sciences Limited and Vice Chairman of ITC Infotech India
Limited and its subsidiaries in the UK and USA.

Topper of the Class of 1983 from the Institute of Rural Management Anand, (IRMA),
Sivakumar served a farmers' cooperative for six years before joining ITC in 1989.

Sivakumar has conceptualised the path-breaking ITC e-Choupal model, and is spearheading
its roll out across rural India.

Sivakumar is a Director on the Board of Indo-US Knowledge Initiative in Agriculture. He is

a Member of the Private Sector Committee of the Consultative Group on International
Agricultural Research (CGIAR), and a Member of Research Advisory Committee of India's
National Academy of Agricultural Research Management (NAARM). He is also an active
member of the management committees of various industry bodies and several taskforces of
Government of India.

Agri Business Division-ILTD

S Rangrass, Divisional Chief Executive

Sanjiv Rangrass took over as Chief Executive of the Agri Business Division - ILTD in
July 2010. Prior to this, he was the Chief Operating Officer of the business since
September 2009. Sanjiv joined the Company in 1982 after completing his B.Tech in
Mechanical Engineering from IIT Kanpur. He spent 27 years in the India Tobacco
Division in various capacities in the Technical function across manufacturing units and
Head Office. He also had a cross functional stint as General Manager, HR, in the Tobacco
Division from 2001 to 2003. Prior to moving to Agri Business Division - ILTD , he was
Member, Technical, of the Executive Committee of Cigarette Brands and Supply Chain
of the Tobacco Division. He has also been on the Board of Governors of IIM Shillong.
ITC Research and Development

Innovation has always been integral to ITC's DNA, the foundation for the unique and
differentiated value propositions that it has crafted over the years.

Since I983, ITC R&D Centre in Bengaluru has played a crucial role in building this
capability, creating products and solutions that sustain the Company's competitive
advantage. Now rebranded as ITC Life Sciences and Technology Centre, this new
beginning highlights its integral part in keeping the Company future-ready and driving its
game-changing businesses of the future. It also reflects the Centre's new mandate- to go
beyond supporting and improving ITC's existing products and services and create
innovations that not only meet but anticipate consumer needs.

ITC's ambitious agenda of sharpening its competitive edge in an enormously challenging

marketplace demands better products that can positively impact consumers' lives,
demands solutions that effectively deliver care and wellness to consumers, demands
products and services that are world-class and a byword for excellence. It is here that the
Centre will step in - endeavouring to develop path-breaking solutions that blend science,
research and technology to enhance not just product experience but overall quality of life.

The challenging task of driving science-led product innovation has been carefully
addressed by appropriately identifying the required set of core competency areas of
science such as Plant Breeding and Genetics, Agronomy, Microbiology, Cell Biology,
Genomics, Proteomics, Silviculture and several disciplines of Chemistry. Presently,
theITC Life Sciences and Technology team has evolved with over 250 world-class
scientists and is creating Centres of Excellence in these areas. The Centre is carrying out
research and securing proprietary technologies for the Company's businesses.

Agrisciences R&D

The Agrisciences R&D team continues evaluating and introducing several germplasm
lines of identified crops including Casuarina and Eucalyptus to increase the genetic and
trait diversities in these species, towards developing new varieties with higher yields,
better quality and other relevant traits for ITC's businesses.

This high-end lab research is supported by field research at ITC's R&D Centre at
Bhadrachalam which is at the core of the Company's fibre strategy for its Paperboards
and Specialty Papers business. This state-of-the-art research centre is consistently striving
to improve the productivity of several tree species, in order to give attractive land-use
alternatives to traditional farmers and wasteland owners. So far, more than 100 high-
yielding, fast-growing and disease resistant 'Bhadrachalam' clones have been produced on
a commercial scale, including 23 site-specific clones adapted to problematic soils. The
productivity of these saplings is 6-9 times that of normal seedlings.

ITC's comprehensive R&D facilities at Rajahmundry in Andhra Pradesh cover all aspects
of tobacco crop cultivation. In collaboration with the Central Tobacco Research Institute
and the Tobacco Board, ITC pioneered FCV tobacco cultivation in India and introduced
the Burley and HDBRG varieties. ITC's continued focus on crop development has
resulted in new varieties of seeds and hybrids in Andhra Pradesh and Karnataka, which
have significantly improved farm yields and helped fulfill the demands of a dynamic
global market.
Biosciences R&D

ITC Life Sciences and Technology Centre has created a Biosciences R&D team to design
and develop several long-term research platforms evolving multi-generation product
concepts and associated claims that are fully backed by scientific evidence for the Foods
and Personal Care businesses. Recognising the unique construct of ITC in terms of its
strong presence in agriculture, food and personal care businesses, a convergence of R&D
capabilities is being leveraged to deliver future products aimed at nutrition, health and
well-being.

In addition, ITC Life Sciences and Technology Centre has evolved a strategy in building
a new value chain called, 'Nutrition' with a special focus on 'Indianness' and 'health and
well-being' founded on the basis of Value Added Agriculture (VAA). The initial activities
related to VAA have already commenced with a focus on Soya.

Global Collaboration

ITC Life Sciences and Technology Centre has also initiated several research
collaborations with globally recognized Centres of Excellence to remain contemporary
and fast track its journey towards demonstrating multiple 'proofs of concept'. These
collaborations, covering identified species, are designed in a manner that enables ITC to
gain fundamental insights into several technical aspects of plant breeding and genetics
and the influence of agro-climatic conditions on the growth of these species. Such
interventions will accelerate ITC's efforts in creating future generations of these crops
with greater genetic and trait diversities and leading to significant benefits for the
Company's businesses. Further, these outcomes have a strong potential to contribute
towards augmenting the nation's ecological capital as well.
 Master Design Facility

Catering to the need of ITC's Lifestyle Business is a contemporary master Design Facility
at Manesar, Gurgaon. It offers R&D facilities that have enabled the Company to offer
internationally benchmarked fashion collection every season.

Relentless Commitment to Quality

Pursuing the Company's relentless commitment to quality, each business is mandated to

continuously innovate on processes and systems to deliver superior competitive
capabilities.

All manufacturing units of the Company have ISO quality certification. All
manufacturing units of the Branded Packaged Foods businesses (including contract
manufacturing units) and hotels have stringent food safety and quality systems. All
Company owned units / hotels and almost all contract manufacturing units of the Branded
Packaged Foods businesses are certified by an accredited 'third party' in accordance with
'Hazard Analysis Critical Control Points' (HACCP) methodology. Additionally, the
quality of all FMCG products of your Company is regularly monitored through 'Product
Quality Ratings Systems' (PQRS).

Vision:-
Sustain ITC’s position as one of india’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders.
Mission:-
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.

Global Honours

ITC constantly endeavours to benchmark its products, services and processes to global
standards. The Company's pursuit of excellence has earned it national and international
honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also named ITC among
Asia's'Fab 50' and the World's Most Reputable Companies.

ITC has several firsts to its credit:

ITC is the first from India and among the first 10 companies in the world to publish its
Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of
the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multistakeholder
international initiative to develop and disseminate globally applicable Sustainability Reporting
Guidelines.

ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing
ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The
Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in
the field of Information and Communication Technologies (ICT) for development during the last
10 years. ITC e-Choupal won the Award for the importance of its contribution to development
priorities like poverty reduction, its scale and replicability, sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award recognising
companies who have made significant efforts to create sustainable livelihood opportunities and
enduring wealth in developing countries. The award has been instituted jointly by the United
Nations Development Programme (UNDP), International Chamber of Commerce (ICC)
and the HRH Prince of Wales International Business Leaders Forum (IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple
Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of
building economic, social and natural capital for the nation.
ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in
2007, the Award for 'CSR in Emerging Economies 2005' and'Excellence in Corporate
Governance' in the same year. These Awards have been instituted by the Institute of Directors,
New Delhi, in association with the World Council for Corporate Governance and Centre for
Corporate Governance.

ITC Hotel Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get the LEED
Platinum rating - the highest green building certification globally.

The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh
are the first units of their kind in the world to get ISO 14001environment management
systems certification.

ITC's cigarette factory in Kolkatais the first such unit in India to get ISO 9000quality
certification and the first among cigarette factories in the world to be awarded the ISO
14001 certification.

ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO
14001 Environment Management Systems certification.

ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001.

ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10
units in the world to bag the Social Accountability (SA 8000) certification.

ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D
centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment
Management Systems by DNV. The R&D Centre is also certified for the
standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration
Laboratories (NABL). This certification is awarded for "General requirement for the
competence of Testing & Callibration Laboratories".
ITC Chairman Y C Deveshwar has received several honours over the years. Notable among
them are:

Award
The Padma Bhushan, one of the highest civilian awards in the country by the Government of
India in recognition of his distinguished service of a high order to the Nation, in 2011.
Business Leader of the Year Award conferred by the All India Management Association
2012
(AIMA), India's apex body of professional management.
2010 The U.S.-India Business Council (USIBC) Award for Global Leadership.
SAM/SPG Sustainability Leadership Award conferred at the International Sustainability
2007
Leadership Symposium, Zurich.
Business Person of the Year from UK Trade & Investment, the UK Government
2006
organisation that supports overseas businesses in that country.
2006 Inducted into the 'Hall of Pride' by the 93rd Indian Science Congress.
2005 Honoured with the Teacher's Lifetime Achievement Award.
Manager Entrepreneur of the Year from Ernst & Young.
2001
Retail Visionary of the Year from Images, India's only fashion and retail trade magazine.
1998 Honorary Fellowship from the All India Management Association
1996 Distinguished Alumni Award from IIT, Delhi.
1994 Marketing Man of the Year from A&M, the leading marketing magazine.
1986 Meridien Hotelier of the Year.

Some of the other notable recognitions are

World Business and Development Award 2012 at Rio+20 United Nations Summit at Rio de
Janeiro for the transformational rural initiatives in social and farm forestry.

The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for
using Information Technology for the economic development of rural communities.

United Nations Industrial Development Organisation (UNIDO) Award at the international

conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary
initiatives in agri business through the e-Choupal.

The Corporate Social Responsibility Crown Award for Water

Practices from UNESCO and Water Digestfor its distinguished work carried out in the water
sector in India. ITC also received the National Award for Excellence in Water Management
2007 in the 'beyond the fence' category from the CII Sohrabji Godrej Green Business
Centrefor its leadership role in implementing water and watershed management practices.

The watershed programme also won the Asian CSR Award 2007 for Environmental
Excellence given by theAsian Institute of Management. The Award recognizes and honours
Asian companies for outstanding, innovative and world-class projects. The Company also
received the Ryutaro Hashimoto Incentive Prize 2007 for Environment & Development from
the Asia Pacific Forum. This Award aims at promoting information dissemination of good
practices towards sustainable development in the Asia-Pacific region.

The Readers' Digest Pegasus Award for corporate social responsibility, recognising
outstanding work done by socially conscious companies.

The Corporate Award for Social Responsibility 2008 from The Energy and Resources
Institute (TERI) in recognition of its exemplary initiatives in implementing integrated watershed
development programmes across 7 states in India. The company also won the award in 2004 for
its e-Choupal initiative. The Award provides impetus to sustainable development and encourages
ongoing social responsibility processes within the corporate sector.

The 'Enterprise Business Transformation Award' for Asia Pacific (Apac),instituted

by Infosys Technologies and Wharton School of the University of Pennsylvania for its
celebrated e-Choupal initiative.

The Best Corporate Social Responsibility Practice Award 2008 jointly instituted by the
Bombay Stock Exchange, Times Foundation and the NASSCOM Foundation.

The NASSCOM - CNBC IT User Award 2008 in the Retail & Logistics category. The
Company has been recognised for its pro-active and holistic approach to IT adoption and the
seamless alignment of IT with business strategy. This is the fourth time that ITC has won
Nasscom's Best IT User Award since it was instituted in 2003.

The Institute of Chartered Accountants of India Award for Excellence in Financial

Reporting with its Annual Report and Accounts, adjudged as a commendable entry under the
Category 'Manufacturing and Trading Enterprises'.

The Business Today Award for the Best Managed Company in recognition of its outstanding
initiatives in the consumer products segment.
The only Indian FMCG company to have featured in the Forbes 2000 list. The Forbes 2000 is
a comprehensive ranking of the world's biggest companies, measured by a composite of sales,
profits, assets and market value. The list spans 51 countries and 27 industries.

The NDTV Profit Business Leadership Award for being the Best Food Company of
2007. The Award has been instituted to recognise organisational excellence.

The CNBC-TV18's International Trade Award 2008 for Outstanding Exporter of the
Year in the FMCG & Food category.

ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100
Biggest FMCG Brands,with three brands from its stable making it to the top five. Gold
Flake remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's
Scissors brand ranks at No 5 and is the only new entrant into the top 10.

Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian
restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one
of the top 50 restaurants in the world by the London based magazine 'The Good Food
Guide'. Bukhara is the only South Asian restaurant to figure in the list.

The "Best Supply Chain Practices Award" for time-effective and cost-efficient Logistics
Management in Organized Retail to ITC's Lifestyle Retailing Business Division
(LRBD). The awards were organized by Retailers Association of India (RAI) in association with
ITW Signode - the International leaders in packaging solutions.

SWOT Analysis

Strength:-

1.ITC has a strong and experienced management

2. Strong brand presence, excellent products advertising
3. Diversified product and services portfolio which includes FMCG,
Hotel chains, paper & packaging and agri-business
4. Over 6500 E-Choupal CSR activities and sustainability initiatives
enhance ITC’s brand image reaching over 4 million farmers
5. ITC limited employees over 25,000 people
6. Excellent research and development facilities
Weakness

1. ITC is still dependant on its tobacco revenues and people have cheaper substitutes and other
brands
2.Hotel industry has not been able to create a huge market share

Opportunity
1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing demand
4. More publicity of hotel chains to increase market share

Threats
1. Strict govt regulations and policies regarding cigarettes
2.Intense and increasing competition amongst other FMCG companies and hotel chains
3.FDI in retail thereby allowing international brands

Competiton

Competitors

1. Marico
2. L'Oréal
3. Nirma Ltd
4. HUL
5. Colgate-Palmolive
6. Procter and Gamble
7. Dabur
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http://www.itcportal.com/careers/

http://www.itcportal.com/about-itc/profile/

https://en.wikipedia.org/wiki/ITC_(company)

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http://economictimes.indiatimes.com/itc-ltd/infocompanyhistory/companyid-13554.cms