Submitted By: Gopesh Virmani

MBA-IB

A brief History of ITC Ltd.

ITC Ltd - India's one of the foremost private sector company formed in 1910 as Imperial Tobacco
Company and later in 1970 it was changed from Imperial Tobacco Company to Indian Tobacco Company and
then to I.T.C Limited in 1974 because of it’s wide range of businesses such as Hotels, cigarettes, Apparels,
Personal Care, Stationery items, Agri-Exports etc. The full stops in it’s name were removed in 2001 and thus
was changed to “ITC Limited”.
In it’s initial 6 decades that is 1910-1970’s the company was dedicated to cigarette and leaf tobacco
businesses, later from 1970’s it started expanding in other business lines as well and thus lead to it’s growth
which it still enjoy in today’s period.

Some of the business are as follows:

 Cigarettes – Wills, Navy Cut, Gold Flake, Classic Regular, Classic Ice Burst, Classic Mild.
 Hotels - ITC Grand Bharat, ITC Maurya, ITC Royal Bengal, ITC Narmada, ITC Mughal.
 Paperboards & Specialty Papers - Specialty Paper, Graphic and Other Papers.
 Agri-Business – Coffee, Food Grains, Marine Products, Feed Ingredients etc.
 Packaged Foods & Confectionery - Spices, Noodles & Pasta, Snacks, Beverages, Dairy, Ready to Eat
Meals.
 Information Technology – ITC Infotech.
 Branded Apparel – Wills Lifestyle and John Players.
 Personal Care - Vivel, Savlon Soap & Hand-wash, Engage.
 Stationery – Paper Kraft, Classmate and Color Crew.
 Safety Matches – Aim, Ship and I Kno.
 And other FMCG products.

Bottom Line

Bottom Line of a company can be stated as income of a company which is calculated as revenue minus the
expenses incurred. It can also be stated as net earnings or net profit.

Triple Bottom Line

Triple Bottom Line is a concept which focues on financial bottom line along with environmental and
social factors as well. It measures the social responsibility along with economic and environmental value of a
firm. In Triple Bottom Line focus of a company is beyond profit as it includes social and environmental factors
to calculate expenses and profit of a firm.

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 Triple bottom can be stated as a way to run an organization such that it not only earns financial
profits but also improves lives of people and helps the planet in many ways. The elements of the triple bottom
line are profit, people and planet.

E-Choupal

Choupal – Meaning a place of gathering in villages

E – Stands for Electronic.

It basically is an initiative by ITC to directly communicate with Farmers in rural areas for the
agricultural products such as tobacco, soya bean and coffee etc. In order to carry out this objective ITC
Limited provided computers with internet facility to the farmers of rural areas so that agricultural products
are made available to them without the interference of any intermediaries.

It is type of a Virtual market where because of the computers and internet service farmers can
directly negotiate with the end user and it also helped them to know the mandi prices set by government,
better farming techniques that can be used and obtain knowledge about best farming tools and get high
quality fertilizers and seeds. In short it can be stated that it helped farmers to improve on their quality of
agricultural output ie crops using better farming techniques and better quality agricultural input ie fertilizers
and seeds and thus getting a better price than the one which they used to get earlier.

ITC E-choupal is a popular initiative because of it’s communication power as it connects large or
small farmers with large or smaller end users. One major benefit which this initiative has provided is
elimination of intermediaries as intermediaries used to fool farmers by taking their agricultural produce at
lower costs and then they used to sell it to mandi at higher price and during this value chain they also used to
mix up the better quality and worst quality products which created issues for end users as well.

Although all the intermediaries were not removed from value chain only the brokers were eliminated
as removing all the intermediaries is not a wise decision as some intermediaries do lead to value addition
during the whole process as some had better transport service, some had better storage spaces, and
elimination of these intermediaries would have lead to weak infrastructure.

Some of the characteristics of E-Choupal are:

 It’s a customer centric initiative.

 Can used for multiple commodities.
 It is Easily scalable.
 Benefits local people and improve conditions of farmers.
 Local as well as global end users can transact using it.
 As the transaction time is low farmers are further benefitted from it.