A

FINAL REPORT

A STUDY OF THE CORPORATE SOCIAL

RESPONSIBILITY OF ITC WITH
SPECIAL REFERENCE TO E-CHOUPAL SYSTEM

Submitted in Partial Fulfilment for the requirement of MMS

degree of the University of Mumbai

RAJEEV GANDHI COLLEGE OF MANGEMENT STUDIES

Plot No. 01, Sector – 08, Ghansoli,

Navi Mumbai-400701

SUBMITTED BY:
Ms. NEHA MAHESH KAJANIYA
Roll no: 50

GUIDE NAME:
PROF. NIYATI JOSHI

MMS (FINANCE)-SEM: IV
Batch: - 2018-2020

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 DECLARATION

I hereby declare that the Final Project Report on“A STUDY OF THE
CORPORATE SOCIAL RESPONSIBILITY OF ITC WITH
SPECIAL REFERENCE TO E-CHOUPAL SYSTEM.”
submitted in the partial fulfillment for the requirement of the degree of Masters
of Management Studies of Mumbai University at Rajeev Gandhi College of
Management and Studies, I further declare that I have no objection and grant
the rights to Rajeev Gandhi College of Management and Studies to publish any
chapter/project if they deem fit in Journals/Magazines/Newspapers etc., without
my permission.

Place: Mumbai Name Of Student – Neha Kajaniya

Date: MMS Class-2018-2020

Roll No:050

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Rajeev Gandhi College of Management and Studies

CERTIFICATE

This is to certify that the Final Project Report titled “A STUDY OF

THE CORPORATE SOCIAL RESPONSIBILITY OF ITC
WITH SPECIAL REFERENCE TO E-CHOUPAL SYSTEM.”
is the study done by Neha Kajaniya student of MMS - FINANCE,
at Rajeev Gandhi College of Management and Studies,
University of Mumbai, during the year 2018 -2020, in Partial
fulfilment of the requirements for the Degree of Master in
Management Studies is a result of bonafide research work carried
out by him/her under my Supervision and guidance. No part of this
report has been submitted for award
of any other degree, diploma, fellowship or other similar titles or
prizes. The Work has also not been published in any Journals /
Magazines.

Place: Mumbai

Date:

Prof. Niyati Joshi Dr. Anil Matkar

Project Guide Director

External Guide

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 ACKNOWLEDGEMENT

I express my sincere gratitude to Prof . Niyati Joshi for her guidance,

constant Supervision as well as for providing necessary information
regarding the project and also for her support in completing the
project and express my sincere gratitude the Director for giving me an
opportunity to do final project and also express my gratitude to
librarian and other staff members for their help in completion of the
project. I would also like to express my gratitude to my parents.

Students Name- Neha Mahesh Kajaniya

Roll Number-060

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 ABSTRACT

During the social relevance project on “A STUDY OF THE

CORPORATE SOCIAL RESPONSIBILITY OF ITC WITH SPECIAL
REFERENCE TO E-CHOUPAL SYSTEM.”

I have tried to cover the aspects of overall information of the CSR.

This report talks about the company first, and then further it talks about the
CSR aspects of the company.

Afterward it proceeds towards the theoretical aspects of the project report

and about various research methods used for the data collection.

Further it talks about various data analysis and interpretation of graphs.

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 Table of Content
Chapter No Topic Page no

Certificate I

Acknowledgment II

Executive Summary III

Chapter 1 Introduction of the study 1-5

Chapter 2 Company profile 6-13

Chapter 3 CSR activities of ITC company 14-36

Chapter 4 Research Methodology 37

Chapter 5 Review of literature 38

Chapter 6 Data Analysis and Interpretation 39-56

Chapter 7 Finding &Conclusion 57-59

Chapter 8 Suggestion/Recommendations 60

Chapter 9 Bibliography 61

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 CHAPTER 1

INTRODUCTION OF STUDY

In today's world, facing rapid shifts and staged economic, social and
environmental challenges, issues related to societal accountability,
sustainability and business ethics are gaining more importance, especially in
the business sector. Business goals are indissoluble from the societies and
environments within which they work. Whereas short-term economic gain can
be pursued, the failure to account for longer-term social and environmental
impact makes that business practice untenable. This course is designed to
begin participants to the concept of Corporate Social Accountability (CSA),
operationalizing the term and ensuring a cohesive definition of CSR and its
application for corporate sustainability’s. ITC is on hand as a management
concept and a course that integrate social and environmental concerns in
business operation, and a company‘s communications with the full choice of
its stakeholders. Social responsibility is significant for every business.

Economic criterion alone cannot justify the existence of business

organisations. Social, moral and ethical aspects of business decisions are as
important as economic aspects to judge the success of a business. A socially in
charge firm not only meets the needs of the society but also creates long-term
and sustainable bazaar for its products. For long time in the past profit
maximisation was the sole business idea but this view no more hold good. If
companies want to survive and maintain swelling in the market, if they want to
become market leaders, they have to sacrifice part of the profits in favour of
groups other than owners. This outlook of business recognises the concept of
social responsibility. It entails business organisation ‘s obligation to look after
the interests of society beyond their economic interests. Traditionally, if goods
and services to society, maximising corporate profits and creating job
opportunities were view as social responsibilities of industry.

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 STATEMENT OF RESEARCH PROBLEM

“CSR”, and constantly contested concept since its start, has attracted global
notice in a progressively included world economy. Although it is not a
contemporary concept, (CSR) is developing into a global norm. Today,
multinational removal corporations (MNMCs) are expected to uphold and
practice CSR for the socio-economic penalty of their operations in host
country However, the inability to institute a comprehensive definition and
accepting of CSR has led to either incoherent application of it or complete
discount for it. This study is inspired by the partial debate among proponents
and opponent of CSR on a shift in the taking on of CSR by MNCs. On the one
offer, there is an increasing social order for us to take a leading role in meeting
society ‘s needs since these needs have go above the government ‘s capability
to complete them. The government is conventionally view as the sole agent for
expansion but proponents of CSR clash that businesses should share this
accountability allowing for that MNCs depend on civilization for labour, land
or resources, there are mounting outlook for them to promote sustainable
development.On the other hand, it is argued that companies state their
intention to donate to the development of local community but translate that
aim to action remainder unseen.

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 OBJECTIVE OF STUDY

1. To study the Corporate Social Responsibility of ITC with special reference

to E-Choupal system.

2. To find out how Corporate Social Responsibility is serving as a

determinant of corporate success.

3. To gain more knowledge about how to conduct CSR activities.

4. To study how CSR activities are beneficial for the growth of company.

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 IMPORTANCE OF THE STUDY

The term corporate social responsibility gives a probability to all the workers
of an organization to give towards the culture, environment, and state and so
on. We all live for ourselves but hope me income for others and doing rather
for them is a different reaction overall. Bringing a smile to people‘s living just
because your society has pledge to educate the poor kids of a scrupulous
village not only gives a sense of inner pleasure but also pride and happiness.

One should never recall the importance of culture and environment in our life.
It is indeed high time when we also start idea about people around us who are
less lucky and happy than us. Corporate social responsibility gives an occasion
to organizations to move towards the betterment of the humanity and makes it
a healthier place to live. Corporate social responsibility goes a long way in
creating a helpful word of mouth for the organization on the sum total.

Doing something for your culture stake holder customers would not only take
your trade to a higher level but also guarantee long term growth and
accomplishment corporate social responsibility theatre a critical role in making
your brand trendy not only among your competitor but also media, other
organization and most significantly people who are your direct clients. People
develop a helpful feeling for a brand which takes the idea of educating poor
kids planting more trees for a greener environment, bringing electricity to a
village, providing service to people and so on.You really do not have to devote
much in corporate social responsibility actions.

Do not undertake CSR activities only to gain hype but because you believe in
the cause. There are many organization which tap isolated villages, some of
which are even to no avail as a proposal of corporate social duty. Corporate
social responsibility also gives employees a emotion of matchless happiness.
Believe me, employees take conceit in taming poor people or kids who cannot
afford to go to regular schools and receive formal education. CSR activities
reinforce the bond among work

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 SCOPE OF THE STUDY
Corporate Social Responsibility or CSR makes for renowned business brains
as well when one consider the knock-on effect that social and ecological
responsibility bring to the businesses.

For example corporations exist in a symbiotic connection with their

environments (the term environment refers to all the machinery of the external
environment and not to natural environment on your own) where their
exchange with the larger environment determine to a large point how well they
do in their profit in search of events The growth of CSR as a concept dates
back to the 1950‘s when the first stirrings of social scruples among supervision
practitioners and theorists were felt.

The writings of Keith Davis initial in the 1950‘s and rolling into the 1970‘s
speak of the need for business to engage in socially in charge behaviour and to
ensure that culture as a whole does not mislay out in the process of revenue
making behaviour by business CSR as a concept was opening to be taken
acutely by the time the 1970‘s dawned and during the tumultuous decade when
large business and their minion were accused of several misbehaviour
pertaining to unbridled disregard for the setting and society as a complete.

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CHAPTER 2 - COMPANY PROFILE

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 COMPANY HISTORY
ITC was formed on 24 August 1910 under the name of Imperial Tobacco
Company of India Limited, and the company went communal on 27 October
1954. The former decades of the company's activities centred mainly around
tobacco products. In the 1970s, it diversified into non-tobacco businesses. In
1975, the company acquire a hotel in Chennai, which was renamed the ITC-
Welcome group Hotel Chola' (now renamed to Welcome Hotel Chennai).In
1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British
joint venture, with the share divided between ITC, British American Tobacco
and various independent domestic shareholders in Nepal. In 2002, Surya
Tobacco became a subsidiary of ITC and its name was changed to Surya Nepal
Private Limited. In 2000, ITC launched the Expressions range of greeting
cards, the Wills Sport range of casual wear, and a wholly owned information
technology subsidiary, ITC InfoTech India Limited. In 2001, ITC introduced
the Kitchens of India brand of ready-to-eat Indian recipes, which are produced
and sold internationally, at first in cans and later in retort packages, and more
recently online and at festivals. In 2002, ITC entered the confectionery and
staples segments and acquired the Bhadrachalam Paperboards Division and the
safety matches company WIMCO Limited. ITC diversified into body care
products in 2005. ITC Ltd (ITC) was incorporated on August 24, 1910, under
the name Imperial Tobacco Company of India Ltd.To make cigarettes and
tobacco.In 1975, the company entered the hospitality business with the
acquisition of ITC–Welcome group Hotel Chola.

The name of the Company was changed to I.T.C. Limited in 1974. In

recognition of the Company's multi–business portfolio encompassing a
wide range of businesses –
Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri–Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery – the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands rechristened
'ITC Limited'. ITC is one of India's foremost private sector companies with a
market capitalisation of nearly US $ 14 billion and a turnover of over $ 5
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, among
India's Most Respected Companies by Business World 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. ITC has a diversified

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presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,
Agri–Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG
products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri–Exports, it
is rapidly gaining market share even in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As
one of India's most valuable and respected corporations, ITC is widely
perceived to be dedicatedly nation–oriented. ITC's Agri–Business is one of
India's largest exporters of agricultural products.ITC is one of the country's
biggest foreign exchange earners($ 3.2 billion in the last decade). The
Company's 'e–Choupal' initiative is enabling Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power
of the Internet.This transformational strategy, which has already become the
subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure,
significantly enhancing the Company's marketing reach.ITC's wholly owned
Information Technology subsidiary, ITC Infotech India Ltd, provides IT
services and solutions to leading global customers. ITC Infotech has carved a
niche for itself by addressing customer challenges through innovative IT
solutions.Its beginnings were humble.A leased office on Radha Bazaar 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. The Company's ownership progressively
Indianized, and the name of the Company was changed to I.T.C. Limited in
1974.

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 PRODUCT LINES OF COMPANY

Image No.2.3.1

Image No. 2.3.2

Image No.2.3.3

Image No.2.3.4

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Image No. 2.3.5

Image No. 2.3.6

Image No. 2.3.7

Image No.2.3.8

Image No.2.3.9

Image No. 2.3.10

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 Image No. 2.3.11

Image No. 2.3.12

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

Paperboards, Packaging and Agri-Exports, it is gaining market share in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel
and Greeting Cards.

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 RECENT TRENDS IN COMPANY

1. India's ITC Ltd Dec- Qtr. Profit up About 17 Pct. Jan 19 (Reuters) -
India’s ITC LTD :
Dec quarter profit 30.90 billion rupees versus profit of 26.47 billion
rupees last year. accord forecast for Dec sector profit was 28.32 billion rupees.
Dec quarter revenue from operations 99.52 billion rupees versus 135.70
billion rupees last year. Dec section special gain 4.13 billion rupees.

2. ITC Ltd says hotels performance hurt by highway liquor ban in qtr.
Oct 27 (Reuters) - ITC Ltd:
Says hotels performance hurt by highway liquor ban in quarter.
Says legal cigarette industry volume under cruel pressure due to jagged
increase in tax incidence under GST.
Says on FMCG, off take in retail channel has normalised more and more
through the section, wholesale waterway is yet to fully recover.

3. India's ITC Sept-qtr. profit up about 6 pct. Oct 27 (Reuters) - ITC

Ltd :
Sept sector profit 26.40 billion rupees - TV. accord forecast for Sept
district profit was 26.44 billion rupees.
Sept section total returns 103.14 billion rupees.
Profit in Sept area last year was 25 billion rupees; profits from operation were
136.17 billion rupees.
The profit and profits alert were first source from TV and later inveterate from
a company squash release at the National Stock Exchange.
The proceeds from operation number were later established as total takings.

4. ITC Ltd says filed suit against Britannia ITC Ltd:

Filed suit adjacent to Britannia as Britannia copied deal dress and colour
grouping of ITCs’ 'Sun feast Farmwife Digestive All Good' biscuit.
Suit alongside Britannia is not expected impact operation of company.

5. India's ITC Ltd June-qtr. profit up 10 pct. ITC Ltd: India's ITC Ltd –
June-quarter net profit 23.85 billion rupees.
India's ITC Ltd - June-quarter revenue from operation 131.57 billion rupees.
accord forecast for June-quarter net profit was 24.66 billion rupees.
India's ITC Ltd - net profit in June-quarter last year was 21.66 billion rupees as
per IND-AS; revenue from operation was 121.50 billion rupees.

6. ITC Ltd gets members' nod for issue of bonus shares ITC Ltd:
Gets members' nod for topic of extra shares.

FUTURE PLANS OF COMPANY :

1. ITC‘s savings in Agri back-end will take care of scale up in the breathing
category, while newer category will also boost the company‘s border with the
Agri back-end.
2. ITC‘s potatoes will have two exclusive gifts, one is going to be low sugar
potato and other is leaving to be anti-oxidant wealthy potato.

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 CHAPTER 3

CSR ACTIVITIES OF ITC COMPANY

INTRODUCTION

Farming is the spine of Indian economy deliver 23 percent of GDP, and utilize
66 percent of work compel. In light of the green uprising, India's horticultural
yield has enhanced to the point that it is as one independent and a net exporter
of an assorted variety of sustenance grains, yet most Indian agriculturists have
stay poor. The causes take in leftovers of shortage period rule and a rural plan
in view of little, inefficient land prosperity. The other imperative are frail
correspondences, various go between, inordinate conviction on the storm
deviation between posts separated Argo-atmosphere zones, and numerous
others. The untoward outcome is clashing quality and uncompetitive costs,
making it difficult for the agriculturists to offer his make on the planet
showcase. ITC's trail-blasting react to these inconveniences is the - e-Choupal
plot; the single biggest thusly innovation-based association by a corporate
article in provincial India that is change the Indian rancher into dynamic
learning looking for residents. Improving the information of agriculturists and
hoisting them to another request of strengthening. ITC expects to give the
administrator of master gain on even the littlest identity agriculturist alluring
its intensity in the aggregate offer.

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 E-CHOUPAL

E-CHOUPAL is a hindi word which implies "Town meeting place".

E-Choupal is a virtual commercial centre where ranchers can execute
straightforwardly with a processor and can understand better cost for their
create. E-Choupal makes utilization of the; physical transmission capacities of
current go-between and total, coordination ‘s, counter-party hazard and
scaffold financing.In June 2000, ITC Limited propelled e-Choupal in India and
now e-Choupal has turned into the biggest Internet based intercession in rustic
India. E-Choupal intends to give agriculturists prepared access to trim
particular constant data to enhance the rancher's basic leadership capacity in
this manner helping them to better adjust their homestead yield to the
anticipated request in Indian market. E-Choupal, the Web-based activity of
ITC's IBD, offers the rancher all data about items and administrations they
have to upgrade cultivate profitability enhance cultivate entryway value
acknowledgment and cut exchange costs.Agriculturists can get to the most
recent neighbourhood and worldwide data on climate, logical cultivating
practices and market costs at the town itself through the web-based interface in
Indian dialects – Hindi, Marathi, Kannada and Telegu. E-Choupal likewise
encourages the supply of top notch cultivate contributions and also buys of
create at the agriculturist's doorstep.

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 THE TRADITIONAL MODEL

Indian ranchers depend on Department of Agriculture, govt. colleges,

insurance agencies and so forth for different sources of info, for example,
climate, current and logical cultivating practices and protection cover.
Agriculturists approach input retailers who source them from wholesalers who
are in coordinate contact with makers. After collect, agriculturists bring these
create to mandis; in little numerous parts consistently, where beans are sold to
the dealers and specialists of the handling organizations in an open clamor
strategy.The legislature encourages reasonable value disclosure and empower
conglomeration of merchandise, control these market yards. Fruitful bidders at
that point bed the beans, measure them, pay part money to the agriculturists,
and transport the freight to the preparing units. In any case, with each delegate
the cost of create increments to the processor as mediator adds his overall
revenue to the cost in spite of the fact that the agriculturists get the most
minimal cost and edge in the entire chain.

E-CHOUPAL AND THE TRADITIONAL MODEL

The principle fascination of e-Choupal is that it associates huge and little
maker and clients and dispenses with the need of mediators (who are basic in
conventional market).E-Choupal is a virtual market that unites merchants and
clients. Geological separation never again limits support of agriculturists.The
primary obstacle of customary market is that data asymmetry is natural in the
market where as e-Choupal accommodates straightforward exchange.
The exchange time at the ITC center is not exactly at the Mandi i.e. 2 or 3
hours whereas 1-2 days in Mandi. Some more focuses are :-

• Customer driven and not subject to delegates.

• Capable of being utilized for various exchanges.

• Easily versatile once it is confirmed.

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• Uses neighbourhood ability and nearby individuals to create neighbourhood
pioneers.

• Uses all the current foundations and lawful systems.

• Scientific method for examination, testing and weighing.

THE E-CHOUPAL PLAN OF ACTION

The model is fixated on a system of e-Choupal, data focuses furnished with

PC associated with the Internet, situating in provincial cultivating towns. E-
Choupal fills in as Choupal (gathering place) and an online business center
point. A nearby agriculturist going about as a Sanchalak (organizer) runs the e-
Choupal and the PC more often than not is situated in the Sanchalak home.ITC
likewise consolidated a nearby commission specialist known as the Samyojak
(colleague), into the framework as the supplier of calculated help. The basic
component of the e-Choupal framework and the way to dealing with the land
and social breath of ITC's system by enlisting a neighbourhood agriculturist is
the Sanchalak. Sanchalak make confide in the public arena and all framework
set up is made in his home.

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 Sanchalak gets commission for each exchange handled through the e-Choupal
and furthermore profit by expanded economic wellbeing that goes with the
position – a huge preferred standpoint in country Indian life. Sanchalak go
about as open officer in ITC venture. Sanchalak total rancher ‘s contribution
and additionally buy orders. Sanchalak experiences preparing of essential PC
utilization, fundamental business aptitudes, quality investigation of yield item
preparing and so forth. The Samyojak or participating commission specialists
likewise assume imperative part.

He gain pay by giving calculated administrations that substitute to the absence

of provincial framework by giving data and market motions on exchanging
exchange. Samyojak is associated with continuous activity of e-Choupal
framework, permitting them income streams through giving administrations,

for example, administration of money, packing and work at acquisition center

points, treatment of mandi printed material as authorized principals for the
retail exchange of the e-Choupal.

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COMPARISON OF E-CHOUPAL AND CONVENTIONAL
SYSTEM

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 THE E-CHOUPAL SYSTEM
The earlier day's mandi shutting cost is utilized to decide the benchmark Fair
Average Quality (FAQ) cost at the e-Choupal, which is static for a given day.
The data of mandi cost is conveyed through e-Choupal entrance.In the event
that and when association comes up short, Sanchalak calls an ITC field agent.
To start a deal the agriculturist conveys an example of his deliver to the e-
Choupal. The Sanchalak plays out the quality test in the rancher's essence and
must legitimize any finding to the agriculturist. These basic governing rules
guarantee straightforwardness in a procedure where quality testing and valuing
occurs at various levels.On the off chance that the agriculturist pitches his
deliver to ITC, the Sanchalak gives him a note catching his name, his town,
quality test report, approx. amount and contingent cost. The agriculturist takes
the note from Sanchalak and continues with his yield to the closest ITC
acquirement center point. Some obtainment centers are essentially ITC's plants
that likewise go about as accumulation focuses.

ITC will probably have a handling focus with a 30 to 40 k.m. span of every
rancher. At the ITC center point, an example of the agriculturist ‘s creating is
taken and put aside for lab test. Research center testing of the example for oil
content is performed after the deal and does not change the cost. The
explanation behind this is ranchers having truly being abused are not instantly
ready to believe a research facility test. After such examination, the rancher's
trunk is weighed on an electronic weighbridge, first with the deliver and
afterward without creates.The distinction is utilized to decide the weights of
his deliver. Subsequent to measuring, the rancher gathers his instalment in full
at the instalment counter. The rancher is additionally repaid for transporting
his product to the obtainment center point. Each phase of the procedure is
joined by proper documentation. The rancher is given duplicate of lab reports,
concurred rates and receipts for his record. Samyojak, who are skilled at
dealing with vast measure of money, are depended with the duty of installment

19
aside from at acquirement focuses. Samyojak additionally handle a great part
of the center coordination ‘s, including work administration at center point,
sacking, stockpiling mgmt., transportation from center point to elements and
dealing with Mandi printed material for the yields secured at the center point
and for this he is paid a 0.5 percent commission.

BENEFITS OF E-CHOUPAL

“A quiet digital revolution is reshaping the lives of farmers in remote Indian

villages”. E-Choupal delivers real-time information and customized
knowledge to farmer‘s decision making ability, securing better quality &
price.The e-Choupal initiative also creates a direct marketing channel,
eliminating wasteful intermediation and multiple handling, thus reducing
transaction cost and making logistics efficient.

1.DIGITAL TRANSFORMATION –

ITC began e-Choupal with Soya grower in the villages of M.P. E-Choupal
tried to change the stereotype image of farmers of bullock cart. Farmers now
log on to the site through internet kiosks to order high quality input, get
information on best farming practices, prevailing market prices for their crops
at home and abroad for the weather forecast all in the local language. The e-
Choupal site is also helping the farmers discover the best price of their quality
at the village itself. The site also provides farmers with specialized knowledge
for customizing their produce to the right consumer segments. The new
storage and handling system preserve the identity of different varieties right
through the ‗farm gate to dinner plate ‘supply chain. Thus, encouraging the
farmers to raise their quality standards and attract higher price.

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2.CREDIT AND INSURANCE –

Farmers ‘low income and difficulty in accessing credit limits the capacity to
pursue opportunities within and outside the agriculture sector.ITC e-Choupal
proposes the solution of this problem by making partnership with financial
institutions. E-Choupal provide various types of loans like non-cash loans for
farm inputs, loans to sanchalak (sanchalak can better manage credit risk &
have better access to farmers), direct loans to farmers based on sanchalak
recommendation, Insurance & risk management services etc.

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3.LEADERSHIP DEVELOPMENT –

ITC uses involvement of farmers in content creation helps to easily customize

the information as per the local requirements. Participation of local farmers
ensures provision of adequate and decipherable information to e-Choupal,
which can be employed into the farming, or pricing of the produce. The
increased participation in eChoupal develops local leadership quality in
farmers. The farmers get attracted towards eChoupal due to increased profits,
added services that he could get, saving in time and the ability to use e-
Choupal for many transactions. E-Choupal delivers relevant technologies in
the hands of the farmers, which can improve the economic condition of the
entire village. E-Choupal is one of the very few ICT projects in India that has
effectively utilized e-commerce transactions for poverty alleviation. ICT also
reduced the number of middlemen between producers and consumers. Now,
simple technology solutions are available to create networks in rural areas,
which can function as virtual marketplaces.

4. OTHER BENEFITS TO FARMERS ARE REIMBURSED

FOR TRANSPORT TO THE PROCUREMENT HUB OF
E-CHOUPAL –

1. The transaction time at the ITC hub is also much faster than mandi.
2. ITC has given recognition to integral partner in the supply process & not
mere as agricultural producer and thus elevating the level of respect of
farmers.
3. Similarly providing shaded seating area while waiting for their paperwork
shows ITC really care for farmers.
4. Cost and Revenue Stream E-Choupal has been fruitful.
5. It has decreased the cost of acquisition and the cost of travel and the
material taking care of cost.
6. Acquirement exchange costs are lessened from the business standard of 8
percent (ranchers brings about 3 percent and the processor causes 5

22
 percent) to 2 percent (with agriculturist sparing all his 3 percent, and the
processor ITC – sparing 3 percent).
7. The aggregate cost caused on the activities so far has been Rs.50 million
(Rs.35 million as capital cost towards PCs and other equipment at the
booths and in addition focal servers and Rs.15 million income
consumption acquired towards entrance advancement, individuals
overhead and so forth.).
8. Be that as it may, ITC has pick up advantage Rs. 20 million, which is
what might as well be called full venture on 40 percent of the Choupals
(Kiosks).
9. As far as future income, the surge is 52.1 million out of 2001-02 which
lessens to 3.90 million of every 2005-2006 and for 2006-07 is evaluated
as 2.70 million.
10. Whereas inflow in 2001-02 is 15.3 million where as 65.0 million out of
2005-2006 and evaluated as 85.0 million of every 2006-2007.
11. The inward rate of return (IRR) on the venture works out to be 21.55
percent.
12. In the mandi framework, there was an increase of 7-8 percent on the cost
of soybean from the ranch entryway to the processing plant door of this
increase 2.5 percent was conceived by the rancher while 5 percent was
borne by ITC with e-Choupal, ITC cost are down to 2.5 percent.
13. In supreme terms, both the agriculturists and ITC spare about $ 6 for each
metric ton.
14. Weakness of E-Choupal In spite of the fact that e-Choupal takes out the
broker and along these lines enables ranchers to improve cost for what
they develop, it does nothing to take care of the more principal issue of
the natural wasteful aspects made by such huge numbers of modest
homesteads.
15. Moreover, it depends on foundation, which is frequently ailing in
provincial groups. Power and media transmission administrations can now
and then be under 100 percent solid in a portion of the spots where e-
Choupal has been executed.
16. At long last, despite the fact that there is never again a mediator, e-
Choupal can be not any more compelling than the Sanchalak (organizer)
in every group.

23
 CHALLENGES

As the power is usually available for only a few hours a day at on a sporadic
schedule, the e-Choupal computer cannot always be accessed when
information is needed. Phase imbalances leads to damage of equipment’s.
Telecommunication infrastructure in villages is poor. Telephone exchange also
have limited battery backup. In addition, there is no local support staff to
maintain or troubleshoot telephone exchanges.
The support team is also short-staffed. Other challenges are: -
1. Illiteracy about computer in rural areas as well as rural population has
low trust on electronic system.
2. Selection of an educated, intelligent, reliable and matured person as a
Sanchalak.
3. Improper knowledge about rural market.
4. Vicious circle of intermediaries (Adatiya & Brokers).
5. Improper and complex user interface on e-Choupal.
6. Lack of rules and regulation related to electronic Choupal.
7. Mistrust about inspection, testing and weighing of produce on centres.

ITC‘s example show the key role of IT in providing and maintaining by a

corporation, but used by local farmers – to bring transparency, to increase
access to information, and to catalyze rural transformation, while enabling
efficiencies and low cost distribution that make the system profitable and
sustainable .
Critical factors in the apparent success of the venture are ITC‘s extensive
knowledge of agriculture, the effort ITC has made to retain many aspects to
the existing production system, including retaining the integral importance of
local partners. ITC e-Choupal is committed to transparency and respect and
fairness towards farmers as well as local partners. There are several issues
which the company has addressed. Firstly, it is not just tweaking around but a
greater efficiency in the supply chain. One of the problems in redesigning
supply chains is how to use different tools, thus making the various players
still own the chain. Here, the farmer and the team are involved in painting the
big picture, so there is enthusiasm and a feeling of ownership Further, how do
you avoid a channel conflict by finding space for the middle-men? Upton also
points out that the 'roll out, fix it, scale up' model is a new approach to
strategic management.

The philosophy here is that the terrain has so many uncertainties that gaps will
exist. So, unlike in the past, where focus was on well-laid strategic plans, here
you give experimentation-based strategies more weight age.

24
 THE E-CHOUPAL ADVANTAGE

ITC's e-Choupal project is a winner—for farmers who get better remuneration

and for the company that's assured quality inputs for its business:

1. IT for the Masses The e-Choupal project covers over 35,000 villages in
Madhya Pradesh, Uttar Pradesh, Maharashtra, Karnataka, Andhra Pradesh,
Rajasthan, Haryana and Uttaranchal providing millions of farmers with critical
information on farming. The Choupal services are being delivered by over
6,000 Sanchalaks and over 17,000 Upa Sanchalaks to these remotest areas.

2. Multiple Benefits Farmers can look at weather forecasts, order fertilizer and
herbicide, and consult an agronomist by e-mail when their crops turn
yellow.At some e-Choupals they can even buy life insurance, apply for loans
and also check their children‘s exam results.While much has been written
about the social benefits of ITC‘s e-Choupal, the matter of the fact is that the
project was conceptualized with a pure business focus to create farmer
communities in villages to facilitate sourcing of high-quality farm produce for
the company‘s fast growing agribusiness.

3. Better Payment In IT parlance, e-Choupal is an intelligent blend of

applications like CRM and supply chain management. For instance, by helping
the farmer identify and control his inputs and farming practices, and by paying
more for better quality, ITC has been able to preserve the source and improve
the quality of produce. The project was built using .NET. The first
implementation of a Soya Choupal took eight months but later extensions like
the Aqua Choupal for aquamarine farmers took between six and eight
weeks.Today e-Choupal is a flexible, easy to deploy solution. ITC Infotech
provided an in-house team of 25 to 30 people in the initial stage and this
gradually came down to around 20 people, and finally a five-member team to
maintain the project. The portfolio of commodities sourced has been vastly
expanded to include maize, barley, sorghum, and pulses, and the sourcing
cycle is extended almost around the year.

25
 In the commodities market, these two factors are helping ITC create a definite
competitive advantage.The E-Choupal Roadmap ITC now plans to leverage its
e-Choupal infrastructure to sell third-party products, provide rural market
research services, and in the social sector, to provide services like health
advisories and enable e-governance. ITC e-Choupal has embarked in on
providing best of the class retailing and shopping experiences to the rural
consumers by building retail shopping complexes that provide integrated
facilities under one roof. Under the brand Choupal Sagar,‘ these shopping
complexes house a procurement centre, retail store, food court, farmer facility
centre and healthcare clinic. In healthcare services, a pilot project has been
launched along with leading corporate healthcare service providers, to extend
reliable and quality healthcare services to the remotest villages. Several health
camps conducted during the pilots are encouraging and the project is in the
midst of scaling up to other locations. ITC e-Choupal is currently piloting
delivery of quality education services to the rural areas leveraging the physical
and digital infrastructure developed for commodities sourcing and consumer
retail services.

26
 OTHER CSR ACTIVITIES OF ITC

ITC:

One of India‘s most valuable companies continuously strives to be a Citizen

First‘ entity. ITC has always attached critical importance to its responsibility
to contribute to preserving and enriching the environment. ITC‘s contribution
to sustainable development extends beyond Environment, Health and Safety
considerations. Through its philosophy of Transforming Lives and
Landscapes‘, ITC is empowering farmers, greening wastelands, irrigating dry
lands, creating women entrepreneurs and educating rural children. Through
these initiatives ITC has touched the lives of over 2 million villagers across the
country.

1. Ensuring Occupational Health & Safety In keeping with ITC‘s commitment

to provide a safe and healthy workplace for its employees, the Company‘s
Occupational Health and Safety norms go beyond the requirements of the
Factories Act, 1948 ITC also strives to go further than merely complying with
International Labor Organization (ILO) requirements on worker safety and
health

2. Conserving Energy ITC strives to conserve energy in all its operations by

reducing specific energy consumption. It also endeavours to increase the use
of waste material for energy generation. ITC Units continuously explore the
potential for renewable energy. Different ITC Units have undertaken
initiatives to use renewable energy sources such as biomass, wind and solar
power.

27
 3.Reducing Greenhouse Gases As part of ITC ‘s concern for global warming,
the Company began efforts to become a carbon-positive corporation. India is a
signatory to the Montreal Protocol of 1987. The Government of India has
consequently formulated a policy to phase out various Ozone Depleting
Substances (ODS) on a priority basis. All ITC Units have detailed plans in
place to conform to this policy.

4. Restoring the Ecological Balance ITC has effectively leveraged its need for
wood fiber to provide significant livelihood opportunities to economically
backward wasteland owners. The Company has undertaken extensive tree
plantation, at all its Units, and major a forestation and watershed development
programmes across the country. So far some 35 million saplings have been
planted over 16,000 hectares, generating employment for about 160,000
people.

28
Apart from the obvious benefits of increasing the forest cover this effort also
directly contributes to moisture conservation, groundwater recharge and a
significant reduction in topsoil loss due to wind and water erosion. Leaf-litter
continuously enriches depleted soils. This further reduces the consumption of
fertilizers and pesticides, thus preventing the chemical pollution of
groundwater sources

5.Conserving Water ITC has always endeavoured to be a water-positive

corporation by returning to the environment more water that it uses. ITC‘s
guidelines on water management require that all Units minimize the use of
water through conservation and recycling. Treated effluent is reused or
recycled wherever appropriate. ITC strives to restore to the environment as
much as possible of the precious water it uses. ITC Units have efficient
wastewater treatment plants that treat wastewater to standards of purity that are
significantly better than prescribed standards. ITC business units evaluate the
potential for rainwater harvesting and implement them wherever feasible.
Rainwater harvesting initiatives have been increasing over the years. The total
rainwater harvested across all ITC units was around 250,000 KL in 2002-2003.

29
 6. Enhancing Eco-Efficiency The ITC Environment Health and Safety Policy
and Codes of Practice require all Units to take EHS issues into consideration in
identifying and using resources. The Company continually strives to:
1. Maximize the efficient use of resources
2. Eliminate unnecessary toxic and hazardous resources
3. Give preference to renewable, recycled, recyclable, reused and reusable
resources All ITC Units consistently endeavour to reduce generation of waste
and maximize its recycling. Wastes are systematically segregated as
hazardous, bio-medical, nuclear, non-hazardous, and biodegradable and non-
biodegradable, to be appropriately treated, recycled or disposed. Nearly 44%
of solid waste from ITC‘s paper business is currently recycled while solid
waste production has reduced by 12%.

30
 SOME OTHER CSR INITIATIVES BY OTHER COMPANIES
GLOBALLY

1. Aarti Drugs Ltd :

CSR Activities conducted As Contribution towards community development

to fulfill company‘s obligations towards the society, company organizes many
activities on regular basis including Blood donation, Eye Checkups, Health
Check up Camps, Career guidance workshops for young students. The
company has also donations to hospitals. As a step towards our objective of up
gradation of primary education in the surrounding areas, infrastructure,
development of school was initiated and supported.Contributions was made to
primary schools of surrounding villages for painting of school buildings,
purchase of benches & furniture , sports equipments , records storage, facilities
etc.The efforts have been appreciated by employees and community at large.
The company has been providing maintenance services to the Palghar –Dhanu
Taluka Sport association ground located at Boisar. ADL donated Rs 4.27 Lacs
for the construction of Shri Mahavir Jain Charitra Kalyan Ratnashram.

31
2. Cadbury:

Cadbury is a global confectionery and beverage manufacturer having its

presence in more than 200 countries worldwide. The company started its
operations in India in 1948 and is the leading manufacturer with 70% volume
share of the chocolate market. The company is also a key player in malted
food drinks and sugar confectionery. The company after becoming a founder
member of BCF embarked upon social and community development initiatives
and attaches a lot of importance to social development initiatives. Close to its
factory at Malanpur near Gwalior, the company is working on a project
targeting women's empowerment and female infanticide. The initiative known
as the ' Gurikha Project' was launched in line with Cadbury India's philosophy
to serve communities around its factory locations in partnership with NGOs on
a planned and sustainable basis. The projects key focus is on various aspects of
women's inequality, female infanticide and rights of the girl child. As per a
recent survey, the project has succeeded in giving a sense of direction and
confidence to a large number of women of the area and a marked improvement
has been noticed in the general well being of the girl child. Apart from this, the
company is also working on issues like primary education, health & veterinary
care, women's income generation activities and strengthening of the village
council. Under the income generation programme, more than 10 self help
groups with monthly savings ranging from 20,000- 50,000 rupees are
functional in the area. Besides this, Cadbury has also helped build a preschool
section to the village school building for girl children and a set of classrooms
in another village under the same Panchayat.

32
3.Cavinkare:

Cavin Kare takes an active interest in supporting organizations working on

social issues. C.K Ranganathan is one of the founder-members of the Ability
Foundation – an NGO working towards the rehabilitation of the disabled.His
belief took a firm shape when CavinKare teamed up with Ability Foundation,
led by Mrs. Jayashree Raveendran, an NGO that is primarily working to
integrate persons with disabilities into mainstream society; instituted
CavinKare ABILITY Awards to celebrate the exemplary spirit of rare breed
of individuals who have risen above their physical limitations to display that
attitude is everything. The annual awards which has been organized for 5 years
in succession till date has gained enormous recognition. Many celebrities,
social workers, civil servants, and people from all walks of life contribute to
the cause by witnessing the awards and also contributing in the manner they
desire towards the just cause. The CavinKare ABILITY Awards, a total of
three awards, are given annually to salute personal triumphs, the extraordinary
spirit of achievement and a looking beyond one's own self and physical
limitations. The awards are The CavinKare ABILITY Award for Eminence
(1Award). The CavinKare ABILITY Mastery Awards (2 Awards).

4.Fedex:

FedEx, which has set itself the objective of being the express carrier of choice,
believes that to achieve this end it has to be first seen as an employer and a
neighbor of choice. And while it has been voted among the best workplaces in
the country, it is keen to prove that it is a conscientious corporate as well. "As
an organization, we aim to be the preferred express carrier. For this, we also
have to be preferred neighbors," says Mr. Jacques Creeten, Managing Director,
Indian Subcontinent, and FedEx. According to him, commitment to corporate
social responsibility or CSR, at FedEx, goes beyond the annual donation to a
charitable organization. Employees meet every six months to decide among
themselves in what way the company can touch the lives of people in their
immediate environment. A good example of such an engagement is FedEx's tie
up with CRY in the field of education, which not only aims at providing basic
education to underprivileged children, but also at supporting their overall
development. It has donated Rs 15 lakh towards four CRY-supported projects
that is expected to impact the lives of 15,000 children. As part of its
involvement in a project called Arambh, the organization has been addressing
issues of women and children in the slums of Navi Mumbai.

33
5.LG Electronics :

LG Electronics has hiked its budget for community development activities

from Rs 2.5 crore to Rs three crore. Of this, Rs 1.5 crore will be allocated to
LG‘s 38 branch offices for use in local activities.The remaining Rs 1.5 crore
will be spent by the head office in the Greater Noida area. As part of its
initiatives in corporate social responsibility, LGE has also launched a new
initiative with New-Delhi based NGO Prayas that works for the upliftment of
underprivileged children. Under LG Prayas‘, LG will contribute a sum of Rs
25 lakh to sponsor Prayas‘ social activities In keeping with its plan of
supporting organizations committed to social causes, LG will also be tying up
with Helpage India, an NGO that looks after the aged.It already has a tie-up
with another NGO Jan Shikhan Sansthan for generating self-employment
opportunities for unemployed in the form of tailoring, knitting etc. Its
community development initiatives include a focused plan for providing health
services to underprivileged children, animal healthcare and enhancing
professional skills of unemployed youth. It has also adopted 24 villages in the
vicinity of its factory in Noida. Prayas, which began as an emergency relief
and rehabilitation initiative for destitute children in Delhi in 1988, has
expanded its area of operation to include institutional care, alternative
education and vocational training to neglected street and working children.It
caters to the needs of 50,000 slum kids in Delhi, Gujarat and Bihar, through 65
centres under 13 projects and three shelter homes.

34
6.Nokia:

Nokia with its mission to 'connect people' is the world leader in mobile
communications. The company is deeply concerned about ethical business
practices and believes that personal and organizational integrity is essential to
long term relationships- whether with customers, employees or stakeholders.
The organization is committed to development initiatives and is supporting
numerous projects in partnership with several community and charitable
organizations worldwide.

The focus of its community initiatives are cantered on education, corporate

giving and disaster relief. Keeping in line with their international programme
of employee volunteering called 'Helping Hands', Nokia India is involved with
an NGO working with children with disabilities in Delhi. Nokia's employees
provide support to the NGO in terms of help and training in accounts, human
resources, IT, working with children and other activities. Environment is
another issue that is high on the agenda of the company. The packaging of all
their phones is made from recycled paper. Clear instructions are also provided
for correct disposal of used batteries with every handset.

35
 CHAPTER 4

RESEARCH METHODOLOGY

Data sources:
The data is purely secondary in natural world and the data has been obtained
only all the way through a choice of articles existing on various websites.
There is no scope to gather primary data in any form as the topic is
hypothetical in nature and does not contain any kind of survey to be full.

Research method:
The research commences by searching for the articles associated to the topic
CSR (Corporate Social Responsibility). Then have a detailed data of the same.
Then, study the steps taken and pains made in this field by different Indian
companies. Taking some example of Indian company and amplification the
efforts made by roll their contributions. After identify them, there is study of
the grades it had on the trade and what helpful results came not in. Then
illumination by example of various study that how it has lead to boost in
profits and is one the reason of commercial success. Also there is
extraordinary importance on an Indian company which can elucidate the topic
healthier and help to realize the objectives.

36
 CHAPTER 5- LITERATURE REVIEW

1. George Pohle and Jeff Hittner in their study on ―

“ATTAINING SUSTAINABLE GROWTH THROUGH CORPORATE

SOCIAL RESPONSIBILITY”: have dyed that CEO‘s have been long
responsible to a varied group of stakeholders-workforce and community as
well as investor.

The life of these affairs is now in customs that notably affect corporate act in
part due to the coming out of the internet and progressing globalization
company are becoming responsible for labour issue and working setting in
their partner as well as their own.

2. Paul Hohnen in their paper on ―

“CORPORATE SOCIAL RESPONSIBILITY: An execution guide for

business” have said that there is no ―one –size-fits –all ―method for pursue a
corporate social accountability (CSR) approach.

Each fixed has unique character that will shape how it views its effective
context and its major social errands.

Each will vary in its awareness of CSR issues and how much it has already
done to implementing a CSR approach.
There are six steps to implement CSR-
1. Manner a CSR assessment
2. Enlarge a CSR strategy
3. Develop CSR commitment
4. Apply CSR commitments
5. Statement and verify progress
6. Assess and improve

37
 CHAPTER 6

DATA ANALYSIS & INTERPRETATION

INTRODUCTION
In Chapter Four, analyst had talked about the examination plan and system,
starting point of the exploration, outline of the examination, variable of the
examination, populace and test of the exploration, apparatuses for information
accumulation, advancement phase of the CAI bundle, technique for
information gathering, measurable investigation done in look into work.
Information investigation is thought to be imperative advance and heart of the
examination in inquire about work.After gathering of information with the
assistance of significant devices and systems, the following sensible advance,
is to examine and translate information with a view to touching base at exact
answer for the issue. The information examination for the present research was
done quantitatively with the assistance of both graphic measurements and
inferential insights. The distinct factual strategies like mean, standard
deviation and for the inferential measurements Analysis of Co Variance were
utilized amid information examination.

DATA ANALYSIS & INTERPRETATION

Data collection is not an end in itself. Data are not collected just so
they Can be filed away.After data are collected they need to be analysed and
interpreted, and then made available to fellow managers or researchers in the
form of reports or publications. Unless you complete all these stages you will
have wasted your time. Data analysis is the process of taking the numbers
collected in the field and summarising them into a numerical or graphic form
that is easy to interpret.

This analysis or summary is called the results'. Results alone do not have
biological meaning until they are put in a biological context. Data
interpretation is the process of giving biological meaning to the results.

This is done by evaluating the results in light of past research, and in the
context of your own knowledge of the biological system you are studying. The
process of determining, what do the data tell me? and just as importantly, what
do the data not tell me?, makes data analysis and interpretation interesting and
challenging.

38
1. ITC’s PERFORMANCE SINCE INCEPTION OF e-
CHOUPAL

39
1.GROSS INCOME OF ITC : 2010-19 (Rs in crores)

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross 26814 31399 36046 43044 48176 51932 53714 57434 46460 48269
income

Table No.4.2.1

Gross income
70000

60000

50000

40000

30000

20000

10000

0
1 2 3 4 5 6 7 8 9 10
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross income 26814 31399 36046 43044 48176 51932 53714 57434 46460 48269

Graph No. 4.2.1

Interpretation-

The above graph of Gross Income Of Itc 2010-19 clearly depicts that the gross
income of company is rising since 2010 (e-choupal initaition). It has risen
from 26814 in 2010 to 48269 in 2019.The figures for gross income has risen
by 193.68% in the span of 10 years.

40
2.PROFIT BEFORE TAX OF ITC:2010-19(Rs in crores)

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PBT 6015 7268 8898 10684 12659 13998 14434 15503 16439 18444

Table No. 4.2.2

PBT
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
1 2 3 4 5 6 7 8 9 10
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PBT 6015 7268 8898 10684 12659 13998 14434 15503 16439 18444

Graph No.4.2.2

Interpretation-

In the above graph of PROFIT BEFORE TAX OF ITC it can be clearly seen
that the profit before tax of company is rising continuously from 2010 onwards
(i.e since the e-choupal initiative) with no deflection from the ordinary trend.
It was 6015 in 2010 and 18444 in 2019.

41
3.Profit After Tax Of Itc: 2010-19(Rs In Crores)

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PAT 4061 4988 6162 7418 8785 9608 9328 10201 11223 12464

Table No.4.2.3

PAT
14000
12000
10000
8000
6000
4000
2000
0
1 2 3 4 5 6 7 8 9 10
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PAT 4061 4988 6162 7418 8785 9608 9328 10201 11223 12464

Graph No. 4.2.3

Interpretation-

The above graph of PROFIT AFTER TAX OF ITC highlights the fact that
profit after tax (PAT) of the company is rising from 2010-19. The difference is
only 43.95 crores.

42
4.Dividend Per Share (Actual) Of Itc:2010-19 (Rs In Crores)

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
DPS 4.50 2.80 4.50 5.25 6.00 6.25 6.50 4.75 5.15 5.75
(actual)

Table No. 4.2.4

DPS (actual)
7

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
DPS (actual) 4.5 2.8 4.5 5.25 6 6.25 6.5 4.75 5.15 5.75

Graph No. 4.2.4

Interpretation-

The graph of dividend per share of ITC shows the increasing trend of dividend
per share since 2010, the year in which e-choupal was started. The trend is
noticeable from 2011-10 as in 2011 DPS(2.8) was at its peak from 2010
onwards but in 2012 ,it suddenly dropped to 2.85 but soon the company
recovered in the following year 2013 with the same figure of 2.8 in 2011.so
the graph shows a falling and rising trend from 2011-13.

43
 5.Sales Of Itc :2010-19 (Rs In Crores)

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales 28866 33918 39353 47755 53889 57799 60196 64174 67082 75309

Table 4.2.5

Sales
80000
70000
60000
50000
40000
30000
20000
10000
0
1 2 3 4 5 6 7 8 9 10
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales 28866 33918 39353 47755 53889 57799 60196 64174 67082 75309

Graph 4.2.5

Interpretation- The graph of sales of ITC 2010-19,clearly depicts that the sales
trend is also increasing from 2010-19.But in the year 2011-10 the trend is
nearly constant as the rise is very small because of small increase in sales
figure .The increase in sales figure from 2010-11 is only of 40.99 crores.

44
SWOT ANALYSIS OF ITC COMPANY

45
 Strengths in the SWOT Analysis of ITC

1. Portfolio of Business:

ITC has 6 strong and diverse businesses under its name which boasts its total
revenue and allows ITC to innovate and explore other business opportunities.

2.Strong Brands in various businesses:

ITC is a strong house of brands with most of its products leading the segments
in which they operate. ITC owns some of the most popular cigarette brands
like gold flake and Classic. It also owns Sun feast, which is amongst the top
selling biscuits in India. Similarly, Aashirvaad, Yippee!, Engage, John Players
and Bingo are also amongst the market leader in their respective categories.
ITC ‘s hotel and property businesses are also doing well. With a portfolio like
this, ITC has become one of the most powerful conglomerates in India and is
admired all over the world.

4.Effective Social Business Initiatives:

ITC has developed a triple-bottomline strategy through which concentrates on

developing the nation‘s economic, social and environmental capital.
ITC has brought in initiatives like E-Choupal, Choupal Pradarshan Khet
(CPK) which benefits the people at the grass root level,
i.e. farmers. These initiatives have also helped ITC to improve its corporate
image from a traditional tobacco manufacturer.

5.Inter and Intra-divisional Synergy:

ITC has successfully utilised the strengths of existing business to foray into a
newer products or categories.ITC leveraged the strong distribution system of
cigarette brands to create a channel for its FMCG products.Furthermore, ITC
leveraged the knowledge of food and bakery items from its hotel business to
enter into Packaged Food category.

46
 Weaknesses in the SWOT Analysis of ITC:

1. High Proportion of revenues from Tobacco products:

ITC has been continuously making efforts to divert the FMCG business from
over dependence on tobacco products and have been successful in doing so to
an extent. But, tobacco products remain to be the major source of the revenue
contributing more than 60% of the total revenue from FMCG businesses.

2.Association with Tobacco Products affects the image:

ITC has made a lot of efforts to improve its corporate image but the fact that
ITC has many tobacco products in its portfolio impacts its corporate image.

3.An increase in Tax on Tobacco affects revenue: Due to the increase in

taxation on tobacco products, the prices and hence revenues get affected.

OPPORTUNITIES IN THE SWOT ANALYSIS OF ITC

1. Strategic Acquisitions:
ITC should continue making the strategic acquisition like they have done in
the past by acquiring Savlon from Johnson & Johnson and B Natural from
Balan natural Foods.

Keeping in mind that the product fits into the existing distribution network,
ITC can look to increase its portfolio of products and expand its Non-Tobacco
FMCG business and thereby strengthening the base of revenue.

2.Growth in Purchasing power and improving lifestyle:

ITC should tap on the increasing purchasing power and improving the
lifestyle of customers in India. This could help in increasing revenue for all its
businesses.

47
3.Growing Personal Hygiene as well as Food processing Industry in India:

ITC should utilise its distribution channel in Personal Hygiene and Food
Processing Industry to capitalise on the growth in the categories and hence
increase revenue.

4.Tap opportunities created in the Rural Market:

The growing rural market in India and other emerging nations create huge
opportunities to improve the bottom-line of the company.

THREATS IN THE SWOT ANALYSIS OF ITC

1. Intensifying Competition in FMCG businesses:

ITC faces intense competition in its FMCG business from large MNCs like
HUL and P&G and Indian FMCGs like Patanjali and Dabur.
This limits the market share for ITC.

2.Strict Regulations and Increasing Taxation in Cigarette Business:

The Tobacco and Cigarette Industry in India continue to be targeted by strict

government regulations and taxation system.
This possesses a threat to the highly profitable Cigarette business of ITC.

3.Increasing awareness on health:

There has been an increase in the health consciousness which has resulted in
the decrease in demand for tobacco products in India.
Also, antismoking campaigns throughout the country affect the sales of
cigarettes.

48
 REASONS FOR SUCCESS OR HIGH PROFIT OF ITC

1. Competitive Nature They have been three years into the Indian foods
market and ITC Foods are challenging for heavyweights like PepsiCo, HLL
and Britannia in three different segments simultaneously. The launch of Bingo
snacks was ITC Foods‘fifth line of foods business after staples, biscuits, ready-
to-eat and confectionery businesses. They have a good consumer response and
this response to the offerings show a better success ratio. They have a clear
connect with consumers in an otherwise tough market. To get the
fundamentals right, ITC foods segmented consumer needs and identified gaps
in the market. Product development answers the gaps thrown up by consumer
research.

2. Robust Supply Chain Their food business plan is backed by a robust

supply chain and effective distribution to ensure consistency in supply and
quality. And their communication and brand cut through the advertising clutter
and define clearly the values associated with the product. Celebrity advertising
with Sunfeast biscuits, for instance, helped quick recall in a segment where it
competed with old established brands. Success in foods requires a keen
understanding of the supply chain for farm produce.A robust distribution
network across India is also a big plus.

3.Consistency In Quality The challenge in the FOOD market is to offer

consistency in quality. That‘s where Aashirvaad scores over competitors who
could not offer that quality consistency. The biggest certificate for Aashirvaad
atta is that sales picked up substantially purely on word of mouth from
satisfied consumers. The consumers are biggest ambassadors and advertisers.
The pricing too has been competitive. Consumers ‘track on conversion levels
from traditional atta market (where consumer purchases wheat and grinds it)
shows a 35% shift to our packaged brand.

49
4.High Market Share ITC holds close to 70 per cent of the domestic market
for cigarettes with the segment ‘s contribution to the top line averaging 65 per
cent and profits 85 per cent for the four years ended March 2009. With strong
pricing power to pass on excise duty hikes, operating margins have averaged a
healthy 25 per cent, much higher than rivals such as Godfrey Philips. ITC may
remain the market leader in the cigarette business, growing in high single-
digits in terms of volumes. ITC‘s ‗mindshare‘ among consumers, is going to
be hard to dent by rivals such as Philip Morris and Godfrey Philips.
The business is likely to remain the major cash cow, continuing to fund efforts
to diversify into other businesses.

5.In House Production In-house production of cartons filters and paper,

coupled with efficient raw tobacco procurement, have made ITC a highly
integrated player.
In house production helps them to save time and cost.
There is no delay and dependability that can hamper the smooth supply of
materials.

50
6. Diversified Portfolio To diversify its revenues and profits, ITC has charted
several forays into consumer products such as garments, confectionery,
consumer staples, bakery products, snacks and stationery products.In the
FMCG business, ITC has over the past couple of years moved from segments
such as matches, snacks and consumer staples ITC does enjoy a competitive
edge in bakery products or consumer staples by virtue of its well established
agri-product supply chain such as atta into the more highly competed soaps
and personal products.

7.Contribution of E-Choupal The agribusiness segment, procures rice, soya,

coffee, wheat, tobacco, potatoes for trading and internal consumption.
ITC‘s much-admired e-Choupal, which is part of this segment, essentially
provides information to farmers procures directly from them and also doubles
up as a mechanism for distribution of FMCG products and other services.
For now, operating margin in this segment tends to swing quite sharply with
the commodity prices and is likely to remain on the lower single-digit figures.
Foods business needs a strong, quality-oriented and dedicated supply chain.
Buying wheat from the open market would mean different quality at different
times. That‘s where we had immense support from ITC‘s e-Choupal that
ensured consistency in wheat quality. These are some of the reasons of ITC‘s
success or high profits of which one is corporate social responsibility.‘

51
EXAMPLE :

ITC Ltd. | ITC | NSE – Cigarettes

Revenue or turnover or top line is income that a company receives from its
normal business activities. Revenue Growth is used to measure how fast a
company's business is expanding. The figure shows the annual rate of
increase/decrease in a company's revenue or sales growth in terms of
percentage change from the previous year.

52
An ideal company should have an steady upward trend. Year-over-year
performance is frequently used by investors seeking to gauge whether a
company's financial performance is improving or worsening.

If Sales Revenue shows a moderate or stable growth while EPS shows an

explosive growth, it could possibly be due to accounting manipulation.

Retained Earnings Growth is the percent increase / decrease of a company's

retained net income or reserves/surplus over time. A company can use retained
earnings to maintain current operations, or to invest in new ventures. Generally
speaking, retained earnings growth is accompanied by subsequent increases in
sales and profitability.

Dividend Growth ITC Ltd.

A company paying dividends is generally a good sign. Well established

companies offer dividends back to its shareholders while high growth

53
companies usually do not pay dividends since they reinvest the profits back in
the business. If a dividend paying company stops paying dividends then that is
a big red flag. Dividend per share is better metric compared to looking at just
the dividends because DPS takes into account the number of shares as well.

Accounts Receivable & Inventory Growth

The Accounts (trade) Receivables (aka Sundry Debtors) and Inventory
columns closely. A company can get into serious trouble very quickly if it's
customers are not paying the bills or if its inventory is piling up in warehouses.
If Receivables are growing much faster than sales, it usually means that the
company is having trouble collecting money from customers. More inventory
on the balance sheet means the company is having trouble delivering goods to
customers. An increase of receivables and inventory above 50% is usually not
a good sign and needs to be investigated further.

Days Sales Outstanding or DSO is also known as "average collection period

and receivable days". It's a measure of the average time it takes to collect the
cash from sales, in simple words, how fast customers pay their bill. DSO does
tend to vary a good deal by industry sector.A high DSO may be a red flag,
which suggests that customers aren't paying their bills in a timely fashion.
Maybe the customers themselves are in financial trouble or maybe the
company's operations and financial management are poor. If the DSO is rising
rapidly, you should know why.

54
 Chapter 7

Finding and conclusion

Introduction
This final chapter deals with the findings, suggestions and conclusion. In
every project the researcher gives findings, suggestions and conclusion.
This is the back bone of every project. This finding provides what the
researcher had found out as the problems and analysis in the study area, the
researcher‘s suggestions for the findings, and the conclusion of the thesis.

Research process is scientific and objective based. Different steps have to be

followed for doing any research, but the last aim of whole research process is
to get findings. In this chapter findings are presented by analysis of collected
data from different view point. This section includes a brief re-state of the
problem, a description of the procedure used, and discussion of findings and
conclusion of the study.

The previous chapter dealt with the analysis and interpretation of the collected
data. The present chapter deals with the findings of the study based on the
results given in chapter four. This chapter is divided into three sections. The
first section presents the findings of the study. The second section deals with
the suggestions for further research and the third section gives the implications
of the study followed by conclusion.

This chapter is completely dedicated to summaries the entire research work

and to present the important findings obtain through this innovative research
work. The need to find new sources of revenue is a fundamental requirement
for business growth. Developing close, cooperative relationship with
customers is more important in the current era of intense competition and
demanding customers than it has ever been before.

On the basis of the analysis of the empirical data and inferences made thereon,
the detailed findings are presented in the various sections of this chapter in the
order of data analysis followed earlier. This chapter contains findings based on
the different tools used followed by suggestions for the implementation of
Islamic banking in the sample area and concludes with the scope for further
research.In this chapter, a summary of findings is presented and discussed with
reference to the objectives of the study.

55
 FINDINGS
1. It is found that E-Choupal facilitates the supply of high-quality farm inputs as
well as purchases of produce at the farmer ‘s doorstep.

2. It is found that in this CSR activity they include 9 States such as M.P.,
Haryana, Uttaranchal, Karnataka, A.P., U.P., Maharashtra, Rajasthan and
Kerala.

3. From the SWOT analysis of the ITC company it is found that the company has
6 strong diversified business and also they have strong brands.

4. It is found that the company have low revenue from Tobacco products.

5. It is found that company have Growing in Personal Hygiene as well as Food

processing Industry in India.

6. It is found that company is growing rapidly because of its CSR activities for
the society.

7. It is found that the performance of ITC is also growing since the Inception of
E-Choupal.

8. It is found that the profit of ITC is increased because of various CSR activities
so the shareholders gets extra dividend on their shares of ITC.

56
 Conclusion

CSR will become the key to sustainability in business. Building a large

Corporation is easy but building one of the most respected corporation in the
world and sustaining it over many years is a big challenge.
Only those companies that were built on a platform of strong CSR will earn
respect from its stakeholders and enjoy a more sustainable growth. Hence, ITC
has chosen the following area:-

• E-Choupal

• Ensuring Occupational Health & Safety

• Reducing Greenhouse Gases

• Conserving Water

• Enhancing Eco-Efficiency

After the study of company and its CSR activities, I conclude that the over all
image of company regarding the CSR activities is excellent in market.

The company should come up with such a CSR activity which you make
involve their customer also.

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 CHAPTER 8

SUGGESTION

1. The companies practicing CSR should provide information about the after
effects of their CSR initiative. This would help the stakeholders to understand
the initiative better.

2. Companies should focus more on CSR initiatives as it leads to the growing

profits for the company.

3. Company also focused on the Tobacco products advertising for building a

good image of the company in the minds of customers.

4. The company should also take steps regarding customer attraction towards the
CSR.

58
 CHAPTER 9

Bibliography

1. Books:

Sr. Title of book Name Edition Name of

No of publications
author

1 Corporate Sanjay April Vikas

social K 2008 publications
Agarwal
responsibility
India

2 Corporate Dr. Edition Tata McGraw Hill

Social Harish 2010
Kumar
Responsibility

3 Corporate Michael Edition Tata

Social Hopkins 201213 McGraw
Hill
Responsibility
And
International
development

59
 2. Websites:

• Https://m.indiamart.com

• http://www.managementstudyguide.com

• https://www.unido.org

• https://www.investopedia.com

• Https://www.itcportal.com/...itc-annual-report-2019/pdf/Ten-Years-at-a-
Glance.

• https://www.itcportal.com/about-itc/shareholder-value/key-ratios

60