IMPACT OF

ITC ON
INDIAN
ECONOMY
Table of Contents
INTRODUCTION............................................................................................................................................ 3
HISTORY AND EVOLUTION............................................................................................................................. 3
STAKE HOLDERS AND THEIR SIGNIFICANCE.................................................................................................... 3
SHAREHOLDERS..................................................................................................................................................... 3
GOVERNMENT.......................................................................................................................................................3
CUSTOMERS..........................................................................................................................................................4
EMPLOYEES...........................................................................................................................................................4
SUPPLIERS............................................................................................................................................................ 4
FARMERS............................................................................................................................................................. 4
RESPONSE ON STAKEHOLDERS..................................................................................................................... 4
GOVERNMENT.......................................................................................................................................................5
CUSTOMERS..........................................................................................................................................................5
EMPLOYEES...........................................................................................................................................................5
COMMUNITY.........................................................................................................................................................6
SUPPLIERS............................................................................................................................................................ 6
FARMERS............................................................................................................................................................. 6
IMPACT ON ECONOMY IN LAST DECADE...................................................................................................... 10
 INTRODUCTION
ITC is one of India’s leading private sector companies with a market capitalisation of US$ 45 billion and a
turnover of over US$ 7 billion. With a diversified presence in Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards and Packaging, Agri Business and Information Technology businesses, ITC is widely
acknowledged as one of India’s most valuable business corporations. Inspired by a vision sub-serve larger
national goals, ITC has crafted unique business models that integrate the creation of long-term shareholder value
with the enhancement of societal and environmental capital. Over the last 17 years, ITC has aggressively
pursued a policy of diversification, focusing on creating an array of vibrant world-class Indian brands across
business segments that have demonstrated immense vitality in the global Indian marketplace. This has enabled
ITC to
unleash multiple drivers of growth for the Indian economy.
ITC is a global exemplar in sustainability. Its business-linked
Sustainability initiatives and social investments programmes, like
the celebrated e-Choupal, Social & Farm Forestry initiatives,
Watershed
Development ,Animal Husbandry and Women’s Empowerment, have
transformed rural India.

HISTORY AND EVOLUTION

Established in 1910, ITC Limited is a diversified conglomerate with businesses
spanning Fast Moving Consumer Goods comprising Foods, Personal Care,
Cigarettes and Cigars, Education & Stationery Products, Incense Sticks and Safety
Matches; Hotels, Paperboards and Packaging, Agri Business and Information
Technology. The Company 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 to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the
ITC's multi-business portfolio encompassing a wide range of businesses, 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.

STAKE HOLDERS AND THEIR SIGNIFICANCE

Shareholders
- Providers of capital
- Owners

Government
- Policy maker
- Regulator
- Watchdog
 - Revenue collector

Customers
- The principal source of sustenance

Employees
- The key resource of competitive advantage and sustainable growth

Suppliers
- Critical part of IIT’s value chain
- Intrinsic to ITC’s product and service delivery

Farmers
- Significant partners in developing quality agri produce for almost all ITC businesses

RESPONSE ON STAKEHOLDERS
The quarterly results of the Company are announced and published within a month of completion
of the quarter. Audited annual results alongwith the results for the fourth quarter are declared
within two months of the end of the financial year. All these results, including the entire Report
and Accounts, are posted on SEBI's EDIFAR website.

- Information related to shareholding pattern, compliance with corporate governance norms,

etc. is also posted on SEBI's EDIFAR website
- The Company's corporate website www. itcportal.com is a comprehensive source of
information on ITC's profile, history and evolution, its portfolio of businesses, social
responsibility activities and EHS performance. Two exclusive sections on 'Shareholder
Value' and 'Investor Relations' serve to inform and service shareholder needs. The entire
Report and Accounts as well as quarterly and half-yearly financial results are available in
downloadable formats under the section 'Shareholder Value' on the Company's website to
facilitate easy access to all information. The 'Newsroom' section includes all major Press
Releases from the Company and relevant press clippings. Clarifications as and when
provided to institutional investors and analysts, including presentations, if any, made to
them, are posted on the Company's website

ITC's Investor Service Centre (ISC) provides share registration and other related services. A
dedicated and trained team of professionals backed by state-of-the-art infrastructure provides
such services. Already a benchmark in-house Registrar, ISC endeavours to keep investor servicing
contemporary and efficient. ITC is among the few companies to have obtained the coveted Quality
Management System Certification ISO 9001:2000 for its investor servicing, which testifies to the
exemplary standards that the Company has achieved in complying with statutory and regulatory
requirements and redressing investor grievances.
Government
- Proactive participation in Government, statutory and business forums on issues relating to
regulatory and public policy framework.
- Monitoring and reporting of relevant parameters of Regulatory Agencies.

Customers
- Adopting ISO 9001, CANDO (5S) , IQRS(International Quality Rating System) and Six Sigma to
ensure product quality and consistency.
- Innovating through research and product development.
- Leveraging IT to improve supply chain management.
- Deploying Enterprise Resource Planning for process efficiency and effectiveness.
- Improving products/ processes based on customer feedback.
- Enhancing employee training to improve service quality.

Employees
- Addressing personal development and career growth issues in various ways such as training
& talent recognition , promotions, career options in new business etc.
- Redressing issues through employee feedback mechanisms and well – established human
resource management systems.
- Ensuring excellent workplace environmental conditions e.g. hygiene ,dust and noise control ,
adequate ventilation , lighting , etc.
 - Providing medical facilities for employees and their families
- Communicating effectively with trade unions and managerial staff
- Signing long-term agreements with trade unions for all relevant units

Community
- Deploying state-of-art technologies to continuously reduce the environmental impact of
operations
- Providing infrastructure like roads, electricity, school amenities in operational areas
- Offering medical facilities in both urban and rural areas and organising medical camps for eye
care, blood donation, etc.
- Constructing sanitation facilities
- Organising awareness camps on critical health issues like HIV/AIDS and widespread diseases
like malaria and gastroenteritis
- Creating alternative and sustainable livelihoods through micro enterprises, creation of
market linkages, skill development and economic empowerment of women
- Ensuring water supply in farms/villages
- Extending financial assistance for primary education
- Enhancing employment potential of people with disabilities
- Helping victims of natural disasters with food and shelter

Suppliers
- Enhancing the effectiveness of suppliers through value engineering
- Supporting small and medium industries with guaranteed buyback arrangements
- Sharing best practices to upgrade quality
- Documenting and implementing planning cycle
- Improving product and services through constant feedback and joint product development

Farmers
- Improving market linkages and price realisation through ITC e-Choupal
- Developing farm best-practices through knowledge transfer
- Boosting productivity through superior high-yielding plant species
FINANCIAL INCOME STATEMENT OF ITC
DIRECT ECONOMIC IMPACT
IMPACT ON ECONOMY IN LAST DECADE
Over the past decade, value addition by ITC has grown at a compound annual rate of more than
12% to over Rs. 68,000 crores, representing nearly 1.1% of the value-added by the Industry
sector of the economy. Nearly 77% of such value-added accrued to the Exchequer, providing the
much-needed resources for deployment in developmental priorities. Foreign exchange earnings of
the ITC Group during this period amounted to nearly US $ 2.5 billion, of which earnings from agri
exports constituted nearly 65%. These earnings from linking the Indian farmer with world markets
represent well over 2% of the country's agri exports.

ITC's investments of over Rs. 6,000 crores in the last decade towards enhancing the
competitiveness of its businesses support direct employment to the tune of 20,000 and indirect
employment across the value chains of nearly 5 million people, whose livelihoods are substantially
linked to their association with ITC. The investment plans envisaging Rs.14,000-15,000 crores

over the next few years would further enlarge ITC's economic contribution.

Gross Revenue for the year grew by 19.9% to Rs. 41,810 crores. Net Revenue at Rs. 29,606 crores grew by
19.4% primarily driven by a 26.4% growth in the non-cigarette FMCG businesses, as well as in Agri Business
together with 13.4% growth in the Cigarettes Business. Profit Before Tax increased by 20.1% to Rs. 10,684
crores while Net profits at Rs. 7,418 crores registered a growth of 20.4%.
Earnings Per Share for the year stood at Rs. 9.45 (previous year Rs. 7.93), while Cash flows from Operations
aggregated Rs. 9,596 crores compared to Rs. 8,334 crores in the previous year.
Continuing with its chosen strategy of creating multiple drivers of growth, the Company is presently the leading
FMCG marketer in India, a trailblazer in ‘green hoteliering’ and the second largest Hotel chain in India, the clear
market leader in the Indian Paperboard and Packaging industry and the country’s foremost Agri business player.
ITC’s wholly owned subsidiary, ITC Infotech India Limited, is one of India’s fast growing Information Technology
companies in the mid-tier segment.
ITC is one of India’s most admired and valuable corporations with a market capitalisation of over Rs. 2,60,000
crores and has consistently featured amongst the top 10 private sector companies in terms of market
capitalisation and profits over the last seventeen years

CREATED BY – TANISHK GUPTA