ITC LIMITED

A Visit to ITC Ltd. Kidderpore

RAJIB BARUA

18 June 2012

ITC Ltd. Kidderpore, Kolkata- 43

Assignment REPORT Submitted by RAJIB BARUA

PGDM 2011-13

NSHM Business School, Kolkata

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Acknowledgements
This Assignment is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this project. My grateful thanks to Mrs. Shampa Chakraborty, HR Faculty who in spite of being extraordinarily busy with her duties, took time out to hear, guide and keep me on the correct path. A humble Thank you Madam, Prof. Madhupa Bakshi whose patience I have probably tested to the limit. She was always so involved in the entire process, shared her knowledge, and encouraged me to think. Thank you, Dear Madam. Last but not the least there were so many who shared valuable information that helped in the successful completion of this project.

RAJIB BARUA PGDM 2011-13

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Table of Contents
Objectives ------------------------ Page 05 Companys Profile ---------- Page 06 CSR Activities & Benefits ------ Page 10 Organization Structure --------- Page 11 Production Phase ---------------- Page 12 Bibliography -----------Page 15

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Objective of the Visit

The main objective of industrial visit is to know about the management being practiced in the ITC Ltd., how the people at ITC Ltd. manage their operations and how the resources are managed. To know about the Supply system and the how the demand is met. To know about whether the concepts, which are being taught in various business schools, are applied in the real sense or not.

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Company Profile
Formerly Imperial Tobacco Company of India Limited (ITC). ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most wellknown for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors - including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.

Abstract
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on 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 Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multibusiness 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.
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Vision
Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

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

ITC products
ITC has a diversified 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. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. 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 (US $ 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
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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 Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,66,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder." Financial Results for the quarter ended 30th September, 2008 Net Turnover up 32.3% Non-Cigarette businesses now constitute 51.2 % of Net Turnover ITC's Net Turnover at Rs.2888 crores posted a strong growth of 32.3% driven by the non-cigarette businesses which grew by 53% during the quarter and now account for 51.2% of the Company's Net Turnover. The key growth drivers were the continued ramp up of the Foods business, higher Agribusiness revenues and a strong performance by the Hotels business. The Company's post-tax profit for the quarter ended 30th September 2006 at Rs. 679.60 crores recorded a 18.7% growth while pre-tax profit at Rs. 957.76 crores grew by 17.5%. Earnings Per Share for the quarter stood at Rs.1.81.

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ITC CIGARETTES

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

Awards
ITC's Cigarettes business has been winning numerous awards for its quality, environmental management systems and product excellence: 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of Cigarettes for 2008 by the Tobacco Board based on previous three years' performance. Occupational Health and Safety Award 2007 for Excellence in Safety Management to the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of Accidents (ROSPA), U.K. 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour" for Bengaluru & Saharanpur factories in 2006. Greentech Gold Award for excellence in Safety Management for the year 2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the high level of performance that the units have achieved in Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger

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factories were honoured with the Gold award and the Bengaluru Factory with the Platinum Award in 2006. Greentech Gold Award for Excellence in Environment Management 2007 to the Bengaluru, Kolkata and Munger factories. Safety Innovation Award for 2007 and 2006 for Innovative Safety Management System to the Bengaluru Factory from the Institution of Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC Karnataka Chapter. Golden Peacock Award for Occupational Health and Safety from the Institute of Directors, New Delhi; Award for Outstanding Performance in Environment Health and Safety from the CII and the Suraksha Puraskar Award from the National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st National Security Today Award " in the category of Best Maintained Fire Safety System in 2005. Occupational Health and Safety Gold Award from the ROSPA, UK; the Winners Trophy Safety Health and Environment Award from the CII Eastern region; National Award for Excellence in Water Management and Innovative Project Award Initiatives for Energy Conservation from the CII to the Munger factory in 2007 and also the Excellence in Water Management Award from CII-GBC for 2006. All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001, for their Environment Management Systems, OHSAS 18001 for their Occupational Health and Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality Management Systems. The Kolkata factory is the first cigarette factory in India to be awarded the SA 8000 Certificate for Social Accountability by Det Norske Veritas (DNV) in June 2004. ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Callibration Laboratories

Corporate social responsibility

Environmental 1) ITC has been carbon positive 3yrs in a row 2) Water positive 6yrs in a row. 3) 100% solid waste recycling. SOCIAL 1) ITCS business generates livelihood for over 5 million people. 2) ITCs globally recognised e- choupal initiative is the worlds largest rural digital infrastructure benefiting over 4 million farming families. 3) ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. 4) ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas. 5. ITCs Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes. 7. ITC arranges free computer education out of the company.

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Benefits
1. 2. 3. 4. 5. 6. 7. Every employee gets totally free unlimited medical facility (for self). There is ESI facility for familys medical facility. In the family only workers wife and two children get medical facility, which is limited. Employees family get medical facility Rs.100000 yearly. In the company every employee gets free lunch. Top 20 students of total employees get sponsorship from the company every year. After the retirement of a certain time employees get pension.

ORGANISATIONAL STRACTURE

Top level Management level Supervisory level Operational Level

FULL ORGANISATIONAL STRACTURE OF ITC Ltd. Kidderpore

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HUMAN RESOURCE DEPARTMENT

PRODUCTION PHASE OF THE FACTORY

The India Tobacco Division (ITD) of ITC has four cigarette manufacturing facilities in Bangalore, Saharanpur, Munger and Kolkata. ITCs Kolkata unit located at Kidderpore is operational since 1934 1. There are 3 shifts 2. There are 5 making & 12 packaging machines. 3. 35 million production on average per day. 4. 40 million stored in warehouse. 5. 2 worker per machine. 6. Chalk is added to cigarette paper. 7. 76 degree temperature maintained in the storage area.

1.Roulette MACHINE

The primary products container attached to the Roulette which connected to making machine. Its cleaned 10days intervals

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2. Cigarette manufacturing machine (LOGA)

It is done with the help of machine 3d85Loga from France costing around 60-70 crore. Suction tape carry the tobacco. Filter of 90mm. Pre-printed cord is connected. Speed 9000cigrette per minute.

3.Tobacco dust

4.Cigarette paper

5.Filter

6.PCT (Paper Cork Tip)

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7.Channel Route

It is connected to 3d85loga which link the machines and carry to the next phase this machine is called as LINK UP.

8.Packing machine (FOCKE) 9.Wrapping machine

This is the last stage of production as the packaging phase which is done by the machine named FOCKE from Germany which is connected with link-up machine . It costs approx 50 lakh.

9.Wrapping machine

10.Gay wrapping machine

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Bibliography
Internet Resources
www.google.com www.wikipedia.org www.itcportal.com www.scribd.com

Paper Materials
Business standard

Timesofindia

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