Name Ayushi Bhasin Alok Bugde

Roll Number C006 C009

Ilhan Khan School of Business Management NMIMS University Mumbai

Gaurav Lalwani Ravi Ramchandani Taranjeet Singh Kanchan Tiwari

C033
C038 C047 C053 C061

ABOUT ITC
Incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974 The Company now stands rechristened 'ITC Limited from September 18, 2001. Company's multi-business portfolio Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches Hotels Paperboards & Specialty Papers Packaging Agri-Business VISION MISSION Information Technology Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

Core Values:

Initiatives and Accomplishments

Sustainability
Contributed towards Greening over 114,000 hectares of land Bringing precious water to nearly 65,000 hectares of dry lands Creating sustainable livelihoods for over 37,000 women entrepreneurs Educating nearly 2,50,000 children Supporting animal husbandry services to over 5.7 lakhs animals Preserving our nation's culture and heritage through a variety of other initiatives and institutions.

Awards
ITCs Social and Farm Forestry programme won the 2nd NASSCOM Social Innovation Honours 2010 'The Papyrus Award' 2009: Contribution to the recycling industry, in 2009.
:

In 2011, the British Safety Council, London conferred the Globe of Honour Award for best Environment Prevention and Protection to Bhadrachalam and Kovai Units The Greentech Environment Excellence Gold Award 2008, 2006 and 2004 in the manufacturing sector, for the Bhadrachalam factory 'Top Green Rating' in 2004 by the Centre for Science & Environment (CSE). The Bhadrachalam Unit was adjudged as India's most environment-friendly paper mill. Golden Peacock Award - 2003 - The World environmental foundation presents this award for the highest achievement in environmental management.

ITC : Figures for Year 2012

(Fig in Cr.)

Year ending 31st March

2010

2011

2012

Gross Income Net Income PBDIT Depreciati on

26,814.32 18,767.93 6.688.77 608.71

31,399.10 22,038.80 7,992.53 655.99

36,072.59 25,999.16 9,673.96 698.51

Year 2012: Rs.36,072.59 Cr.

PBIT
PBT Tax

6,080.06
6,015.31 1,954.31

7,336.54
7,268.16 2,280.55

8,975.45
8,897.53 2,735.16

PAT
Dividends

4,061
4,452.33

4,987.61
4,002.09

6,162.37
4,089.04 Year 2012: Rs. 177360 Cr.

ITC Hotels

The ITC Grand Chola, Chennai

LEED Platinum Certified

ITC Grand Chola is the worlds largest LEED Platinum Certified Hotel in the New Construction category. The salient Green Initiatives include
Digital Valet System which ensures customized room climate controls and prevents wastage of energy 100% of the Hotel's energy demand is met through self-owned wind farms. Programmable computerized lighting controls to provide for the mood lighting in the public areas and the restaurants Water cooled refrigerants in kitchen refrigeration equipment in place of air cooled equipment to save energy 100% of the car parking is located under cover thereby reducing paved areas onsite to eliminate heat island effect. The roof is a combination of green roof, reflective paints and high SRI finish on domes to reduce thermal gradient differences after sunlight hours. 100% recycling of waste generated by hotel operations by waste segregation at source and utilization for useful purposes

Factors taken care of

AIR
The quality of air in our hotels is as fresh as the air in the lower Himalayan region.

Water
We treat & recycle enough water capable of irrigating 65,000 trees, which aids in sequestering approximately 13,000 tonnes of CO2

Energy
We generate enough green energy through self-owned wind farms capable of lighting up the entire Delhi - Mumbai Highway.

Material
40% of our edible ingredients are procured locally, thus promoting sustainability & reducing carbon footprint.

Need for the model

Farm to Factory gate value chain Vicious cycle in Indian farming

High procurement costs Lost profit opportunities Deterioration in quality of products

e-Choupal
The system tends to ensure a mutually beneficial procurement and distribution channel.

Costs: Traditional model

The Mandi Chain Rs per MT
Trolley Freight to Mandi Filling & Weighing Labour Labour Khadi Karai Handling Loss = 100 = 70 = 50 = 50

Farmer Incurs

270

Processor Incurs

Commission to Agent Cost of Gunny Bags (net) Labour (Stitching, Loading) Labour at Factory (Unload) Freight to Factory Transit Losses

= 100 = 75 = 35 = 35 = 250 = 10

505

Total Chain

775

Costs: e-Choupal
The eChoupal Chain Rs per MT
Trolley Freight to Mandi Filling & Weighing Labour Labour Khadi Karai Handling Loss = 100 = 70 = 50 = 50

Farmer Incurs

270

Sanchalak

Processor Incurs

Commission to Agent Cost of Gunny Bags (net) Labour (Stitching, Loading) Labour at Factory (Unload) Freight to Factory Transit Losses

100

= 50 = 100 = 75 = 35 = 35 = 250 = 10

505

185

Total Chain

185

Going forward
Infrastructure inadequacies Imparting skills to first time users Accessibility of rural ares

Power backup by solar panels Overcoming obstacles

24/7 helpdesk

Mobile choupals

Equity = Markets co-created with Empowered communities

Identity preservation of produce Supply chain traceability Creation of Institutions Elaborate rural marketing& distribution strategy Sourcing IT enabled services from rural India

ITCs total Energy Consumption

Increasing energy usage efficiency
Stringent audit and Benchmarking In- spite of significant growth in production volume, ITC lowered the total energy consumption in 2011-12 by 6.3% as compared to previous year

Enhanced use of renewable sources of energy

38.5% of ITCs total energy requirements are met by renewable sources ITC has invested in 14MW wind Energy generation plant in Chennai for its packaging business

Increase in large scale carbon sequestration

Sequestration is a process of capture and longterm storage of atmospheric CO2 Done physically through bio-energy with carbon capture and storage method

Social Farm and Forestry

ITC has helped to bring 1,38,000 hectares of wasteland under the Social farm Forestry program Addressed the livelihood problem of marginal farmers Converted the wastelands in Guntur and Nellore to pulpwood plantations a commercially viable land use alternative that ended farmers marginalization and also satisfy the raw material need of Paperboard business ITC organizes wasteland owners into forest user groups who are trained in silviculture, land development and plantation maintenance Package of loans and supplies of high-yielding, disease-resistant saplings developed at ITCs R&D Laboratory Social & Farm Forestry Area developed ( hectares ) Saplings planted ( nos.) Employment generated ( person-days ) Now 1,38,162 599.05 million 62.17 million

Water stewardship
The concern
Global concern, climate change Agriculture accounts for 90% of total water consumption in India Inequality in geographical distribution, monsoon rainfall period

ITCs approach
Water conservation audit, benchmarking, practices, water per unit of product Zero effluent discharge recycling Water positive footprint rainwater harvesting Water availability farmers during nonmonsoon period

Water stewardship
Water conservation
Water positive for 9th year in a row 29.36 million KL of fresh water, 79.7 % from river water, 17.9% from ground water sources and 2.4% from municipal Bhadrachalam unit accounts for 75.3% of the total fresh water intake While production has tripled, freshwater consumption remained at 1998-99 level

Effluent discharge
committed to achieving zero effluent discharge treating & recycling wastewater and harvesting all rainwater Internal norms, regulatory bodies

Watershed development
Objectives: Water conservation and soil enrichment, enabling farmers to extend the cultivation cycle and multiple cropping Assisted farmer communities in 6 states to form water user groups Trained in watershed management techniques that complement traditional water harvesting practices Create budgets, formulate rules and regulations for water sharing, fix water user charges and tap government development schemes

Advantages
Community effort Water usage, organic farming Employment opportunity

Corporate Governance
2 Core Principles of ITC Corporate Governance Mandate
Management must have the executive freedom to drive the enterprise forward without undue restraints

Audit Committee

Compensatio n Committee

Nominations
Committee

This freedom of management should be exercised within a framework of effective accountability

Investor Services Committee

Sustainability Committee

Past Promises which ITC lived up to:

Past and Future Promises
Promise of India first Promise of shareholder value enhancement Promise of value creation at society level

Future scope:
Sustain its efforts to achieve its goal e-Choupal 3.0

Sustainability Issues
SHAREHOLDERS
ITC has always aimed and achieved a CAGR of over 24 % in the past 15 years. Information related to shareholding pattern, compliance with corporate governance norms, etc. is also posted on SEBI's EDIFAR website ITC is among the few companies to have obtained the coveted Quality Management System Certification ISO 9001:2000 for its investor servicing

Environment

Farmers

Customers

Government

Employees

Community

Suppliers

Sustainability Issues
CUSTOMERS Major sustainability issues - Good Product/service quality, Low Cost, Ease of Availability, etc To meet these issues ITC invests in R&D , leverages IT to improve supply chain and also follows various international standards. EMPLOYEES Key issues personal development and growth prospects, health & safety ITC promotes policy of Freedom of Association, training programmes, effective feedback mechanisms

SUPPLIERS Key issues adequate return on investments, growth of business. Supporting small and medium industries with guaranteed buyback arrangements ITC promotes constant feedback and joint product development and sharing best practices to upgrade quality.

GOVERNMENT On time payment of taxes and duties by the company along with legal compliance. Full alignment with the Government of Indias National Action Plan on Climate Change

Sustainability Issues
ENVIRONMENT Carbon positive enterprise 5th year in a row Water positive - 8th year in a row Solid waste recycling positive 3rd year in a row ITCs WOW Wealth Out of Waste programme FARMERS
e-Choupal - empowered more than 4mn farmers in10 states and 40K villages

Transforming wastelands into productive plantations Boosting productivity through superior high-yielding plant species Virtual employment platform www.rozgarduniya.com

COMMUNITY Issues - Environmental impact, health & sanitation, Livelihood generation Mission Sunehra Kal flagship programme. Several of its initiatives are in line with the Millennium Development Goals (MDGs) set by the United Nations. Rural supplementary education centres impacted 2,00,000 primary goers. The Sustainable Livelihoods initiative of ITC strives to create alternative employment for surplus labour. Invested Rs. 40 crores in the year on societal upliftment.

Benchmark and Standards Adherence

Climate Change
Low carbon growth path Increased carbon sequestration

Water Conservation and Management

Zero effluent discharge Rainwater harvesting

E-Waste Management
Maximize utilization of all IT assets

Air Emissions
Phased out ODS

THANK YOU