resumen del primer parcial de la materia ITC cátedra Colavita
Full description
Full description
project
Full description
d
AGARBATTI BUSINESS Sustainable Livelihood & Community Development
Hyderabad, December’2010
Sustainability Challenges
33 %
Rest India
India is home to 33 % of global poor Mostly resident in Rural India
Under $ 1.00
Under $ 1.25
Under $ 2.00
267
456
828
( 24 % )
( 42 % )
( 76 % )
Population Figs in Millions, Source : World Bank
ITC - Corporate Social Responsibility • ITC believes that an effective growth strategy for our nation must address the needs of rural India, home to 75% of our people
3
ITC – “Country Before Corporation” • Livelihood to over 5 Mn people • Globally recognised e-Choupal initiative. • Choupal Saagar -Rural hypermarts • Social and farm forestry ->100,000 hectares • Carbon,Water and Waste recycling Positive • Sustainable Community Development. 4
Publications
ITC’s Sustainability Report ITC’s 7th Sustainability Report is under publication as per the G3 Guidelines of Global Reporting Application Level A+ -- the highest level
ITC’s e-Choupal Solution
Customised Extension Services Weather Information Price Discovery Market Access at Farm Gate Connectivity through Lead Farmer 6500 e-Choupals cover around 40,000 villages benefiting 4 million farmers
ITC Businesses
,
FMCG
Hotels
Paper & Packaging
Agri Business
Information Technology
FMCG
–
Incense Sticks & Safety Matches
Agarbatti Industry Overview •
Hand crafted by cottage industries and NGOs in India
Agarbatti Industry Highly Fragmented Industry MARKET • Highly Fragmented – 200 players with 400 brands • Industry dominated by Local Players
PRODUCTS • Top five pack / price combinations account for only 25% of the industry
• Large number of • Top five players account for 20% value
fragrances are marketed
About ITC’s Agarbatti Business •
Mangaldeep was launched in 2004 and currently is the No. 2 National brand in the country
•
Mangaldeep has an All India market share (value) of 6 % of with monthly sales of over 350 Mn sticks
•
Mangaldeep has 25 SKUs at 10 price points
•
The business provides livelihood to over 9000 people
•
The business partners with 15 small and medium enterprises to bring out the best of their entrepreneurial skills and facilitate in raising their process and quality standards
Delivering on Triple Bottom Line •
Economic – Mangaldeep-No 2 Brand – – –
•
Environmental – Livelihood for > 9000 people – –
•
Impressive Growth Depth in Distribution Brand Building
Training programs • Munger, Agartala, TN, Karnataka, AP
–
MOU with Ministry of Govt of Orissa,Tripura etc
Case Study: ITC Limited and the Agarbatti Industry 12
• IFAT-International Fair Trade Association, Head quartered in Netherlands – Network of organisations that work to improve the livelihoods and well-being of disadvantaged producers – Members-Producers, co-operatives or associations, exporters, importers, retailers
• Cottage Industries-Pondicherry-Recieved membership approval • Great Advantage for Exports to US and Europe 13
ITC Incense Business Value Chain Bamboo Charcoal
Jiggat
Raw Batti rolling
NGOs
Perfuming SSIs Packaging
Marketing & Distribution
ITC Ltd 14
IT Enabled Quality Statistics 13 Vendor locations
13 Vendor locations
Data By E – Mail to centralized location 1. 2. 3. 4.
Process control data Absorption of Fragrance Physical attributes data Finished goods clearance data
Feedback report to the vendor 1. 2. 3. 4.
Data Analysis
Process Capability Likely defects above and below specs Six Sigma metrics for all parameters combined Warning messages & Corrective actions 15
Marketing Approach •
Developing brand preference
Superior fragrance experience (Conforms to IFRA norms)
Brand Health Tracker A superior fragrance development and selection procedure
Leveraging existing Nation wide distribution of ITC 16
Blessings From
17
ITC’s Strengths •
Nation-wide distribution — 2 million outlets
Chandigarh
•
Brand building- India’s two largest
New Delhi
brands Kolkata
Agartala
•
Supply chain management and training module
Hyderabad Manufacturing
•
Extensive R&D for product
Locations
Bangalore
development.
Pondicherry Coimbatore
• Vendor locations
Meeting Consumer needs through Research 18
NGOs - Strengths • Understanding the social milieu in rural India • Ability to interact with rural women and win their trust • Wide reach into India’s rural heartland • Managerial skills to implement and monitor a commercial project 19
Synergies Combine Brand Building Quality are Often the "Small Opportunities Reach NGO ITC Beginning of Great Enterprises." Sales Employment
20
Raw Incense NGO Based Supply Chain
ITC Ltd / Vendors
Order
NGO Supplies
Raw Material Supply
Finished Goods Brought Back
Women in Different Villages Spread over and of more than 100 Sq. Km
21
“ASHA” Assistance in Social Habilitation through Agarbatti •
Start up support provided by ITC – Training to workers
•
Use of IT infrastructure to monitor the progress.
•
Prices bench marked to competition-No subsidies
•
Over 1500 women trained in rolling of incense sticks
•
Initiatives by NGOs-SEWA,AOL,ORMAS etc
22
Operation “Harvest” Bamboo is a integral part of the Incense Stick •
India’s bamboo growing regions are segregated from the rest of the country because of lack of infrastructure and extreme poverty
•
ITC is working with Forest Dept. in South India and North East in a unique sourcing programme
•
ITC facilitates in training the tribals to produce bamboo sticks for incense – Helps move the tribals up the value chain – Guaranteed buyer and payments
23
MOU Signing with Govt of Orissa • Rolling of Incense sticks across Orissa • Availablity of Bamboo sticks • Impart training and Facilitate procurement of raw incense • Rural employment opportunity to 3000 women
24
ISO-9001-2000 Agartala
25
Endorsements
26
The Context and Agenda •
Identify a Product that has Mass Consumption
•
Develop /Involve NGOs & SHGs for manufacture.
•
Seek assistance from Govt/Agencies
•
Provide inputs to produce “Quality Goods”
•
Scaling up Plans to be defined clearly
•
Tie up with a corporate for Marketing/Distribution
•
Review Progress periodically
Transforming Lives and Landscapes – Ensuring a Sustainable Future
