PERSPECTIVE MANAGEMENT
“IMPEREAL TOBACCO COMPANY LTD.”
MASTER OF MANAGEMENT STUDIES FYMMS
Under guidance of PROF. ARUNA DESHPANDE
PROJECTEES
GAURAV DONGARE PRAFUL HEDAOO MANOJ KAPADNIS VIKRAM MATE R G ROHIT KIRAN SHINDE
11 13 22 32 44 50
ACKNOWLEDGEMENT
I extend my sincere gratitude to Prof. Aruna Deshpande , our project guide, for the successful completion of the project. She has been a great support and guide to us during the entire dissertation. She has helped us throughout the project. We wish to express our sincere gratitude
to
her
for
providing
us
an
opportunity
to
do
our
project
work
on
“IMPEREAL TOBACCO COMPANY LTD.” This project has given me more confidence
about the subject and various concepts of Perspective Management. Our sincerest thanks to madam, who has taken a keen interest in my project from time to time, and encouraged me to perform to the best of our ability. We are also thankful to our faculty members for their support and help for completion of the project.
Thank you all for your time and guidance in helping us achieve our goal of completing this project to to the best of my ability.
ACKNOWLEDGEMENT
I extend my sincere gratitude to Prof. Aruna Deshpande , our project guide, for the successful completion of the project. She has been a great support and guide to us during the entire dissertation. She has helped us throughout the project. We wish to express our sincere gratitude
to
her
for
providing
us
an
opportunity
to
do
our
project
work
on
“IMPEREAL TOBACCO COMPANY LTD.” This project has given me more confidence
about the subject and various concepts of Perspective Management. Our sincerest thanks to madam, who has taken a keen interest in my project from time to time, and encouraged me to perform to the best of our ability. We are also thankful to our faculty members for their support and help for completion of the project.
Thank you all for your time and guidance in helping us achieve our goal of completing this project to to the best of my ability.
DECLARATION
We
students
of
ADMI,
FYMMS
hereby
declare
that
the
project
on
writte ten n by us und under er the the guida guidanc ncee of “IMPERE “IMPEREAL AL TOB TOBACC ACCO O COMPAN COMPANY Y LTD.” LTD.” is writ Prof. Aruna Deshpande. The empirical conclusion & findings in the project are based on the
data collected by me and the entire project work is not a reproduction of any other sources.
Name-
GAURAV DONGARE PRAFUL HEDAOO MANOJ KAPADNIS VIKRAM MATE R G ROHIT KIRAN SHINDE
Signature
(11 ) (13) (22 ) (32 ) (44 ) (50 )
TABLE OF CONTENTS
Sr No.
Topics
Page no
1.
Introduction
1
2.
Abstract
2
3.
History And Evolution
3
Vision and Mission
6
5.
Human Resources
9
6.
Marketing
15
7.
Finance
28
8.
Production / Process
42
9.
Conclusions (CSR and AWARDS)
4.
INTRODUCTION
Imperial Imperi al Tobacc Tobacco o is a leadin leading g intern internati ational onal tobacco tobacco company company,, which which manufa manufactu ctures res markets and sells a comprehensive range of cigarettes, tobaccos, rolling papers, filter tubes and cigars. Imperia Imper iall To Toba bacc cco o produ product ctss are are avai availa labl blee in over over 160 coun countr trie iess worl worldw dwid ide. e. Th Thei eir r geographic diversity and versatile multi-product portfolio provides business resilience and a strong platform for future growth. They continue to build on their strong market shares in mature markets whilst increasing their share of growing emerging markets. Their key growth regions are the European Union, USA, Eastern Europe, Africa and the Middle East and Asia. In the EU their market leadership in the UK and Spain is supported by strong positions in Germany and France. Their leading international super premium cigarette brand Davidoff has a strong and growing presence in mature and emerging markets, including the European Union, the Middle East and Eastern Europe. Geologises Blondes is another key international cigarette brand which has developed a position of strength in the Middle East. The West cigarette brand has a major position in a number of European markets and volumes are increasing in our Rest of the World region. Their value brand JPS has a growing presence in all regions it is sold, and their versatile cigarette portfolio also includes a number of important regional brands including Fortuna and Gaitanis.C Gaitanis.Complem omplementing enting their strong strong cigarette cigarette presence is their world leadership leadership in fine cut tobacco, rolling papers and tubes with brands such as Golden Virginia, Drum and Rizla. They also have a world leading cigar position including a 50 per cent interest in Habanos, the exclusive worldwide distributor of premium Cuban cigar brands such as Cohiba and Montecristo Their 51 factories are focused on production quality, business simplification and cost optimisation. They continue to increase productivity and reduce their unit costs. They have 31 Cigarette factories 18 Other tobacco product and processing factories 2 Paper and tube factories
ABSTRACT
1. History, Objectives, Vision, and Mission
2. HR a.
Planning ( recruitment planning , Maintain corporate relationship)
b. Organizing {structure} c. Coordinating ( staffing for different function and support vertical d.
Control ( avoid strikes and maintaining staff)
3. Marketing a.
Planning [Marketing strategy]
b. Organizing [setup Distribution] c. Coordinating [between Distribution] d.
Control ( SWOT)
4. Finance a.
Planning (planning for budgeting in each division )
b.
Organizing (how actually you give budget to each division )
c.
Coordinating ( what are expenses and incomes ) current balance sheet
d.
Control ( how to control the cost and budgets )
5. Production / process a. Planning b. Organizing c. Coordinating d. Control [Quality standards]
6.
Conclusion [CSR/Awards]
History And Evolution: ITC 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 from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then 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-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Company’s 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. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose t he hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players , in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited , to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills , an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme) . Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills' , a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008 .
CHAIRMAN, Y C DEVESHWAR, ITC Ltd.
ITC 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 Company’s stakeholders
ITC MISSION
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
Values
We say: ‘We work as one team for the good of the whole businesses.’ We mean: Both as individuals and as team members, we work to deliver excellent financial results through outstanding business performance. What we do: Value individuality and hard work Look after our people, creating opportunities for them to develop both • individually and as part of a team Treat each other with respect, fairness and understanding • Have developed a culture based on openness, trust and integrity; • encouraging genuine two-way communication through constructive and honest debate, and placing emphasis on building relationships and sharing information. •
We say: ‘We put shareholders first among our stakeholders’ We mean: We aim to create sustainable value for our shareholders. What we do: Ensure sustainable, profitable growth takes priority over market share and volume growth •
Are driven by the impact of our business decisions on shareholder value Achieve the maximum returns we can from all our investments • Communicate with our shareholders and deliver the promises we make • Ensure that employees understand our corporate strategy and business • goals, and how each and every one of us can contribute to our overall success. •
We say: ‘We are a responsible company, pursuing high standards in everything we do’ We mean: We understand our responsibilities in working for a high profile and controversial industry. We are proud of, and will protect our reputation for, openness and honesty in how we conduct our business. In all our business dealings we will act with integrity to achieve our goals. What we do: Ensure high standards of corporate governance and responsibility are central to the way in which we manage our business Are open and transparent about how we run our business • Engage actively with our stakeholders, taking their views into account in • the way we manage our business Reflect our heritage of working alongside the communities in which we • operate Maintain our commitment to the sustainable growth and development of • our business. •
We say: ‘We deliver high quality products to ensure customer satisfaction’ We mean: Our focus on manufacturing and sales excellence and our high standards of support ensure we give the best products and service to all our customers and consumers. What we do: •
Produce high quality products
Work in partnership with our customers to deliver the right product at the right time and at the right price Provide high standards of customer support • Stand up for the freedom of our consumers to enjoy our products. • •
HUMAN RESOURCES
Anand Nayak, Head of Human Resource Development for ITC •
Direct employment ITC Group : 29,000
•
Indirect employment across the value chain : 5 million
•
e-choupal: world’s largest rural digital infrastructure serving nearly 4 million farmers
Strategy of organization to manage diversity of profolio Formal 3- tiered governance structure: 1. Board of directors : comprising executive (4) and non-executive directors (12) Strategic Supervision
2. Corporate management committee: Comprising executive directors and senior managers Strategic Management 3. Divisional chief Executive and Divisional Management Committee: Executive Management HR Practices are those practices which are been done by the organization for having optimum utilization of human resource of the organization. These practices can be explained as follows: • Recruitment & Selection • Training & Development • Performance Appraisal System • Evaluation System • Feed Back Mechanism • Rewards to Employees • Work Remuneration of the employees • Increment practices Human resource management is the planning , organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources Attainment of organizational objectives through ♣
Integration of HRM policy with business goals/objectives
♣
Global Market OBJECTIVES OF HRM
♣
Willingness to adopt to changing market needs
♣
Flexibility in operations
♣
Emphasis on quality in staff, goods/services
♣
Increased competition
♣
to the end that individual, organizational, and social objective are accomplished.
FEATURES OF HRM human Creation of flexible work hours/function capital Integration of people related issues with business issues, while bringing people related issues to the fore and advocating primacy of business needs. Creation of a flexible environment to be responsive to market ambience, as per the need of the dizzily fast packed and changing environment “HRM is a management function that helps manager’s recruit, select, train and develops members for an organization obviously HRM is concerned with peoples dimension in organizations” HRM is also a management function concerned with hiring motivating and maintaining people in an organization. It is a series of integrated decision that from the employment relationship; their quality contributes to the ability
of the organization and the employees to achieve their objective. Human resource management is concerned with the people dimension in management. since every organization is make up of people, acquiring their services, developing their skill, motivating them to higher level of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. The human resources are the most important assets of organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contribution from people, organization can’t progress and prosper. In order to achieve the goals and perform the activities of an organization, therefore we need to recruit people with requisite, skills, qualification and experience. While doing so we have to keep the present as well as future requirements of the organization in mind. OBJECTIVE To effectively manage the manpower recruitment in coherence with long term and short term manpower planning of the organization through a standard recruitment and selection policy. To proactively and systematically identify the recruitment needs in time. To ensure that all the recruitment are within the manpower budget and as per the laid down policy. The recruited people with required level of skilled and aptitude for learning and growth. SCOPE: This policy shall apply to all PERMANENT management position in the company including the workmen. IDENTIFICATION OF VACANT POSITIONS 1. Total permanent manpower strength/budget for organization has been sanctioned by the board of directors. 2. All the recruitment has necessarily to be made within the approved budget/strength only. 3. Vacancies against the sanctioned budget may arise due to: • Retirement • Turnover • Natural Separation 4. whenever a vacancy arise, the concerned department has to fill up the prescribed manpower requisition form clearly indication the job description and specification, time frame and send it to HR department. HR PLANNING: HRP is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right number. It is only after this that the HRM department can initiate the recruitment and selection process. HRP is the sub-system in the total organizational planning. Organizational planning includes managerial activities that set the company’s objective. HRP facilitates the realization of the company’s objectives by providing the right type and right number of personnel. HRP then is like materials planning that estimate the type and quality of the materials and supplies needed to facilitate the manufacturing activities of the organization. HRP is variously called manpower planning, personnel planning or employment planning. RECRUITMENT SOURCES:
The sources of recruitment may be broadly divided into two categories: internal sources and external sources. On receipt of the Manpower Requisition (MPR) form HR department will initiate action of sourcing the candidates as under: PROMOTION AND TRANSFERS: Employee referral, Direct Method Campus Recruitment One can choose any one of these branches while getting into ITC 1. Finance 2. Human Resources 3. Marketing 4. Supply Chain 5. Specialists 6. Technical Indirect Method Advertisement
ITC believes that all its employees must live with social and economic dignity and freedom, regardless of nationality, gender, race, economic status or religion. In the management of its businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO. ITC upholds international human rights standards, does not condone human rights abuses, and creates and nurtures a working environment where human rights are respected without prejudice. The Corporate Human Resources function of ITC is responsible for the Human Rights Policy design, implementation and updation. The policy is implemented at all locations of ITC through a set of separate policies and procedures covering each of the main constituents of human rights applicable at the workplaces. The assessment procedures for different constituents of this policy are defined against each specific policy.
Consideration of Human Rights Impacts Across the Supply Chain As a large and multi-product enterprise whose products are benchmarked nationally and internationally, ITC's main supply chains can be grouped as follows: 1. For all its operations, technology, machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow internationally accepted norms and standards on human rights. 2. ITC's major businesses are vertically integrated across several Divisions. A substantial part of the supply chain is therefore internal through strategic backward linkages.
Common values relating to human rights performance are shared across this supply chain. 3. Being a major agri-based company, the agriculture sector is a major supplier of inputs for its operations. The bulk of agricultural commodities are procured from state controlled trading platforms and the open market. 4. A very small proportion of ITC's business consists of supply chains comprising local vendors and suppliers. The policy framework for such entities is enunciated separately in 'Policy to Ensure Respect for Human Rights across the Supply Chain'.
Policy to Ensure Respect for Human Rights Policy across the Supply Chain ITC provides products and services of superior quality and value by sourcing its technologies, equipment and inputs from reputed international and Indian manufacturers and suppliers. Common values, relating to human rights performance, are shared across the entire supply chain because ITC is committed to the importance of a socially responsible and accountable supply chain. ITC nurtures an internal working environment which respects human rights without discrimination. Likewise, it expects its business partners to establish a human rights compliant business environment at the workplace. The responsibility for implementation of this policy rests with the Divisional Chief Executive of the concerned business and the Unit Manager. The policy is communicated internally through policy manuals and intranet portals, and externally by the HR personnel of concerned units to vendors/suppliers.ITC has established a policy intent for mapping/monitoring progress and performance of existing and potential vendors/suppliers on human rights performance.
Policy to Prevent Discrimination at Workplace ITC acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices. ITC's approach to its human resources
is premised on the fundamental belief in fostering meritocracy in the organization which, pari passu, promotes diversity and offers equality of opportunity to all employees. ITC does not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, or union organization or minority group. The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. The custodian of this policy is the head of each operational unit and Divisional Chief Executives of the respective business. ITC's complaints resolution procedure is premised on the freedom of employees to approach higher officials beyond his/her immediate superior. For the unionised employees, compliance of the policy is ensured through a robust grievance handling procedure and the presence of a union that brings violations to the notice of the unit HR head. The accountability for the application of the non-discrimination employment policy rests with the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case basis. The Corporate Human Resources function conducts non-discrimination reviews annually on a sample basis with unit heads and through on-site assessments.
Policy on Freedom of Association ITC's culture is characterized by cooperative relationships and high employee involvement that relies on building partnerships and interdependence. Adhering to these principles has helped build, sustain and strengthen harmonious employee relations in the organization. ITC respects the employees' right to organize themselves into interest groups as initiatives of the workers, independent from supervision by the management. In keeping with the spirit of this Policy, employees are not discriminated against for exercising this right. The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. The custodian of this policy is the HR head of each operational unit who reports directly to Unit Head on such issues. The actualization of this policy is evident from the joint agreements and minutes that are signed between the union and the management. Each ITC Unit has appropriate systems and checks to ensure compliance with the Policy and statutory provisions, including means for filing of grievances, collective bargaining agreements and minutes from worker meetings. Compliance with the Policy is regularly monitored by Divisional and Corporate HR.
Policy on Information and Consultation on Changes ITC's core values support an employee engagement process that aligns its employees with a shared vision and purpose of the Company in the belief that every individual brings a different perspective and capability to the team. ITC thus harnesses the creative potential of all
its employees by promoting a culture of partnerships to unleash relevant synergies between different groups of employees. All major changes in operations involving work processes, manning norms and other productivity linked issues are carried out after discussions with the employees and the recognized unions at each location. Business plans are shared with employees at all units through a series of formal communication meetings, and through the intranet portals. Unionized employees at the concerned units are informed of all major changes well in advance through their representatives. The responsibility for the implementation of the policy rests with the Unit's HR Department in the case of unionized employees and with the concerned Divisional Management Committees for other employees. The employees are given enough time to consider the implications of change and an opportunity to discuss their apprehensions, if any, with the management. The Policy is actualized through consultative meetings with representatives of employees, culminating in joint minutes/agreements. Compliance with the Policy is regularly monitored by the Unit Head.
MARKETING
Some of the ITC Products:-
Planning Function / Marketing strategies:Using a six-pillar strategy that straddles consumer in sighting to product develop ment and packaging, ITC has created a powerful personal care portfolio with five brands across multiple categories and price-points
Organizing and coordinating Marketing function as per Marketing Planning
Though, the plans for personal care foray were high on chairman YC Deveshwar's agenda as one of the next growth drivers for long, it got fructified only in July 2005, after its successful foray into foods business with brands like Sunfeast, Ashirwaad Atta and Bingo. But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products. ITC called this exercise as '3E’ approach —explore, establish and execute.
ITC personal care division chief executive Sandeep Kaul said, "We, at ITC, wanted to create a portfolio on our own unlike many others who have a long and varied history of inorganic growth, which had its own merits. We had the flexibility to create the portfolio to meet the needs of today's consumers without being bogged down by the past heritage or the varied history of an acquired business. We could develop strategies to utilize the innate strength of our organization.” Kaul adds that the unique challenges they faced while developing the business from scratch were upfront investment of time and resources to understand consumers and develop consumer insights. “We had to have patience for converting these consumer insights to winning consumer value proposition," concurs Kaul.As an adage goes 'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reins over 50 percent of the FMCG market). And ITC's target was HUL and P&G only. After all, you get a kick in gunning for the best. Hence, it went about its business with a lot of strategy, experience, innovation, correct marketing mix and better products. It modeled itself after P&G's proposition of superior products in every segment it has entered. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the personal care launch. It also poached some key talents not only from across the industry but also a senior scientist from the HUL stable to spearhead the technology function. That apart, it also sought help from product formulation and branding
experts in Europe and America to formulate the fragrance, aesthetics and packaging. Many of the brands have also been developed at its R&D centre. The results are there for everyone to see. In less than four years, ITC has been able to create brand awareness and consumer acceptance for its five product lines—Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia—each targeted at the needs, aspirations and usage behavior of different consumer segments. Kaul informs that the strategy for designing personal care is that everyone is a potential consumer. Now let's dig deeper into the product development side. Each of these brands has been created around six key strategic pillars. 1. 2.
3.
4.
5.
6.
The first of which is 'clear segmentation ' across brands and product lines. The second pillar is making these products reach far and wide.ITC cleverly leverages its 'distribution and group synergy' strengths to deliver the products right at the doors of consumers. Though, ITC has a highly successful distribution network for its tobacco products, it had to quickly devise a different distribution plan for its personal care brands, as these are positioned in the premium category. This was answered by rolling out a wide distribution infrastructure for ITC Foods’ brands like Bingo, Ashirwad Atta and Sunfeast. This helped in quickly rolling out the personal care business across the country, with further support from its universally acclaimed eChoupal network. And today, ITC's distribution reach is almost at par with market leader HUL's reach. The third pillar is a clear communication for these brands, according to the target consumer sets. The fourth pillar is the relevant brand extensions around which it has created the five product lines. So far, the effort has been to keep the focus on the main brands through brand extensions rather than confusing consumers with many sub-brands with different names. But, the same doesn't apply to its luxury Essenza Di Wills range, which has sub-brands like Inizio, Aqua and Mikkel to cater to exclusive and individualistic desires of its rich target audience. Since brand ambassadors play a key role in creating the top-of-mind recall, the fifth pillar of its strategy rests on associating itself with strategic brand ambassadors whenever required. For example, only the Fiama Di Wills and Vivel ranges have brand ambassadors while the rest two brands are TG-driven. Lastly, its sixth strategic pillar is visible on the packaging side. Explaining the rationale for innovative packaging, Kaul says that the packaging for Fiama Di Wills was developed by international design houses to ensure high-quality standards.
The personal care business is considered recession-proof as these products are of regular demand and hence a lucrative area. And ITC has both—a deep pocket to sustain through the initial years and the ambition and will power to grow large. According to Nielsen
data, the personal care space, comprising of skin care, soaps, shampoos, conditioners and hair oils touched Rs 16,612 crore in 2008-09, growing at a healthy rate of over 20 percent in terms of value and 14 percent in terms of volume. Soaps alone account for over 40 percent of the personal care market and along with the shampoos, control well over 50 percent of the overall FMCG market. These two are also the categories of prime focus for ITC. It’s in no hurry to get into every conceivable FMCG segment. The 2008 ITC annual report underlines, "We'll continue investing in building a robust personal care business in line with our strategy of creating multiple growth drivers."
Unlike many other consumer goods players which have too many brands, but not all which are not very clearly defined. ITC has kept the focus on its five main brands with each of them having a unique brand proposition. Now, with high brand awareness in place, the focus is
on driving sales by creating multiple touch-points through various channels of communication, promotions, different price-points and leveraging the group synergies.
A] ESSENZA DI WILLS
The first of the four brands which we studied, Essenza Di Wills, an exclusive range of fragrances, body and bath care products, is targeted at the high and snazzy consumers. Essenza is a gender-neutral brand, and hence offers a range of products for the well-heeled men and women. Inizio, the signature range of the Essenza brand, has two sub-brands— Inizio Femme and Inizio Homme—and offers an exclusive range for women and men. The fragrances offered in this range were designed by leading French fragrance houses. The brands across the Essenza line share the same olfactory signature creating a harmonious experience, and hence the brand recall for consumers. Since, men constitute a high percentage of luxury consumers, a new line Aqua Homme has been created. It offers a range of grooming products like after-shave lotion, deos, hair and body shampoos and soaps for discerning men. Mikkel, an evening fragrance, is the latest addition to the Essenza portfolio, which again is targeted at the high-end men. The strategy here is around sophistication and enigma rather than brand recall, hence we see sub-brands with western titles like Inizio, Aqua and Mikkel than simple brand extensions, as the target consumers in this segment are drawn by exclusivity and enigma and not by popular brand names. An entry level Essenza range of fragrance comes for a cool Rs 2,000! The Essenza caters to the market segment where established names like Lancôme, Olay, Body Shop, Oriflame and Avon are present. It's a niche segment, which is growing fast, and where there's no competition from dominant players like HUL and P&G. ITC feels that with its packaging, sales and distribution
strength, it has a fair chance of getting a head start in this high-margin space the over present players. The premium brand is also retailed across more than 50 Wills Lifestyle stores, its premium branded apparel retail offering, across 30 cities, and provides (as these stores offer) an ideal environment for sampling by elite consumers who regularly visit these stores. The Essenza range is also available across the ITC Welcome group hotels. The communication strategy is well defined too. There are no brand ambassadors for this segment, it's the product which is the hero; a brand imagery of allure and enigmatic grandeur has been created around the Essenza line. Even the brand website communicates in English and French, the language of the ubersophisticated.
B] FIAMA DI WILLS
If Essenza is about luxury, Fiama is about premiumness. This second product line, launched in September 2007, caters to the premium segment with the mid and upper middle-
class as its prime TG, and it is pitched against HUL's Dove and Vaseline, Nivea, L'Oreal and Garnier shampoos and conditioners. Its fragrance, aesthetics and packaging are developed in consultation with European experts. Fiama is exclusively targeted at the young, working and modern woman who wants indulgence. Fiama offerings include shampoos, conditioners, shower gels and soaps. The USP of this range is a combination of science and natural extracts for shampoos. Developed in collaboration with the US-based Cosmetech Laboratories, these shampoos come in five variants, while the shower gel comes in three. It has a soap sub-brand called ‘Skin Sense’ which is priced on par with Dove at Rs 40. The Bollywood sensation Deepika Padukone has been strategically used as the brand ambassador for the Fiama range, thanks to her sophisticated, youthful look and urbane appeal. Using group synergies, ITC retails the Fiama ange across Wills Lifestyle stores and modern retailers like Spencer's Hyper, Big Bazaar and Reliance Fresh among others, besides group hotels. The brand imagery has been created using different shades of natural colors like green, yellow, blue and orange, conveying gentle and effective care through its tagline 'Beautiful you today, tomorrow'. A special fan club 'Friends of Fiama' has been created to increase two-way communication with consumers, where they get a chance to interact with the brand face Deepika. To increase brand salience and position Fiama as a lifestyle product, ITC positions it as one of the partners of the Wills Fashion Week, held twice annually, besides an exclusive luxury lounge called Salon Di Wills is rated at the Wills fashion weeks to experience the effectiveness of Fiama Di Wills products. At the 2008 Wills Lifestyle ageant, it has an exclusive Fiama Di Wills fashion line created by two leading fashion designers titled 'Lost in an Urban aze' to showcase premium imagery.
C] VIVEL DI WILLS & VIVEL Easily, the most important of all the brands, Vivel Di Wills and Vivel compete in the most competitive, the popular market segment, dominated by well -entrenched players like HUL and P&G, besides smaller players like Marico, CavinCare, godrej, Dabur etc. Launched in the first half of 2008, Vivel Di Wills offers two soap variants. Vivel has both soaps and shampoos, catering to a wide range of consumers in the mid and upper-middle class segments. The USP of Vivel range is nourishment, protection and hydrating ingredients for complete skincare.
Vivel, unlike Fiama, is a gender-neutral brand. Vivel Di Wills soaps come in two variants and cater specifically to upper middle class consumers, and are priced at Rs 30. While Vivel offers five variants, all priced between Rs 16 and Rs 17, while the Vivel shampoos come in three variants. This space is dominated by HUL, whose brands like Lux, Rexona, Liril, Sunsilk and ClinicPlus command over 50 percent market share in soaps and over 45 percent in the Rs 2,600-crore shampoos market, while ITC has only around 2 percent of the personal care market. Kareena Kapoor is the brand face for Vivel brands and its communication is both in Hindi and English unlike Essenza and Fiama which is only in English and French. Towards the end of 2008, ITC has launched a new anti-dandruff shampoo ‘UltraPro’ under the Vivel umbrella, pitched against HUL's Clinic AllClear and P&G's Head & Shoulders in the rapidly expanding Rs 600-crore dandruff control segment. Targeted at men, UltraPro is endorsed by Hrithik Roshan. Besides being available across leading departmental stores and modern retail outlets, Vivel is also retailed through the John Players showrooms
D] SUPERIA
To cater to the popular mass segment, especially in the hinterlands, where HUL's Lifebouy, Hamam and Breeze and Godrej No1 etc compete, ITC has launched the Superia range of soaps and shampoos. Superia soap range is available in four variants; the shampoos come in two variants, besides an antidandruff variant. This segment again doesn't have a brand ambassador as the company projects its target consumers as its endorsers. The brand communication, mostly in Hindi, is weaved around a happy family and its various members. This is also the only segment where ITC has launched its products in sachets, considering the price-sensitivity of its TG. On the distribution side, it cleverly uses its e-Choupal network to Create deep entrenchment for the Superia range among the hinterland consumers.
Controlling of marketing Function By “THE WAY FORWARD” “ITC brands have received high Consumer acceptance so far. The company says that it’s open to inorganic growth if a brand fits its long-term plans. ”
Sandeep Kaul says that he has a robust long-term strategy and his portfolio is designed for multiple price points, which has proved to be working well so far, at least in terms of brand recall, as its market share is at under 2 percent is anything to rite home about. While the core focus remains further developing the categories under the belt, by offering more value proposition to consumers, besides working on new categories, including acquisitions. Sandeep Kaul says, "Consumers have shown a good degree of acceptance to our value propositions. The progress so far, has been as per the internal goals set for the business. At a time when most of the homegrown FMCG brands were looking at going niche, we did not want to limit our potential. The way forward can be sometimes through an organic route and sometimes through an inorganic route but the growth strategy for us will always be consumer centric," Kaul further elaborates. Now that the brands are out on the racks across the country, and consumers have given their thumbs up to them, the tough task lies ahead -- to continuously innovate and provide better value to consumers and make them stick around these brands. After all, consumers in the personal care space are a fickle lot, unlike in the cigarette space (who overwhelmingly prefer the ITC sticks), and ITC knows it well.
Controlling of marketing Function by SWOT Analysis: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. This SWOT analysis is about ITC. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most well-known 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. Examples of its successful new FMCG products include: 1.
Ashirwad - India's most popular atta brand with over 50% market share. It is also present in spices and instant mixes.
2.
Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.
3.
Bingo! - A new introduction of finger snacks.
4.
Kitchens of India - pre-prepared foods designed by ITC's master chefs.
5.
Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).
Strengths ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.
Weaknesses 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.
Opportunities Core brands such as Ashirwad, Mint-o, and Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. E-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/echoupal_new.htm ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Ashirwad Select in the Northern market,
Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business. Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.
Threats The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future. 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 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.
FINANCE Environmental Analysis Well-established distribution networks, intense competition between the or gan iz ed an dunorganized segments characterize the FMGC sector.It is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from aroundRs 56,500 crores in 2005 to Rs 92,100croresin2010.H a i r c a r e , h o u s e h o l d c a r e , m a l e g r o o m i n g , f e m a l e h y g i e n e , a n d t h e c h o c o l a t e s a n d confectionery categories are estimated to be the fastest growing segments, says an HSBCreport . Tho ugh the sec tor witn ess ed a slow er grow th in 2002-2004, it has been able tomake a fine recovery since then. For example, Indian Tobacco Company Limited (ITC)has shown a healthy growth in the last quarter. An estimated double-digit growth over thenext few years shows that the good times are likely to continue. Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indianrural FMCG market is something no one ca n overlook. Increased focus on sector w i l l b o o s t r u r a l i n c o m e s , h e n c e p r o v i d i n g b e t t e r g r o w t h p r o s p e c t s t o t h e F M C G companies.Better infrastructure facilities will improve their supply chain. FMCG sector is also likelyt o b e n e f i t f r o m g r o w i n g d e m a n d i n t h e m a r k e t . B e c a u s e o f t h e l o w p e r c a p i t a consumption for almost all the products in the country, FMCG companies have immense p os s ib il it i es f or g ro wt h. An d if th e c om p a n ie s a re ab le t o c ha n g e t he mi n d se t of th e consumers, i.e. if they are able to take the consumers to branded products and offer newgeneration products, they would be able to generate higher growth in the near future. It ise x p e c t e d t h a t t h e r u r a l i n c o m e w i l l r i s e i n 2 0 0 7 , b o o s t i n g p u r c h a s i n g p o w e r i n t h e countryside.However, the demand in urban areas would be the key growth driver over the long term.A l s o , i n c r e a s e i n t he u rb an p op ul at io n, a lo ng w it h i nc re as e i n i nc om e l ev el s a nd t h e availability of new categories, would help the urban areas maintain their position in termsof consumption.At present, urban India accoun ts fo r 66% of tot al FM CG co nsumptio n, with rural Indiaaccounting for the remaining 34%. However, rural India accounts for m ore than 40%c o n s u m p t i o n i n m a j o r F M C G c a t e g o r ie s s u c h a s p e r s o n a l care, fabric care, and hot beverages. In urban areas, home and personal care category, inclu d i n g s k i n c a r e , h o u se ho ld c ar e a nd f em in in e h yg ie n e, w il l k ee p g ro w in g a t r el at iv e ly a tt ra c ti ve r at es .W it hi n t he f oo ds s eg me nt , i t i s e st im at ed t ha t
processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock,milk, sugarcane, coconut, spices and cashew and is the second largest pro du ce r of ri ce ,w he at an d fr ui ts &v eg eta ble s. In di a al so pro du ces ca ust ic so da and soda ash, which arer e q u i r e d f o r the production of soaps and detergents. The availability of these rawmaterials gives India the location advantage. Low cost labor Low cost labor gives India a competitive advantage. India's labor cost is amongst th elowest in the world, after China & Indonesia. Low labor costs give the advantage of lowco st of production. Many MNC's have established their plants in India to outsource fo r domestic and export markets. Presence across value chain Indian companies have their presence across the value chain of FMCG sector, right fromthe supply of raw materials to packaged goods in the food-processing sector. This bringsIndia a more cost competitive advantage
The Indian FMCG Industry The Indian FMCG sector is the fourth largest in the economy and has a marketsizeof US$13.1billion. Wellestablished distribution networks, as well as inte n se c om pe ti ti on b et we en t he o rg an is ed a nd u no rg an is ed s eg me nt s a re t he characteristics of this sector.FMCG in India has a strong and competitive MNC presence across the entire value chain.It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 fromU S $ b i l l i o n 1 1 . 6 i n 2 0 0 3 . T h e m i d d l e c l a s s a n d t h e r u r a l s e g m e n t s o f t h e I n d i a n p o pu la ti on ar e t h e m os t p ro mi si ng ma rk e t f o r F M C G , a n d g i v e b r a n d m a k e r s t h e o pp or tu ni ty t o c o nv er t t h em t o b r an de d pro du ct s. Mo st of th e pro duc t cate gori es li ke jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption aswell as low penetration level, but the potential for growth is huge.T h e I n d i a n E c o n o m y i s s u r g i n g a h e a d b y l e a p s a n d b o u n d s ,
ke ep in g pa ce capita income
wi th
ra pi durbanization, increased literacy levels, and rising per
RATIO ANALYSIS OF ITC LTD:
Financial Ratio Analysis is the evaluation and interpretation of a company’s financial data using standard financial ratios or accounting ratios to determine a company’s financial state or condition. A financial ratio or accounting ratio is a ratio of two values that are taken from a company financial statement (Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings). LIQUIDITY RATIOS:
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. CURRENT RATIO: The current ratio is the ratio of current assets to current liabilities.
CURRENT RATIO Year CURRENT ASSETS CURRENT LIABILITIES CA/CL CURRENT RATIO Year CURRENT ASSETS CURRENT LIABILITIES CA/CL
Current Assets/Current Liabilities 2010 8127.08 8048.24 8127.08/8048.24 = 1.009 Current Assets/Current Liabilities 2009 8159.73 4703.63 8159.73/4703.63 = 1.73
IMPLICATION CR of ITC for 2 years is more than one. Moreover, it is greater than the industry average i.e. 0.886. This implies that working capital of ITC is always positive QUICK RATIO OR ACID TEST RATIO
The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets.
QUICK RATIO Year CURRENT ASSETS INVENTORIES QUICK ASSETS CURRENT LIABILITIES QA/CL QUICK RATIO Year CURRENT ASSETS INVENTORIES QUICK ASSETS CURRENT LIABILITIES QA/CL
Current Assets - Inventories/Current Liabilities 2010 8127.08 4549.07 8127.08 – 4549.07 = 3578.01 8048.24 3578.01/8048.24 = 0.44 Current Assets - Inventories/Current Liabilities 2009 8159.73 4599.72 8159.73 – 4599.72 = 3560.01 4703.63 3560.01/4703.63 = 0.76
IMPLICATION Quick ratio is greater than the industry average i.e. 0.389, which means are easily convertible into cash.
quick assets
SUPER QUICK RATIO:
The Super quick ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents.
SUPER QUICK RATIO Year CASH MARKET SECURITIES SUPER QUICK ASSETS CURRENT LIABILITIES QA/CL SUPER QUICK RATIO Year CASH MARKET SECURITIES SUPER QUICK ASSETS CURRENT LIABILITIES QA/CL
Cash + Marketable Securities/Current Liabilities 2010 1126.28 0.0 1126.28+ 0.0 = 1126.28 8048.24 1126.28/8048.24= 0.14 Cash + Marketable Securities/Current Liabilities 2009 1031.01 0.0 1031.01 + 0.0 = 1031.01 4703.63 1031.01/4703.63 = 0.22
IMPLICATION Super quick ratio is slightly less than the industry average i.e. 0.299. So it can be said that liquidity position of the company is maintained through quick ratio as compared to super quick ratio. Capital Structure / Leverage Ratio:
Financial leverage ratios provide an indication of the long-term solvency of the firm. Unlike liquidity ratios that are concerned with short-term assets and liabilities, financial leverage ratios measure the extent to which the firm is using long term debt. INTEREST COVER RATIO: The interest cover ratio indicates how well the firm's earnings can cover the interest payments on its debt.
INTEREST COVER RATIO Year PBIT
Profit before Interest & Tax(PBIT)/Interest Expense 2010 6068.67
INTEREST COVER PBIT/INTEREST COVER INTEREST COVER RATIO Year PBIT INTEREST COVER PBIT/INTEREST COVER
73 6068.67/73 = 83.12 Profit before Interest & Tax(PBIT)/Interest Expense 2009 4844.06 28.38 4844.06/28.38 = 170.68
IMPLICATION Interest cover ratio is very less as compared to industrial avg i.e. 408.58, which implies that debt servicing capacity of the firm is very less. PROFITABILITY RATIOS:
Profitability ratios offer several different measures of the success of the firm at generating profits. GROSS PROFIT RATIO:
The gross profit ratio is a measure of the gross profit earned on sales. The gross profit margin considers the firm's cost of goods sold, but does not include other costs GROSS PROFIT RATIO Year GROSS PROFIT NET SALES GP x 100/NS GROSS PROFIT RATIO Year GROSS PROFIT NET SALES GP x 100/NS
IMPLICATION
Gross Profit x 100/ Net Sales 2010 6677.38 18153.19 6677.38 x 100/18153.19 = 36.74 Gross Profit x 100/ Net Sales 2009 5393.47 15611.92 5393.47 x 100/15611.92 = 34.54
sign of good
Gross profit ratio is much higher than the industry average i.e 20.08 which is a management. It implies that cost of production of the firm is relatively low.
NET PROFIT RATIO:
This ratio measures the net profit earned on sales . NET PROFIT RATIO Year NET PROFIT NET SALES NP x 100/NS NET PROFIT RATIO Year NET PROFIT NET SALES NP x 100/NS
Net Profit x 100/ Net Sales 2010 4061.00 18153.19 4061.00 x 100/18153.19 = 22.37 Net Profit x 100/ Net Sales 2009 3263.59 15611.92 3263.59 x 100/15611.92 = 20.90
IMPLICATION Net profit ratio is much higher than the industry average i.e 15.31% which is a sign of good management. It implies that the returns to owner is adequate and the company is quite stable. OPERATING PROFIT RATIO:
The operating profit margin ratio indicates how much profit a company makes after paying for variable costs of production such as wages, raw materials, etc. It is expressed as a percentage of sales and shows the efficiency of a company controlling the costs and expenses associated with business operations. OPERATING PROFIT RATIO Year PBIT
Profit before Interest & Tax(PBIT)/Net Sales 2010 6068.67
NET SALES PBIT x 100/NS OPERATING PROFIT RATIO Year PBIT NET SALES PBIT x 100/NS
18153.19 6068.67 x 100/18153.19 = 33.43 Profit before Interest & Tax(PBIT)/Net Sales 2009 4844.06 15611.92 4844.06 x 100/15611.92 = 31.02
Implication: Operating profit ratio is greater than the industrial average i.e. 22.34. This implies that the company is able to sustain its profits even after paying for variable cost of production such as wages etc. RETURN ON CAPITAL EMPLOYED Industry average is 106.57. The firms return on capital employed is very less. The long term funds of owners and creditors are not efficiently used i.e. the less efficient is use of capital employed. Ratio = 34.60 (2009) 42.64(2010) EARNING PER SHARE Industry average is 30.01. Our firms’ EPS is less. The profit available to equity share holder in per share basis is very less.
Ratio = 8.69 (2009) 10.64(2010)
ACTIVITY OR TURNOVER RATIO:
Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios, asset utilization ratios, or asset management ratios. Two commonly used asset turnover ratios are receivables turnover and inventory turnover .
INVENTORY TURNOVER RATIO:
A measure of the number of times a company's inventory is replaced during a given time period. INVENTORY TURNOVER RATIO Year CL. STOCK NET SALES NS/CL. STOCK INVENTORY TURNOVER RATIO Year CL. STOCK NET SALES NS/CL. STOCK IMPLICATION
Net Sales/ Average (or closing) Stock 2010 4549.07 18153.19 18153.19/4549.07 = 3.99 Net Sales/ Average (or closing) Stock 2009 4599.72 15611.92 15611.92/4599.72 = 3.39
Inventory turnover ratio is less than the industrial average i.e. 7.68, which implies that the inventory is not easily converted into cash. DEBTOR TURNOVER RATIO:
This ratio tell efficient are the credit sales of the company. DEBTOR TURNOVER RATIO Year NET SALES S. DEBTORS NS/ SD DEBTOR TURNOVER RATIO Year NET SALES S. DEBTORS NS/SD IMPLICATION
Credit sales or net sales/ Average (orclosing) debtors 2010 18153.19 858.80 18153.19/858.80 = 21.13 Credit sales or net sales/ Average (orclosing) debtors 2009 15611.92 668.67 15611.92/668.67 = 23.34
Debtors turnover ratio is less than the industrial average i.e. 46.30, which implies that the liquidity of the debtors of the firm is very less and debtors are not easily convertible into cash. INTERPRETATION OF RATIOS: LIQUIDITY RATIOS:
As compared to 2009 the liquidity condition has deteriorated marginally in 2010. As evident from the above, the ideal current ratio 2:1 has not been maintained. Similarly the ideal liquid or quick ratio of 1:1 has not been maintained. ITC’s low super quick ratio shows it is not in a position to quickly liquidate its assets and short term liabilities. But there is no such liquidity need for the country so the low ratio doesn’t matter
2009
2010
Current Ratio
1.73:1
1.10:1
Quick Ratio
0.76:1
0.44:1
Super Quick Ratio
0.22:1
0.14:1
PROFITABILITY RATIOS:
• • •
Gross profit has increased by 2.20 % which is a good sign for the company. The profit margin of 33.43 which has also increased by more than 2% is quiet impressive. ITC has regularly shown increase in profits and this is largely due to the ever increasing sales.
• •
•
Operating profit ratio has also improved due to reduction in operating expenses. The net margin of 22.37% is also quite impressive.
PAT of ITC, like PBIT, has shown an upward trend. The financing decisions and the tax have altered the overall impact on the profitability of the company. 2009
2010
Gross Profit Ratio
34.54%
36.74%
Net Profit Ratio
20.90%
22.37%
Profit Margin Ratio
31.23%
33.13%
Operating Profit Ratio
31.02%
33.43%
TURNOVER RATIOS: • Inventory Ratio of 3.99 shows that the company is efficient in selling its stock. • Inventory conversion rate has also improved from three and a half months to 3 months which is very efficient. • The ratio of 21.13 shows that company is good in getting the returns from the debtors and is in no viable risk of bad debts. • Working Capital turnover ratio is good. • Fixed asset ratio which is less has also improved. This also means that fixed assets have been utilized better to get more turnovers.
Inventory Turnover Ratio
2009 3.39:1
2010 3.99:1
Inventory Conv. Period
107 Days
91 Days
Debtors Turnover Ratio
23.34:1
21.13:1
Average Collection Period
16 Days
17 Days
Current Asset Turnover Ratio Net Current Asset Turnover Ratio Fixed Asset Turnover Ratio
1.91
2.23
2.40
2.66
1.84
1.98
Working Capital Ratio
12.85
17.99
PROFIT RATIOS BASED ON INVESTMENT: • Dividend per share of ITC is very good. Also the rise in dividend from 3.70 to 10 shows that the company is making good profits and proving high returns to its shareholders. • Return on capital employed is also very high showing that the shareholders are encouraged to buy more share whenever IPO takes place. • Even the long term debts are providing good returns.
Return On Capital Employed Earnings Per Share (Rs) Dividend Payout Ratio Net Profit Dividend Per Share (Rs) Return on Long Term Funds
2009 34.60%
2010 42.64%
8.65 50.06%
10.64 109.63%
3.70 34.75%
10 42.64%
Profit and loss statements 2010
2009
Schedule For the year ended For the year ended 31st March, 2010 31 stMarch, (Rs. in Crores)
Crores) IA. Gross Income IB. Net Income Gross Sales 23143.53 Less : Excise Duties and Taxes on Sales of Services Net Sales Other Income II.Expenditure Raw Materials etc.
(Rs. in
26862.98 23678.46
26259.6 19(xiv) 15
16
8106.41 18153.19 603.38 18756.571 6971.40
7531.61 15611.92 534.93 6146.85 5957.87
Manufacturing, Selling etc. Expenses Depreciation III.Profit Profit before Taxation Provision for Taxation Profit after Taxation Profit brought forward Available for appropriation
17
18
5161.15 608.71 12741.26
4813.83 549.41 11321.11
6015.31 1954.31 4061.00 858.14 4919.14
4825.74 1562.15 3263.59 724.45 3988.04
406.10
1500.00
IV.Appropriations
General Reserve Proposed Dividend - Ordinary Dividend - Special Centenary Dividend Income Tax on Proposed Dividend - Current year - Earlier year’s provision no longer required Profit carried forward Earnings Per Share (Face Value Re. 1.00 each) Basic Rs. 8.66 Diluted Notes to the Accounts Segment Reporting Related Party Disclosures Significant Accounting Policies
1718.18 2100.00 634.15 (0.60) 61.31 4919.14
1396.53 237.34 (3.97) 858.14 3988.04
19(iii) Rs. 10.73 Rs. 10.62
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PRODUCTION/ PROCESSES ITC Translation Quality Standards ITC has combined expert translators and language management staff with comprehensive quality assurance processes to establish itself as a language industry leader. Drawing on translation industry best practices and metrics, such as those set forth in ISO 9001:2000 and EN 15038, ITC’s quality management system involves project management workflows, client communication procedures, and strict requirements regarding translator selection. Each translation project, no matter how small or how many languages, is carried out in accordance with this strict QA methodology. These linguistic QA processes are fully documented, regularly audited, and continuously fine-tuned based on years of feedback from partners, clients, and vendors. This continuous improvement system allows ITC to streamline its processes in order to meet clients’ needs as efficiently as possible.
Specific linguistic QA processes implemented by ITC include having a second nativespeaking linguist proofread all projects prior to client delivery. Nothing is delivered until it has been quality checked and approved by multiple team members. ITC GLOBAL TRANSLATIONS has developed specific checklists for every step of the localization process, including translation, DTP, proofreading, final quality control, etc. As part of the company’s continuous improvement cycle, all translators receive regular feedback on the quality of their work. Thanks to these quality checks, you can disseminate your translated materials with confidence knowing that they meet the highest of linguistic standards. ITC’s well-established working relationships are a testament to ITC’s high quality services. With such a strong record of client satisfaction, ITC is confident in its ability to outperform the competition and exceed client expectations.
ITC Translation Confidentiality Agreement ITC understands that your materials may be sensitive or confidential in nature, and we take this confidentiality seriously. In order to obtain access to these materials, as necessary for translation or localization purposes, ITC is generally willing to sign and comply with any non-disclosure or confidentiality agreement that clients may require. Furthermore, all of ITC’s sub-contractors are required to sign .
e-Choupal
The Big Picture:
ITC's Agri Business Division, one of India's largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. The Value Chain - Farm to Factory Gate:
'e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abun dant natural resources. Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity. Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, 'e-Choupal' leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA. 'e-Choupal' makes use of the physical transmission capabilities of current intermediaries aggregation, logistics, counter-party risk and bridge financing -while disintermediating them from the chain of information flow and market signals .
With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers - called sanchalaks - themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers' doorsteps (decision making is now information-based). Real-time information and customised knowledge provided by 'e-Choupal' enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the 'mandi' system for price discovery, 'e-Choupal' eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs. 'e-Choupal' ensures world-class quality in delivering all these goods & services through several product / service specific partnerships with the leaders in the respective fields, in addition to ITC's own expertise. While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.
Research & Development
ITC is committed to delivering world-class products and services. This requires a clear focus on continuously striving to create a higher value to customers by achieving excellence in all Company's operations. Business excellence calls for a passionate focus on technology, products, services, processes and an operating environment firmly anchored to an impregnable foundation of Quality.
ITC firmly believes that quality is not a specifically assignable task. It needs to be firmly rooted and institutionalized in the culture and value system of the Company. ITC nurtures a culture of striving for continuous improvement in quality, be it in products, services, systems or performance. The Company is committed to the establishment of systems and processes to promote organisational creativity and innovation. ITC's development of its Integrated Quality Management System (IQMS) is based on its strong foundation of implementing ISO 9001:2000, ISO 14001, OHSAS 18001, SA 8000, HACCP (for Foods) and IQRS (performance rating and benchmarking of the quality management system). Likewise, ITC's strategic initiatives for developing its people have been based on participative management concepts like QC (Quality Control), TQM (Total Quality Management), KSS (Kaizen Suggestion Scheme), 5S, Six Sigma.
All ITC manufacturing units have ISO quality certification. Almost all contract manufacturing units in the Foods Business and all large hotels have food safety and quality systems certified by accredited 'third party' in accordance with 'Hazard Analysis Critical Control Points' (HACCP) standards. Additionally, the quality of all FMCG products of the Company is regularly monitored through 'Product Quality Rating System' (PQRS). The Leaf Tobacco and Printing & Packaging businesses have achieved world-class ratings in the 'International Quality Rating System' (IQRS) for business excellence in which key processes are rated against international benchmarks and certified by accredited 'third party' independent assurance providers. ITC's Research & Development Centres
At ITC's Research & Development Centres at Bengaluru, Bhadrachalam and Rajahmundry , the Company has assembled a pool of world-class scientists focused on providing the requisite R&D support to its established and new businesses enabling the Company to consistently attain internationally benchmarked quality standards and constantly offer product innovations. ITC R&D Centre at Bengaluru provides systemized service to the entire range of ITC's businesses through Product Technology Cells, Common Service Modules, Advanced Research Initiatives and networking with national and international R&D centres. Product Technology Cells (PTCs) are product-specific. Each PTC caters to the needs of the businesses through Market Intelligence, Product Testing & PQRS services, Prototyping services through advanced pilot plants, flavour and fragrance development services, periodic audit of factory quality systems and Product Knowledge and Training Workshops. PTCs assist businesses through sensory evaluations by highly trained and specialised panelists. Common service modules like Packaging and Advanced Analytical labs offer their services across all businesses.
ITC R&D Centres are manned by highly qualified and trained scientists specialised in their fields. The labs and pilot plants have ultra modern, state-of-the-art testing and prototyping facilities. The laboratory at Bengaluru has obtained accreditation from NABL (National Accreditation Board for Testing & Calibration of Laboratories) for ISO 17025 for key testing protocols.
ITC Corporate R&D located in Bengaluru undertakes research programs for multiple ITC businesses built on a common set of core competencies. The initial sets of core competency areas identified are: Plant Breeding and Genetics, Agronomy, Microbiology, Molecular Biology, Silviculture, Cell Biology, Proteomics, Genomics, Biochemistry and Ingredient Sciences. The facility aims to create 'Centres of Excellence' in these areas.
ITC's R&D programme at Bhadrachalam is the core of the Company's fibre strategy for its Paperboards and Specialty Papers business. This state-of-the-art research centre is consistently striving to improve the productivity of several tree species, in order to give attractive land-use alternatives to traditional farmers and wasteland owners. So far, more than 100 highyielding, fast-growing and disease resistant 'Bhadrachalam' clones have been produced on a commercial scale, including 23 site-specific clones adapted to problematic soils. The productivity of these saplings is 6-9 times that of normal seedlings. ITC's comprehensive R&D facilities at Rajahmundry in Andhra Pradesh cover all aspects of tobacco crop cultivation in collaboration with the Central Tobacco Research Institute. Tobacco Board, ITC pioneered FCV tobacco cultivation in India and introduced the Burley and HDBRG varieties. ITC's continued focus on crop development has resulted in new varieties of seeds and hybrids in Andhra Pradesh and Karnataka, which have significantly improved farm yields and helped fulfill the demands of a dynamic global market. The Company's R&D team collaborates with other centres of excellence, and leverages expertise from several leading institutes including the University of Agricultural Science, Bengaluru; Indian Institute of Science, Bengaluru; CSIOR, Australia and CSIR, South Africa. Catering to the need of ITC's Lifestyle Business is a contemporary master Design Facility at Gurgaon. It offers R&D facilities that have enabled the Company to offer internationally benchmarked fashion collection every season.
Conclusions (CSR and AWARDS) 2011
The Padma Bhushan, one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation.
2010 The U.S.-India Business Council (USIBC) Award for Global Leadership. 2007
SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich.
2006 Business Person of the Year from UK Trade & Investment, the UK Government
organisation that supports overseas businesses in that country. 2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress. 2005 Honoured with the Teacher's Lifetime Achievement Award. 2001
Manager Entrepreneur of the Year from Ernst & Young. Retail Visionary of the Year from Images, India's only fashion and retail trade magazine.
1998 Honorary Fellowship from the All India Management Association 1996 Distinguished Alumni Award from IIT, Delhi. 1994 Marketing Man of the Year from A&M, the leading marketing magazine. 1986 Meridien Hotelier of the Year. Major Awards Over the Years
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ITC Limited was presented the FICCI Award for Outstanding Achievement in Rural and Community Development by the Finance Minister, Shri Pranab Mukherjee (2010). Mr K Vaidyanath won the Best Performing CFO in the FMCG and Retail Sector at the 5th edition of the CNBC TV 18 CFO Awards (2010). ITC ranked 2nd among top companies in India and 7th in Asia in the first of its kind Asian Sustainability Rating released by CSR Asia (2010). ITC became the first Indian Company to gain Membership with WWF-GFTN for Responsible Forestry (2010).
ITC was awarded the Corporate Award for Social Responsibility from The Energy and Resources Institute (TERI) (2008).
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ITC was conferred the Corporate Social Responsibility Crown Award for Water Practices from UNESCO and Water Digest (2008).
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ITC Hotels topped the Hewitt Best Employer in Asia (Hospitality) Study (2008).
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ITC won the top UNIDO Award at the International Conference on Sharing Innovative Agri Business Solutions at Cairo (2008). In the first-of-its-kind S&P Environmental, Social and Corporate Governance (ESG) ratings, ITC ranked second among top Indian companies (2008). Chairman Y C Deveshwar was awarded the SAM/SPG Sustainability Leadership Award in Zurich (2007). ITC won the National Award for Excellence in Corporate Governance from the Institute of Company Secretaries of India (2007). ITC won the Asian CSR Award for Environmental Excellence, given by the Asian Institute of Management (2007). ITC received the Readers' Digest Pegasus Award for Corporate Social Responsibility (2007).
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ITC won the NASSCOM Award in the FMCG Sector (2007).
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Chairman Y C Deveshwar received the Business Person of the
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ITC e-Choupal won the Stockholm Challenge Award (2006). ITC was the first Indian company and second in the world to win the Development Gateway Award for its trail-blazing e-Choupal initiative (2005). ITC won the prestigious Corporate Social Responsibility Award from The Energy and Resources Institute (TERI) for its e-Choupal initiative (2005). ITC’s e-Choupal initiative won the Inaugural World Business Award at Marrakesh (2004).
Awards ITC's e-Choupal has won numerous awards: •
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United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal. The Ashoka - Changemakers 'Health For All' Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals. The Stockholm Challenge 2006 . This award is for using information technology for the economic development of rural communities. Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations. The first of its kind in India, based on parameters of number of lives impacted, degree of impact on organization and environment, uniqueness, leverage of resources and whether it was scalable and sustainable, e-Choupal was declared as one of 'India's Best Innovations'. The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian company and the second in the world to win this prestigious award. The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005' . The Company received this award for its e-Choupal and social and farm forestry initiatives that are impactfully transforming lives and landscapes in rural India.
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The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute(TERI) for its e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. The inaugural 'World Business Award' , instituted jointly by the International Chamber of Commerce (ICC), the HRH Prince of Wales International Business Leaders Forum (IBLF) and the United Nations Development Programme (UNDP) . This award recognises companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The 'Enterprise Business Transformation Award' for Asia Pacific (Apac) , instituted by Infosys Technologies and Wharton School of the University of Pennsylvania. PC Quest's IT Implementation Award in the 'Best Project' category. The Golden Peacock Innovation Award 2004. The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a recognition of ITC's successful integration of its IT usage with its business processes. The Seagate Intelligent Enterprise of the Year 2003 Award , for the most innovative usage of Information Technology.
CSR activities:
ITC's diversified business portfolio has enabled the Company to create and nurture numerous farmer partnerships in many value chains. These cover multiple crops and geographies. Leveraging these partnerships, ITC has created a number of unique community development programmes by synergising its social sector initiatives with its business plans. ITC believes that the inter-dependence between its agri-based businesses and the farm sector constitutes a sustainable platform to enlarge its contribution to the Indian rural sector. The core principles that drive these initiatives are: ·Customise the development model to address the diversity of rural India. ·Enable even marginal farmers to access knowledge to compete on an equal footing in the market place. ·Empower rural communities, so that development planning and implementation are participatory.
ITC's rural development initiatives embrace several critical areas: ·Web-enablement of the Indian farmer to help him access relevant knowledge and services to enhance farm productivity Through the e-Choupal initiative, ITC aims to confer the power of expert knowledge on even the smallest individual farmer. Thus enhancing his competitiveness in the g lobal market.
The immense potential of Indian agriculture is waiting to be unleashed. The endemic constraints that shackle this sector are well known - fragmented farms, weak infrastructure, numerous intermediaries, excessive dependence on the monsoon, variations between different agro-climatic zones, among many others. These pose their own challenges to improving productivity of land and quality of crops. The unfortunate result is inconsistent quality and uncompetitive prices, making it difficult for the farmer to sell his produce in the world market. ITC's trail-blazing answer to these problems is the e-Choupal initiative; the single-largest information technology based intervention by a corporate entity in rural India. Transforming the Indian farmer into a progressive knowledge-seeking netizen. Enriching the farmer with knowledge; elevating him to a new order of empowerment. e-Choupal delivers real-time information and customised knowledge to improve the farmer's decision-making ability, thereby better aligning farm output to market demands; securing better quality, productivity and improved price discovery. The model helps aggregate demand in the nature of a virtual producers' co-operative, in the process facilitating access to higher quality farm inputs at lower costs for the farmer. The e-Choupal initiative also creates a direct marketing channel, eliminating wasteful intermediation and multiple handling, thus reducing transaction costs and making logistics efficient. The e-Choupal project is already benefiting over 3.5 million farmers. Over the next decade, the e-Choupal network will cover over 100,000 villages, representing 1/6th of rural India, and create more than 10 million e-farmers.
The Role of PR
Basic Functions
Handle special PR events such as sponsorship, launching of new products or services, or other activities the firm supports in order to gain public attention through the press without advertising directly. Build and maintain positive relationships with media, PR agencies and private sector entities as well as special interest groups to help support corporate goals and strategies. Own the development and execution of a programmatic and integrated approach that supports ITC ongoing event requirements. Be responsible for overall planning and management of corporate and industry events for the company, including tradeshows, seminars, executive briefings, etc Duties & Responsibilities
Prepare / edit publication material for internal and external audiences, including company
