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ENDURING VALUE
INDIA TOBACCO
COMPANY
VISION MISSION VALUES
PROBLEM SOLVING APPROACHES
Enduring Value
Presented by :
Koushik Dutta
School of Management Sciences
Bengal Engineering and Science University, Shibpur
Journey from Imperial Tobacco Company of India to India Tobacco Company
ITC facts HQ- Kolkata,WB
Founded
24 August 1910 (as Imperial Tobacco
Company of India)
Incorporation
1970 (as India Tobacco Company)
1974 (as I.T.C. Limited)
2001 (as ITC Ltd)
Annual Turnover
$7 billion
Market Capitalization
Over $45 billion
Chairman
Yogesh Chander Deveshwar
(Mech Eng- B. Tech, IIT-D)
Forbes Ranking
2007- #1256 Forbes Global 2000
2009- #987 only Indian FMCG, FG 2000
#95 Forbes World's Most reputable Company
#India's second largest exporter of
agricultural products.
One of the India's biggest foreign exchange
earners (US $ 2 billion in the last decade)
“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.”
Vision
Mission
“To enhance the wealth generating capability of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.”
Enduring Value
• Trusteeship
Core Values
• Innovation
• Respect For People • Excellence
• Customer Focus
• Nation Orientation
Problem Solving Approach
Triple
Bottom
Line
Approach
360
Degree
Appraisal
e- Choupal
e-Choupal is an initiative to link directly with
rural farmers via the Internet for procurement
of agricultural and aquaculture products like
soybeans, wheat, coffee, and prawns. e-
Choupal tackles the challenges posed by Indian
agriculture, characterized by fragmented farms,
weak infrastructure and the involvement of
intermediaries. The programme installs
computers with Internet access in rural areas of
India to offer farmers up-to-date marketing and
agricultural information.
e- Choupal – a rural innovative approach
The problem describes the opportunities and challenges in the cigarette industry in India. It suggests
that there are tremendous opportunities for growth in the cigarette industry. However, there are
challenges due to the health hazards associated with cigarette smoking, distortion in the tax system as
applied to the cigarette industry, and restrictions on smoking placed by new legislation. Further, there
are challenges in the market due to smuggling, contraband products, and other issues. ITC Limited as a
dominant player in the industry with a significant dependence on tobacco and tobacco products
promising to pursue the triple bottom line approach by focusing on economic, environmental and social
value. There is a need for the company to decide on some directions for the future to live up to the
promise of a triple bottom line approach.
Triple Bottom Line Approach
Corporate Social Responsibility towards the nation
Environment
 Water Positive- 11 years in a row
 Carbon Positive- 8 consecutive
years
 Solid Waste Recycling Positive- For
the last 6 years
 Soil & Moisture Conservation to
1,16,000 Hectares
 40% Renewable energy is used in
ITC
 Greenest Luxury Hotel Channel
(LEED Platinum certified)
 Social and Farm Forestry initiative
has greened over 1,42,000 hectares
Social
 Strengthening agri-production base
of nearly 4 lakh farmers
 Primary Education initiative has
educated over 3,00,000 children
 e-Choupal initiative is the world’s
largest rural digital infrastructure
benefitting over 4 million farmers
 Women’s Empowerment initiative
has created nearly 40,000
sustainable livelihoods
 Livestock Development initiative
has provided animal husbandry
services for over 8,00,000 milch
animals
Economic
 Annual Turnover $7 billion
 Market Capitalization Over $45
billion
 26% compound annual growth in
total shareholder returns over the
last 17 years
 30,000 direct employment is
provided by ITC group
 Diversified multi-business
conglomerate - FMCG, Hotels,
Paperboards & Packaging, Agri
Business and Information
Technology
 World Class branding
360
Degree
Appraisal
Immediate
Supervisor
Peers
Subordinat
es
Self
Customers
Top
Manageme
nt
360 Degree Appraisal
The ITC Leadership Board of
Directors »
Audit Committee
»
Compensation
Committee »
Nominations
Committee »
Investor Service
Committee »
Sustainability
Committee »
Corporate Management
Committee »
Divisional/ Strategic
Business Unit (SBU)
Corporate Functions
Business includes: FMCG, Hotels,
Paperboards, Specialty Papers &
Packaging, Agri Business and
Information Technology
Planning and Treasury,
Accounting, Taxation, Risk
Management, Legal,
Secretarial, EHS, Human
Resources, Corporate
Communications, Corporate
Affairs, Internal Audit and
Research & Development
Headed by a divisional/ SBU Chief Executive Headed by a HOD Corporate Functions
PROBLEM SOLVING INITIATIVES FOR THE NATION AND
ITS CITIZENS
• Use of renewable energy sources. (41% of its energy
consumption)
• Forestry projects in wastelands.
• Reduce specific water consumption and augment
rainwater harvesting.
• Minimizing waste generation, maximizing reuse &
recycling and using external post-consumer waste as
raw material
• Life Cycle Assessment studies
• Afforestation programme has greened over 1,42,000
hectares, which generated over 64 million person
days of employment.
• Soil and moisture conservation to over 1,16,000
hectares
• Reduce-Reuse-Recycle Approach
Market Capitalization
 2010- $30 billion
 2011- $33 billion
 2012- $35 billion
 2013- $45 billion
 © Sustainability Reports
Thank
you

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Indian Tobacco Company

  • 2. INDIA TOBACCO COMPANY VISION MISSION VALUES PROBLEM SOLVING APPROACHES Enduring Value Presented by : Koushik Dutta School of Management Sciences Bengal Engineering and Science University, Shibpur
  • 3. Journey from Imperial Tobacco Company of India to India Tobacco Company ITC facts HQ- Kolkata,WB Founded 24 August 1910 (as Imperial Tobacco Company of India) Incorporation 1970 (as India Tobacco Company) 1974 (as I.T.C. Limited) 2001 (as ITC Ltd) Annual Turnover $7 billion Market Capitalization Over $45 billion Chairman Yogesh Chander Deveshwar (Mech Eng- B. Tech, IIT-D) Forbes Ranking 2007- #1256 Forbes Global 2000 2009- #987 only Indian FMCG, FG 2000 #95 Forbes World's Most reputable Company #India's second largest exporter of agricultural products. One of the India's biggest foreign exchange earners (US $ 2 billion in the last decade)
  • 4. “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.” Vision Mission “To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value.”
  • 6. • Trusteeship Core Values • Innovation • Respect For People • Excellence • Customer Focus • Nation Orientation
  • 8. e-Choupal is an initiative to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. e- Choupal tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of intermediaries. The programme installs computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information. e- Choupal – a rural innovative approach
  • 9. The problem describes the opportunities and challenges in the cigarette industry in India. It suggests that there are tremendous opportunities for growth in the cigarette industry. However, there are challenges due to the health hazards associated with cigarette smoking, distortion in the tax system as applied to the cigarette industry, and restrictions on smoking placed by new legislation. Further, there are challenges in the market due to smuggling, contraband products, and other issues. ITC Limited as a dominant player in the industry with a significant dependence on tobacco and tobacco products promising to pursue the triple bottom line approach by focusing on economic, environmental and social value. There is a need for the company to decide on some directions for the future to live up to the promise of a triple bottom line approach. Triple Bottom Line Approach
  • 10. Corporate Social Responsibility towards the nation Environment  Water Positive- 11 years in a row  Carbon Positive- 8 consecutive years  Solid Waste Recycling Positive- For the last 6 years  Soil & Moisture Conservation to 1,16,000 Hectares  40% Renewable energy is used in ITC  Greenest Luxury Hotel Channel (LEED Platinum certified)  Social and Farm Forestry initiative has greened over 1,42,000 hectares Social  Strengthening agri-production base of nearly 4 lakh farmers  Primary Education initiative has educated over 3,00,000 children  e-Choupal initiative is the world’s largest rural digital infrastructure benefitting over 4 million farmers  Women’s Empowerment initiative has created nearly 40,000 sustainable livelihoods  Livestock Development initiative has provided animal husbandry services for over 8,00,000 milch animals Economic  Annual Turnover $7 billion  Market Capitalization Over $45 billion  26% compound annual growth in total shareholder returns over the last 17 years  30,000 direct employment is provided by ITC group  Diversified multi-business conglomerate - FMCG, Hotels, Paperboards & Packaging, Agri Business and Information Technology  World Class branding
  • 12. The ITC Leadership Board of Directors » Audit Committee » Compensation Committee » Nominations Committee » Investor Service Committee » Sustainability Committee » Corporate Management Committee » Divisional/ Strategic Business Unit (SBU) Corporate Functions Business includes: FMCG, Hotels, Paperboards, Specialty Papers & Packaging, Agri Business and Information Technology Planning and Treasury, Accounting, Taxation, Risk Management, Legal, Secretarial, EHS, Human Resources, Corporate Communications, Corporate Affairs, Internal Audit and Research & Development Headed by a divisional/ SBU Chief Executive Headed by a HOD Corporate Functions
  • 13. PROBLEM SOLVING INITIATIVES FOR THE NATION AND ITS CITIZENS • Use of renewable energy sources. (41% of its energy consumption) • Forestry projects in wastelands. • Reduce specific water consumption and augment rainwater harvesting. • Minimizing waste generation, maximizing reuse & recycling and using external post-consumer waste as raw material • Life Cycle Assessment studies • Afforestation programme has greened over 1,42,000 hectares, which generated over 64 million person days of employment. • Soil and moisture conservation to over 1,16,000 hectares • Reduce-Reuse-Recycle Approach Market Capitalization  2010- $30 billion  2011- $33 billion  2012- $35 billion  2013- $45 billion  © Sustainability Reports