CONCEPT MANAGEMENT

PROJECT REPORT
ON
ITC FOOD SUCCESSFUL TURNAROUND

SUBMITTED TO: SUBMITTED BY:

MS.SHAFALI SHUBHAM RANA
B.COM/LLB-4 sem
th

181/15
Uils,pu

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 ACKNOWLEDGEMENT
WITH GREAT PLEASURE, WE EXTEND OUR GRATITUDE TOWARDS PROF.

SHAFALI, UNDER WHOSE VALUABLE GUIDANCE, CONSTANT INTEREST

AND ENCOURAGEMENT WE HAVE BEEN ABLE TO COMPLETE THE

PROJECT SUCCESSFULLY.

THIS PROJECT IS A CONSTANT SOURCE OF INSPIRATION FOR US IN THE

FUTURE.

I AM ALSO THANKFUL TO ALL THOSE WHO HELPED US CONSTANTLY IN

THE PREPARATION OF THIS PROJECT DIRECTLY OR INDIRECTLY.

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 INDEX

Sr. No. Contents Page

No.
1. Introduction 4
1. Itc food 5
2. Background 7
3. Market & Competition 8
Ready to Eat
Confectionary
Staples
Biscuits
Snacks
Juices and beverage
4. Financial data(sale) 14
5. Shareholder value track record 19
6. Strategy 22
7. Structure 25
8. Culture 27
Vision
Mission
Core Values
Philosophy

9. Questioneer 29
10. Bibliography 32

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INTRODUCTION

ITC was established on Aug 24, 1910 as the Imperial Tobacco Company of India
Ltd in Kolkata and its name was changed to I.T.C. Limited in 1974 and finally
they changed it to ITC Ltd in 2001. ITC has diversified presence in tobacco, foods
and confectionery, apparel, paper boards, packaging and hotel businesses.

The Foods Division is the most recent diversification of the ITC group. They
entered in this business in 2001. They launched KoI brand under Ready to Eat
segment .They expanded with brand launches in the Confectionery, Staples and
Snacks Food segments.

ITC has fulfilled all needs and requirements of the people. If the company
maintains its standard or increases it in the near future it surely will attain the no. 1
position in the market.

Here, through our report we have tried to study the environment in which ITC
foods operate. We have also analyzed the market of ITC foods and the competition
involved. We have also studied the various strategies adopted by company to
achieve its goals and the structure and the culture developed within ITC to support
its objective. Also, an effort has been made to project ITCs future prospects, sales
and profits.

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INTRODUCTION ITC FOOD

ITC made its entry into the branded & packaged Foods business in August 2001
with the launch of the Kitchens of India brand. A more broad-based entry has been
made since June 2002 with brand launches in the Confectionery, Staples and Snack
Foods segments.
For ITC, the packaged foods is an ideal business to utilize ITC's proven strengths
in the areas of hospitality, branded cuisine, contemporary packaging and sourcing
of agricultural commodities. ITC's world famous restaurants like the Bukhara and
the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC
has a deep understanding of the Indian taste and the expertise required to translate
this knowledge into delightful dining experiences for the consumers. ITC has stood
for quality products for more then 100 years to the Indian consumer and several of
its brands are today internationally benchmarked for quality.

All products of ITC's Foods business available in the market today have been
crafted based on consumer insights developed through extensive market research.
Apart from the current portfolio of products, several new and innovative products
are under development in ITC's state-of-the-art Product Development facility
located at Bengaluru.
ITC has last more then 100 years established a very close business relationship
with the farming community in India and is currently in the process of enhancing
the Indian farmer's ability to link to global markets, through the e-Choupal
initiative, and produce the quality demanded by its customers. This long-standing
relationship is being utilized in sourcing best quality agricultural produce for ITC's
Foods business.

The Foods business is today represented in categories in the market. These are:

1. Ready To Eat Foods

2. Staples
3. Confectionery
4. Snack Foods
5. Juices and beverage
6. spices

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In order to assure consumers of the highest standards of food safety and hygiene,
ITC is engaged in assisting outsourced manufacturers in implementing world-class
hygiene standards through HACCP certification. The unwavering commitment to
internationally benchmarked quality standards enabled ITC to rapidly gain market
standing in all its 11 brands:

1. Kitchens of India
2. Aashirvaad
3. Sunfeast
4. mint-o
5. 5.Candyman
6. Bingo!
7. B-natural
8. Gum on
9. Sunbean
10.Fabelle
11.Yipee

Recently, on Aug 1, 2014, ITC Foods has drawn up plans to extend its Kitchen of
India brand to frozen foods.

ITCs Branded Packaged Foods business continues to expand with sales growing
by 9% over the previous year. Apart from the development costs of new products,
the business has had to contend with the recent economic slowdown and severe
cost increases in input commodities including wheat, vegetable oil, maize and
skimmed milk powder, in addition to the soaring fuel prices. Having acquired
reasonable scale in a relatively short span of time, the business is progressively
focusing on consolidating the portfolio in certain categories, improving market
servicing and driving supply chain efficiencies.

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 BACKGROUND NOTE (ITC)

1. ITC was established on August 24, 1910 as the Imperial Tobacco Company
of India Limited in Kolkata. Initially, the company was involved in the
trading of imported cigarettes.
2. In 1925, in a backward integration move, the company started a packaging
and printing business.
3. The name of the company was changed to India Tobacco Company Limited
(I.T.C. Ltd.) in 1974.
4. In 1975, I.T.C. Ltd., through ITC-Welcomgroup, tied up with the US-based
Sheraton Corporation to enter the hospitality industry. It acquired its first
hotel in Madras (later renamed Chennai) in Tamil Nadu and called it the
Welcomgroup Chola Sheraton.

5. I.T.C. Ltd established ITC Bhadrachalam Paperboards Ltd. (IBPL) in 1975.

The company started production at its integrated pulp and paper/board
manufacturing facility at Bhadrachalam, Andhra Pradesh, in 1979.

6. In 1990, I.T.C. Ltd. set up an International Business Division (IBD) for

export of agricommodities.
7. I.T.C. started a greeting cards business under the brand name Expressions in
the year 2000.
8. In the same year, I.T.C. also entered the fashion retailing business by
extending its well known cigarette brand Wills. The retail outlets were called
Wills Lifestyle and offered premium leisure wear for men and women under
the Wills Sport brand.

9. In September 2001, the company was renamed ITC Ltd (without full stops,
and with no meaning attributed to the alphabets).

10.In 2001, ITC made an entry into the foods business.

11.In 2002, the company launched another clothing brand, John Players, which
targeted the urban youth.
12.In 2004, ITC was one of eight Indian companies to make it to the Forbes
A List8 which featured 400 of the worlds best big companies.
13.In Oct 2005, ITC has launched an exclusive line of prestige fine fragrances
and personal care products under the Essenza Di Wills brand.

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 14.In late 2007, ITC launched Fiama Di Wills soaps and shampoos following
the success of Essenza Di Wills.

15.In Dec 2007 ITC launches ECF (Elemental Chlorine Free). ITC is the first
and only Company in India using the ECF technology.

Market and Competition

Indian Foods market is a monopolistic market. There are many competitors in all
the categories and although they all have similar products available at similar
prices, they are trying to prove themselves different through their marketing
strategies. However, entry to this business is easy and ITC has utilized this fact
very efficiently to their benefit as they entered into the several categories among
this Foods business.

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READY TO EAT
ITC entered into the branded and packaged foods business in with the launch of
Kitchens of India brand. In 2004, the company launched KoI brand fruits and spice
conserves and cooking pastes. The fruits and spice conserves, were developed
jointly with Karen Anand, a food expert. Priced at Rs. 70, these were targeted at
the premium segment. The KoI cooking pastes, which were priced at Rs.30 for a
100g pack, also targeted the high-end market. Multi-purpose cooking pastes were
also launched under the Aashirvaad brand and these were priced at Rs. 10 for 80g
pack. The manufacturing of these products was outsourced to contract
manufacturers for saving the operating cost.

ITC entered the branded spices market in 2005 and the Instant Mix segment in
2006, both under the Aashirvaad Brand. As on April 2006, the total turnover in the
Indian ready-to-eat and ready-to-cook segments was only around Rs. 700 million,
but it continued to post an annual growth of 20%. By early 2006, though ITC had
captured a 35% market share in the ready-to-eat segment, MTR was the clear
market leader with close to 60% in market share. ITC exported 40-50% of KoI
brand products (in terms of volumes) to the US, Canada, the UK, Switzerland, and
Australia.

In May 2015, ITC planned to introduce ten more varieties under the KoI brand
within a price range of Rs. 35 to Rs. 98. In 2016, some new products have been
launched under Ready To Eat category like chutneys, curries, conserves, biryanis
(Noor Mahal, Bhori Biryani and some new range of products under Gharana
(Paneer Malai, Keema Mutter). After launching all these products ITC FOODS is
looking to share 50 to 60% of market by 2015-2016.Following are the major
competitors ITC is competing with in Ready to Eat category:

Brands Description
Gits produces the selected range of popular ready to
cook and instant foods that cover a range of ethnic
Gits
Indian cuisine-and where the recipes have "Global
pallete acceptance".

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 Offers packaged Bhel puri chats such as Sev Puri,
Haldirams Chana Masala, Samosa, Pakoras, Alu Tikki, Pao Bhaji,
Gol Gappa, Dhokla among others
Offers packaged sweets,syrups,namkeens, cookies,
Ethnic pickles, aloo Masala, Bhujia, Bhelpuri, Chana Dal,
Kitchens Kajui Ladoo and many more items.
MTR foods currently comprise twenty-two delicious
MTR and completely authentic Indian curries, gravies and
rice.
Priya has a range of popular traditional recipes starting
from Dal Makhani, Navaratan Kurma to Palak Paneer,
Priyafoods Paneer Butter Masala, Punjabi Chhole and Rajma
Masala along with true southern delicacies like Andhra
Veg Pulav, Mango Dal, Gongura Dal.

market share -Ready to eat

9%
8% Itc ltd.
42% MTR
KOHINOOR
35% OTHERS

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CONFECTIONERY
Confectionary market in India is about Rs.2500 crore. It is loosely divided into
seven categories:

1. Hard boiled candies

2. Toffies
3. Eclairs
4. Chewing gum
5. Bubble gum
6. Mints
7. lozenges

ITC has currently in market with its two brands Mint-o and Candyman.
ITCs Mint-O fresh secured a 17% share of Indian cough lozenges market ahead of
former leader Perfetti which only achieved 14.3% with chloromint. The Indian
giant marked the confectionary sector in 2002 and has only two brands mint-o
fresh and Candyman. But in overall confectionary market they are lagging
behind having just 3% market share as compared to market leader Perfetti with
more than 37% market and providing larger number of brands.

Perfetti van ITC Ltd. Nestle Cadbury

melle
Alpenliebe Candyman . Kit Kat Bubbaloo
Alpenliebe Minto . Kit Kat Lite Dairymilk
Creamfills . Milky Bar Eclairs
Alpenliebe . Munch % Star
Lollipop . Milk Gems
Big Babol Chocolate Perk
Center Fresh . Fun Bar Halls
Center Fruit . Polo
Center Shock . Polo Power
Chatar Patar mint
Chlor-mint . Munch Pop

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Chocotella Choc
Cofitos . clairs
Fruittella
Happydent
White
Protex
Happydent
Marbels
Mentos
Chocoliebe

market share -confectionary

itc ltd.
8%

42% perfatti van

malle
42%
cadbury

11% nestle
7%

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STAPLES

ITC entered the staples market in 2002 with wheat flour under the Aashirvaad
brand. In 2003, ITC extended the Aashirvaad brand to edible salt. By early 2006,
ITC had a 40% market share in the Rs. 6 billion packaged flour business. Its
closest competitor HLLs Annapurna brand was trailing behind with a market
share of 18%. The market was growing at 12%. Under its Aashirvad brand ITC
FOODS also launched salt, mixers, ready to cook pastes. In the Rs. 4 billion
organized salt market (as of 2006), Tata Salt was the market leader with a 28%
market share. ITC had only a 5% share of the market. Other players in this
business are HLL (Knorr Annapurna), Nirma (Shudh), Marico Industries
(Saffola), etc.

market share -Stapels

24%
ITC
42%
HILL
PILSBURY
13%
4th Qtr

21%

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BISCUITS:
Indian biscuit market is estimated to be around 5000 crore. Biscuit industry in
India in the organized sector produces around 60% of the total production, the
balance 40% being contributed by the unorganized bakeries. ITC with its premium
product, SUNFEAST, is acquiring a big share of market. Within few years, they
are able to get 12% share of the market.

Britannia ITC Ltd Parle Priyagold

(Sunfeast)
Tiger Marie Parle-g Butter Bite
Nutrichoice Dream cream Krack-Jack Classic Cream
Junior Milky Magic Monaco Butter Lite
Good Day, Fit kit Kreams Big Boss
50 50, Choco Nut Hide and Seek Marie Lite
Treat Butter Nut Milk Shakti Magic Gold
Pure Magic,
Milk Bikis
Good
Morning.

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 market share -buiscuit

8% 12% itc
10%
priyagold
32% britania
parle
38%
others

SNACKS:

Snacks industry overview

Snacks industry in India is worth 1800 Crores of Rs. and growing at 10% is one of
the largest markets in the world, out of which potato chips holds the major market
share of around 85%.

Product Price Product Price Product

(ITC Ltd) (Frito Lay) Price
(Haldiram)
Bingo Lays Namkeen
Rs. 5 Rs. 5 Rs. 5
Rs. 10 Rs. 10 Rs.
Rs. 20 Rs. 20 10
Lehar Namkeen Rs.
Rs. 5 20
Rs. 20
Kurkure
Rs. 5
Rs. 10

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 Rs. 20

Sales
12% 16%
Itc

27% fritolay
45% india
haldiram

JUICES AND BEVERAGE:

ITC entered the fruit-based juices and beverage market with the launch of
B-natural juices in january 2015.At present market share in the organised
juice segment is around 7% and itc hope it to get 10% next yrs .ITC has
roped bollywood food actress and fitness enthuasist Shilpa Shetty Kundra
face of B-natural juices amd beverage

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 market share -juices and beverage

7%
23%
ITC
32% tropicana
real
others
38%

SALES OF ITC FOOD

2010- 2011- 2012- 2013- 2014- 2015- 2016-17

11 12 13 14 15 16 (APPROX)
SALES 4482 5545 7012 8012 9038 9731 10500

The foods business is expanding rapidly with sales growth of 9% in the year
20016. This range of product includes more than 150 different products.
The growth of this sector in terms of product categorization is as follows.

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 Sales in biscuits category grew by 55%.
Sales in staples category grew by 52%
Sales in confectionary grew by 51%.
Sales in RTE grew by 35%

ITC Food is looking to expand its RTE category to maximize its profit

SHAREHOLDER VALUE TRACK RECORD

ITC has been a consistent performer in terms of shareholder value

creation. During the period 1995/96 to 2015/16, Total Shareholder
Returns have clocked compound annual growth rate of 23.3%
significantly outperforming the Sensex (10.6%).

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ITCS NEW CHALLENGES:
This food industry is the industry with very less profit margins. So low operation
cost is the key. Also, Indian middle class is price sensitive. In this area
international, national and also regional competition is very tough. With that
wheat, petrol and labor cost is increasing day by day. Different types of restrictions
imposed by the government are also playing a vital role in reducing profit margins.
For example, exporting non-vegetarian foods out of India is restricted. To cover
this up, ITC is trying to reduce cost of its biscuits by acquiring mass production of
wheat directly from farmers through its E-chaupal initiatives. Also in this way ITC
is able to reduce the price of its staples. As far as Confectionary market is
concerned, ITC is looking to launch its brand of chocolate in collaboration with an

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American company. After analyzing the food sector, one can say that it is one of
the toughest market to compete in as all the market giants are already there.

Major Strategies Adopted by ITC Foods

Entering the foods business was itself a strategic decision for ITC. While ITCs
core business, tobacco, was under pressure owing to several factors like
government bans on advertising and on smoking in public places, hikes in the
excise duty for cigarettes, and anti tobacco campaigns, ITC planned to deploy its
surplus in the packaged food business where it saw huge business potential.
Following are some of the strategies that ITC adopted to make its food business a
success:

Entering into less competitive or unexplored markets (Ready to eat,

Staples, Wafers): When ITC entered into the foods business in 2001, it
focused on unleashing the areas where the competition is very less or there is
no competition. It started with packaged ready to eat food and later extended
that to Aashirvaad brand of edible salt and Atta. Recently ITC has
announced its desire to forge in the frozen foods category in the domestic
market. Players in this category are limited and ITC hope to exploit this fact.
Also, in Bingo, although the competition is tough but there is only one
player with whom ITC has to compete i.e. Frito Lay. This strategy has
helped ITC to quickly establish itself in the above mentioned businesses.

Distribution Network: ITC already had a huge distribution network due to

its tobacco business. ITC used this network to distribute their biscuits and
wafers. This not only provided a good launch to their products but also
helped in boosting sales. Today, ITCs Bingo and Sunfeast are available at
nearly 1.8 million outlets whereas Parle is available at only 1.5 million
outlets.

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 Market differentiation (Ready to eat, Biscuits): ITC started packaged
foods business with the KoI brand of ready-to cook products. They were
positioned as premium products with target groups including tourists, NRIs,
etc. In Biscuits also, ITC launched differentiated products in each and every
segment. For e.g. it introduced an Orange Marie, a butterscotch cream
biscuit, chilli flakes in a biscuit and even honey flavor under the Sunfeast
brand.

In March 2005, ITC Foods launched Sunfeast Pasta, a whole wheat based
product targeted at children. It was expected to compete with products like
Nestles Maggie noodles. With this strategy ITC built for itself new markets.

Cost control strategy (all products): When ITC started the foods division,
its main challenge was to compete with the players who were already there.
To overcome this challenge, ITC realized that they have to offer products at
a price which is either equal or less than what the competitors are offering.
To do this, they planned to capitalize by leveraging the strength of the
groups other businesses. ITCs printing and packaging business provided
high-quality, cost-effective, and innovative packaging. ITC also enjoyed cost
advantages over its competitors owing to its electronic procurement system
called e-Choupal. This helped ITC to compete with the best.

Diversification of products (Biscuits, Wafers, and Ready to Eat): One of

the ITCs successful strategies has been the method of diversifications
among its various products. If we talk just about Bingo, ITC has come up
with 16 flavors in comparison to its competitor Lays of Frito Lay which
has only 4 major flavors. Same is the case with Ready to Eat food category
and Biscuits.

This strategy has helped ITC to attract a wide range of market.

Extensive advertising (Biscuit, confectionary, wafers): Just like a

Bollywood movie needs good publicity to be a super hit, every new product
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 launched in the market needs to be known to the consumers before it is
launched. Advertising is where ITC made the difference in comparison to its
competitors. They hired the best professionals and the best ambassadors in
the country to make their products famous. This is evident form the award
winning marketing campaign for Bingo and Minto Fresh. The tagline "Jab
Laila ko karna tha impress to majnu ne khayi mint o fresh" has stood the test
of times and is still widely known and remembered. Hiring the best people
from the film industry and sports (Sharukh Khan and Sachin Tendulkar for
Biscuits, Rakhi Sawant for Minto Fresh) showed ITCs urge to be the best.

On television, the company booked 10 to 15 spots per channel per day on

youth channels such as MTV and Star World, mass Hindi channels like Zee
and Star TV, and news channels. It also had around 20 spots on a variety of
radio channels and advertised in most leading national dailies. In the top-30
cities, over 1,000 outdoor hoardings advertised the product. According to
industry estimates, ITC spent close to Rs 100 crore on marketing.

This kind of promotion of products helped ITC to make its products known
to everyone and now it was not difficult to attract consumers.

Regular introduction of new products (all products): Having acquired

reasonable scale in a relatively short span of time, ITC realized that, to
remain in the competition it had to introduce new products regularly. ITC
has been expanding its distribution network aggressively and also their
product range. In biscuits and wafers range, it is launching new products or
flavors week after week. Same is the case with Ready to Eat and Kitchen of
India.

Innovation (all products): When the need to introduce new products

arrived, ITC shifted its focus on to the innovation. Also, ITC was innovative
in identifying the market or niche for all its products.

Maintenance of freshness and hygiene (all products): ITC positioned its

wheat flour on the health & hygiene and value for money terms. Success in
the staples business, especially in the branded and packaged wheat flour

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 business, depended on two factors an effective distribution network and
the quality of the product. Therefore, ITC attempted to ensure that the
supply chain was responsive, and laid emphasis on making accurate sales
forecasts using inputs from distributors, sales personnel and a well-managed
MIS system. To maintain freshness of the product, the company strove to
minimize the transit time by regulating the shippers to maintain company-
specific transit norms. The physical aspects of the supply chain like
warehouses and trucks were closely monitored to maintain cleanliness.

From Analyzers to Prospectors (Biscuits): When ITC entered the biscuits

market with Sunfeast in 2003, with three varieties of biscuits - glucose,
marie, and cream, they did what any new player in the market does,
imitating and emulating the leader that was Britannia. Their strategy was to
manufacture those products which are already a success in the market. But,
as ITC got hold of the market, it started to manufacture flavors which were
never heard of. This was the result of ITCs desire to exploit new product
and market opportunities.

All the above strategies and with the help of launch of Bingo in 2007, ITC finally
tasted success in its food business in 2008 when it became a profitable business for
the first time since its launch in 2001

Structure

ITC has a three-tier management structure.

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At the top are Chairman and Board of Directors, who are responsible for the
strategic supervision of ITC, its wholly owned subsidiaries and their wholly owned
subsidiaries. The ITC board is a balanced board comprising Executive and Non-
Executive Directors. The Board ensures that the Company has clear goals relating
to shareholder value and its growth. It sets strategic goals and seeks accountability
for their fulfillment. There are four board committees, namely, the Audit
Committee, the Nominations Committee, the Compensation Committee and the
Investor Services Committee.

At the second level is the Corporate Management Committee, which is responsible

for the strategic management of the company's businesses within Board-approved
direction/framework. It comprises all the Executive Directors and three or four key
senior members of management.

Third level consists of divisional CEOs of each business assisted by their

own divisional management committees. Corporate Functions of the Executive
Management Team includes Planning and Treasury, Accounting, Legal,
Secretarial, Human Resources, Communications, Internal Audit and Information
Technology.

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The companys organizational structure and governance processes are designed to
support effective management of multiple businesses while retaining focus on each
of them." This three-tier governance structure ensures that:

For and on behalf of the shareholders the company believes in incorporating

strategic governance in its work culture so as to ensure that despite being free from
involvement in the task of strategic management of the Company, it can be
conducted by the Board with objectivity, thereby sharpening and ensuring
accountability of management;

With mundane tasks of everyday executive management being delegated the

management remains focused on issues of immediate importance;

The Executive management of the individual businesses that are free of handling
strategic management responsibilities of ITC as a whole is then able to channelize
their energies and time in enhancing the effectiveness and overall growth of their
individual units.

Corporate Governance as defined by ITC is a systemic process by

which companies are directed and controlled to enhance their wealth-generating
capacity. A company employs vast sums of societal resources during this process
of wealth generation. ITC is of the firm belief that the governance process being
followed should ensure that these resources are used optimally to meet the
aspirations of its stakeholders and society. This is further reflected in the deep
commitment of the company to contribute to the Triple Bottom Line, which is the
development of the nations economic, ecological and social resources.

The company believes in empowering the executive management.

But corporate governance ensures a system of checks and balances to ensure that
these powers that are bestowed upon the executive management are used in a
responsible manner so as to meet shareholder and societal expectations. The core
strengths of ITC's governance philosophy are trusteeship, transparency,
empowerment and accountability, control and ethical corporate citizenship. The
practice of each of these creates the right corporate culture that fulfils the true
purpose of Corporate Governance.

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Overall, the structure of ITC has high complexity because of horizontal
differentiation within the organization. The most visible evidence is that of
specialization and departmentation. Complexity also increases because of spatial
differentiation.

The ITC Code of Conduct, as adopted by the Board of Directors,

is applicable to all Directors, senior management and employees of the Company.
This Code is derived from three interlinked fundamental principles, viz. good
corporate governance, good corporate citizenship and exemplary personal conduct.
The Code covers ITC's commitment to sustainable development, concern for
occupational health, safety and environment, a gender friendly workplace,
transparency and auditability, legal compliance, and the philosophy of leading by
personal example. Since non-adherence to the code is brought to the attention of
the immediate reporting authority, formalization is also there in ITC.

Decision-making is decentralized, as the company believes in giving

executive freedom to the management to drive the enterprise forward without
undue restraints but this freedom of management should be exercised within a
framework of effective accountability.

CULTURE

ITC's Vision

Sustain ITC's position as one of India's most valuable corporations through

world-class performance.
Create growing value for the Indian economy and the Company's
stakeholders.

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ITC's Mission

To enhance the wealth generating capability of the enterprise in a

globalizing environment
Deliver superior and sustainable stakeholder value.

ITC's Core Values

The companys Core Values are aimed at developing a performance-oriented

organization that is highly customer focused and also creates value for those
holding stake in it. It fully understands that it has a commitment to its stakeholders
to act as a guardian of the company from stakeholders point of view and deliver
results in a manner that actualizes stakeholders interest on a long-term basis.

It also delivers on the commitment to its customers by consistently addressing their

needs on product quality, value and overall satisfaction. It respects the values of
people and also encourages individuals to pursue their dreams, values their
differences and helps them to experiment in the pursuit of various opportunities.

ITC firmly believes in the concept of Excellence with their mantra being, we do
what is right, do it well and win. We will strive for excellence in whatever we do.
It is constantly in the pursuit of better and newer products, processes, services and
management practices. Apart from the interest of shareholders they also address
their commitment to the nation to generate economic value, at the same time
ensuring that in achieving these goals no compromises are made whatsoever in
complying with rules and regulations as specified by law.

ITCs Philosophy

ITC believes in practicing ethical behavior among the corporate citizen. The
company follows an HR policy that is regulated by Teamwork, Trust,
Collaboration, Mutuality,
Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It is also
deeply committed to make the company a gender friendly place for each individual
while also ensuring enhancement of equal opportunities for men and women,
preventing sexual harassment of any form and the adherence to good employment
practices. It is ensured that the interest of the company is foremost and in this

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context acceptance of any kind of gifts or payments from suppliers or customers is
viewed as a serious breach of company discipline. And such acts are also
considered as damaging to the reputation of the company.

High standards of house keeping and hygiene are followed to ensure excellent
physical working conditions. It is understood that all the directors, senior
management and employees shall conduct themselves in an honest manner and
avoid any conflict of interest.

The top officials and employees of ITC believe that ITC provides them freedom at
work and resources to experiment. Employees take pride in working for ITC for its
work culture, environment, and the way people are treated. They are consulted
before a new project\system is introduced and their concerns and suggestions
addressed. ITC also gives a lot of input to develop their skill and career. They give
utmost importance to equal opportunities, better work environment.

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