Professional Documents
Culture Documents
2)History
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 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. The Company's ownership
progressively Indianised, and the name of the Company was
changed 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-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the
Company's name were removed effective September 18, 2001.
The Company now stands rechristened 'ITC Limited'.
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 the 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.
n 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 operatonal in
the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under
the brand name 'Expressions'. In 2002, the product range was
enlarged with the introduction of Gift wrappers, Autograph
books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting
cards in eight languages and 'Expressions Paperkraft', a range
of premium stationery products. In 2003, the company rolled out
'Classmate', a range of notebooks in the school stationery
segment.
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 2007, the
Company introduced 'Miss Players'- a fashion brand in the
popular segment for the young woman.
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 mint-o 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 just seven 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.
1)Meaning of Name
ITC stands for “Imperial Tobacco Company” initially when it was
incorporated for the 1st time in 1924. Later on the name has
been changed to “Indian Tobacco Limited” in 1974. After that, 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-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the
Company's name were removed effective September 18, 2001.
The Company now stands rechristened 'ITC Limited'. There is no
specific meaning of ITC name is given on their website. But what
I think is that it is the name given to the company to signify the
operation of the company. Since ITC started its business in
tobacco industry, they have chosen the name to demonstrate
their nature of business and what exactly what they want to
perform.
1) Evolution of Name
ITC was incorporated on August 24, 1910 under the name of
'Imperial Tobacco Company of India Limited'. ITC had a humble
beginning and in the initial days it used to operate from a leased
office on Radha Bazar Lane, Kolkata. On its 16th birthday on
August 24, 1926, ITC purchased the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years
later company's headquarter building, 'Virginia House' came on
that plot. Progressively the ownership of the company Indianised,
and the name of the Company was changed to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses, the full stops in the
Company's name were removed effective September 18, 2001 and
the Company was rechristened as 'ITC Limited'.
1)About Logo
The logo basically showing the name of the company i.e. “Imperial
Tobacco
Company” and later on “Indian Tobacco Company”. Company using
the logo to
show their company name which is clearly understood from the
logo.
2)Operation
ITC is a board-managed professional company, committed to
creating enduring value for the shareholder and for the nation. It
has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of
all-round value creation is backed by strong corporate
governance policies and systems. Its main operation is related to
tobacco industry of India from which the company grab
maximum revenue. Additional to this company has its footprints
in other sectors also. Starting from Hotel industry, FMCG foods,
Personal care, Agarbattis, Match box, Apparels, Papers,
Greetings cards, Pens etc. ITC is one of the top conglomerates of
India and the 2nd largest exporter from India. The main strength
of ITC is their “Brand value” and “Distribution Channel” which
has its reach at all parts of the company.
1) Product Mix
Fig.: Product Mix of ITC
Cigarettes
• ITC is the market leader in cigarettes in India. With its wide
range of invaluable brands, it has a leadership position in every
segment of the market. It's highly popular portfolio of
brands includes Insignia, India Kings, Classic, Gold Flake,
Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol
and Flake.
• The Company has been able to build on its leadership position
because of its single minded focus on value creation for the
consumer through significant investments in product design,
innovation, manufacturing technology, quality, marketing and
distribution.
• All initiatives are therefore worked upon with the intent to fortify
market standing in the long term. This in turns aids in designing
products which are contemporary and relevant to the changing
attitudes and evolving socio economic profile of the country. This
strategic focus on the consumer has paid ITC handsome
dividends.
• ITC's pursuit of international competitiveness is reflected in its
initiatives in the overseas markets. In the extremely competitive
US market, ITC offers high-quality, value-priced cigarettes and
Roll-your-own solutions. In West Asia, ITC has become a key
player in the GCC markets through growing volumes of its
brands.
• ITC's cigarettes are produced in its state-of-the-art factories at
Bengaluru, Munger, Saharanpur and Kolkata. These factories are
known for their high levels of quality, contemporary technology
and work environment.
FMCG Foods
• 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.
• The packaged foods business is an ideal avenue to leverage
ITC's proven strengths in the areas of hospitality and 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 palate and the expertise required to translate this
knowledge into delightful dining experiences for the consumer.
ITC has stood for quality products for over 98 years to the Indian
consumer and several of its brands are today internationally
benchmarked for quality.
• The Foods business carries forward this proud tradition to deliver
quality food products to the consumer. 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.
• Leadership in the Foods business requires a keen understanding
of the supply chain for agricultural produce. ITC has over the last
98 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 leveraged in sourcing best quality agricultural produce for
ITC's Foods business.
• The Foods business is today represented in 4 categories in the
market. These are:
• Ready To Eat Foods
• Staples
• Confectionery
• Snack Foods
• 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 6 brands:
• Kitchens of India
• Aashirvaad
• Sunfeast
• mint-o
• Candyman
• Bingo!
Lifestyle Retailing
• ITC’s Lifestyle Retailing Business Division has established a
nationwide retailing presence through its Wills Lifestyle chain
of exclusive specialty stores. Wills Lifestyle, the fashion
destination, offers a tempting choice of Wills Classic work wear,
Wills Sport relaxed wear, Wills Clublife evening wear, fashion
accessories and Essenza Di Wills – an exclusive range of fine
fragrances and bath & body care products and Fiama Di Wills -
a range of premium shampoos and shower gels. Wills Lifestyle
has also introduced Wills Signature designer wear, designed by
the leading designers of the country.
• With a distinctive presence across segments at the premium
end, ITC has also established John Players as a brand that
offers a complete fashion wardrobe to the male youth of today.
The recent launch of Miss Players with its range of trendy
fashion wear for young women has been a successful addition to
the youthful offering. With its brands, ITC is committed to build a
dominant presence in the apparel market through a robust
portfolio of offerings.
• At Wills Lifestyle, customers can browse at leisure, and shop in
a relaxed and pleasing atmosphere. The use of space is
refreshing, which is reflected even in the spacious changing
rooms. Every store offers an international retailing ambience
with the extensive use of glass, steel and granite, reflecting the
most contemporary trends in store design, thereby creating a
splendid backdrop for the premium offerings.
• Wills Lifestyle was named Superbrand 2009 by the
Superbrands Council of India recently. Wills Lifestyle has
been twice declared 'The Most Admired Exclusive Brand
Retail Chain of the Year' at the Images Fashion Awards in
2001 & 2003 as well as 'Most Admired Fashion Brand of
the year - Fashion Forward' in 2009.
Personal Care
• In line with ITC's aspiration to be India's premier FMCG company,
recognised for its world-class quality and enduring consumer
trust, ITC forayed into the Personal Care business in July 2005. In
the short period since its entry, ITC has already launched an
array of brands, each of which offers a unique and superior value
proposition to discerning consumers. Anchored on extensive
consumer research and product development, ITC's personal
care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.
• ITC's Personal Care portfolio under the 'Essenza Di Wills',
'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and
'Superia' brands has received encouraging consumer response
and is being progressively extended nationally.
• ITC's state-of-the-art manufacturing facility meets stringent
requirements of hygiene and benchmarked manufacturing
practices. Contemporary technology and the latest
manufacturing processes have combined to produce distinctly
superior products which rank high on quality and consumer
appeal.
• Extensive insights gained by ITC through its numerous consumer
engagements have provided the platform for its R&D and
Product Development teams to develop superior, differentiated
products that meet the consumer's stated and innate needs. The
product formulations use internationally recognised safe
ingredients, subjected to the highest standards of safety and
performance.
Safety Matches
• As part of its strategic initiative to create multiple drivers of
growth in the FMCG sector, ITC commenced marketing safety
matches sourced from the small-scale sector. The Matches
business leverages the core strengths of ITC in marketing and
distribution, brand building, supply chain management and
paperboard & packaging to offer Indian consumers high quality
safety matches.
• ITC’s range of Safety matches include popular brands like i Kno,
Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated
product features and innovative value additions, these brands
effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in
India. ITC also exports regular and premium safety matches
brands to markets such as Middle East, Africa and the USA. The
successful acquisition of Wimco Ltd. by Russell Credit Ltd., a
wholly owned subsidiary of ITC has consolidated the market
standing of the Company's Matches business through synergy
benefits derived through combined portfolio of offerings,
improved servicing of proximal markets and freight optimization.
Through its participation, ITC aims to enhance the
competitiveness of the small and medium scale sectors through
its complementary R&D based product development and
marketing strengths, especially the breadth and depth of the
Company's trade marketing and distribution.
Agarbattis
• As part of ITC's business strategy of creating multiple drivers of
growth in the FMCG sector, the Company commenced marketing
Agarbattis (incense sticks) sourced from small-scale and cottage
units in 2003. This business leverages the core strengths of ITC
in nation-wide distribution and marketing, brand building, supply
chain management, manufacture of high quality paperboards
and the creation of innovative packaging solutions to offer Indian
consumers high quality Agarbattis. With its participation in the
business, ITC aims to enhance the competitiveness of the small
and medium scale sectors through its complementary R&D
based product development and strengths in trade marketing
and distribution.
• Mangaldeep Agarbattis are available in a wide range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Durbar, Tarangini, Anushri, Ananth and Mogra.
• Mangaldeep Yantra is a special offering from ITC and this
specially created fragrance evokes the ambience of a temple.
The premium range from ITC, Mangaldeep Spriha has two
offerings, Pratiti and Sarvatra and are specially hand rolled by
Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage
Industries, Puducherry, has recently been accredited with IFAT
certification, which is an internationally recognized benchmark
for fair trade practices.
• Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the
consumer a choice of multiple fragrances in a single pack.
Mangaldeep appeals to a cross-section of consumers with
offerings at various price points. These agarbattis are available
in innovative 'Fragrance-Locked' packaging. 'Fragrance locking'
is a unique concept of packaging which retains the fragrance for
a longer period and helps in "Completing the Purity of Prayer".
Mangaldeep is fast emerging as the only national brand in an
industry dominated by multiple local brands.
• In line with ITC's Triple Bottom Line philosophy of every business
contributing to the nation's economic, environmental and social
capital, Mangaldeep agarbattis are manufactured by small scale
and cottage units, providing livelihood opportunities for more
than 5000 people. Seven out of 10 Mangaldeep Agarbatti
manufacturing units are ISO 9000 certified. Mangaldeep ASHA
(Assistance in Social Habilitation through Agarbattis) is an ITC
initiative to improve the quality of raw agarbatti production and
provide better value realization for women rollers. Under the
project, ITC has extended support to NGOs in states and like
Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units,
training village women in rolling agarbattis and employing them
in these units.
Packaging
ITC's Packaging & Printing Business is the country's largest
convertor of paperboard into packaging. It converts over 50,000
tonnes of paper and paperboard per annum into a variety of value-
added packaging solutions for the food & beverage, personal
products, cigarette, liquor, cellular phone and IT packaging industries.
It has also entered the Flexibles and Corrugated Cartons business.
The Division, which was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business, is today India's most
sophisticated packaging house. State-of-the-art technology, world-
class quality and a highly skilled and dedicated team have combined
to position ITC as the first-choice supplier of high value added
packaging.
The Division supplies value-added packaging to the Company's
Cigarettes business. Its client list includes several well-known national
and international companies like British American Tobacco, Philip
Morris International, Surya Nepal Private Limited, VST
Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India
Pvt Ltd., Pernod Ricard, Allied Domecq, Whyte & Mackay,
Hindustan Lever, Tata Tetley, Nestle and Reckitt Benkiser
India Limited, etc.
With all the three factories at Tiruvottiyur near Chennai,
Munger in Bihar and Haridwar in Uttarakhand certified to ISO
9001, ISO 14001 and OHSAS 18001, the Company offers a
comprehensive product range in packaging:
Flip-top boxes Display outers Shells and Slides Soft cup
and strap Labels
Bundle Wraps Flap boxes Inner Frames Coupon Inserts
Folding Cartons
Fluted Cartons Shoulder Boxes Pre-printed cork tipping
Flexibles Packaging
ITC occupies a leadership position in cigarette and liquor packaging in
India. It supplies packaging to cover 70 billion cigarettes a year
domestically, and supplies packaging for 15 billion cigarette sticks
a year for the export market. It is the largest supplier of liquor mono
cartons in the country.
ITC has enhanced the value of some of the most favoured brands with
superior look-and-feel packaging, using the best raw materials and
process combinations, and an in-house pre-press Design Centre.
A Product Introduction Process team pioneers packaging innovations.
The team uses a unique process to pilot the client's packaging
through its manufacturing system. Specifications are evolved based
on clients' needs. Corresponding to the specifications, a variety of
packaging solutions is then generated. The efficacy of the packaging
is tested simulating the client's factory conditions.
E-Chaupal
ITC's pre-eminent position as one of India's leading corporates in the
agricultural sector is based on strong and enduring farmer
partnerships, that has revolutionized and transformed the rural
agricultural sector. A unique rural digital infrastructure network,
coupled with deep understanding of agricultural practices and
intensive research, has built a competitive and efficient supply chain
that creates and delivers immense value across the agricultural value
chain. One of the largest exporters of agri products from the country,
ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible
Nuts, Marine Products, Processed Fruits, Coffee & Spices.
ITC's Agri Business Division is the country's second largest
exporter of agri-products with exports of over Rs. 1000 Crores
(Rs. 10 billion). Its domestic sales of agri-products are in excess of
Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports of:
•
Feed Ingredients - Soyameal
Marine Products
ITC has been a significant exporter of seafood from India
since 1971. It exports frozen as well as cooked shrimps
and other seafood products to Japan, USA and Europe.
Its well-known brands include Gold Ribbon, Blue Ribbon, Aqua
Kings, Aqua Bay, Aqua Feast and Peninsular.
1)Chairman
The chairman of ITC limited:
➢ Yogesh Chander Deveshwar
Executive Directors:
➢ Sahibzada Syed Habib –ur-Rehman
➢ Anup Singh
➢ Krishnamoorthy Vaidhyanath
Preamble
Over the years, ITC has evolved from a single product company
to a multi-business corporation. Its businesses are spread over a
wide spectrum, ranging from cigarettes and tobacco to hotels,
packaging, paper and paperboards and international
commodities trading. Each of these businesses is vastly different
from the others in its type, the state of its evolution and the
basic nature of its activity, all of which influence the choice of
the form of governance. The challenge of governance for ITC
therefore lies in fashioning a model that addresses the
uniqueness of each of its businesses and yet strengthens the
unity of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's
economic scenario has begun to alter radically. Globalisation will
not only significantly heighten business risks, but will also
compel Indian companies to adopt international norms of
transparency and good governance. Equally, in the resultant
competitive context, freedom of executive management and its
ability to respond to the dynamics of a fast changing business
environment will be the new success factors. ITC's governance
policy recognises the challenge of this new business reality in
India.
Definition & Function
ITC defines Corporate Governance as a systemic process by
which companies are directed and controlled to enhance their
wealth generating capacity. Since large corporations employ
vast quantum of societal resources, we believe that the
governance process should ensure that these companies are
managed in a manner that meets stakeholders aspirations and
societal expectations.
Core Principles
ITC's Corporate Governance initiative is based on two core
principles. These are :
i.Management must have the executive freedom to drive the
enterprise forward without undue restraints; and
ii.This freedom of management should be exercised within a
framework of effective accountability.
ITC believes that any meaningful policy on Corporate
Governance must provide empowerment to the executive
management of the Company, and simultaneously create a
mechanism of checks and balances which ensures that the
decision making powers vested in the executive management is
not only not misused, but is used with care and responsibility to
meet stakeholder aspirations and societal expectations.
Cornerstones
From the above definition and core principles of Corporate
Governance emerge the cornerstones of ITC's governance
philosophy, namely trusteeship, transparency, empowerment
and accountability, control and ethical corporate citizenship. ITC
believes that the practice of each of these leads to the creation
of the right corporate culture in which the company is managed
in a manner that fulfils the purpose of Corporate Governance.
Trusteeship:
ITC believes that large corporations like itself have both a
social and economic purpose. They represent a coalition of
interests, namely those of the shareholders, other providers
of capital, business associates and employees. This belief
therefore casts a responsibility of trusteeship on the
Company's Board of Directors. They are to act as trustees
to protect and enhance shareholder value, as well as to
ensure that the Company fulfils its obligations and
responsibilities to its other stakeholders. Inherent in the
concept of trusteeship is the responsibility to ensure equity,
namely, that the rights of all shareholders, large or small,
are protected.
Transparency:
ITC believes that transparency means explaining
Company's policies and actions to those to whom it has
responsibilities. Therefore transparency must lead to
maximum appropriate disclosures without jeopardising the
Company's strategic interests. Internally, transparency
means openness in Company's relationship with its
employees, as well as the conduct of its business in a
manner that will bear scrutiny. We believe transparency
enhances accountability.
Empowerment and Accountability:
Empowerment is an essential concomitant of ITC's first core
principle of governance that management must have the
freedom to drive the enterprise forward. ITC believes that
empowerment is a process of actualising the potential of its
employees. Empowerment unleashes creativity and
innovation throughout the organisation by truly vesting
decision-making powers at the most appropriate levels in
the organisational hierarchy.
ITC believes that the Board of Directors are accountable to
the shareholders, and the management is accountable to
the Board of Directors. We believe that empowerment,
combined with accountability, provides an impetus to
performance and improves effectiveness, thereby
enhancing shareholder value.
Control:
ITC believes that control is a necessary concomitant of its
second core principle of governance that the freedom of
management should be exercised within a framework of
appropriate checks and balances. Control should prevent
misuse of power, facilitate timely management response to
change, and ensure that business risks are pre-emptively
and effectively managed.
Ethical Corporate Citizenship:
ITC believes that corporations like itself have a
responsibility to set exemplary standards of ethical
behaviour, both internally within the organisation, as well
as in their external relationships. We believe that unethical
behaviour corrupts organisational culture and undermines
stakeholder value.
1)Contact
Registered Office
VIRGINIA HOUSE
37 J.L.NEHRU ROAD, KOLKATA 700 071
EPABX NO. : 91-(0)33 22889371
Communications
Department-wise Fax
VIRGINIA HOUSE
Ground Floor
Merchandising Fax 22881417
Taxation Fax 22880842
Blending
Marketing PD
1st Floor
Corporate Accounting Fax 22881256
Fax 22882256/
India Tobacco Division Accounting
22882070
2nd Floor
General
Chairman
Directors Fax 22882257
Communication Room
Corporate Financial Controller
3rd Floor
General Fax 22882251
Engineering
Engineering Marketing
Production Fax 22880188
Leaf
Purchasing
4th Floor
India Tobacco Division Board (ITD)
Human Resources - ITD
Fax 22882953
ITD Finance
T&RA
ITC CENTRE
1st Floor
Corporate Funds & Planning Fax 22880826