PROJECT ON

submitted to: submitted by:

Mrs. ANAMIKA ASHIRBAD DASH

TARANI SEN MAHAKUD

PRAVEEN KUMAR SINGH

PRATAP
 CONTENTS

1-ITC PROFILE
2-HISTORY AND EVOLUTION
3-BOARD OF DIRECTORS
4-ITC VISION AND MISSION
5-PRODUCTS AND SERVICES
6-FIANANCIAL STATEMENTS
The ITC Profile

ITC is one of India's foremost private sector companies with a market capitalisation of
over US $ 30 billion and a turnover of US $ 6 billion.* ITC is rated among the World's
Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by
Forbes magazine, among India's Most Respected Companies by BusinessWorld and
among India's Most Valuable Companies by Business Today. ITC ranks among India's
`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even
in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal
Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to
be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration
"a commitment beyond the market". In his own words: "ITC believes that its aspiration
to create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing
to enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched
distribution reach, superior brand-building capabilities, effective supply chain
management and acknowledged service skills in hoteliering. Over time, the strategic
forays into new businesses are expected to garner a significant share of these emerging
high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is

one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power of the
Internet. This transformational strategy, which has already become the subject matter
of a case study at Harvard Business School, is expected to progressively create for ITC a
huge rural distribution infrastructure, significantly enhancing the Company's marketing
reach.
ITC employs over 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 3,93,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations. This over-arching vision
of the company is expressively captured in its corporate positioning statement:
"Enduring Value. For the Nation. For the Shareholder."

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 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.

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
operatonal 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 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 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.

BOARD OF DIRECTORS

CHAIRMAN

Y C Deveshwar

EXECUTIVE DIRECTORS

K Vaidyanath K N Grant

NON-EXECUTIVE DIRECTORS

A Baijal S Banerjee AV Girija Kumar

S H Khan S B Mathur D K Mehrotra

H G Powell P B Ramanujam Anthony Ruys

Basudeb Sen B Vijayaraghavan

Y C DEVESHAR-

Y C Deveshwar (63), an engineering graduate from the Indian Institute of Technology,

Delhi joined ITC Limited in 1968. He was appointed as a Director on the Board of the
Company in 1984 and became the Chief Executive and Chairman of the Board on
January 1, 1996. Between 1991 and 1994, he led Air India as Chairman and Managing
Director.
K VAIDYANATH-

K Vaidyanath (60) was appointed a Director on the Board of ITC on January 17, 2001.
He holds responsibility for the Company's Finance, Internal Audit and Corporate
Communications functions, its investment subsidiary, its Paperboards & Specialty
Papers, Packaging and Information Technology businesses. He is also the Chairman of
ITC Infotech India Limited and its subsidiaries, ITC Infotech Limited, UK and ITC
Infotech (USA) Inc.

KURUSH N GRANT-

Kurush N Grant (52) was appointed a Director on the Board of ITC on March 20, 2010. He
oversees ITC's FMCG businesses - Cigarettes, Foods, Personal Care, Lifestyle Retailing,
Education and Stationery Products, Matches and Agarbattis. After completing his MBA in
1979, he worked with DCM as a Management Trainee before joining ITC in 1980 in the
Marketing function of the Tobacco Division. During his tenure in the Division, he has
handled a wide range of responsibilities in Sales, Brand Management and Product
Development. He was Executive Vice President, Marketing of the Tobacco Division before
becoming Divisional Chief Executive in 1999.
The ITC Vision & Mission

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.

MISSION-
To enhance the wealth generating capability of the enterprise in a globalising
environment ,delivering superior and sustainable stakeholder value
PRODUCT AND SERVICES

CIGARETTS-
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.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,

Saharanpur and Kolkata

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.

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. With its brands, ITC is committed to build a dominant presence in the
apparel market through a robust portfolio of offerings.

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.

EDUCATION AND STSTIONERY-

ITC made its entry to the education and stationery business with its Paperkraft brand in
the premium segment in 2002; and later expanded into the popular segment with its
Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the
country. Together, Classmate and Paperkraft offer a range of products in the Education
& Stationery space to the discerning consumer, providing unrivalled value in terms of
product & price.
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.

AGARBATTIS-
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has
received wide consumer acceptance. 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

PAPERBOARDS AND SPECIALITY PAPER-

ITC's Paperboards and Specialty Papers Division is India's largest, technologically
advanced and most eco-friendly, paper and paperboards business. The business caters
to a wide spectrum of packaging, graphic, communication, writing, printing and
specialty paper requirements through its four world-class manufacturing units, 6 sales
offices and a network of more than 50 dealers in India, along with an international trade
network of 15 distributors / agents

PACKAGING-
ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia. It converts over 70,000 tonnes of paper,
paperboard and laminates per annum into a variety of value-added packaging solutions
for the food & beverage personal products, cigarette, liquor and consumer goods
industries.

Its client list includes several well-known national and international companies like
Nokia, Colgate Palmolive, Pernod Ricard, Diageo, British American Tobacco, Philip Morris
International, Agio Cigars, UB Group, Tata Tetley, Tata Tea, Reckitt Benckiser, Radico
Khaitan, Akbar Brothers, Surya Nepal, VST Industries, etc.

HOTELS-
ITC Welcomgroup, India's premier chain of luxury hotels was launched on October 18, 1975, with
the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC-Welcomgroup brand
has become synonymous with Indian hospitality. With over 100 hotels in more than 80
destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in
Accommodation, Cuisine, Environment and Guest Safety.

WelcomHotels offer five-star hospitality for the discerning business and leisure traveller.
Currently there are three hotels under this brand namely, WelcomHotel Rama International
Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Four
other ITC-Welcomgroup Sheraton Hotels – Sheraton Rajputana Hotel Jaipur, Sheraton Chola
Hotel Chennai, Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer
warm, comforting services to the global traveller and a chance to connect.

AGRI COMMODITIES AND RURAL SERVICES-

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 and
domestic trading of:

 Feed Ingredients - Soyameal

 Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses

 Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil

 Marine Products - Shrimps and Prawns

 Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic

Fruit Products, Fresh Fruits

 Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and
other Seed Spices

LEAF TOBACCO-
ITC pioneered the cultivation and development of Leaf Tobaccos in India. ITC is the
largest buyer, processor and exporter of leaf tobaccos in India - creating a global
benchmark as the single largest integrated source of quality tobaccos. Serving
customers in 50 countries across more than 70 destinations, ITC co-creates and delivers
value at every stage of the leaf tobacco value chain.
FINANCIAL STATEMENT

Balance Sheet as at 31st March, 2010

31 st march,2010 31march,2009

I. Sources of Funds
1. Shareholders’ Funds
a) Capital 381.82 377.44
b) Reserves and Surplus 13682.56 14064.38 13357.64 13735.08
2. Loan Funds
a) Secured Loans – 11.63
b) Unsecured Loans 107.71 107.71 165.92 177.55
3. Deferred Tax - Net 785.01 867.19
Total 14957.10 14779.82
II. Application of Funds
1. Fixed Assets
a) Gross Block 11967.86 10558.65
b) Less: Depreciation 3825.46 3286.74
c) Net Block 142.40 7271.91
d) Capital Work-in-Progress 1008.99 9151.39 1214.06 8485.97
2. Investments 5726.87 2837.75
3. Current Assets, Loans and Advances
a) Inventories 4549.07 4599.72
b) Sundry Debtors 858.80 668.67
c) Cash and Bank Balances 1126.28 1031.01
d) Other Current Assets 288.39 215.35
e) Loans and Advances 1304.54 1644.98
8127.08 8159.73
Less :
4. Current Liabilities and Provisions
a) Liabilities 3498.30 2974.12
b) Provisions 4549.94 1729.51
8048.24 4703.63
Net Current Assets 78.84 3456.10
Total 14957.10 14779.82