The ITC Limited

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's wholly owned Information Technology subsidiary, ITC Infotech India Ltd,
provides IT services and solutions to leading global customers. ITC Infotech has carved a
niche for itself by addressing customer challenges through innovative IT solutions.

ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was
the first company in India to voluntarily seek a corporate governance rating.

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 4,00,000 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.

The ITC Way

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.

ITC’s corporate strategies are :

• Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organisational capability with opportunities in
domestic and export markets.
 • Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards
& Packaging, Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of
Market Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC’s various businesses.
• Create distributed leadership within the organisation by nurturing talented and
focused top management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems
to catalyse the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and
accountability.

The ITC Leadership

Flowing from the concept and principles of Corporate Governance adopted by the
Company, leadership within ITC is exercised at three levels. The Board of Directors at
the apex, as trustee of shareholders, carries the responsibility for strategic supervision of
the Company. The strategic management of the Company rests with the Corporate
Management Committee comprising the wholetime Directors and members drawn from
senior management. The executive management of each business division is vested with
the Divisional Management Committee (DMC), headed by the Chief Executive. Each
DMC is responsible for and totally focused on the management of its assigned business.
This three-tiered interlinked leadership process creates a wholesome balance between the
need for focus and executive freedom, and the need for supervision and control.

The 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

The Mission
To enhance the wealth generating capability of the enterprise in a globalising
environment, delivering superior and sustainable stakeholder value

Products

FMCG
It is ITC's strategic intent to secure long-term growth by synergising and blending the
diverse pool of competencies residing in its various businesses to exploit emerging
opportunities in the FMCG sector.

The Company’s institutional strengths – deep understanding of the Indian consumer,

strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging
know-how and cuisine expertise – continue to be effectively leveraged to rapidly grow
the new FMCG businesses.

o Cigarettes & Cigars

o Foods
o Lifestyle Retailing
o Personal Care
o Education and Stationery
o Safety Matches
o Agarbattis

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.

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.

Kitchens of India; Ashirvaad; Minto; Sunfeast; Candyman; Bingo; Yippee brands in

Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods

Lifestyle Retailing
Wills Lifestyle and John Players brands. With its brands, ITC is committed to build a
dominant presence in the apparel market through a robust portfolio of offerings.

Personal Care
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 Stationery

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
s 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. ITC’s
range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega
and Aim Metro.
Agarbattis
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.
Recently, Mangaldeep launched the Premium range of Sarvatra Flora agarbattis.

Other Services
Hotels
ITC's hotels (under brands including ITC Hotel /Welcomhotel) have evolved into being
India's second largest hotel chain with over 80 hotels throughout the country. ITC is also
the exclusive franchisee in India of two brands owned by Sheraton International Inc.- The
Luxury Collection and Sheraton which ITC uses in association with its own brands in the
luxury 5 star segment. Brands in the hospitality sector owned and operated by its
subsidiaries include Fortune and Welcomheritage brands.

Paperboards and Specialty Papers

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.

Some of ITC's prominent paperboard brands are:

• Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber XL
Premium, Pearl XL Pac
• Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte Persona
Modified Solid Bleached Sulphate Boards: Carte Lumina, Safire XL Pac
• Poly coated boards: Indobev, Indobarr
• Recycled boards: Ecoviron, Fusion
• Fine Papers: ECF AlfaZap, Alfa Plus, Hi Brite, Paperkraft

Packaging
The Division supplies value-added packaging to ITC's various FMCG businesses. 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.
ITC's Packaging Business has 3 major product lines

• Carton Board Packaging

 Printed Cartons
 Fluted cartons
• Flexible Packaging
• Tobacco Packaging
Agri Business
Agri Commodities & 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

e-Choupal
The e-Choupal model has been specifically designed to tackle the challenges posed by
the unique features of Indian agriculture, characterised by fragmented farms, weak
infrastructure and the involvement of numerous intermediaries, among others.

Leaf Tobacco
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.
Information Technology
Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of global IT
services and solutions. The company has established technology Centers of Excellence
(CoE) to deepen capabilities and incubate cutting-edge technical competencies. A robust
outsourcing model, comprehensive suite of differentiated solutions & services and focus
on excellence in execution has provided the company a leadership position in chosen
domains.

ITC Infotech’s customer centric go-to-market approach is organized by industry verticals.

The company services industries including, Banking Financial Services & Insurance
(BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services,
Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation &
Logistics.

Group Companies

Advertisement
FMCG - Cigarettes business has an internal code for advertising/ promotions, which is
reviewed every year, and whenever any new law/rules are introduced. The internal code
is more stringent than other codes. It not only comprehensively covers all aspects of other
codes but also encompasses areas not covered by them. The requirements under
Advertising Standards Council of India (ASCI) code of conduct, which is now the
Government of India's Governing code, are applied across the business.

All laws related to the product category such as The Cigarettes (Regulation of
Production, Supply and Distribution) Act, 1975, The Cigarettes and Other Tobacco
Products (Prohibition of Advertisement and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003, The Cable Television Networks
(Regulation) Act, 1995, and The Cinematography Act, 1952, which have provisions for
regulations of advertising/promotions in India are strictly followed.

The Foods business voluntarily follows the ASCI (Advertising Standards Council of
India) Code for all Marketing Communication. Every time a new Marketing
Communication is created, it is checked for compliance with the ASCI Code. In addition,
a monthly compliance validation is done by respective managers.

The Foods business does not sell any product which is 'banned in certain markets' or is
'the subject of stakeholder questions or public debate'.

In the Paperboards & Specialty Papers, Packaging & Printing and Greeting, Gifting
and Stationery businesses, all codes/ standards relating to Standard Weights & Measures
Rules are followed. These requirements are reviewed on a monthly basis for compliance.
None of the products from these businesses is 'banned in certain markets' or subject of
stakeholder concern or public debate.

In the Hotels business, marketing communication is governed by self-regulation and

guided by Indian Society of Advertisers (ISA) Rules and guidelines. It is reviewed
quarterly to ensure compliance with relevant rules and internal guidelines.

The Hotels business does not sell any product banned in the market nor is the subject of
stakeholder questions or public debate.

Agri-business has not advertised its product and services in a major way and no
voluntary code is therefore required to be followed. Communications and promotions
done so far have been in accordance with the law of the land and have been duly
approved by the Legal Department of the Company.

The business is in the process of establishing a voluntary code, as it has recently initiated
advertising its retail business.

The Leaf Tobacco business provides Corporate Advertisements (e.g. 'With best
compliments from ITC Ltd'. etc.) to souvenirs published by certain organisations. This is
in accordance with the provisions of Cigarettes and Other Tobacco Products Act
(Prohibition of Advertising and Regulation of Trade and Commerce, Production, Supply
and Distribution) Act, 2003. However, the business does advertise its Organic Agri-
inputs. The business also publishes Corporate Advertisements (stating that ITC-ILTD is
India's leading tobacco exporter and providing contact details) in reputed International
Tobacco Journals.
Organisational Chart