History and Evolution

History and Evolution

Established in 1910, ITC Limited is a diversified conglomerate with

businesses spanning Fast Moving Consumer Goods comprising Foods,
Personal Care, Cigarettes and Cigars, Education & Stationery Products,
Incense Sticks and Safety Matches; Hotels, Paperboards and Packaging, Agri
Business and Information Technology. The Company 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 to India Tobacco Company Limited in 1970 and then
to I.T.C. Limited in 1974. In recognition of the ITC's multi-business portfolio
encompassing a wide range of businesses, the full stops in the Company's
name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym or an
initialised form.
A Modest Beginning

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.
1925: Packaging and Printing: Backward Integration
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, 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.
1975: Entry into the Hospitality Sector - A 'Welcom' Move
The Seventies witnessed the beginnings of a corporate transformation that
would usher in momentous changes in the life of the Company. In 1975, the
Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola' (now
renamed Welcomhotel by ITC Hotels, Cathedral Road, Chennai). 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. The business also
launched The two new brands: Mementos by ITC Hotels - A new brand of
luxury hotels & resorts that offers those rarest of luxuries i.e Great Memories
and Storii by ITC Hotels- A collection of handpicked boutique properties,
offering bespoke stays & immersive experiences. Since then ITC's Hotels
business has grown to occupy a position of leadership, with over 115 owned
and managed properties spread across India under six brands namely, ITC
Hotels, Mementos, Welcomhotel, Storii, Fortune Hotels and
WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with the
launch of super premium luxury hotel in Sri Lanka - ITC Ratnadipa, Colombo
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards Limited. 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.
1985: Nepal Subsidiary - First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British
joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC
Limited and its name was changed to Surya Nepal Private Limited (Surya
Nepal). The company currently operates in Tobacco, Safety Matches,
Agarbattis and Confectionaries.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
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.
1990: Agri Business - Strengthening Farmer Linkages
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. Also, through the
'Choupal Pradarshan Khet' initiative, the agri services vertical has been
focusing on improving productivity of crops while deepening the relationship
with the farming community.
2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in
2002. To augment its offering and to reach a wider student population, the
Classmate range of notebooks was launched 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 Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. 'Paperkraft' offers a
diverse portfolio in the premium executive stationery and office consumables
segment.
2000: Information Technology - Business Friendly Solutions
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 - Banking Financial Services & Insurance (BFSI), Consumer
Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media
& Entertainment, Travel, Hospitality, Life Sciences and Transportation &
Logistics.
2001: Branded Packaged Foods - Delighting Millions of Households
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 minto and Candyman
confectionery and Aashirvaad Atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC
entered the fast growing branded snacks category with Bingo! in 2007. In
2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles
market. In September 2014, ITC launched GumOn Chewing Gum marking
the entry into the category of gums. The Company entered the Fruit-based
juices and beverages market with the launch of B Natural Fruit beverages in
January 2015. ITC's forayed into the dairy segment with the launch of
Aashirvaad Svasti Ghee in November 2015. Launched in April 2016, Fabelle
chocolates are ITC's premier offering in the luxury chocolate space. This was
soon followed by the launch of Jelimals soft candies in May 2016. ITC
forayed into the branded coffee category in July 2016 with the launch of
Sunbean Gourmet Coffee. In February 2017, ITC launched ITC MasterChef
super safe spices - the first-of-its-kind spices launched in India, offering
export quality super safe spices to the Indian homemaker. ITC MasterChef
Prawns were launched in June 2017 as the Company entered the Frozen
foods segment. ITC's first foray into fresh fruits and vegetables segment was
marked with the launch of Farmland Potatoes in November 2017. In 2018,
ITC forayed into the packaged milk segment with the launch of Aashirvaad
Svasti pouch milk and into dairy-based beverages with the Sunfeast
Wonderz range of milkshakes. The ITC Master Chef Frozen Snacks range
was also introduced the same year, marking the Company's first venture into
the frozen snacks segment. In July 2020, ITC acquired spices maker Sunrise
Foods, looking to augment its product portfolio.
In just over a decade and a half, the Foods business has grown to a
significant size under numerous distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
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, Aim
and Dazzle.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked
the manifestation of its partnership with the cottage sector. Mangaldeep is a
highly established national brand and is available across a range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood and 'Fragrance of
Temple' and others.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005 and the portfolio has grown
under 'Essenza Di Wills', 'Fiama', 'Vivel' 'Superia' brands which have
received encouraging consumer response and have been progressively
extended nationally. In May 2013, the business expanded its product portfolio
with the launch of Engage deodorants. ITC marked its foray into the health
space with the acquisition of the brand Savlon and Shower to Shower in 2015.
In 2017, the business acquired the brand Charmis to enhance its skincare
portfolio. In 2018, ITC acquired the brand Nimyle to enter the floor cleaner
space. In 2018, the business also launched the Dermafique brand, foraying
into the premium skincare product territory. In 2020, the Personal Care
Product Business launched multiple personal and home hygiene products and
entered the fruit and vegetable wash category with the launch of brand
Nimwash. In 2021, dishwash gel Nimeasy was launched.
2010: Expanding the Tobacco Portfolio
In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market.
Armenteros cigars are available exclusively at tobacco selling outlets in select
hotels, fine dining restaurants and exclusive clubs.

VISION & MISSION

THE ITC 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 ITC MISSION

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

PHILOSOPHY
ITC is a professionally managed organisation and the core value underlying its Corporate
Philosophy is "Trusteeship". Employees of the organisation believe that as professionals, they
manage the organisation in "trust" for its various stakeholders. It is therefore expected that each
employee shall act responsibly to ensure that the organisation is managed in a manner that protects
and furthers the interests of its stakeholders. ITC recognises society as an important stakeholder in
this enterprise and therefore it is part of its responsibility to practice good corporate citizenship.

The Company also believes that in order to serve the interests of stakeholders in perpetuity, ITC
must operate with dynamism and vitality.

ITC's Code of Conduct is based on such expectations of agility and trust and is founded on the
Company's core values which promotes a customer-focused, high-performance culture, creating
value for all its stakeholders.

CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation
which creates value for all its stakeholders:

Board of Directors

Chairman & Managing Director

● Sanjiv Puri
Executive Directors
● Nakul Anand
● Sumant Bhargavan
● Supratim Dutta (also Chief Financial Officer)
Non-Executive Directors
● Shilabhadra Banerjee
● Hemant Bhargava
● Peter Rajatilakan Chittaranjan
● Arun Duggal
● Mukesh Gupta
● Shyamal Mukherjee
● Anand Nayak
● Sunil Panray
● Nirupama Rao
● Ajit Kumar Seth
● Meera Shankar
● David Robert Simpson
ITC Limited REPORT AND ACCOUNTS 2023 1
Board Committees
Audit Committee
● A Duggal -Chairman
● S Banerjee -Member
● H Bhargava- Member
● S Mukherjee Member
● S Dutta -Invitee
 ● M Ganesan -Invitee(Head of Internal Audit)
● R K Singhi -Secretary
CSR and Sustainability Committee
● S Puri - Chairman
● P R Chittaranjan -Member
● M Gupta - Member
● S Panray - Member
● N Rao - Member
● A K Seth - Member
● M Shankar - Member
● D R Simpson - Member
● R K Singhi - Secretary
Nomination & Compensation Committee
● S Banerjee - Chairman
● A Nayak - Member
● S Puri - Member
● M Shankar - Member
● R K Singhi - Secretary

Securityholders Relationship Committee

● A Nayak - Chairman
● P R Chittaranjan - Member
● S Dutta - Member
● B Sumant - Member
● R K Singhi - Secretary
Independent Directors Committee
● S Banerjee -Member
● H Bhargava -Member
● A Duggal -Member
● S Mukherjee -Member
● A Nayak -Member
● N Rao -Member
● A K Seth -Member
● M Shankar -Member

CSR philosophy of ITC

Inspired by the overarching vision of making a contribution to the national goals of
sustainable development and inclusive growth, ITC has innovatively crafted unique business
models that synergise long-term shareholder value creation with enhancing societal capital.
This commitment is reflected when ITC measures accomplishments not only in terms of
financial performance but also by the transformation ITC has consciously engendered to
augment the social capital of the nation. in ITC's 'Triple Bottom Line' approach of contributing
to the economic, environmental and social capital of the country. Envisioning a larger
societal purpose has always been a hallmark of ITC. The company sees no conflict between
the twin goals of shareholder value enhancement and societal value creation. The challenge
lies in fashioning a corporate strategy that enables realisation of these goals in a mutually
reinforcing and synergistic manner.

As a corporate citizen with enduring relationships in rural India, ITC has a history of
collaboration with communities and government institutions to enhance farm productivity and
the rural resource base. ITC's commitments in agricultural R&D and knowledge sharing have
spanned vital aspects of competitiveness - efficient farm practices, soil and water
management.

ITC is committed to a national agenda of raising agricultural productivity and making the rural
economy more socially inclusive. ITC believes that the urgency and scale of these tasks
make market linked solutions and innovations more effective and sustainable than capital
intensive approaches.

Let's put India First

ITC's philosophy revolves around goal congruence with the national goals of sustainable
development and inclusive growth. Various environmental & Social initiatives are taken by
ITC to ensure sustainable growth. Some of the key initiatives taken by ITC for improvement
of livelihood of disadvantaged sections of society and the reach of initiatives in mentioned in
table below

Initiatives Milestones

e - Choupal 4 million farmers empowered,

6,500 e - Choupals installed

Social & Farm Forestry 114,428 hectares greened, generating

51.48 million person - days of employment

Watershed Development 56,951 hectares brought under soil and

moisture conservation

Women's Empowerment 15,378 women members 1183 self - help

groups

Livestock Development 176 Cattle Development Centres 3,520

villages covered annually
Primary Education 252,329 children covered through 2,334
Supplementary Learning Centres