Locally based Suppliers
The Company’s suppliers, both local and international, constitute one of its important stakeholder groups. Supplier engagements are founded on a positive procurement culture supported by policies, processes and best practices to ensure that procurement activity is conducted in an open, transparent and non-discriminatory manner. Strong processes are in place to identify/develop and qualify vendors on the basis of supply assurance, innovation quotient, product quality and value for money considerations. Formal competitive processes are established and documented discussions, recommendations and decisions underlay procurement activity.
All businesses of the Company have modern facilities and use state-of-the-art technologies to ensure benchmarked quality and value. Accordingly, the Company sources specialised production machinery from reputed international and Indian manufacturers - across large, medium and small scale sectors. Utility machinery such as boilers, generator sets, air-conditioning and refrigeration machinery and electrical & electronic systems are sourced largely from Indian or India-based suppliers. Competent Indian contractors carry out construction and renovation of new manufacturing facilities, hotels, warehouses & offices. Nearly 88% of raw materials and 70% of stores and spares have been locally procured during the year.
The Company actively encourages competency development among local vendors and its vendor base includes numerous medium and small scale enterprises that are proximate to its manufacturing locations. Where appropriate, vendors are provided technical support and managerial inputs to enable them to move in tandem with the Company’s business plans. The Company also supports several vocational training initiatives in areas proximate to its operations. These have been effective in empowering youth with requisite skills and increased opportunities for entrepreneurial development. Further, the Company has continued to set up sourcing centres in rural India for several of its product categories, both directly and in collaboration with various State agencies and NGOs to assist in the creation of sustainable livelihoods.
Engaging Talent, Local Hiring and Senior Management
ITC’s human resource management systems and processes are designed to enhance employee engagement, organisational capability and vitality so as to ensure that each of the businesses is world class, positioned for competitive superiority and capable of achieving the ambitious growth plan of the Company.
The Company has fostered a culture that rewards continuous learning, collaboration and capability development across the organisation to be future-ready and meet the challenges posed by ever-changing market realities.
It creates and nurtures workplace challenges that keep employees engaged, motivated and innovative. This talent has, through strong alignment with ITC’s vision, successfully built and sustained its standing as one of India’s most admired and valuable corporations despite unrelenting competitive pressures.
Unswerving belief in the mutuality of interests of key stakeholders binds all employees to a shared vision and purpose, thus providing it with the vital force for winning in the market place.
The Company encourages local employment in the workforce in manufacturing and hotels, depending on the availability of requisite skills. Employees’ Retirement Benefit Schemes include employee pension, provident fund and gratuity, which are administered through duly constituted and approved independent trusts.
Provident Fund and Family Pension contributions in respect of unionised staff, as required by applicable statutes are deposited with the Government in a timely manner.
The pension plans and other applicable employee benefits obligations are determined and funded in accordance with independent actuarial valuation. Expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario.
In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The funds are consistently sustained to meet requisite superannuation commitments.