Environment
Economic
Social
Environment12 Consecutive years
15 years in a row
for the last 10 years
This Initiative reaches out to over 6.4 million citizens
Over 48% of ITC's Total Energy Requirements met from carbon neutral sources.
22 green buildings
EconomicTurnover has grown 11-fold
Profit has grown 39 times
Total Shareholder Returns has grown at a CAGR of 23.6%
Over $50 billion
Over $8 billion
SocialEmpowering 4 million farmers
Generating over 110 million person-days of employment
Covering nearly 55,000 rural women
Benefitting over 5,25,000 children
Services provided to over 15,00,000 milch animals
Covering nearly 12,500 acres
Training over 46,000 youth
Over 25,000 low-cost sanitary units constructed
It has been our resolve to build an exemplary Indian enterprise that would create enduring value for our country. An organisation that would adopt the credo of putting 'India First' - keeping Country before Corporation and the Institution before the Individual. Over the years, the patriotic sense of 'India First' has grown into a full-blown aspiration to be a National Champion subserving the country's larger priorities. This is not only manifest in the creation of world-class Indian brands, but also in the Triple Bottom Line goals of the Company to nurture larger societal value. The need to sustain global competitiveness in economic value creation, whilst simultaneously creating larger societal value, has led to innovation in business models that seek to synergise the building of economic, ecological and social capital as a unified strategy.
A new paradigm of growth is today called for - an integrated Triple Bottom Line approach that builds competitiveness whilst at the same time ensuring that the environment is nourished and large-scale sustainable livelihoods are created. I call this new paradigm 'Responsible Competitiveness', which to my mind is a pre-requisite to creating a more sustainable future.
'Enterprises of Tomorrow' can bring in transformational change by making societal value creation a conscious strategic decision and not one that banks on corporate conscience alone. ITC has always believed that businesses possess unique strengths to make a larger contribution to society. If the creative and innovative energies that businesses employ to create world-class products and brands are leveraged to deliver social initiatives that serve a larger national objective, it can have a transformative impact on society.
It is this belief that has spurred ITC to craft innovative strategies that orchestrate a symphony of efforts aimed at enriching the environment, creating sustainable livelihoods, empowering local communities and addressing the challenge of climate change.
ITC is inspired by an abiding vision to make a larger and meaningful contribution to national priorities, going beyond generating shareholder value to creating larger societal value. The need to sustain global competitiveness in economic value creation, whilst simultaneously creating larger societal value, has led to innovation in business models that seek to synergise the creation of long-term shareholder value with the continuous enhancement of societal and environmental capital.
With a turnover of over $8 billion and a market capitalisation of over $50 billion, ITC's aspiration to create enduring value for the Nation and its stakeholders is manifest in its robust and diversified portfolio of traditional and greenfield businesses. The competitiveness of ITC's diverse businesses rests on the strong foundations of institutional strengths derived from its deep consumer insights, differentiated product development capacity, extensive rural linkages and agri-sourcing, globally benchmarked manufacturing infrastructure, cutting-edge Research & Development, brand-building capability, efficient trade marketing and distribution network and dedicated human resources.
ITC's ability to leverage internal synergies residing across its diverse businesses lends a unique source of competitive advantage to its products and services. Today, ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business, one of the fastest growing hospitality chains in India and a trailblazer in 'green hoteliering'. ITC Infotech, a wholly-owned subsidiary, is a specialised global full service provider, led by Business and Technology Consulting.
This portfolio of rapidly growing businesses considerably enhances ITC's capacity to generate growing value for the country. Given the strong linkages of ITC's Businesses to agriculture, the development of competitive agri value chains has significantly contributed to rural empowerment and inclusive growth. The recent foray into fruits, vegetables and perishables also aims to address rural India's chronic problem of agri wastage as well as contribute to higher levels of food processing in the country.
ITC believes that it is of paramount importance to build and nurture world-class Indian brands, which help create, capture and retain larger value for the Indian economy, in addition to generating sustainable livelihoods. A successful brand is a badge of honour for the country it belongs to, and a sustained source of wealth creation. Leveraging the Company's core competencies, institutional strengths and internal synergies, the new FMCG Businesses comprising Branded Packaged Foods, Personal Care Products, Lifestyle Retailing, Education & Stationery Products and Matches and Agarbattis have gained significant market standing over the years. Within a relatively short span of time, ITC has established 25 mother brands, many of which are today market leaders in their segments, or have garnered a significant share of consumer franchise. Some of ITC's popular brands include 'Aashirvaad', 'Sunfeast', 'YiPPee!', 'Bingo!', 'ITC Master Chef', 'Candyman', 'mint-o', 'Classmate', 'Vivel', 'Engage', 'Fiama', 'Savlon', 'Wills Lifestyle', 'John Players', 'Mangaldeep' and 'Aim'. ITC has also forayed into the luxury segment with 'Fabelle' chocolates and 'Sunbean' premium gourmet coffee, available in ITC's luxury hotels.
ITC's vision of sustainable and inclusive growth has led to the adoption of a Triple Bottom Line approach that simultaneously builds economic, social and environmental capital. Implemented in 182 districts of 26 states, ITC's Social Investment Programmes, including Sustainable Agriculture and the globally acclaimed e-Choupal initiative, Social & Farm Forestry, Soil & Moisture Conservation, Biodiversity, Livestock Development, Women's Economic Empowerment, Primary Education, Skilling & Vocational Training and Health & Sanitation, have had a transformational impact on rural India. These initiatives strive to empower stakeholder communities to conserve, manage and augment their natural resources, create sustainable on and off-farm livelihood sources and improve social infrastructure in rural areas.
Through its Businesses and associated value chains, ITC has supported the generation of around 6 million livelihoods, touching the lives of many living at the margins in rural India. In line with its commitment to environmental goals, ITC has constantly strived to reduce the impact of its Businesses, processes, products and services and create a positive footprint.
ITC has adopted a low-carbon growth strategy through reduction in specific energy consumption and increased usage of renewable energy sources. At the same time, it seeks to enlarge its positive footprint through increased carbon sequestration by expanding forestry projects on wastelands. Over 48% of the total energy requirement of the Company is today met from renewable sources, a testimony to its commitment to a low carbon growth path. This is indeed a remarkable performance, given the large manufacturing base of the Company. ITC also endeavours to reduce specific water consumption and augment rainwater harvesting activities both on-site and off-site at watershed catchment areas, as well as minimise waste generation, maximise reuse & recycling and use external postconsumer waste as raw material in its units.
ITC has received national and global recognition for its multi-faceted achievements. ITC has been conferred the Porter Prize 2017 for 'Excellence in Corporate Governance and Integration' and for its exemplary contribution in 'Creating Shared Value'. The Company has been ranked as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and Hay Group. ITC has also been rated as the world's 8th largest 'sustainable value creator' among consumer goods companies globally, according to a report by the Boston Consulting Group (BCG). As a testimony to its exemplary Triple Bottom Line performance, ITC has also been presented the World Business and Development Award at the historic Rio+20 UN Summit for its Social and Farm Forestry initiative. ITC Chairman Mr Y C Deveshwar has been ranked the 7th Best Performing CEO in the world by the Harvard Business Review in its January-February edition of 2013. Mr Deveshwar has also been conferred the Padma Bhushan, one of the country's highest civilian honours.
ITC straddles a range of Businesses within the FMCG segment, including Branded Packaged Foods, Personal Care Products, Cigarettes, Lifestyle Retailing, Education and Stationery Products, and Safety Matches and Incense Sticks (Agarbattis). Keeping pace with the rapid growth of the FMCG industry in India, ITC has significantly scaled up its presence in this segment.
ITC's Foods brands delight millions of households with a wide range of differentiated, value-added products developed by leveraging ITC's in-house R&D capabilities, relevant consumer insights, a deep understanding of the Indian palate gained from its Hotels Business, its agri-sourcing & packaging strengths, exciting, innovative communication and an unmatched distribution network.
ITC's Foods Business, the 3rd largest foods business in India, is today represented in multiple categories in the market - Staples, Spices, Ready-to-Eat, Snack Foods, Bakery & Confectionery, Chocolates, Coffee, Juices & Beverages. Its bouquet of popular foods brands includes 'Aashirvaad', 'Sunfeast', 'Bingo!', 'YiPPee!', 'ITC Master Chef', 'B Natural', 'Kitchens of India', 'mint-o', 'Candyman' and 'GumOn'. ITC's Foods brands made a foray into the luxury segment during the year with 'Fabelle' luxury chocolates and 'Sunbean' premium gourmet coffee, available in ITC's luxury hotels.
In line with the Company's strategic objective of being the leader in the premium segment, ITC Foods offers an array of top-end products like 'Aashirvaad Select', 'Aashirvaad Atta with Multigrains', 'Aashirvaad Atta with Methi' and 'Aashirvaad Sugar Release Control Atta'; 'Sunfeast Dark Fantasy' and its variants, 'Sunfeast Delishus', 'Sunfeast Farmlite Oats' and 'Yumfills Whoopie Pie'. The portfolio also includes a range of cookies, 'Sunfeast Mom's Magic', with three variants. The recently launched 'Sunfeast Farmlite All Good Digestive'-'No maida & No added sugar' cookie made from Aashirvaad whole-wheat atta - was well received by target consumers.
'Aashirvaad Svasti' - Pure Cow Ghee, which was launched in 2015 in select markets, was extended to other focus markets during the year, gaining consumer franchise. The Company also launched a range of 'Super Safe' Spices under the umbrella brand 'ITC Master Chef', ingredients of which have been tested for over 470 pesticide residues, in compliance with stringent European Union norms for food safety. In Beverages, the 'B Natural' range of juices recently launched another unique and first-to-market offer - 'B Natural 100% Pomegranate Juice Not from Concentrate'. The year also witnessed the launch of 'Punjab Da Kinnow' variant, catering to the taste and preference of the North markets.
Several manufacturing Units of ITC's Branded Packaged Foods Businesses received numerous awards and accolades during the year, bearing testimony to the Company's focus on manufacturing excellence, safety and quality.
Specially crafted for Indian preferences, ITC's personal care products portfolio offers a range of internationally benchmarked grooming and personal wash products. Anchored on extensive consumer and market research based product development, ITC's personal care brands 'Essenza Di Wills', 'Fiama', 'Vivel', 'Engage', 'Savlon', 'Shower to Shower', and 'Superia' offer products with relevant, differentiated benefits to the discerning consumer. During the year, the Business launched several differentiated product offerings in the Soaps, Shower Gel, Skin Care and Fragrance categories under the 'Fiama', 'Vivel', 'Engage' and 'Superia' brands, besides strengthening presence in the Health & Hygiene category leveraging the 'Savlon' and 'Shower to Shower' brands.
Within a short span of time, Savlon has strengthened its equity around the core value proposition of germ protection. During the year, the Business launched new variants in the Hand Wash and Antiseptic Liquid categories under the Savlon brand, thereby expanding its product portfolio and gaining access to new consumer segments and markets. The Engage range of deodorants gained further momentum during the year and strengthened its No. 2 position in the category. The portfolio was fortified during the year with the addition of 'Engage ON' pocket perfumes in three variants each for men and women. Engage Perfume Sprays continued to gain consumer franchise in the 'No Gas' segment with the launch of several new variants both for men and women. The Business also augmented its skin care portfolio with the launch of 'Vivel Cell Renew - Aqua Quench Cleansing Mousse'.
During the year, in a survey conducted by afaqs! - India's leading media portal - Vivel, Engage and Fiama were ranked amongst the Top 5 brands in the personal care segment, while Savlon was ranked 2 in the OTC category. Vivel also featured amongst the Top 10 'Buzziest brands' across categories in this survey.
ITC maintained its leadership position in the cigarette industry by leveraging its comprehensive product portfolio and world-class execution capabilities.
During the year, ITC's Lifestyle Retailing
Business initiated several structural
interventions across channels and
processes including restructuring the
retail foot print and modifying the design
language of its offerings with a view to
enhancing consumer experience and
garnering larger consumer franchise.
Synonymous with Fashion and Elegance, the Wills Lifestyle range of apparels offers a premium lifestyle wardrobe for Indian men and women at 400 outlets across 56 cities, including 6 exclusive boutique stores across ITC Hotels. The premium imagery of the 'Wills Lifestyle' range stood sharpened during the year with the introduction of several differentiated and first-to-market offers across men's and women's collections.
In the 'Youth fashion' segment, John Players enhanced its market standing by driving fashion imagery anchored on bold and edgy fashion. The brand is available in over 350 exclusive stores and 750 outlets in leading national and regional department stores and multi-brand outlets. During the year, the John Players range was made more youthful and trendy by widening the offerings in casual fashion knits and introduction of linen & linen blends.
ITC's Education and Stationery Products Business offers consumers a wide range of differentiated products under the brands 'Classmate', 'Classmate Pulse', 'Paperkraft' and 'Saathi'. A clear market leader in the student notebooks segment, Classmate's portfolio also includes writing instruments (pens & pencils) and scholastic products (mathematical drawing instruments, scales, erasers & sharpeners). 'Colour Crew', a sub brand of Classmate, offers an exciting range of superior quality student art materials which includes non-toxic oil pastels, plastic crayons, wax crayons and sketch pens.
During the year, the Business further enriched its product portfolio by launching several new products including educative board games (puzzles), innovative products in the notebook category under the Classmate brand, premium Paperkraft notebooks with paper having 100 years of archival life, pens with enhanced writing experience and several premium offerings in the scholastics category.
ITC's 'Mangaldeep' brand, offering a range of well-crafted products, is one of the fastest growing agarbatti brands in the country. ITC also enjoys leadership position in the 'Dhoop' segment.
During the year, the Business launched an innovative mobile App (Mangaldeep Devotion) developed in partnership with several subject matter experts and carefully curated to cater to regional nuances. In a relatively short span of time, the App has received excellent response with over 1,50,000 installations.
In the Safety Matches category, ITC sustained its market leadership position by leveraging a robust portfolio of offerings across market segments. 'Aim' continues to be the largest selling brand in the industry.
With nearly 100 properties spread across the country, the Company's Hotels Business has redefined the fine art of hospitality. ITC's hotel group operates under 4 brands: ITC Hotel in the Luxury segment, WelcomHotel in the upper-upscale segment, Fortune in the upscale & mid-market segment and WelcomHeritage in the heritage & leisure segment. Embodying ITC Hotels' credo of 'Responsible Luxury', all ITC luxury hotels are an archetype of the culture and ethos of the region they are located in, offering unique indigenous experiences, internationally acclaimed cuisines and spa, with globally benchmarked standards in accommodation, environment and guest safety. With a LEED® Platinum rating for all its luxury hotels, ITC Hotels is the 'Greenest Luxury Hotel Chain in the World'.
The Company's Hotels Business continues to receive accolades for its world-class properties and service excellence. ITC Grand Bharat was recognised as #1 amongst the 'Top Resorts in Asia' at the coveted Conde Nast Traveler U.S. Readers' Choice Awards for the second consecutive year, while ITC Grand Chola was the winner in the 'Sustainable Operations' category at the HICAP Sustainable Awards.
The Company remains committed to building world-class hotel properties in view of the long-term potential of the Indian hospitality sector. The Business made steady progress during the year in the construction of luxury hotels at Hyderabad, Kolkata, Ahmedabad and Srinagar. The Business is progressing growth plans towards enhancing its presence in the upper-upscale segment under the WelcomHotel brand. Construction of WelcomHotel Coimbatore is nearing completion. During the year, the Business also commenced construction of WelcomHotels at Guntur, Bhubaneswar and Amritsar.
ITC's Paperboards and Specialty Papers Business is the leader in Volume, Product Range, Market Reach and Environmental Performance, and is the clear market leader in the value-added paperboards segment. Providing internationally competitive quality and cost, the Business caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements. The Business established the country's first Elemental Chlorine Free fibre line with Ozone bleaching technology and is fully compliant with world-class environmental standards. It is also the first paper business in the country to be invited to be a member of the Global Forest & Trade Network (GFTN) of the World Wide Fund for Nature (WWF). Committed to developing a sustainable raw material base, ITC's pulpwood is being progressively sourced from renewable plantations under its Social and Farm Forestry programmes, which provide sustainable livelihood opportunities to tribals and marginal farmers.
During the year, the Paperboards and Specialty Papers Business sustained its leadership position in the VAP segment and consolidated its preferred supplier status amongst leading end-use customers and brands. In an endeavour to further reduce its dependence on imported pulp, the Business commissioned India's first Bleached Chemical Thermo Mechanical Pulp mill at its Bhadrachalam Unit during the quarter. Capacity expansion in the Value Added Paperboards and Décor segments is also underway.
The Packaging and Printing Business provides contemporary and superior packaging solutions through its state-of-the-art technology and processes. With multi-locational manufacturing facilities in Chennai, Munger and Haridwar and a robust technology platform, the Business offers a diversified & value-added product range in packaging for cartons, flexibles and tobacco and caters to a wide range of customers in domestic and export markets. The Business supplies value-added packaging to ITC's various FMCG Businesses. Backed by expertise in design, innovative product development and cutting edge technology, the Business has won several World Star awards for packaging excellence.
ITC is one of India's largest integrated Agri Business enterprises with significant presence across every node of the agri value chain - Crop Development, Procurement, Supply Chain, Processing and Marketing. The leadership position of ITC's Agri Business is anchored in its strong and enduring partnerships with farmers across the country, which has revolutionised the agricultural sector in rural India.
ITC Agri Business is one of the leading domestic players and exporters of numerous agricultural commodities. Its portfolio covers land-based, plantation-based and water-based commodities spread across more than 20 states - including Wheat & Wheat based products (Maida), Rice, Soya, Coffee, Shrimps, Processed Fruits, Potato, Spices, Pulses, Barley and Maize. Backed by decades of crop development expertise, the Business deploys customised infrastructure and technology to supply a range of differentiated and superior products to discerning customers in India and abroad.
ITC Agri Business' unique strength is the extensive backward linkages it has established with the farmers. The pioneering ITC e-Choupal initiative is a powerful example of a development model that delivers large-scale societal value by co-creating rural markets with local communities. A unique click-and-mortar channel, it facilitates the two-way flow of goods and services in and out of villages, transforming them into vibrant economic institutions. The initiative serves more than 4 million farmers in over 35,000 villages through a network of 6,100 Internet Kiosks spread across 10 states, making ITC e-Choupal the largest rural digital infrastructure in the world.
Innovating further to promote sustainable agriculture, ITC e-Choupal offers agri extension services to improve farm competencies. Demonstration farms called Choupal Pradarshan Khets have been set up to propagate best practices, while field schools enable transfer and adoption of knowledge.
ITC has also set up rural integrated hubs called Choupal Saagars that serve as procurement centres, warehouses and retail outlets. Engagement with the rural consumers are facilitated at marketing platforms, called Choupal Haats that ITC has built along the lines of village fairs. The endeavour also includes the Swasthya Choupal initiative that focuses on enhancing awareness on maternal and child care through a network of Village Health Champions.
ITC's Spices Business endeavours to provide food safe spices through quality differentiation across the value chain and leverage export opportunities in the US, EU and South-East Asian countries. The Business has developed robust crop development programmes in chilli and cumin designed to 'produce the buy' on Integrated Crop Engagement practices coupled with IT driven traceability systems.
The Business continues to leverage its extensive sourcing network and associated infrastructure in key growing areas coupled with well-entrenched farmer linkages to source high quality fruit pulp and spices for the Company's 'B Natural' and 'ITC Master Chef' brands.
A wholly-owned subsidiary of ITC, Technico Agri Sciences Limited's leadership in the production of early generation seed potatoes and strength in agronomy continues to support ITC's 'Yumitos' range of potato chips and in servicing the seed potato requirements of the farmer base of the Company's Agri Business.
ITC Infotech is a specialised global full service technology solutions provider, led by Business and Technology Consulting. During the year, the company strengthened its offerings in the digital space by incubating a new service line 'Interactive Marketing' in addition to existing service lines of 'Digital supply chain' and 'Internet of Things (IOT)'. Recognising the need to differentiate and establish unique competitive positioning in the fast changing technology landscape, the company also introduced the concept of 'Digitaligence@work' to enhance customer experience and serve as a disruptor to existing business processes.
