Vitality of companies operating in an economy makes the decisive
difference in the capacity of a country to create wealth and to upgrade the basis of
competition from comparative factor advantages to innovative capability that enables the
highest order of value capture.
lTC, as a premier 'Indian' enterprise, consciously
exercises the strategic choice of contributing to, and securing the competitiveness of the
entire value chain of which it is a part. This philosophy has shaped the vision for your
Company - the vision that I had referred to in earlier years as "A Commitment beyond
Flowing from this vision, and against all odds, your
Company chose to not only invest towards acquiring international competitiveness in
quality and cost of manufacture of its own paperboards mill, but also to extend its
engagement across the fuller value chain. Pulling together the resources at your Company's
disposal, lTC's insights as a substantial consumer of value-added paperboards were
leveraged to support technology upgradation and modernisation of the mill. A biotechnology
based research programme that was on a relatively modest scale at that time, was leveraged
to convert degraded, private wastelands in the economic vicinity of the mill into
productive sources of fibre through a social farm forestry programme. Such a strategic
option entailed long gestation and daunting uncertainties.
Today, your Company's paperboards business is the
decisive leader in the Indian market, with value-added products now constituting nearly
50% of sales. The product footprints extend to several markets in Asia, Africa and the EU.
Your Company's initiatives in energy management have
earned national awards for excellence. The modernised pulp mill, besides enhancing
competitiveness and substituting imports, also enables the production of elemental
chlorine free pulp. It is the only one of its kind in India, thereby setting world-class
standards of environment friendly technology.
Societal value has accrued through increasing forest
cover, enhancing contribution to restoration of ecological balance and above all,
providing sustainable employment to nearly 160,000 people* in some of the most remote
tribal regions of the country with related multiplier impact on the economy.
- Extracts from Chairman Y C
Deveshwar's speech at the
Annual General Meeting, July 2003
* This figure currently stands at 290,000.