ITC Limited, LucknowSummer Training Project Report Submitted towards Partial Fulfillment

of the Degree of requirements for the award of degree of

“Master of Business Administration” Of

GAUTAM BUDDHA TECHNICAL UNIVERSITY,

LUCKNOW

Submitted by :-

AMRITA SINGH

(Roll No.0940870005)

Under Guidence Of :-

Mr.Satyendra Singh Ms Arti Kkatnani

Chandra Mauli Institute Of Management Sciences & Technology

1

GORAKHPUR (U.P)(CODE – 408)

DECERATION

I, Amrita Singh, a bonafide student of the CHANDRA MAULI

INSTITUTE OF MANAGEMENT SCIENCES &

TECHNOLOGY.GORAKHPUR,hereby, declare that the work

tittled develop an understanding of frontline capability development practices of itc

company of India so that the industry best practice can be adopted by ITC presented genuine

to the best of my knowledge.

2

Amrita Singh

ACKNOWLEDGEMENT

From this acknowledgement, I want to say thanks to persons who helped me directly or

indirectly in shaping the present study. I find myself unable to re-compensate without the help

provided by these elite personalities, through my pen picture. May God help them in all times

of life!

I wish to express at outset my deep sense of gratitude to Mr. V Venugopal, Branch Manager,

ITC Limited, Lucknow for providing me opportunity to work upon the challenging and relevant

Project. I would also like to thank Mr. Saurabh Jain, Asst. Manager, GR1, ITC Limited, Lucknow

who has showered the best guidance upon me.

The successful completion of this project entitled “To develop an understanding of frontline

(salesman) capability development practices of ITCcompany of India, so that the

industry best practices can be adopted by ITC” was possible because of help and cooperation

from Branch Office, ITD Marketing, ITC LTD, Lucknow. I would like to extend my sincere thanks

to Mr. Satyendra Singh (Area Executive, ITC Lucknow) for his kind co-operation and providing

me with required data and information and also offered his precious counsel.

With profound pleasure and privilege, I express my deep gratitude to all those respondents

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whom I visited to carry out this research in order to collect information and who patiently

delivered the necessary information.

Gratitude will always remain to my parents, friends, and Prof. R S Singh, Director, Chandramauli

Institute of Management, Science and Technology, Gorakhpur, and other faculties without their

blessings and guidance this project would not have been a success. Finally, I would like to thank

my family members for their understanding and help while I was working on this project.

(Amrita Singh)

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PREFACE

The Consumer is king; finally eighteen years after the liberalization of India's economy began

the marketplace has, suddenly, become frighteningly competitive. Not only have new players

including a host of powerful translation, stormed into the country, there are more brands

available than ever before in every segment of every market. Befittingly, for the time in above

50 years since Independence, delivering the final verdict will be the customer who is already

finicky about what will buy, in future, only that which meets her every desire. This demands

more intimate understanding of the consumer by the smart companies'.

Retailers are direct interface to Consumers for almost all the companies. They are not only

pivotal for reaching various products to the End Consumers, but also plays an important role in

purchase decision and help us understand the needs of consumer.

Our Frontline Force is in direct contact with Retailers and sometimes consumers as well. So he

must be well equipped to win the confidence of retailer and to build lasting relationship with

him as well. Being well equipped helps our Frontline Sales force to Make Available our

products in desired form and freshness at right outlets, i.e. Selling In. Also he should be aware

of Selling Out techniques.

FMCG Companies conduct Training Program and Refresher Modules for Frontline Sales Force so

as to enable them achieve competitive Edge in Market.

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My Project is based on Capability Development Programs for Frontline Sales Force, adapted by

Various FMCG companies’ (vis-à-vis ITC Limited), different kinds of training programs conducted

for Frontline, Mechanisms of such programs, and Systems and processes w.r.t. capability

development.

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Contents

Acknowledgement

Preface

Chapter-I

INTRODUCTION OF TOPIC

PROJECT OBJECTIVE

RESEARCH METHODOLOGY

Chapter-II

COMPANY PROFILE

Chapter-III

DATA ANALYSIS

Chapter-IV

FINDINGS

Chapter-V

CONCLUSION

Chapter-VI

SUGGESTION

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ANNEXURE

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9

Introduction

Human Resource development has in recent years became the focus of attention of planners

policy makers and administrators. Human resource development may be defined as the process

of increasing the knowledge,skill and capacities of people. It is important not only for an

enterprise but for the nation to develop in human resources. A country can develop only when

its human resources are developed through health nutrition education training and research. At

the enterprise level employee ,salesmen training and executive development are main area of

human resources development.

Concept of Training

Training is the process of increasing the knowledge and skills for doing a particular job. It is an

organized procedure by which people learn knowledge and skill for a definite purpose. The

purpose if training is basically to bridge the gap between the job requirements and present

competence of an salesmen need. Training amied at improving the behavior and performance

of a person. It is a never ending or a continous process. Training is closely related with

education and development but need to be differentiated from these terms.

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Benefits of Training to the Salesmen

Training is useful to salesmen in the following ways:-

• Self- confidence: Training helps to improve the self-confidence of an salesmen. It

enables him to approach and perform his job with enthusiasm.

• High Earning: Trained salesmen can perform better and there by can earn more.

• Safety: Training helps an salesmen to use various safety devices. He can handle

machines safely and become less prone to accidents.

• Adaptability: Training enables an salesmen to adapt changes in work procedures and

methods.

• Promotion: Through training salesmen can develop himself and earn quick promotions.

• New Skills: Training develops new knowledge and skills among salesmen.The new skills

are avalueable assest of an salesmen and remain permanently.

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Objectives of Training

The main objectives are as follows:

• To impart to new entrants the basic knowledge and skills required foe efficient

performance of definite task.

• To assist the employees to function effectively in their present positions by exposing

them to the latest concept, information and techniques and developing the skills they

would require in their particular field.

• To build up a second line of component officers and prepare them to occupy more

responsible positions.

• To broaden the minds of senior managers through interchange of experience within

and outside so as to correct the narrow outlook caused due to over specialization.

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PROJECT OBJECTIVE

PROJECT TITLE:

To develop an understanding of frontline capability development

practices of ITC company.

THE STUDY SHALL ENTAIL THE FOLLOWING:

• To measure the awareness level of employee about training programme for

ITC.

• To find the percentage of employee who are satisfy with training

programme of ITC.

• To find percentage of employee who really think that training provided to

them is enhancing their ability.

• To find out problem of employees in availing training. To find satisfaction

level of salesmen regarding training.

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Research Methodology

Data for survey is collected from

Primary source

• Visiting the organization (observation techniques)

• Using structured questionnaire for the existing customer and for general

public.

Secondary source

• Company Broachers

• Company Website

• Internet

Type of Sampling:

Stratified random sampling technique is used for collecting the primary data.

For the questionnaire:

I have used the methodology for the questionnaire close ended.

Close ended Method:

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• Dichotomous

• Multiple choice

Sample Survey:

The respondents should be as representative of the total population as possible

in order to produce a miniature cross section. The selected respondents constitute what is

technically called a SAMPLE and the selection process is called SAMPLING TECHNIQUE.

RESEARCH INSTRUMENT

Questionnaire:

Questionnaire are formal set of questions prepared to collect the required

information. This one of the most effective and popular technique used in surveys. However,

one has to be careful while drawing up questionnaire. Before deciding on the questions, it is

important to understand the exact information needed and who shouldbe interviewed.

The contents, phrasing and the sequence of the

questionnaire should also be clear and unambiguous. The knowledge level of the target of

respondents should be kept in the mind while drawing up the questions.

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ITC Profile

ITC is one of India's foremost private sector companies with a market capitalization 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 Business World 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

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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

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'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 3,91,000 shareholders, fulfill the aspirations of

its stakeholders and meet societal expectations. This over-arching vision of the company is

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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

LTD’

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

20

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.

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, the Seventies witnessed the

beginnings of a corporate transformation that would usher in momentous changes in the life of

the Company.

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.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai

which was rechristened 'ITC-Welcomgroup Hotel Chola'. 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. Since then ITC's Hotels business has

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grown to occupy a position of leadership, with over 100 owned and managed properties spread

across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited, which today has become the market leader in India. 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.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since

22

inception, its shares have been held by ITC, British American Tobacco and various independent

shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and

its name was changed to Surya Nepal Private Limited (Surya Nepal).

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.

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. ITC's first rural mall,

christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front,

24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and

Uttar Pradesh.

23

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch

of Expressions range of greeting cards. A line of premium range of notebooks under brand

“Paperkraft” was launched in 2002. To augment its offering and to reach a wider student

population, the popular range of notebooks was launched under brand “Classmate” 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 Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the

“Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery

Products Business and launched India's first environment friendly premium business paper

under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive

stationery and office consumables segment. Paperkraft entered new categories in the office

consumable segment with the launch of Textliners, Permanent Ink Markers and White Board

Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores

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later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening

wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand,

John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most

premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from

buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To

mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to

consumers.

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 - Manufacturing, BFSI

(Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT

(Travel, Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple

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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 mint-o and Candyman

confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast

as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks

category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size

with over 200 differentiated products under six distinctive brands, with an enviable distribution

reach, a rapidly growing market share and a solid market standing.

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, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation

of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and

Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,

Sambrani and Nagchampa.

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ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care

products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills

provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and

women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian

consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower

Gels and Soaps in September, October and December 2007 respectively. The Company also

launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select

markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range

of shampoos in June 2008.

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

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backed by strong corporate governance policies and systems.

ITC’s corporate strategies are :

o 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.

o Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology.

o Benchmark the health of each business comprehensively across the criteria of Market

Standing, Profitability and Internal Vitality.

o Ensure that each of its businesses is world class and internationally competitive.

o Enhance the competitive power of the portfolio through synergies derived by

blending the diverse skills and capabilities residing in ITC’s various businesses.

o Create distributed leadership within the organisation by nurturing talented and

focused top management teams for each of the businesses.

o 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.

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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 ITC Vision & Mission

Vision

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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

Mission

To enhance the wealth generating

capability of the enterprise in a

globalising environment,

delivering superior and sustainable

stakeholder value

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Core Values

TC's Core Values are aimed at developing a customer-focused, high-performance organisation

which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all our

stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of value,

quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals and

teams.

We will simultaneously respect and value people and uphold humanness and human dignity.

We acknowledge that every individual brings different perspectives and capabilities to the team

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and that a strong team is founded on a variety of perspectives.

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.

Excellence

We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation

We will constantly pursue newer and better processes, products, services and management

practices.

Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit of our

goals, we will make no compromise in complying with applicable laws and regulations at all

levels.

ITC BUSINESSES

1. FMCG

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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.

Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses

comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products,

Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues

growing at an impressive compound annual growth rate of 38% during the last 5 years.

The Company’s unwavering focus on quality, innovation and differentiation backed by deep

consumer insights, world-class R&D and an efficient and responsive supply chain will further

strengthen its leadership position in the Indian FMCG industry.

Cigarettes

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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.

The Company has been able to build on its leadership position because of its single

minded focus on value creation for the consumer through significant investments in

product design, innovation, manufacturing technology, quality, marketing and

distribution.

All initiatives are therefore worked upon with the intent to fortify market standing in

the long term. This in turns aids in designing products which are contemporary and

relevant to the changing attitudes and evolving socio economic profile of the

country. This strategic focus on the consumer has paid ITC handsome dividends.

ITC's pursuit of international competitiveness is reflected in its initiatives in the

overseas markets. In the extremely competitive US market, ITC offers high-quality,

value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a

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key player in the GCC markets through growing volumes of its brands.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,

Saharanpur and Kolkata. These factories are known for their high levels of quality,

contemporary technology and work environment.

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.

The packaged foods business is an ideal avenue to leverage ITC's proven strengths in

the areas of hospitality and branded cuisine, contemporary packaging and sourcing

of agricultural commodities. ITC's world famous restaurants like the Bukhara and

the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC

has a deep understanding of the Indian palate and the expertise required to

translate this knowledge into delightful dining experiences for the consumer. ITC has

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stood for quality products for over 100 years to the Indian consumer and several of

its brands are today internationally benchmarked for quality.

The Foods business carries forward this proud tradition to deliver quality food

products to the consumer. All products of ITC's Foods business available in the

market today have been crafted based on consumer insights developed through

extensive market research. Apart from the current portfolio of products, several

new and innovative products are under development in ITC's state-of-the-art

Product Development facility located at Bengaluru.

Leadership in the Foods business requires a keen understanding of the supply chain

for agricultural produce. ITC has over the last 100 years established a very close

business relationship with the farming community in India and is currently in the

process of enhancing the Indian farmer's ability to link to global markets, through

the e-Choupal initiative, and produce the quality demanded by its customers. This

long-standing relationship is being leveraged in sourcing best quality agricultural

produce for ITC's Foods business.

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The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene,

ITC is engaged in assisting outsourced manufacturers in implementing world-class

hygiene standards through HACCP certification. The unwavering commitment to

internationally benchmarked quality standards enabled ITC to rapidly gain market

standing in all its 6 brands:

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Lifestyle Retailing

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence

through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion

destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed

wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills - an

exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a

range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills

Signature designer wear, designed by the leading designers of the country.

With a distinctive presence across segments at the premium end, ITC has also

established John Players as a brand that offers a complete fashion wardrobe to the

male youth of today. With its brands, ITC is committed to build a dominant presence in

the apparel market through a robust portfolio of offerings

Personal Care

In line with ITC's aspiration to be India's premier FMCG company, recognised for its

world-class quality and enduring consumer trust, ITC forayed into the Personal Care

38

business in July 2005. In the short period since its entry, ITC has already launched an

array of brands, each of which offers a unique and superior value proposition to

discerning consumers. Anchored on extensive consumer research and product

development, ITC's personal care portfolio brings world-class products with clearly

differentiated benefits to quality-seeking consumers.

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.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene

and benchmarked manufacturing practices. Contemporary technology and the latest

manufacturing processes have combined to produce distinctly superior products which

rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have

provided the platform for its R&D and Product Development teams to develop superior,

differentiated products that meet the consumer's stated and innate needs. The product

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formulations use internationally recognised safe ingredients, subjected to the highest

standards of safety and performance

Education and Stationery

ITC made its entry to the education and stationery business with its Paperkraft brand in

the premium segment in 2002; and later expanded into the popular segment with its

Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the

country. Together, 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.

Classmate and Paperkraft have become a natural extension of the consumer.

Meticulous understanding of consumer needs helped creating a relevant and

comprehensive portfolio satisfying the needs of different sets of consumers.

ITC is the manufacturer of India's first Ozone treated environment friendly Elemental

Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image

processing, printing and conversion garnered from Packaging & Printing Business with

40

its brand building and trade marketing & distribution strengths resident in its FMCG

business to offer superior value products to consumers.

Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks

are superior in quality and environment-friendly. Other offerings available in education

and Stationery range are safe and certified non-toxic.

Safety Matches

As 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. The

Matches business leverages the core strengths of ITC in marketing and distribution,

brand building, supply chain management and paperboard & packaging to offer Indian

consumers high quality safety matches.

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim

Mega and Aim Metro. With differentiated product features and innovative value

additions, these brands effectively address the needs of different consumer segments.

The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports

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regular and premium safety matches brands to markets such as Middle East, Africa and

the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned

subsidiary of ITC has consolidated the market standing of the Company's Matches

business through synergy benefits derived through combined portfolio of offerings,

improved servicing of proximal markets and freight optimization. Through its

participation, ITC aims to enhance the competitiveness of the small and medium scale

sectors through its complementary R&D based product development and marketing

strengths, especially the breadth and depth of the Company's trade marketing and

distribution.

Agarbattis

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG

sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from

small-scale and cottage units in 2003. This Business leverages the core strengths of ITC

in nation-wide distribution and marketing, brand building, supply chain management,

manufacture of high quality paperboards and the creation of innovative packaging

42

solutions to offer Indian consumers high quality Agarbattis. With its participation in the

business, ITC aims to enhance the competitiveness of the small and medium scale

sectors through its complementary R&D based product development and strengths in

trade marketing and distribution.

Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine,

Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has

received wide consumer acceptance. The premium range from ITC, Mangaldeep

Spriha

has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage

Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has been

accredited with IFAT certification, which is an internationally recognized benchmark for

fair trade practices.

Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of

multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of

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consumers with offerings at various price points. These agarbattis are available in

innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of

packaging which retains the fragrance for a longer period and helps in "Completing the

Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry

dominated by multiple local brands.

Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and

is fast emerging as a key player in North India.

Recently, Mangaldeep launched the Premium range of Sarvatra Flora agarbattis.

Sarvatra flora agarbattis are a wet type of agarbattis, different from the normal

agarbattis. These agarbattis have a natural base, are brownish in colour and offer a

wholesome and differentiated fragrance experience to the consumer. Sarvatra Flora

Agarbattis are now available in select markets.

The Business is currently working on various exciting new offerings to the consumers

and is planning to launch them in the near future.

In line with ITC's Triple Bottom Line philosophy of every business contributing to the

44

nation's economic, environmental and social capital, Mangaldeep agarbattis are

manufactured by small scale and cottage units, providing livelihood opportunities for

more than 8500 people. Six out of 11 Mangaldeep Agarbatti manufacturing units are ISO

9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis)

is an ITC initiative to improve the quality of raw agarbatti production and provide better

value realization for women rollers. Under the project, ITC has extended support to

NGOs in states and like Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units,

training village women in rolling agarbattis and employing them in these units. In the

latest initiative, ITC signed a MoU with Orissa Government run Orissa Rural

Development and Marketing Society (ORMAS) for marketing raw incense sticks in the

state- a move that is expected to provide employment opportunities to over 3000 rural

women.

2.Hotels

ITC Welcomgroup, India's premier chain of luxury hotels was launched on October 18, 1975,

with the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC-Welcomgroup

45

brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80

destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in

Accommodation, Cuisine, Environment and Guest Safety.

A leader in the premium hospitality segment, ITC-Welcomgroup Hotels have had the privilege

of hosting world leaders, Heads of State and discerning guests from across the world and within

As one of India's most dynamic hospitality chains, ITC-Welcomgroup has set standards for

excellence in the hotel industry by pioneering the concept of branded accommodation. The

chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive

Club' to differentiate between the needs of various travelers and provide high levels of service.

First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht are

renowned for their delicious and authentic Indian cuisines from the different regions of India.

ITC-Welcomgroup also showcases international cuisine in its specialty restaurants West View

and Pan Asian.

ITC-Welcomgroup has strategically customized its hotels and appropriately categorized them

to fulfill the service and budgetary needs of travellers. With its exclusive strategic tie up with

Starwood for its top of the line premium brand the 'Luxury Collection', the group is

strengthening its international marketing stance. ITC-Welcomgroup was also instrumental in

bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive

partnership. ITC-Welcomgroup's properties are classified under four distinct brands:

46

ITC Hotels - Luxury Collection

In 2007, ITC-Welcomgroup entered a new phase in its collaboration with Starwood Hotels &

Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood in bringing its premium

brand, the 'Luxury Collection', to India. These are super deluxe and premium hotels located at

strategic business and leisure locations. The seven hotels which are part of this collection are:

ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in

Mumbai, ITC Windsor & ITC Royal Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC

Mughal in Agra.

WelcomHotels offer five-star hospitality for the discerning business and leisure traveller.

Currently there are three hotels under this brand namely, WelcomHotel Rama International

Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Four

other ITC-Welcomgroup Sheraton Hotels – Sheraton Rajputana Hotel Jaipur, Sheraton Chola

Hotel Chennai, Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer warm,

comforting services to the global traveller and a chance to connect.

Fortune Hotels operates mid-market to upscale properties in the first-class, full-service

business hotel segment all over India, in major metros, mini metros, state capitals and business

47

towns, promising business and leisure travelers a wide choice of destinations and

accommodation. Fortune Hotels currently has hotels operating in Ahmedabad, Chennai,

Darjeeling, Gurgaon, Indore, Jaipur, Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi

Mumbai, Ooty, Port Blair, Pune, Tirupati, Trivandrum, Vapi, Vijayawada, Vishakhapatnam,

Hyderabad, Lavasa, Noida, Manipal, Bengaluru, Mussoorie, Goa, Thane & Gandhinagar, while

several more hotels are expected to be commissioned soon in other key locations in India.

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a

unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the

historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage

provides a fine range of hotel services inside these architectural legacies present in Rajasthan,

Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal, Karnataka,

Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal Pradesh, Uttar Pradesh,

48

Maharastra, Kerala, Andhra Pradesh and Puducherry.

WelcomEnviron

is ITC-Welcomgroup's vision for a green world. It's a multi-faceted programme started in order

to propagate environmental causes in the cities where ITC-Welcomgroup's hotels are located.

With the guiding principle of 'Reduce, Reuse and Recycle', each hotel has its own programme,

encompassing local participation, creating awareness among employees and internal

conservation.

3. 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.

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Having pioneered many specialty applications like cigarette tissues, opaque papers, food grade

packaging boards and tele-card boards, ITC's Paperboards and Specialty Papers business enjoys

market leadership in the value-added paperboards segment, and also has a significant share of

the Indian fine papers market. It is the largest exporter of coated boards from India.

4. Agri- Commodities & Rural Services

ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based

on strong and enduring farmer partnerships that has revolutionized and transformed the rural

agricultural sector. A unique rural digital infrastructure network, coupled with deep

understanding of agricultural practices and intensive research, has built a competitive and

efficient supply chain that creates and delivers immense value across the agricultural value

chain. One of the largest exporters of agri products from the country, ITC sources the finest of

Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee &

Spices.

ITC's Agri Business Division is the country's second largest exporter of agri-products with

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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

Farmer empowerment through e-Choupals

ITC's unique strength in this business is the extensive backward linkages it has established with

the farmers. This networking with the farming community has enabled ITC to build a highly cost

effective procurement system. ITC has made significant investments in web-enabling the Indian

farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres around

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providing Internet kiosks in villages. Farmers use this technology infrastructure to access on-line

information from ITC's farmer-friendly website www.echoupal.com. Data accessed by the

farmers relate to the weather, crop conditions, best practices in farming, ruling international

prices and a host of other relevant information.

e-Choupal today is the world's largest rural digital infrastructure.

The unique e-Choupal model creates a significant two-way multi-dimensional channel which

can efficiently carry products and services into and out of rural India, while recovering the

associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6500

installations covering nearly 40,000 villages and serving over 4 million farmers. Currently, the

'e-Choupal' website provides information to farmers across the 10 States of Madhya Pradesh,

Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh,

Kerala and Tamil Nadu. Over the next 5 years it is ITC's Vision to create a network of 20,000 e-

Choupals, thereby extending coverage to 100,000 villages representing one sixth of rural India.

Supporting the e-Choupal network are ITC's procurement teams, handling agents and

contemporary warehousing facilities across India, enabling its Agri Business to source identity-

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preserved merchandise even at short notice. ITC's processors are handpicked, reliable high

quality outfits who ensure hygienic processing and modern packaging. Strict quality control is

exercised at each stage to preserve the natural flavour, taste and aroma of the various agri

products.

Choupal Saagar

Following the success of the e-Choupal, the Company launched Choupal Saagar, a physical

infrastructure hub that comprises collection and storage facilities and a unique rural

hypermarket that offers multiple services under one roof. This landmark infrastructure, which

has set new benchmarks for rural consumers also incorporates farmer facilitation centres with

services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment

services, fuel station etc. 24 'Choupal Saagars' have commenced operations in the states of

Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural

retailing initiative to establish a chain of 100 Choupal Saagars in the near future.

Choupal Fresh

Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward

53

linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture

produce like fresh fruits and vegetables. Five Choupal Fresh retail stores are currently

operational at Hyderabad. The company has also set up a complete cold chain for ensuring the

availability of fresh products in the market, besides directly sourcing farm fresh produce from

the farmers.

Choupal Pradarshan Khet

In line with its mission of improving the quality of life in rural India, ITC's Agri Business has

launched a flagship extension programme called 'Choupal Pradarshan Khet' (CPK) or

demonstration plots to help farmers enhance farm productivity by adopting agricultural best

practices. Started in 2005-06, the crop portfolio includes soya, paddy, cotton, maize, bajra,

wheat, gram, mustard, sunflower and potato. This initiative, has covered over 70,000 hectares

and has a multiplier impact and reaches out to 1.6 million farmers.

Processed Fruits

In line with its strategy of achieving a higher order of value capture, the business also focuses

on the value added segment, steadily enhancing its basket of offerings with several new

54

products. These include frozen foods, IQF (individually quick frozen) fruits, niche products like

baby-food quality purees and high brix pulp and organic purees. ITC seeks to focus on this

segment and exploit the market opportunity for tropical fruits and fruit products, where India

has a natural advantage of growing the complete range, including exotic varieties. In Processed

Fruits category, ITC exports from HACCP certified plants to Western Europe, North Africa, West

Asia, Japan and North America, a wide range of Processed Fruit products made from Mango

(Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC is the leading Indian

exporter of Organic Fruit Products certified to European (EC 2092/91) and US (NOP) Standards.

Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP certified farmer groups

& retailed through prominent supermarkets like Sainsbury's and Albert Heijn in Europe and

Daiei in Japan.

Marine Products

ITC has been a significant exporter of seafood from India since 1971. It exports frozen as well as

cooked shrimps and other seafood products to Japan, USA and Europe. Its well-known brands

include Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.

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A Customer Centric Approach

ITC's Agri Business Division continues to use innovation as its core strategy to retain its position

as the one-stop shop for sourcing agri-commodities from India. Besides setting benchmarks in

quality, reliability and value-added services, ITC is a trendsetter in customer care particularly in

commodity trading. Major customers include Cargill, Marubeni, Toepfer, among others, who

source agriculture commodities and food products from India. Customers can log onto

www.itcabd.com, and readily access information on crop production and forecast, market

updates, the latest shipment status and the prevailing foreign exchange rates.

Sourcing for ITC

ITC's Agri business is progressively aligning its commodity portfolio with the sourcing needs of

the Company's Foods business to generate higher order value from its agri procurement

infrastructure. The business has commenced procurement of chipstock potatoes, one of the

critical raw materials in the manufacture of the Company's 'Bingo!' brand of potato chips. The

acquisition of Technico, an Australian company with technology leadership in the production of

early generation seed potatoes, helped the business access a ready pipeline of new high-

56

yielding varieties of chipstock potato seeds.

5. Information Technology

ITC Infotech, a global IT services company, is today one of India's fastest growing IT services and

solutions providers.

Based out of a picturesque 35 acre campus in the heart of Bangalore city, ITC Infotech, through

wholly-owned subsidiaries in the UK and US, provides outsourced IT services and solutions to

leading global customers.

ITC Infotech offers IT services and solutions across five key industry verticals: Banking, Financial

Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail, Manufacturing &

Engineering Services, Travel, Hospitality & Transportation and Media & Entertainment.

ITC Infotech enjoys the rare advantage of having a practitioner's expertise in some of these

industry verticals, which has in part been bequeathed by parent ITC Limited, which runs market

leading businesses in these verticals. While an enterprise range of technology capabilities and

world class quality processes form the foundation of ITC Infotech's cutting-edge IT service

strength, a sharp domain focus ensures that IT and ITeS delivery always places business needs

57

ahead of technology.

ITC Infotech has carved a niche for itself as a leading global IT solutions provider by addressing

customer pain points through innovative solutions. ITC Infotech's leadership capabilities also

accrue from business critical engagements with leading organisations across five continents,

and a service delivery footprint spanning over 140 countries.

ITC Infotech conforms to the highest standards in international process quality, with ISO 27001,

ISO 9001, SEI CMM Level 5 and BS 7799 accreditations. These reflect the company's ongoing

enterprise-wide focus to ensure that every engagement, program and project delivers

international quality consistently.

Group Companies 

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ORGANISATION CHART:

S A L E S P R O M O T I O N O F F I C E R

S A L E S T R A I N E E

A R E A E X E C U T I V E

A R E A M A N A G E R

A S S I S T A N T M A N A G E R

B R A N C H M A N A G E R

REGIONAL SALES MANAGER

D I S T R I C T M A N A G E R

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NATIONAL SALES MANAGER

GENERAL MANAGER SALES

E X E C U T I V E V I C E P R E S I D E N T

C H I E F O P E R A T I N G O F F I C E R

C H I E F E X E C U T I V E O F F I C E R

B O A R D O F D I R E C T O R

C H A I R M A N

T h e o r g a n i z a t i o n c h a r t o f I T C a s g i v e n a b o v e i s s e l f e x p l a n a t o r y o f t h e

f u n c t i o n i n g o f m a r k e t i n g a n d s e l l i n g d i v i s i o n . T h e s a l e s p e r s o n o f f i c e r i s

a t t h e b o t t o m o f t h e h i e r a r c h y c h a i n a n d r e p o r t s t o a r e a e x e c u t i v e . T h e

a r e a m a n a g e r i s t h e n r e p o r t e d b y t h e a r e a e x e c u t i v e w h o t h e n r e p o r t s t o

b r a n c h m a n a g e r . T h e r e g i o n a l m a n a g e r h e a d s t h e b r a n c h m a n a g e r , a n d

t h e n t h e d i s t r i c t m a n a g e r c o m e s n e x t i n t h e c h a i n f o l l o w e d b y t h e

g e n e r a l m a n a g e r . A f t e r t h e g e n e r a l m a n a g e r t h e e x e c u t i v e v i c e p r e s i d e n t

61

i s n e x t h i g h e r a u t h o r i t y h e a d e d b y C E O o f I T C w h o d i r e c t l y r e p o r t s t h e

b o a r d o f d i r e c t o r h e a d e d b y t h e c h a i r m a n .

ITC STRUCTURE

As stated earlier, ITC is a well-diversified company with the interests in various businesses. To

facilitate efficient running of the business, the company has spit up in to several division, which

enjoys great deal of functional autonomy. “Divisional Board” or the “Divisional Executive

Committee” depending up on its size heads each division.

Although management is vested in the Board of Directors consisting of the both Executives and

non-executive directors, most of the authorities and responsibilities have been delegated to

committee of directors which comprises of executive directors only. All of the Divisional boards

and divisional executive Committees report to Committee of directors.

The various divisions with their head quarters are as follows:

NAME PLACE

1- Corporation Headquarters (CHQ) Kolkata

2- Indian Leaf Tobacco Development Division (ILTD) Guntur

3- India Tobacco Division (ITD) Kolkata

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4- Packaging and Printing Division (PPD) Tiruvottiyur

5-ITC Bhadrachalam Paper Board Ltd. Secundrabad

6- Tribeni Tissue Division Kolkata

7- Hotels Division (HD) New Delhi

8- Export Division (ED) New Delhi

9- Agri-business Division (ABD) Hyderabad

10- Information Systems Functions (IFS) Kolkata

11- Integrated Research Center (IRC) Bangalore

12-International Travel House (ITH) Kolkata

Divisions are further broken up into component unit and branches such as etc., for example-

the hotel division holds around Marketing branches, Cigarettes factories, and Hotel properties

17 hotels under the name of Welcome Group.

PRODUCTION BRANCHES

The production branches better known as cigarette factories are situated in fourfactories, viz.

I. Kolkata (Kidderpore)

II. Bangalore

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III. Saharanpur

IV. Munger (Bihar)

V. Haridwar

Following are the subsidiaries fall under ITD:

1. Surya tobacco company

2. All India tobacco company limited

3. Élan enterprises Ltd.

4. Fortune tobacco company

5. ITC filtrona Ltd.

ITC FAMILY

ITC PAPERBOARD LIMITED

India’s largest manufacture of paper & paperboard. It is also India’s largest exporter of paper &

paperboard industry.

ITC CLASSIC FINANCE LIMITED

It is Rs. 315Cr Company which is established to offer preferred financial services & products.

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ITC AGRO-TECH LIMITED

Business processes edible oil & also moving towards consolidatig other aspects of edible oil

procurement, marketing & trading.

ITC FILTRONA LIMITED

A joint venture with filtrona international limited. UK is making available in India the latest

Cigarette filter technology including technology advance multiple filtersITC

ZENECA LIMITED

A unique partnership of two major players in agro-business, ITC with ZENECA limited UK. It

develops high quality seeds for the Indian agriculture sector.

INTERNATIONAL TRAVEL HOUSE LIMITED

One of the India’s leading travel & tour agency offering services for business & leisure travelers

throughout India, in the business of “rent a car” under the “Eurocar” brand& in the process of

setting of golf resets of International standards.

SURYA TOBACCO COMPANY LIMITED

ITC’s joint venture project in Nepal is the company’s largest private sector corporation with

brands leader in every segment. ITC has achieved the “Super star trading house” status. It

contributes over 4% of the revenue, provides 9% of the Indian agri-export & about 2% of the

company’s total export centers total tax.

INDIAN TOBACCO DIVISION

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It is India’s largest manufacture & exporter of cigarette. It has the market share of 67% of the

total cigarette market in India.

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION

It’s the largest producer & exporter of tobacco in India.

ITC HOTELS LIMITED

A premier hotel chain catering to the International travelers. Its the market & operates 16

leading hotel properties under the Welcome group banner. It has the collaboration with ITC

Sheraton USA for the International marketing of the ITC hotels.

FINANCIAL POSITION

ITC Limited (ITC) offers various business operations. ITC offers its products and services

through highly diversified business mix. It includes paperboards and specialty papers,

cigarettes, branded apparel, and agri-business. Furthermore, ITC offers hotels, packaged foods

and confectionery, greeting cards and other fast moving consumer good (FMCG) products. It

operates its business through five segments namely FMCG, hotels, agribusiness, paperboards,

paper & packaging, and others. FMCG segment consists of cigarettes and other businesses.

The following data provides a comprehensive insight into the company financial structure. The

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company’s strengths and weaknesses and areas of development or decline if analyzed the

financial summary of 2008-2009 gives an insight into the present financial position of company.

The resulting figures are benchmark for all leading FMCG companies across the globe. The

assets of the company were and the total liabilities were and profits were very satisfactory.

Background:

ITD Vision:

ITC to be the Leading FMCG Company in India

In Market Standing

In Profitability

In Growth

In Sustainability

In Stakeholder Perception

To achieve ITD Vision, company has laid down TM&D Guidelines.

It inculcates in itself the Distribution Strategy, so as to reach end consumers.

Distribution Strategy:

Key Parameters of Distribution Strategy are:

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Market Coverage Strategy.

Market Representation Strategy.

Outlet Coverage Strategy.

Various Channels Serviced.

Infra Requirement.

Benefits of Market Classification

1. Market Classification helps us to decide a service pack for a particular market so as to

achieve distribution objectives.

2. Helps to determine Brand Input Plan.

3. Helps to identify the brands needed to focus.

Market Representation Strategy:

Market Representation is based on Market Coverage Strategy keeping into account Cost of

servicing.

Market Representation is critical for providing sharper focus in managing the diversities &

complexities associated with ITC’s widespread forays in the FMCG space.

Market Representation is to be achieved through:

Wholesale Dealers (WD / Customer)

O A Firm or a Company which purchases stocks in bulk from ITC for the purpose of actively

Distributing and reselling to retailers, wholesalers and consumers for a profit.

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WD Branch

O A full-fledged distribution operation of the Wholesale Dealer for actively distributing & reselling

stocks to retailers & wholesalers in a town &/or surrounding village markets.

WD Stockist

O A Firm or an Individual located in a market away from the WD market which purchases stocks from a

WD for the purpose of actively distributing and reselling all product categories to trade in that market

& surrounding rural markets.

Different Channels Serviced:

Out of entire outlet universe, there might be certain set of outlets which show a degree of homogeneity

amongst them. These differentiated set of Outlets are called as Channels.

Channels are classified basis:

1. Lead Category

2. Location

3. Trade Behavior

4. Consumer Behavior

Various Channels Identified are:

• Convenience

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• Grocery

• Whole Sale

• Modern Format

Channel Classification helps to provide differentiated and customized Service Pack.

Outlet Coverage Strategy:

It is not feasible to cover entire universe of outlets directly. So Outlets Coverage Strategy has been laid

by our strategy makers so as to maximize distribution on optimal Costs.

Basis of Outlet Coverage

Outlets are covered keeping in view following criteria:

Sales Volume

Sales Value

Outlets Serviced by Competition.

Also, Outlets have further been classified in premium outlets and others so as to provide customized

Service Pack.

WD Infrastructure:

WD infrastructures are categorized into:

• Backend Infrastructure –

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o Office

o Warehouse

o Backend Staff - Comp Operator, Cashier, Accountant, Godown Keeper, Godown Helpers.

• Frontline Infrastructure –

o Selling and Supervision Infrastructure

WD DS

WD Team Leader

o Delivery Infrastructure

Delivery Vehicle

Delivery Boy

Among the entire Infrastructure at WD point, Frontline Staff i.e. WD DS is of most significance.

Importance of WD Frontline Sales Force (WD DS)

We know that The Consumer is king; finally eighteen years after the liberalization of India's

economy began, the marketplace has, suddenly, become frighteningly competitive. Not only

have new players including a host of powerful translation, stormed into the country, there are

more brands available than ever before in every segment of every market. Befittingly, for the

time in above 50 years since Independence, delivering the final verdict will be the customer

71

who is already finicky about what will buy, in future, only that which meets her every desire.

This demands more intimate understanding of the consumer by the smart companies'.

There are various means used by companies to interact with consumers, to create awareness,

to generate trials, and to take feedback. Some of them are as below:

Communication/Activities:

o ATL (Above the line Communication) - Branding, Advertisement.

o BTL (Below the line Communication) - Sales Promotion, Merchandising.

Retailer.

Here, Retailers are more important because they are direct interface to Consumers for almost

all the companies. They are not only pivotal for reaching various products to the End

Consumers, but also plays an important role in purchase decision and help us understand the

needs of consumer and take/give feedback pertaining to products.

In this way role of frontline force (WD DS) is very important as he is not only direct interface to

Retailers but also plays an important role in BTL activities viz. Sales Promotion (scheme

communication), merchandising (Presentation of Product and POSM to Persuade People to

Purchase).

So, Frontline Force is pivotal for making a product/brand successful in market and hence helps

achieve Organization Objectives.

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So, it is very important that the Frontline Force (WD Sales Force) is well trained, well equipped, and

hence effective enough to achieve Organizational Goals.

Various Companies including ITC has been conducting various programs for Induction of new DSs,

Training of Selling Skills, and PKWs.

In the last couple of years, ITC has geared up its efforts in the direction of frontline capability

development. ITC has demarcated its practices in the following areas:

Selling Skills Training

Product Knowledge Workshops

Structured Induction Programs for new entrants

New and innovative frontline sales programs have been launched for the Frontline sales team

both for technical and managerial competencies. These have significantly impacted the

frontline productivity.

My project is based on Comparative analysis of various methodologies applied for development of

Frontline Sales Force of lead FMCG Companies and understands:

Capability development measures adopted.

Different kinds of training programs conducted for Frontline Organization

Mechanisms of such programs.

Systems and processes w.r.t. capability development.

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Methodologies applied by ITC for Frontline Capability Development:

ITC has geared up its efforts in the direction of frontline capability development. ITC has

demarcated its practices in the following areas:

1. Selling Skills Training

2. Product Knowledge Workshops

3. Structured Induction Programs for new entrants

1. Selling Skills Training:

ITC has designed classroom training sessions for Capability Development of Frontline

force under the name of:

a. Kamal Ka Funda

Kamal Ka Funda was designed to train and develop Frontline using illustrative

examples and real life situation. Kamal Ka Funda was a two day classroom

session broadly divided into four sections meant to be covered in 4 sessions, 2

sessions per day. The cascade was planned for all the DSs across channel in the

branch. To make the cascade interactive, the no. of DSs per batch was kept low

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at around 25 – 30. Also, to ensure DS’s involvement and to create excitement,

each batch was divided into four teams and there were question and answer

sessions at the end of each session and in between the sessions. The four

sections of the cascade are detailed below:

I. Badalti Duniya: This section briefed DSs about changing environment around

us and need for adopting new/scientific method to gain competitive edge.

II. ITC ke Taur Tarike: This section detailed DSs about ITC way of doing things

with special emphasis on Availability, Visibility, and Freshness. It also taught

about Win- Win Situation and Mutuality. It also demonstrated that ITC not

only believes in Selling- In but also in Selling – Out. The section also includes

9 steps of Call.

The nine Steps of Call are as follows:

– Preparation

– Approach

– Stock Check

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– Presentation

– Closing

– Merchandising

– Consumer Contact

– Administration

– Evaluation

Out of aforementioned 9 steps of Call, 1st five steps are meant for Selling – In,

6th and 7th step are meant for Selling – Out, whereas last 2 steps take care of

both Selling – in and Selling – out.

III. Selling – In: This section detailed 5 steps of Selling – In, i.e. Preparation,

Approach, Stock Check, Presentation, & Closing, and 2 steps that are

common to both Selling – In and Selling – out, i.e., Administration and

Evaluation. This section also illustrated 5 stage selling format that are

detailed as:

– Summarise the situation

– State the Idea

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– Explain how it works

– Reinforce the key benefits

– Closing

IV. Selling – Out: This section detailed 6th and 7th steps of call i.e., Merchandising

and Consumer Contact, as well as Sales Promotion, its importance, its

benefit, and how it should be utilized to take maximum competitive

advantage.

b. Kaun Karega Kamal –

It was refresher module of Kamal Ka Funda. The program was scheduled for one

day. Like Kamal ka Funda, it was also meant for all the Frontline Force across

Channel and each batch contained of 25-30 individuals. At the end of module,

each guy had to undergo a quiz individually and the topper of each batch was

facilitated and rewarded by a Silver Coin.

2. Product Knowledge Workshops:

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ITC has been conducting PKWs (Product Knowledge Workshops) for various product categories

for Frontline so as to prepare them to answer the queries from retailer and consumer as well.

These workshops detail about Competition, benchmark brand, Product (its USP and superiority

over competition), Target Group/Consumer, and Pricing. The workshop not only helps to

understand the product, but it also help to identify target outlets by identifying the benchmark

brand. The workshop also helps DSs to be better equipped for objection handling, solving

queries, and hence gain confidence of retailer, thus getting competitive edge. This module not

only helps to achieve DS’s objective but also organizational objective.

Various product categories for which PKWs have been organized for DSs are:

– Confectionary – The module of Confectionary PKW was named as “10 minute Funda”.

It gave broad view of Competition, Product, Target consumer, and pricing for different

subcategories of confectionary, viz. HBC, Toffee, Eclairs Re1, Eclairs 50p, and Deposited

Candy.

– Agarbatti - ITC launched Agarbatti ( Incense Stick) and Dhoop under Brand name

Mangaldeep. The module on Agarbatti PKW tells types of agarbatti basis

manufacturing/ making process; i.e. Masala and Dipped. Agarbatti is also

categorized basis Price – point per stick; i.e. Basic and Value- Added. The module

gave broad view of Competition, Product, Target consumer, and pricing.

– Soap - PKW for Soaps detailed the type of soap basis per 100 gram of soap; i.e. Premium

(> Rs 25 per 100g), Upper-mid (Rs 15-25 per 100 g), Popular (< Rs 10 per 100 g). The

module gave broad view of Competition, Product, Target consumer, and pricing.

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– Shampoo – It detailed classification of Shampoo basis:

a) Material Used -

o Natural/ Herbal

o Aftificial/Synthetic

b) Price –point -

o Premium

o Upper-Mid

o Popular

c) Dandruff/Anti-Dandruff –

o Dandruff

o Anti- Dandruff

The module gave broad view of Competition, Product, Target consumer, and pricing.

3. Structured Induction Program for new Entrants:

As discussed earlier, to provide customized service to retailers, ITC has differentiated trade into

various Channels. For each channel, ITC has differentiated strategy and different service pack,

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which includes separate Selling and Supervision Infrastructure. The various channels Identified

are:

• Convenience

• Grocery

o Grocery 1

o Grocery 2

o Grocery 3

• Whole Sale

So, different set of channels, it requires different set of infrastructure which in turn require

different set of skills. So, it required differentiated induction program for new entrants. The

induction programs for few cannels are briefed below:

Convenience DS:-

Background:

• WDs are operating in multiple channels and need sales force trained to operate

in a particular channel.

• Due to ramping up of infrastructure and following continuous attrition, there are

new DS coming up in the WD system.

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• Significant increase of new product categories and skus in the last few years.

• Quality of DS is critical to achieve business objectives.

• Large numbers of our customers have requested us to help them in providing

structured induction program which will facilitate smooth transition of the new

DS in their role.

Recommendation: Make sure the DS carries the DS Kit before leaving for market. Kit

should essentially contain the following:

List of Outlet wise Day wise Beats based on target outlet list

List of product availability norms

Product Freshness norms

Bill Book

Scheme Chart

Price List

DS Bag

POSM ( Paper Ad board for Cigarettes and other FMCG POSM)

Grocery 1 DS:-

Background:

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• WDs are operating in multiple channels and need sales force trained to operate

in a particular channel.

• Due to ramping up of infrastructure and following continuous attrition, there are

new DS coming up in the WD system.

• Significant increase of new product categories and skus in the last few years.

• Quality of DS is critical to achieve business objectives.

• Large numbers of our customers have requested us to help them in providing

structured induction program which will facilitate smooth transition of the new

DS in their role.

Grocery 2 DS:-

Background:

• WDs are operating in multiple channels and need sales force trained to operate

in a particular channel.

• Due to ramping up of infrastructure and following continuous attrition, there are

new DS coming up in the WD system.

• Significant increase of new product categories and skus in the last few years.

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• Quality of DS is critical to achieve business objectives.

• Large numbers of our customers have requested us to help them in providing

structured induction program which will facilitate smooth transition of the new

DS in their role.

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Analysis and Interpretation

Q1. Which type of training did you get?

a) on the job training b)off the job training

on the job 80%

off the job 20%

Interpretation-80% salesmen says that they have taken on the job training and 20% says that

they have taken off the job training.

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Q2. Whether training provided to you helped in learning new selling skills?

Yes 92%

No 5%

Can’t say 3%

Interpretation-92% salesmen says that training helped them in learning new skills 5% says

salesmen says that training did not help them in learning new skills and 3% salesmen says that

they cant say anything.

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Q3). Rank following of the job training according to your preference?

Response

Job rotation 48%

Orientation 42%

Apprenticeship 8%

Internship 2%

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Interpretation-More than 40% of salesmen ranks lectures at the top then case study

than role playing and than conference.

Q4. Whether the physical facility for the training was satisfactory?

Response

Yes 95%

No 5%

Can’t say 0%

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Interpretation-95% salesmen says that physical facilities for training was satisfactory 55

says that they were not satisfied with physical facility for training.

Q5. Whether the trainer has sufficient knowledge ?

Response

Yes 80%

No 20%

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Interpretation-80% salesmen says that trainer has sufficient knowledge of subject

matter.20% says that they were not satisfied with the trainer.

Q6. Whether there is need of training in an organization?

Response

Yes 95%

No 5%

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Interpretation-95% says that there is a need of training in the organization.5% says that

there is no need for training.

Q7. Whether you are satisfied with training program?

Response

Yes 90%

No 10%

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Interpretation-90% salesmen says that they are satisfied with the training program and

10% says that they are not satisfied with the training program.

Q8. How training is evaluated in an organization?

Reponse

By performance 65%

By result 20%

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By behavior 15%

Interpretation-65% says that training is evaluated in organization by performance 20%

says that through result and 15% says that through behavior.

Q9. How many training program are attended in a year?

Response

10-20 Salesmen says 60%

20-40 Salesmen says 30%

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More than 40 salesmen says 10%

Interpretation-10 to 20 salesmen says 60% training program are attented in a year,20 to

40 salesmen says that 30% training program are attented in a year and more than 40

salesmen says that 10% training program are attented in a year.

Q10. Have any salesman ever come across any problem during the training session

conducted in the organization?

Response

Yes 60%

No 40%

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Interpretation-60% says that they did not faced any problem in the training session but

40% says that they faced problem in the training session.

Q11. Does retraining is nessecery due to change in job , technology and the

environment?

Response

Yes 95%

No 5%

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Interpretation-95% salesmen says that retraining is necessary due to change in

job,technology and environment 5% do not agree with the statement.

Q12. Whether training was helpful in enhancing the performance ?

Response

Yes

No

Can’t say

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Interpretation-85% says that training helps in enhancing the performance,10% says that

it does not help and 5% cant say.

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FINDINGS

• Most of the salesmen say that they have taken 80% on the job training. 20% say that

they have taken of the job training.

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• 92% salesmen says that training helped them in learning new skills 5% says salesmen

says that training did not help them in learning new skills and 3% salesmen says that

they cant say anything.

• 92% salesmen says that training helped them in learning new skills 5% says salesmen

says that training did not help them in learning new skills and 3% salesmen says that

they cant say anything.

• 95% salesmen says that physical facilities for training was satisfactory 55 says that they

were not satisfied with physical facility for training.

• 80% salesmen says that trainer has sufficient knowledge of subject matter.20% says that

they were not satisfied with the trainer.

• 95% says that there is a need of training in the organization.5% says that there is no

need for training.

• 90% salesmen says that they are satisfied with the training program and 10% says that

they are not satisfied with the training program.

• 65% says that training is evaluated in organization by performance 20% says that

through result and 15% says that through behavior.

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• 10 to 20 salesmen says 60% training program are attented in a year,20 to 40 salesmen

says that 30% training program are attented in a year and more than 40 salesmen says

that 10% training program are attented in a year.

• 60% says that they did not faced any problem in the training session but 40% says that

they faced problem in the training session.

• 95% salesmen says that retraining is necessary due to change in job,technology and

environment 5% do not agree with the statement.

• 85% says that training helps in enhancing the performance,10% says that it does not

help and 5% cant say.

Conclusion:-

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Training and organizational development are two areas of opportunity for HR professionals

to make a strong, positive impact on a company.

Proper training is one of the major factors in salesmen ability to be successful in the job.

With a full understanding of the training need of your organization and the many options

available, you can develop training plans to help salesmen reach a higher level of productivity.

Analysing your business to make sure its processes enable its function effectively and

efficiently organizational development activities will often lead to eye-opening discoveries. By

fully understanding organization development and the type of intervention you can examine

your company from a new angle and pinpoint areasfor improvement in productivity and

efficiency.

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Recommendation

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1. ITC should conduct Separate/Special training program for Team Leaders as well.

Trained and effective TL will be able to train, guide, develop, and lead the team to

achieve desired objectives.

2. Management should establish relationship between performance level and reward.

3. The employees must be assured that promotion would be made entirely on the basis

of his/her performance/productivity and not on other factors.

4. Reward system must be indivisualised because attractiveness for particular reward

may offer from person to person.

5. The management should take serious measures for enhancing the level of autonomy

and responsibility in job.

6. Organisation work culture should be honestly implemented in all units/departments

to increase the efficiency of the organization.

7. For less productive salesmen, they must be sent for re-training in order to motivate

them.

8. Delegation of authority along with responsibilities should be encouraged.

9. An ideal organization must trust the capabilities of its employees and give them

chance to prove themselves.

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10. Unproductive workers as units must be picked up and analysed. And they must be

first asked to bring about an improvement in them, otherwise the management

must try to get rid of them.

11. Regular meetings of various departmental heads and the unit manager should be

arranged, in order to discuss the working and problems of the organization as a

whole and various departments separately.

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Questionnaire

Q1. Which type of training did you get?

a) on the job training b)off the job training

Q2. Whether training provided to you helped in learning new selling skills?

Yes ( ) No( ) Cant say( )

Q3. Rank following of the job training according to your preference?

Job rotation

Orientation

Apprenticeship

Internship

Q4. Whether the physical facility for the training was satisfactory?

Yes( ) No( ) Cant say( )

Q5. Whether the trainer has sufficient knowledge ?

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Yes( ) No( )

Q6. Whether there is need of training in an organization?

Yes( ) No( )

Q7. Whether you are satisfied with training program?

Yes( ) No( )

Q8. How training is evaluated in an organization?

By performance

By result

By behavior

Q10. How many training program are attended in a year?

10-20 Salesmen says

20-40 Salesmen says

More than 40 salesmen says

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Q11. Does retraining is necessary due to change in job , technology and the environment?

Yes( ) No( )

Q12. Whether training was helpful in enhancing the performance ?

Yes( ) No( )

General Information:

Address:

……………………………………………………………………………………………………………

………………………………………………………………………………………………

Telephone:………………………………………………………………………………………….

Mobile:……………………………………………………………………………………………….

E mail:…………………………………………………………………………………………………

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Occupation: ( )Service ( )Business

()Self employment

( )House wife ( )Student

Gender: ( ) Male ( )Female

Marital Status : ( )Married ( )Unmarried

Number of members in the family :-

( )1 to 4 ( )4 to 6 ( )Over 6

Monthly income in rupees:-

( )Below 8000 ( )8000-20000

( )20000-30000 ( )Above 30000

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BIBILOGRAPHY

• Human Resource Management- Shina

• www.itcportal.com

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