Download - V M Rajasekharan

5/28/2018 V M Rajasekharan

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AGARBATTI BUSINESS

Sustainable Livelihood & Community Development

Bengaluru, December 2011


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ITC - Corporate Social Responsibility

ITC believes that an effective growth strategy for

our nation must address the needs of rural India,

home to 75% of our people


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ITCCountry Before Corporation

Livelihood to over 5 Mn people

Globally recognised e-Choupal initiative

Choupal Saagar -Rural hypermarts

Social and farm forestry ->1,19,000 hectares

Carbon, Water and Waste recycling Positive

Created sustainable livelihoods for 39,000 rural women

Supplementary education provided to over 2,80,000children
http://www.itcportal.com/itc-business/agri-business/e-choupal.aspx


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Publications

Reporting Application Level A+

The highest level

Eight CDM Projects already

registered

First Forestry CDM Project in India& 2nd in the world

ITCs Sustainability Report


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Connectivity through Lead Farmer

6500 e-Choupals cover around 40,000 villages benefiting 4 million

farmers

Customised Extension Services

Weather Information

Price Discovery

Market Access at Farm Gate

ITCs e-Choupal Solution


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ITC Businesses

FMCG

,

Paper &

PackagingHotels

Agri

Business

Information

Technology


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FMCG Incense Sticks & Safety Matches
http://localhost/var/www/apps/conversion/tmp/scratch_1/MangaldeepTVC.wmv


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Agarbatti Industry Overview

Hand crafted by cottage industries and NGOs in India

India Market Size- T/O of Rs 3345 Cr - 105 Bn sticks

Bamboo : 40,000 mts/annum

Rawbatti : 70,000 mts/annum

Growing at 15% p.a

Exports- Rs 325 Cr

Use of Incense

IndiaWorship

Overseas - Ambience creation

- Aroma Therapy


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Highly Fragmented Industry

MARKET PRODUCTS

Highly Fragmented

200 players with

400 brands

Industry dominated

by Local Players

Top five players

account for 50% of

represented industry

Top five pack /

price combinations

account for only

25%of the industry

Large number of

fragrances are

marketed

Agarbatti Industry


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Mangaldeep was launched in 2004 and currently is the No. 2

National brand in the country

Monthly sales of over 500 Mn sticks

Mangaldeep has 35 SKUs at various price points

The business provides livelihood to over 10,000 people

The business partners with 17 small and medium enterprisesto bring out the best of their entrepreneurial skills and facilitatein raising their process and quality standards

About ITCsAgarbatti Business


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Delivering on Triple Bottom Line

Economic

Mangaldeep-No 2 Brand

Impressive Growth

Depth in Distribution

Brand Building

Environmental Livelihood for > 10,000 people

Exemption- Excise Duty & VAT

6/17- ISO-9000 certified Vendors

Social

Training programs Munger, Agartala, TN, Karnataka, AP

MOU with Ministry of Govt ofOrissa,Tripura etc

Case Study:

ITC Limited and the

Agarbatti Industry


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IFAT-International Fair Trade Association, Head quartered in

Netherlands

Network of organisations that work to improve the livelihoods and

well-being of disadvantaged producers

Members-Producers, co-operatives or associations, exporters,

importers, retailers

Cottage Industries-Pondicherry-Recieved membership

approval

Great Advantage for Exports to US and Europe


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NGOs

SSIs

Charcoal

Raw Batti

rolling

Jiggat

Perfuming

Packaging

Bamboo

Marketing &

DistributionITC Ltd

ITC Incense Business Value Chain

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IT Enabled Quality Statistics

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Vendor

locations

Data By E Mail to centralized location

1. Process control data

2. Absorption of Fragrance

3. Physical attributes data

4. Finished goods clearance data

Data Analysis17

Vendor

locations

Feedback report to the vendor

1. Process Capability

2. Likely defects above and below specs

3. Six Sigma metrics for all parameters combined

4. Warning messages & Corrective actions


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Marketing Approach

Developing brand preference

Superior fragrance experience (Conforms to IFRA norms)

Consistently superior product experience

Inputs for Priority Markets Attractive & differentiated packaging

Consumer Promos

Brand Health Tracking & Research

A superior fragrance development and selection procedure

1. Leveraging existing Nation wide distribution of ITC

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Marketing Initiatives


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Marketing Initiatives


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Blessings

From

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ITCs Strengths

Nation-wide distribution

2 million

outlets

Brand building- Indias two largest

brands

Supply chain management and training

module

Extensive R&D for product

development.

Meeting Consumer needs through

Research

Agartala

Pondicherry

Chandigarh

CoimbatoreKrishnagiri

Bangalore

New Delhi

Kolkata

Hyderabad

Munger

17 Distributed Manufacturing Locations


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NGOs - Strengths

Understanding the social milieu in rural India

Ability to interact with rural women and win

their trust

Wide reach into Indiasrural heartland

Managerial skills to implement and monitor a

commercial project


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Synergies Combine

ITC NGO

Brand Building

Quality

Reach

Sales

Employment

"Small Opportunities are Often theBeginning of Great Enterprises."


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Raw Incense NGOBased Supply Chain

ITC Ltd /

VendorsNGO

Womenin

Different

Villages

Spread

over and

of morethan 100

Sq. Km

Order Raw Material

Supply

Finished Goods Brought

Back

Supplies


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Hand Rolling Process

Agarbatti Manufacturing Process
http://localhost/var/www/apps/conversion/tmp/scratch_1/RB%20Hand%20Rolling%20Process.wmvhttp://localhost/var/www/apps/conversion/tmp/scratch_1/RB%20Hand%20Rolling%20Process.wmv


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ASHA

Assistance in Social Habilitation through Agarbatti

Start up support provided by ITC Training to workers

Use of IT infrastructure to monitor the progress

Prices bench marked to competition-No subsidies

Over 3000 women trained in rolling of incense sticks

Initiatives by NGOs-SEWA,AOL,ORMAS etc


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Operation Harvest

Bamboo is a integral part of the Incense Stick

Indias bamboo growing regions are segregated from the rest of the country

because of lack of infrastructure and extreme poverty

ITC is working with Forest Dept. in South India and North East in a unique

sourcing programme

ITC facilitates in training the tribals to produce bamboo sticks for incense

Helps move the tribals up the value chain Guaranteed buyer and payments


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MOU Signing with Govt of Orissa

Rolling of Incense sticksacross Orissa

Availablity of Bamboosticks

Impart training andFacilitate procurement ofraw incense

Rural employmentopportunity to 3000women


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ISO-9001-2000

Agartala


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Endorsements


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The Context and Agenda Identify a Product that has Mass Consumption

Develop /Involve NGOs & SHGs for manufacture

Seek assistance from Govt/Agencies

Provide inputs to produce Quality Goods

Scaling up Plans to be defined clearly

Tie up with a corporate for Marketing/Distribution

Review Progress periodically

Transforming Lives and Landscapes Ensuring a Sustainable Future


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Transforming Lives and Landscapes Ensuring a Sustainable Future
http://c/Documents%20and%20Settings/91160/Backup-NZ-05012010/Nazeeb%20Arif/ppt/CESD%20Lonavala/Training/91160/My%20Documents/Nazeeb%20Arif/Chairman/Zurich/Lets%20put%20India%20first%20TVC.mpg


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http://localhost/var/www/apps/conversion/tmp/scratch_1/mangaldeep%20frag%20of%20tem%20hindi%2030sec.mpg

Download - V M Rajasekharan

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