Assignment Work 2013

F.Y. M.B.A. 1st sem B div

Prepared By:
Milan Patel (079)
Vipul Savani (099)
Bhavin Sheta (100)
Sagar Virani (118)
Dipak Zalavadiya (120)

Company:

ITC ltd.
Submitted to: Prof. Kruti Pandya
Submitted on: 09/12/2013

Introduction

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its
diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards, Paper & Packaging and Agri Business. In 2012-13, ITC's annual turnover was over
US$ 7 billion and at the end of the same year, its market capitalization was US$ 45 billion. It
employs over 25,000 people at more than 60 locations across India and is part of Forbes 2000
list.
ITC claims that it is the only company in the world of comparable dimensions to be Carbon
Positive, Water Positive and Solid Waste Recycling Positive. ITC Limited completed 100 years on
24 August 2010.

Vision
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

Products and Brands

Tobacco products
Its major cigarette brands are W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium,
Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush,
Regular, Citric Twist, Mild & Ultra Mild), 555, Benson & Hedges, Silk Cut, Scissors, Capstan,
Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.

Other businesses
Foods: Staples, Snack Foods, Ready To Eat Foods and Confectionery. Its major food brands are
Kitchens of India; Aashirvaad, Mint-o, Sunfeast biscuits, Candyman, Bingo! chips, Yippee! and
Sunfeast Pasta.
Lifestyle Apparel: Wills Lifestyle and John Players brands. Wills Lifestyle was accorded the
Superbrand status and John Players was included in the top 10 Most Trusted Apparel Brands
2012 by The Economic Times.
Personal Care: (Fiama Di Wills, Vivel,
Essenza Di Wills, Superia and Engage brands
in perfumes, haircare and skincare)
Stationery: Classmate, PaperKraft and Colour Crew brands. Launched in 2003, Classmate
became the largest notebook brand in India in 2007.
Safety Matches and Agarbattis: Ship, i Kno and Aim brands of matches; Mangaldeep Incense
Sticks (agarbattis).

Hotels: ITC's hotels (under brands including WelcomHotel) have evolved into being India's
second largest hotel chain with over 90 hotels throughout India. ITC is also the exclusive
franchisee in India of two brands owned by Sheraton International Inc.- The Luxury Collection
and Sheraton which ITC uses in association with its own brands in the luxury 5 star segment.
Brands in the hospitality sector owned and operated by its subsidiaries include Fortune Park
Hotels and Welcome Heritage Hotels.
Paperboard: Specialty Paper, Graphic and other Paper;
Packaging and Printing for diverse international and Indian clientele.
Infotech (through its fully owned subsidiary ITC Infotech India Limited which is a SEI CMM Level
5 company)

Information System
Information system is the study of complementary networks of hardware and software
that people and organizations use to collect, filter, process, create, and distribute data. Any
specific information system aims to support operations, management and decision making. In a
broad sense, the term is used to refer not only to the information and communication
technology (ICT) that an organization uses, but also to the way in which people interact with
this technology in support of business processes.

ITC information technology

ITC Infotech is a fully owned subsidiary of ITC Ltd. Formed in 2000, ITC Infotech has
today carved a niche for itself in the arena of global IT services and solutions. The company has
established technology Centers of Excellence (CoE) to deepen capabilities and incubate cuttingedge technical competencies. A robust outsourcing model, comprehensive suite of
differentiated solutions & services and focus on excellence in execution has provided the
company a leadership position in chosen domains.

With over 5600 employees, ITC Infotech conforms to the highest standards in process quality,
with ISO 27001, ISO 9001 and CMMi Level 3 accreditations.
ITC Infotechs customer centric go-to-market approach is organized by industry verticals:
Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods, Retail,
Manufacturing, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation &
Logistics.
The company 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 ensures that IT services delivery always places business needs ahead of technology.

Strategic Business Objectives

1) Operational Excellence

ITC's operating practices are rooted in safety and reliability two pillars of excellence at
the foundation of our transmission-only model.
Our independent model provides a singular focus on transmission-system performance,
planning and operations. ITC's financial and strategic efforts center on delivering a reliable and
efficient electric transmission grid to meet the needs of the customers we serve.
ITC invests in transmission infrastructure to:
Improve system reliability
Expand access to energy markets
Lower the overall cost of delivered energy
Allow new generating resources to interconnect to the power grid
Support national energy independence and security

Our capital investment and maintenance plans

drive this solid performance. The graph at left shows that
ITC invests far more in preventive maintenance than in
reactive maintenance. Basically, we are fixing things
before they can break. This results in improved safety and
reliability and supports our operational excellence
objectives.

2) Competitive advantage

A very successful example of value chain augmentation is the ITC e-Choupal initiative
that empowers over 4 million farmers, while at the same time providing significant competitive
advantage in procuring raw material for ITCs Foods business be it for Aashirvaad atta
produced from handpicked whole wheat, quality-assured Aashirvaad spices or superior
chipstock potatoes for Bingo! snack foods.

3) Developing new products, services and business model

ITC ltd. Have achieved this objectives. We can say this from above various products that ITC
have developed many products over the period of time to survive.
ITC ltd. Also provides many different services to provide enterprise solution. The services
provided by ITC given below;
I.

Infrastructure facilities

Our Development Centres enable you to leverage on our state-of-the-art infrastructure

facilities, which include:

High Bandwidth Internet Connectivity

Multiple Fallback Links (Microwave, VSAT, Leased Lines, Frame Relay Services)

Multiple Time Zone Support

Electronic Project Updates and Status Reports

Latest Tele / Video Conferencing Equipment

Fire Prevention and Protection Measures

II.

Offshore Development Centers

ITC Infotechs state-of-the-art development centers in Bangalore and Kolkata are

equipped with robust offshore delivery infrastructure to manage high volumes of work.
End-to-end solutions provided by our dedicated development centers include:

Systems consultancy to support the entire software lifecycle

Requirement studies

Data analysis and modeling

Bespoke software development

Maintenance and support

Migration and re-engineering

Testing and quality assurance

Migration to new technologies

24 x 7 help desk

III.

Offshore outsourcing

Our IT offshore services offer you the following benefits:

Reduced capital and operational costs

Deep domain expertise

24/7,

work Cycle

Scalability

3) Customer and supplier intimacy

Customer and supplier intimacy strategy utilizes information systems to develop strong
ties and loyalty with customers and suppliers. Parties, customers and suppliers are important to
firm. Strengthening customer and supplier intimacy can be an extremely effective strategy in
itself.
Through making transactions in general easier and more user friendly for both customers and
suppliers, the intimacy of the firm and customer/supplier will increase. This offers great
incentive for both customer and supplier to continue doing business with the firm.
ITC ltd has develop an effective website to create close contact with customer and also
the supplier. In the websites supplier (farmers who given a user id and password by ITC, EChoupal department by using they able to access the information of all the necessary things.)
by this way ITC have developed supplier intimacy.

4) Improved decision making

Improved decision making is very crucial for success of business. Exactly ITC have made
very improved decision of entering into agri business and launching it as e-Business.

5) Survival
For surviving in the competition all the company have to create some innovation for
attracting more customer towards us. Same ITC has done in the past and they are also in work
of finding out new ideas.

Other Objectives of setting up information system

Create and implement a sustainable mechanism for assessing the training needs of
human resources in the industrial sector, and providing financial and technical support
towards fulfilling those needs.

Set a robust monitoring and evaluation system that maintains the effectiveness of
training activities and easily facilitate impact assessment. Enhance the training system
with great focus on technical and vocational training to fulfill the needs of industrial
development.

Enhance and support the skill standards and vocational qualifications system, and
develop relevant learning packages, towards raising the standards of training provision,
qualifying labor to industry's needs, and endorsing labor with nationally and
internationally recognized certification.

Provide direct financial and technical support to foster the effectiveness of TVET
provision and human capacity serving the industrial sector and ensure quality through
preset effective assessment criteria. Establish a sustainable mechanism for training and
employment of labor in contribution to fighting unemployment and providing decent
livelihood for Egyptian Labor.

Establish and implement a sustainable, web-based labor market information system.

Set and execute policies and procedures necessary for attracting and qualifying labor
and employing them in the industrial sector. Build a professional team endowed with all
necessary capacity and growth opportunities for accomplishment of ITC mission and
goals.

Institute internal work frameworks benchmarked to international standards that offer

maximum results at optimum cost.

Develop and carry out regular improvement and motivation plans that enhance the
productivity of ITC team, and allow for advancement of its members career paths.

Dimensions of information system

Organisation
Top Management

Chairman
Y C Deveshwar

Executive Directors
Nakul Anand

P V Dhobale

K N Grant

Non-Executive Directors
A Baijal

S Banerjee

A V Girija Kumar

S H Khan

R Lerwill

S B Mathur

P B Ramanujam

S S H Rehman

Anthony Ruys

Meera Shankar

K Vaidyanath

Middle Management
Engineer

Scientist

Designer

Planner

A V Girija Kumar

Operational Management
Data workers such as
Secretaries

Clerks

Production worker

Management and Technology

ITC ltd used the following technology to produce goods and making operation effective. It use
the environment friendly equipments like ECF (elemental chlorine free).

ITC has always been a frontrunner in adopting eco-responsible processes, much ahead of legislation setting benchmarks for the industry to follow.
Some of our accomplishments include:

ITC was India's first mill to adopt ECF technology, ahead of legislation

India's first mill to adopt Ozone bleaching - and 5th in the world. This has helped us drastically
reduce the volume and toxicity of effluent discharged, as well reduced the consumption of
certain chemicals in the process.

The use of Superbatch digestors has helped us reduce specific power consumption from
35kWh/BD MT to 25kWh/BD MT, while reducing MP steam consumed from 1480 kg/BD MT of
pulp to less than half of this.

Since its inception, the Bhadrachalam unit has won over 85 awards - 52 of which are in the
fields of Environment/ Energy and Water Management

Other technologies like:

Bleaching Process,
Pulping Process,
Reducing Carbon foot print,
Water Conservation,
Conservation of Energy,
Color removal from effluent,
Environmental Performance.

Business model of E-Choupal

A pure trading model does not require much capital investment. The e-Choupal model,
in contrast, has required that ITC make significant investments to create and maintain its own IT
network in rural India and to identify and train a local farmer to manage each e-Choupal. The
computer, typically housed in the farmers house, is linked to the Internet via phone lines or,
increasingly, by a VSAT connection, and serves an average of 600 farmers in 10 surrounding
villages within about a five kilometer radius.
Each e-Choupal costs between US$3,000 and US$6,000 to set up and about US$100 per year to
maintain. Using the system costs farmers nothing, but the host farmer, called a sanchalak,
incurs some operating costs and is obligated by a public oath to serve the entire community;
the sanchalak benefits from increased prestige and a commission paid him for all e-Choupal
transactions.
The farmers can use the computer to access daily closing prices on local mandis, as well as to
track global price trends or find information about new farming techniqueseither directly or,
because many farmers are illiterate, via the sanchalak.
They also use the e-Choupal to order seed, fertilizer, and other products such as consumer
goods from ITC or its partners, at prices lower than those available from village traders; the
sanchalak typically aggregates the village demand for these products and transmits the order to
an ITC representative. At harvest time, ITC offers to buy the crop directly from any farmer at
the previous days closing price; the farmer then transports his crop to an ITC processing center,
where the crop is weighed electronically and assessed for quality. The farmer is then paid for
the crop and a transport fee. Bonus points, which are exchangeable for products that ITC
sells, are given for crops with quality above the norm.
In this way, the e-Choupal system bypasses the government-mandated trading mandis. Farmers
benefit from more accurate weighing, faster processing time, and prompt payment, and from

access to a wide range of information, including accurate market price knowledge, and market
trends, which help them decide when, where, and at what price to sell. Farmers selling directly
to ITC through an e-Choupal typically receive a higher price for their crops than they would
receive through the mandi system, on average about 2.5% higher (about US$6 per ton). The
total benefit to farmers includes lower prices for inputs and other goods, higher yields, and a
sense of empowerment.
At the same time, ITC benefits from net procurement costs that are about 2.5% lower (it saves
the commission fee and part of the transport costs it would otherwise pay to traders who serve
as its buying agents at the mandi) and it has more direct control over the quality of what it
buys. The system also provides direct access to the farmer and to information about conditions
on the ground, improving planning and building relationships that increase its security of
supply. The company reports that it recovers its equipment costs from an e-Choupal in the first
year of operation and that the venture as a whole is profitable.
In mid-2003, e-Choupal services reached more than 1 million farmers in nearly 11,000 villages,
and thesystem is expanding rapidly. ITC gains additional benefits from using this network as a
distribution channel for its products (and those of its partners) and a source of innovation for
new products.
For example, farmers can buy seeds, fertilizer, and some consumer goods at the ITC processing
center, when they bring in their grain. Sanchalaks often aggregate village demand for some
products and place a singleorder, lowering ITCs logistic costs. The system is also a channel for
soil testing services and for educational efforts to help farmers improve crop quality. ITC is also
exploring partnering with banks to offer farmers access to credit, insurance, and other services
that are not currently offered or are prohibitively expensive. Moreover, farmers are beginning
to suggestand in some cases, demandthat ITC supply new products or services or expand
into additional crops, such as onions and potatoes. Thus farmers are becoming a source of
product innovation for ITC.

Enterprise Application
Supply Chain Model
The re-engineered supply chain looks very different from the existing system and has the
following stages:

Pricing
The previous days mandi closing price is used to determine the benchmark Fair Average
Quality (FAQ) price at the e-Choupal. The benchmark price is static for a given day. This
information and the previous day mandi prices are communicated to the sanchalak through the
e-Choupal portal. The commission agents at the mandi are responsible for entering daily mandi
prices into the e-Choupal. If and when the Internet connection fails, the sanchalak calls an ITC
field representative.

Inbound Logistics
Inspection and Grading
To initiate a sale, the farmer brings a sample of his produce to the e-Choupal. The
sanchalak inspects the produce and based on his assessment of the quality makes appropriate
deductions (if any) to the benchmark price and gives the farmer a conditional quote. The
sanchalak performs the quality tests in the farmers presence and must justify any deductions

to the farmer. The benchmark price represents the upper limit on the price a sanchalak can
quote. These simple checks and balances ensure transparency in a process where quality
testing and pricing happen at multiple levels.
If the farmer chooses to sell his soy to ITC, the sanchalak gives him a note capturing his name,
his village, particulars about the quality tests (foreign matter and moisture content),
approximate quantity and conditional price.

Weighing and Payment

The farmer takes the note from the sanchalak and proceeds with his crop to the nearest
ITC procurement hub, ITCs point for collection of produce and distribution of inputs sold into
rural areas. Some procurement hubs are simply ITCs factories that also act as collection points.
Others are purely warehousing operations. ITCs goal is to have a processing center within a 30
- 40 kilometer radius of each farmer. There are currently 16 hubs, but there will eventually be
35 in the state of Madhya Pradesh. At the ITC procurement hub, a sample of the farmers
produce is taken and set aside for laboratory tests.
A chemist visually inspects the soybean and verifies the assessment of the sanchalak. It is
important to note that this is the only test assessment before the sale. Laboratory testing of the
sample for oil content is performed after the sale and does not alter the price. The reason for
this is that farmers, having historically been exploited, are not immediately willing to trust a
laboratory test. Therefore pricing is based solely upon tests that can by understood by the
farmer. The farmer accepts foreign matter deductions for the presence of stones or hay, based
upon the visual comparison of his produce with his neighbors. He will accept moisture content
deductions based upon the comparative softness of his produce when he bites it. ITC is working
to change farmer attitudes towards laboratory testing. It is developing an appreciation of better
quality by using the subsequent lab tests to reward farmers with bonus points if their quality
exceeds the norm. At the end of the year, farmers can redeem their accumulated bonus points
through the e-Choupal for farm inputs, or contributions toward insurance premiums. After the
inspection, the farmers cart is weighed on an electronic weighbridge, first with the produce
and then without. The difference is used to determine the weight of his produce.

Hub Logistics
After the inspection and weighing are complete, the farmer then collects his payment in
full at the payment counter. The farmer is also reimbursed for transporting his crop to the
procurement hub. Every stage of the process is accompanied by appropriate documentation.
The farmer is given a copy of lab reports, agreed rates, and receipts for his records. Samyojaks,
who are adept at handling large amounts of cash, are entrusted with the responsibility of
payment, except at procurement centers near large ITC operations where ITC is handles cash
disbursement. Samyojaks also handle much of the procurement hub logistics, including labor
management at the hub, bagging (if necessary), storage management, transportation from the
hub to processing factories, and handling mandi paperwork for the crops procured at the hub.
For his services in the procurement process, the samyojak is paid a 0.5% commission.

Channel of Distribution

Enterprise Resource Planning Services

ITC InfoTech works with customers to enhance returns from their SAP investments,
through niche value-added services around: Business Intelligence/ Business Objects (BI/BO),
Supply Chain Performance Management, Sustainability Performance Management, Master
Data Management and Automation Testing.
ITC InfoTechs solutions are integrated with Business Intelligence (BI) modules, producing
metrics and dashboards to facilitate business decision making. With in-depth expertise across
SAP technologies, and vast implementation experience, ITC InfoTech is SAPs co-innovation
partner across SAP products.
ITC had decided to go for an integrated ERP solution long back it became a fashion with indian
corporate. It had implemented an SAP R/3 solution way back in 1999 with price waterhouse
cooper mainly for is tobacco business. In 2004-05 itc decided to go for another reimplementation of SAP ERP solution and other mySAP business suite products (APO, SRM, Etc.)
for their different lines of business like tobacco, food, matches, agarbatti and FMCG products.

Services around Oracle Technologies

With unmatched expertise in current and next-generation Oracle CRM, BI & Middleware
platforms, ITC Infotech provides end-to-end services in the areas of Loyalty and Customer
Experience Management (Cx). The company offers well defined and actionable enterprise
customer experience strategies aimed at driving a renewed focus on customer acquisition,
retention and delight. ITC Infotechs cloud enabled Customer Experience Management
solutions powers Loyalty programs and ensures the most profitable customers stay loyal.
ITC Infotech has also partnered with Oracle to develop and offer Comprehensive Trade
Management (CTM) solution. With predictive trade planning, real-time what-if scenario
planning and consumption based volume planning capabilities, the CTM solution enables

companies to turn their trade promotion management systems into trade promotion planning
systems.
The depth and breadth of expertise developed by ITC Infotech, through large scale
implementation, makes the company a leader in offering Loyalty services & solutions. ITC
Infotech is also the only IT company in the world to provide CRM Loyalty as a Service (owing to
the BPO agreement with Oracle).

Knowledge Management System

Knowledge management can play a pivotal role in enhancing agricultural productivity
and addressing the problem of food insecurity. If properly managed, it enables appropriate
knowledge and information to reach knowledge intermediaries and smallholder farmers in a
timely manner. Such delivery of knowledge and information undoubtedly minimizes the risk
and uncertainty smallholder farmers face from production to marketing of their produce. But,
to effectively engage in agricultural knowledge management, adequate mechanisms are
needed for generating, capturing, and disseminating knowledge and information through the
use of effective processes and institutional arrangements.
Sources of agricultural knowledge include scientific research and indigenous knowledge.
After the creation, sourcing or accumulation of knowledge, the knowledge has to be
disseminated to users to support the innovation process. Information and communication
technology (ICT) can play a critical role in facilitating rapid, efficient, and cost effective
knowledge management. However, ICT application in Ethiopia remains low in comparison with
several African countries. For instance, in a number of Sub-Saharan African countries,
smallholder farmers get technology-related advice as well as location-specific market
information on inputs and outputs through ICT kiosks. Furthermore, mobile telephone service is
being used to deliver agricultural information to users.

Knowledge management encompasses processes and practices concerned with the

creation, acquisition, sharing and use of knowledge, skills and expertise and follow a circular
flow and a nonstop process that continuously updates it.
Knowledge management deals with the process of capturing, sharing and using of
knowledge and techniques .For the circular flow of knowledge management to take place both
knowledge, that is sufficiently better than the existing knowledge, and means for transmitting it
must be both available. In addition, the consumers of knowledge must be willing and able to
use the better knowledge that is now available.