ITC Limited, Lucknow

Summer Training Project Report Submitted towards

“Master of Business Administration” Of

LUCKNOW

Submitted by :-
AMRITA SINGH
(Roll No.0940870005)
Under Guidence Of :-
Mr.Satyendra Singh
Ms Arti Kkatnani

1
Chandra Mauli Institute Of Management Sciences &
Technology
GORAKHPUR (U.P)(CODE – 408)

DECERATION

I, AmritaSingh , abonafidestudent of the

CHANDRAMAULI INSTITUTEOFMANAGEMENT

SCIENCES&

TECHNOLOGY.GORAKHPUR ,hereby, declarethat

thework 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.

3
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

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

4
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)

PREFACE

5
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

6
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.

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.

7
 Contents

Acknowledgement

Preface

Chapter-I

INTRODUCTION OF TOPIC

PROJECT OBJECTIVE

RESEARCH METHODOLOGY

8
Chapter-II

COMPANY PROFILE

Chapter-III

DATA ANALYSIS

Chapter-IV

FINDINGS

Chapter-V

CONCLUSION

Chapter-VI

SUGGESTION

ANNEXURE

9
10
 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.

11
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.

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.

12
• 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.

Objectives of Training

The main objectives are as follows:

13
 • 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.

PROJECT OBJECTIVE

14
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.

Research Methodology

15
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:

16
 • 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.

17
18
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

19
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

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

20
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.

21
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

'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.

22
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

expressively captured in its corporate positioning statement:

“Enduring Value. For the Nation. For the Shareholder."

History and Evolution

23
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’

24
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

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

25
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

26
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

27
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

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

28
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,

29
24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh,

Maharashtra and

Uttar Pradesh.

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

30
“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

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

Wills Clublife evening

31
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

32
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

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

33
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

34
Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur,

Sambrani and Nagchampa.

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

35
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

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.

36
 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.

The ITC Leadership

37
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

38
the need for supervision and control.

The ITC Vision & Mission

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

delivering superior and sustainable

stakeholder value

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

40
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

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

41
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

FMCG

It is ITC's strategic intent to secure long-term growth by synergising and

blending the diverse

42
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.

43
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

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

44
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

45
 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

46
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

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

47
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

48
long-standing relationship is being leveraged in sourcing best

quality agricultural

produce for ITC's Foods business.

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:

49
• 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

50
 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

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

51
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.

52
 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

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

53
& 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

its brand building and trade marketing & distribution strengths

resident in its FMCG

business to offer superior value products to consumers.

54
 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

55
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

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

56
 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

solutions to offer Indian consumers high quality Agarbattis. With its

participation in the

57
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

58
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

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

59
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

nation's economic, environmental and social capital, Mangaldeep

agarbattis are

60
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

61
 state- a move that is expected to provide employment opportunities to

over 3000 rural

women.

1. 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

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

62
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:

ITC Hotels - Luxury Collection

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

63
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

64
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

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

65
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,

Maharastra, Kerala, Andhra Pradesh and Puducherry.

WelcomEnviron

66
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.

2. 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

67
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.

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.

3. 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

68
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

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

69
 • 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

70
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,

71
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-

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

72
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

73
Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its

extensive backward

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

74
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

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

75
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

76
include Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast

and Peninsular.

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

77
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-

yielding varieties of chipstock potato seeds.

4.Information Technology

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

growing IT services and

solutions providers.

78
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

79
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

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

80
international quality consistently.

Group Companies

81
ORGANISATION CHART:

SALES PROMOTION OFFICER

SALES TRAINEE

AREA EXECUTIVE

AREA MANAGER

82
 ASSISTANT MANAGER

BRANCH MANAGER

REGIONAL SALES MANAGER

DISTRICT MANAGER

NATIONAL SALES MANAGER

GENERAL MANAGER SALES

EXECUTIVE VICE PRESIDENT

CHIEF OPERATING OFFICER

CHIEF EXECUTIVE OFFICER

BOARD OF DIRECTOR

CHAIRMAN

83
The organization chart of ITC as given above is self

explanatory of the

functioning of marketing and selling division. The sales

person officer is

at the bottom of the hierarchy chain and reports to area

executive. The

area manager is then reported by the area executive who

then reports to

branch manager. The regional manager heads the branch

manager, and

then the district manager comes next in the chain followed by

the

general manager. After the general manager the executive

vice president

is next higher authority headed by CEO of ITC who directly

reports the

board of director headed by the chairman.

ITC STRUCTURE

84
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

85
2- Indian Leaf Tobacco Development Division (ILTD)

Guntur

3- India Tobacco Division (ITD) Kolkata

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

86
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

III. Saharanpur

IV. Munger (Bihar)

V. Haridwar

Following are the subsidiaries fall under ITD:

1. Surya tobacco company

2. All India tobacco company limited

87
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.

ITC AGRO-TECH LIMITED

Business processes edible oil & also moving towards consolidatig other

aspects of edible oil procurement, marketing & trading.

ITC FILTRONA LIMITED

88
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

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

share of 67% of the total cigarette market in India.

89
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,

90
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

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
91
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:

• 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

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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.

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

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 & 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

• Grocery

• Whole Sale

• Modern Format

Channel Classification helps to provide differentiated and customized Service Pack.

Outlet Coverage Strategy:

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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 –

o Office

o Warehouse

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

Godown Helpers.

• Frontline Infrastructure –

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 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

96
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.

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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.

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.

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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.

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:

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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 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,

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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

– Presentation

– Closing

– Merchandising

– Consumer Contact

– Administration

– Evaluation

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 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

– 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

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 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:

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

103
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.

– Shampoo – It detailed classification of Shampoo basis:

a) Material Used-

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 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, which includes separate

Selling and Supervision Infrastructure. The various channels Identified are:

• Convenience

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 • 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.

• Significant increase of new product categories and skus in the

last few years.

• Quality of DS is critical to achieve business objectives.

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 • 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:

• WDs are operating in multiple channels and need sales force

trained to operate in a particular channel.

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 • 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.

• Quality of DS is critical to achieve business objectives.

108
• 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.

109
110
 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%

20%

on the job
off the job

80%

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%

3% 5%

no
yes
cant say

92%

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.

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

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 Response

Job rotation 48%

Orientation 42%

Apprenticeship 8%

Internship 2%

8% 2%
job rotation
48% orientation
apprenticeship
42%
internship

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

then case study than role playing and than conference.

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

Response

Yes 95%

No 5%

Can’t say 0%

5% 0%
yes
no
cant say
95%

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 ?

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Response

Yes 80%

No 20%

20%

yes
no

80%

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?

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 Response

Yes 95%

No 5%

5%

yes
no

95%

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

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 Yes 90%

No 10%

10%

yes
no

90%

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

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 By performance 65%

By result 20%

By behavior 15%

15%

by performance
20% by result
by behaviour
65%

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?

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 Response

10-20 Salesmen says 60%

20-40 Salesmen says 30%

More than 40 salesmen says 10%

10%

1st Qtr
2nd Qtr
30%
60% 3rd Qtr

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.

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

training session conducted in the organization?

Response

Yes 60%

No 40%

40%
yes
no
60%

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.

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

and the environment?

Response

Yes 95%

No 5%

5%

yes
no

95%

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

change in job,technology and environment 5% do not agree with the

statement.

121
Q12. Whether training was helpful in enhancing the performance ?

Response

Yes

No

Can’t say

5%
10%

yes
no
cant say

85%

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

123
• Most of the salesmen say that they have taken 80% on the job

training. 20% say that they have taken of the job training.

• 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.

124
• 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:-

125
 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.

126
Recommendation

127
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.

128
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.

129
130
 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 ?

131
 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

132
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:

……………………………………………………………………………

…………….

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Mobile:

……………………………………………………………………………

………………….

E mail:

……………………………………………………………………………

……………………

Occupation: ( )Service ()

Business

()Self employment

( )House wife ()

Student

Gender: ( ) Male ( )Female

Marital Status: ( )Married ( )Unmarried

Number of members in the family :-

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

Monthly income in rupees:-

( )Below 8000 ( )8000-20000

( )20000-30000 ( )Above 30000

BIBILOGRAPHY

• Human Resource Management- Shina

• www.itcportal.com

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