ITC BUSINESSES

Fast Moving Consumer Goods (FMCG)

ITC is one of India's leading marketer in Fast Moving Consumer Goods Business.
ITC's Branded Packaged Foods business is one of the fastest growing food businesses
in India.
ITC's Branded Packaged Foods business is one of the fastest growing food businesses
in India, driven by the market standing and consumer franchise of its popular
brands - Aashirvaad, Sunrise, Bingo! Sunfeast, Fabelle, Sunbean, Yippee! Kitchens
of India, B Natural, ITC Master Chef, Farmland, mint-o, Candyman and GumOn. The
Foods business is today represented in multiple categories in the market - Staples,
Spices, Biscuits, Confectionery & Gums, Snacks, Noodles & Pasta, Beverages, Dairy,
Ready to Eat Meals, Chocolate, Coffee and Frozen Foods.
ITC's uncompromising commitment to the health and safety of its consumers ensures
adherence to the highest levels of quality, safety and hygiene standards in
manufacturing processes and in the supply chain. All ITC-owned manufacturing units
are Hazard Analysis and Critical Control Point (HACCP) certified. The quality
performance of all manufacturing units is monitored continuously online. Going
beyond process control, ITC ensures that quality standards are scrupulously adhered
to while choosing ingredients that go into the preparation of its food products.
(Know more about ITC's Food Policy)
With the belief that "organizations have to continuously work towards creating a
positive impact in the lives of their employees, consumers & customers, which
thereby impacts the society, country & the planet, at large", ITC Foods Division
with the Nutrition First approach, has developed a 4 Pillar model to deliver on its
nutrition strategy, "Help India Eat Better". This strategy encompasses the
development of value-added product portfolio that helps reduce all forms of
malnutrition especially amongst vulnerable population; support sustainable food
eco-system by focusing on affordable, accessible and planet friendly nutrition;
support healthy communities through various CSR initiatives and the last pillar
pays special attention on empowering their consumers, direct employees and extended
workforce ecosystem to make informed food choices through nutrition education and
behaviour change model. ITC Foods fully supports the government's efforts in
tackling malnutrition through various initiatives such as Mission Saksham
Anganwaadi & Poshan 2.0, Anemia Mukt Bharat, Kuposhan Mukt Bharat, FSSAI's Eat
Right Movement, UNSDG 2030 Targets etc.
As part of this strategy, a robust Nutrition Profiling System has been also
developed to monitor and map the foods product portfolio's healthiness based on
their nutritional attributes. It guides both the marketing and product
reformulation strategy in context of diversified, Indian dietary patterns and is in
line with national & international nutrition guidelines.
ITC's Nutrition Portal provides credible information to all consumers on
fundamentals of nutrition, health and general wellbeing across various life stages
and management of diet related diseases. Visit ITC's Nutrition Portal to know in
details.
In addition, ITC's digital shopping platform ITC Store hosts Nutricorner to provide
consumers and shoppers with easy to comprehend science-based nutrition information
about vital nutrients and their role in supporting a healthier lifestyle.
ITC's Foods brands delight millions of households with a wide range of
differentiated, value-added products developed by leveraging ITC's in-house R&D
capabilities, relevant consumer insights, a deep understanding of the Indian palate
gained from its Hotels business, its agri-sourcing & packaging strengths, exciting,
innovative communication and an unmatched distribution network.
The business continues to invest in every aspect of manufacturing, distribution and
marketing to ensure that it can leverage emerging opportunities and fulfill its
aspiration of being the most trusted provider of Branded Packaged Foods in the
country. ITC's Foods business also exports its products to the key geographies of
North America, Africa, Middle East and Australia.

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 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 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 'EDW Essenza', 'Fiama', 'Vivel', 'Engage',
'Savlon', 'Charmis', 'Shower to Shower', 'Nimyle', 'Nimwash' and 'Superia' brands
has received encouraging consumer response and is being progressively extended
nationally.
ITC's state-of-the-art manufacturing facility meets stringent requirements of
hygiene and benchmarked manufacturing practices. Contemporary technology and the
latest manufacturing processes have combined to produce distinctly superior
products which rank high on quality and consumer appeal.
Extensive insights gained by ITC through its numerous consumer engagements have
provided the platform for its R&D and Product Development teams to develop
superior, differentiated products that meet the consumer's stated and innate needs.
The product formulations use internationally recognised safe ingredients, subjected
to the highest standards of safety and performance.

ITC 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.
ITC made its entry to the education and stationery business with its Paperkraft
brand in the premium segment in 2002; and later expanded into the popular segment
with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook
brand in the country. Together, Classmate and Paperkraft offer a range of products
in the Education & Stationery space to the discerning consumer, providing
unrivalled value in terms of product & price.
Classmate and Paperkraft have become a natural extension of the consumer.
Meticulous understanding of consumer needs helped creating a relevant and
comprehensive portfolio satisfying the needs of different sets of consumers.
ITC is the manufacturer of India's first Ozone treated environment friendly
Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge
of image processing, printing and conversion garnered from Packaging & Printing
Business with its brand building and trade marketing & distribution strengths
resident in its FMCG business to offer superior value products to consumers.
Classmate over years has transformed itself from being a notebook brand to a
provider of the complete stationery portfolio with the product range including high
quality writing instruments (ball, gel & roller pens & mechanical pencils),
mathematical instruments (geometry boxes), scholastic products (erasers, sharpeners
and rulers) and art stationery products (wax crayons, plastic crayons, sketch pens
and oil pastels).

ITC Agarbattis and Dhoop

Mangaldeep is India's no. 1 Dhoop brand and second largest Agarbatti brand with
annualized consumer spend of over Rs 800 Crores
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 &
Dhoop. These core strengths aided ITC in becoming the No. 1 Dhoop player in the
country. With its participation in the business, ITC aims to enhance the
competitiveness of the small-scale and cottage units through its complementary R&D
based product development and strengths in trade marketing and distribution.
The Business continues to work 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
manufactured by small scale and cottage units, providing livelihood opportunities
for more than 3500 people. Mangaldeep Agarbatti is manufactured at various centers
across the country and standardized processes are followed to ensure the same
quality across locations. ITC has signed a MoU with ORMAS (Orissa Rural Development
& Marketing Society), an autonomous body under the Pachayat Raj in Odisha. This
initiative provides technical training to rural women & provides employment
opportunities to over 4,000 rural women.

CIGGRATE
ITC is the market leader in cigarettes in India. With a portfolio of invaluable
brands, ITC's cigarette business stands testimony to the company's unwavering and
unrivalled commitment to quality, innovation and consumer focus.

More than one hundred years of expertise in developing products to match the
evolving taste of consumers, has led to a portfolio of brands including, Insignia,
India Kings, Classic, Gold Flake, American Club, Wills Navy Cut, Players, Scissors,
Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.

The Company is characterised by a single-minded focus on continuous value creation

for consumers through significant investments behind innovative product designs,
state-of-the-art manufacturing technology & superior marketing and distribution.

ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru,

Munger, Saharanpur, Kolkata and Pune, with cutting-edge technology & excellent work
practices benchmarked to the best globally.

In overseas markets, ITC's cigarette business continues to maintain high standards

of international quality and competitiveness. West Asia is a key export region for
ITC and we offer a wide portfolio of high-quality cigarettes in this region. With a
Portfolio of brands under the Classic, Wills, Scissors and ACE Umbrella Trademarks.

ITC has cemented its international standing being the 3rd largest player in the
countries of Bahrain & Qatar. ITC was also the first company to introduce a
flavour-on-demand (capsule) product in the economy industry segment in the West
Asia region.

ITC Hotels
One of the fastest growing hospitality chains in India, ITC Hotels is a trailblazer
in Green Hoteliering with all ITC's Premium Luxury Hotels being LEED® Platinum
Certified.
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become
synonymous with Indian hospitality. ITC Hotels pioneered the concept of
'Responsible Luxury' in the hospitality industry, drawing on the strengths of ITC
groups' exemplary sustainability practices. Responsible Luxury personifies an ethos
that integrates world-class green practices with contemporary design elements to
deliver the best of luxury in the greenest possible manner.
The Responsible Luxury commitment of ITC Hotels blends elements of nature to
deliver a unique value proposition to guests, conscious of their responsibility to
be planet positive. Today, these unique interventions have made ITC Hotels a
trailblazer in green hoteliering with all its premium luxury hotels LEED
(Leadership in Energy and Environmental Design) Platinum certified.
ITC Hotels a trailblazer in "Net Zero Carbon" commitment by accomplishing "World's
First Twelve LEED Zero Carbon" certification for Hotels.
Water is a precious resource and recycling is a responsibility we must uphold to
ensure a sustainable future for our planet. ITC Mughal, Agra, ITC Sonar, Kolkata &
ITC Rajputana, Jaipur have become the first three hotels in the world to be LEED
Zero Water Certified. The certification verifies net zero goals and signals market
leadership in the built environment. The hotels have been ensuring that their water
requirements are offset by the use of sustainable practices such as recycling water
and rainwater harvesting.
This philosophy is exemplified by twelve of our iconic hotels - ITC Windsor -
Bengaluru, ITC Grand Chola - Chennai, ITC Gardenia - Bengaluru, Welcomhotel
Bengaluru, Welcomhotel Guntur, Welcomhotel Chennai, ITC Mughal - Agra, Welcomhotel
Coimbatore, Sheraton New Delhi, ITC Grand Central - Mumbai, ITC Maratha - Mumbai
and ITC Rajputana - Jaipur are now certified as the world's first twelve LEED Zero
Carbon - Certified hotels.
With over 130+ hotels in 80+ destinations across six distinct brands, ITC's hotel
group integrates India's renowned tradition of hospitality and warmth, with
globally benchmarked facilities & services.

Agri Commodities & Rural Services

TC's pre-eminent position as one of India's leading corporates in the agricultural
sector is based on strong and enduring farmer partnerships that has revolutionized
and transformed the rural agricultural sector. A unique rural digital
infrastructure network, coupled with deep understanding of agricultural practices
and intensive research, has built a competitive and efficient supply chain that
creates and delivers immense value across the agricultural value chain. One of the
largest exporters of agri products from the country, ITC sources the finest of
Indian Feed Ingredients, Food Grains, Marine Products, Processed Fruits & Coffee.
ITC's Agri Business is the country's second largest exporter of agri-products. It
currently focuses on exports and domestic trading of:
Feed Ingredients - Soyameal
Food Grains - Wheat & Wheat Flour, Rice, Pulses, Barley & Maize
Marine Products - Shrimps and Prawns
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit
Products
Coffee

ITC's Paperboards and Specialty Papers Division is India's largest, technologically

advanced and most eco-friendly, paper and paperboards business.
ITC's Paperboards and Specialty Papers Business is the leader in volume, product
range, market reach and environmental performance, and is the clear market leader
in the value-added paperboards segment. Providing internationally competitive
quality and cost, the Business caters to a wide spectrum of packaging, graphic,
communication, writing, printing and specialty paper requirements.
ITC takes great pride in servicing a large cross-section of industry requirements -
from FMCG cartons to electrical insulation papers to Bio-based Barrier Coated
Board, to decorative laminate base to writing and printing papers and much more.
ITC straddles the entire spectrum of paperboards - from 100% virgin, food-grade
boards which are from renewable and sustainable sources to 100% recycled boards.

ITC Infotech is a leading global technology services and solutions provider, led by
Business and Technology Consulting. ITC Infotech provides business-friendly
solutions to help clients succeed and be future-ready, by seamlessly bringing
together digital expertise, strong industry specific alliances and the unique
ability to leverage deep domain expertise from ITC Group businesses. The company
provides technology solutions and services to enterprises across industries such as
Banking & Financial Services, Healthcare, Manufacturing, Consumer Goods, Travel and
Hospitality, through a combination of traditional and newer business models, as a
long-term sustainable partner.
ITC's Packaging
The largest value added converter of paperboard packaging in South Asia.
ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia. It converts over 1,00,000 tonnes of paper,
paperboard and laminates per annum into a variety of value-added packaging
solutions for the food & beverage, personal & home care products, cigarette,
liquor, quick service restaurants and consumer goods industries. The Business
offers a bouquet of differentiated and innovative products to meet various
functional and aesthetic requirements in packaging enabling enhanced consumer
experience and accelerating the shift towards sustainable packaging.
The Business, which was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business, is today India's most sophisticated packaging house.
State-of-the-art technology, in-house R&D and Innovation centers, world-class
quality management systems and a highly skilled and trained workforce have combined
to position ITC as the first-choice supplier for high value added and sustainable
packaging.
The Business supplies innovative packaging to ITC's various FMCG businesses. Its
clientele includes several well-known domestic and international companies such as
Tata Consumer, Hindustan Unilever, Nestle, GSK, Colgate, P&G, British American
Tobacco, Japan Tobacco International, Agio Cigars, Surya Nepal, Pernod Ricard,
Diageo, Foxconn, Flextronics, Burger King, Royal Enfield, etc.
In its efforts to accelerate innovation towards sustainable packaging, the Business
has launched a flagship InnovPack campaign leveraging its unique formulations like
Bioseal, Oxyblock and Germ Free coating. Several key projects to reduce, recycle
and replace plastic in packaging have been jointly developed with customers while
supporting their sustainability journey. In addition to sustainability the Business
is also offering a wide range of digital offerings like Augmented Reality and Anti
- counterfeit features under the Paconnect campaign.
With four packaging manufacturing units at Tiruvottiyur near Chennai (in the
South), Haridwar (in the North), Nadiad in Gujarat (in the West) and Munger in
Bihar (in the East), certified to ISO 9001, ISO 14001 & ISO 45001, the Business
offers a comprehensive range of products transforming Paperboard, Paper and Films
into consumer branded products making it truly a "One stop shop for Packaging"

CSR POLICY

Corporate Social Responsibility Policy*

This Corporate Social Responsibility (hereinafter referred to as 'CSR') Policy is
framed in terms of the Companies Act, 2013 (hereinafter referred to as 'the Act')
read with the Companies (Corporate Social Responsibility Policy) Rules, 2014
(hereinafter referred to as 'the CSR Rules'), as amended from time to time.

Philosophy
Recognising that business enterprises are economic organs of society and draw on
societal resources, it is ITC's belief that a company's performance must be
measured by its Triple Bottom Line contribution towards building economic, social
and environmental capital. ITC believes that in the strategic context of business,
enterprises possess - beyond mere financial resources - the transformational
capacity to create game-changing development models by unleashing their power of
entrepreneurial vitality, innovation and creativity. In line with this belief, ITC
will continue crafting unique models which have a significant multiplier impact on
sustainable livelihood creation and environmental replenishment. These initiatives
are independent of the normal conduct of ITC's businesses and are aligned to the
activities listed in Schedule VII read with Section 135 of the Act and the CSR
Rules.

Programmes, projects and activities (hereinafter collectively referred to as 'CSR

Programmes') carried out in this regard are the subject matter of this Policy.

CSR Policy
It is ITC's Policy to direct its CSR Programmes, inter alia, towards achieving one
or more of the following - poverty alleviation; promoting education and skill
development; promoting healthcare including preventive healthcare; providing
sanitation and drinking water; ensuring environmental sustainability; enabling
climate resilience; rural development projects; creating livelihoods for people,
especially those from disadvantaged sections of society; protection of national
heritage, art and culture; preserving and promoting music and sports; and providing
relief and assistance to victims of disasters and calamities.

In pursuit of the above, ITC has identified the following focus areas for its CSR
Programmes based on comprehensive need assessment surveys of its stakeholders:

Create sustainable livelihoods and alleviate poverty through promotion of, inter
alia, afforestation, water stewardship, sustainable agriculture and climate smart
practices, livestock development and women empowerment;
Build capabilities for tomorrow through interventions in, inter alia, education,
vocational training, sanitation, school WASH (Water, Sanitation & Hygiene), safe
drinking water and solid waste management;
Promote healthcare, including preventive healthcare, and improve critical
nutritional & health status of at-risk population through interventions to
strengthen mother & child health, nutritional content, delivery, outreach and
outcomes;
Protect national heritage, art & culture, and preserving & promoting music and
sports; and
Provide relief and assistance to victims of disasters and calamities.
The Company aims:

To develop the required capability and self-reliance of beneficiaries at the grass

roots, especially of women, in the belief that these are pre-requisites for social
and economic development;
To engage in affirmative action interventions such as skill building and vocational
training;
To pursue CSR Programmes primarily in areas that fall within the economic vicinity
of the Company's operations to enable close supervision and ensure maximum
developmental impact;
To enter into public-private-people partnerships to multiply the impact of the CSR
Programmes;
To carry out CSR Programmes in relevant local areas to fulfil commitments arising
from requests by government / regulatory authorities;
To provide equal opportunities to beneficiaries of the CSR Programmes;
To promote sustainability in partnership with industry associations, like the
Confederation of Indian Industry (CII) through the CII-ITC Centre of Excellence for
Sustainable Development.
Implementation
The Company's CSR Programmes will be implemented through (i) Company personnel, or
(ii) external implementing agencies, or (iii) ITC Trusts viz., ITC Education and
Health Care Trust, ITC Rural Development Trust, ITC Sangeet Research Academy, ITC
Bhadrachalam Education Trust and Tribeni Tissues Education Society, and (iv) such
other Trusts, Societies, Foundations and Section 8 companies that may be
established by the Company from time to time.

In case CSR Programmes are implemented through external agencies or ITC Trusts, the
programmes to be undertaken by those agencies or Trusts will be specified, and it
will be ensured that such programmes are covered in the Objects laid down in the
respective Trust Deeds / Memoranda and Articles of Association of the external
agencies / ITC Trusts.
Governance
The CSR and Sustainability Committee will review, monitor and provide strategic
direction to the Company's CSR and sustainability practices towards fulfilling its
Triple Bottom Line objectives. The Committee will also guide the Company in
crafting unique models to support creation of sustainable livelihoods together with
environmental re-generation.
Every year, the CSR and Sustainability Committee will place for the approval of the
Board of Directors of the Company (hereinafter referred to as 'the Board'), an
annual CSR Action Plan (hereinafter referred to as 'CSR Plan') delineating the CSR
Programmes to be carried out during the financial year, including the budgets
thereof, their manner of execution, implementation schedules, modalities of
utilisation of funds, and monitoring & reporting mechanism for the CSR Programmes.
The Board will consider and approve the CSR Plan with such modification that may be
deemed necessary; the CSR Plan may also be modified by the Board during the
financial year, on the recommendation of the CSR and Sustainability Committee.
The Corporate Management Committee (hereinafter referred to as 'the CMC') will
ensure that the Company's CSR Programmes address major development challenges of
the country and are aligned with the priorities of the Government.

The CMC will also assign the task of implementation of the CSR Plan within
specified budgets and timeframes to such persons or bodies as it may deem fit, and
ensure implementation thereof.
The Management Committee of the Social Investment Programme (hereinafter referred
to as 'MC-SIP') formed by the CMC, has been entrusted with the task of implementing
and monitoring the approved CSR Programmes within the specified budgets and
timeframes.

MC-SIP will provide report back to the CMC on the progress of the CSR Programmes at
quarterly intervals, or at such other frequency as the CMC may direct.

The aforesaid report back will also include the following:

summary of impact assessment report(s) for the CSR Programmes highlighting their
impact and outcome against the goals and objectives; and
in case of ongoing CSR Programmes (having time schedule of three years or more),
progress of their implementation with reference to approved timelines and year-wise
allocation.
The CMC will review the report back stated under (d) above and issue necessary
directions from time to time to ensure orderly and efficient execution of the CSR
Programmes in accordance with this Policy.
Once every six months, the CMC will provide a report back to the CSR and
Sustainability Committee on the progress of implementation of the approved CSR
Programmes carried out during the six month period, covering details of achievement
against planned deliverables for each intervention.

The aforesaid report back will also include confirmation from the Chief Financial
Officer that the funds disbursed for the CSR Programmes are being utilised for the
stated purpose and in the specified manner.
The CSR and Sustainability Committee will review the report back stated under (f)
above and keep the Board apprised, once every six months, on the status of
implementation of the CSR Programmes.
At the end of every financial year, the CSR and Sustainability Committee will
consider an Annual Report on CSR activities and recommend the same for the approval
of the Board. The said Report will be disclosed as part of the Report of the Board
of Directors & Management Discussion and Analysis of the Company (hereinafter
referred to as the 'Board's Report').
CSR Expenditure
It will be the Company's endeavour to spend in every financial year, two percent of
its average net profits during the three immediately preceding financial years (or
such other limit as may be prescribed under the Act), on CSR Programmes in
pursuance of this Policy.
The CSR expenditure will include all expenditure, direct and indirect, incurred by
the Company on CSR Programmes undertaken in accordance with the CSR Plan.
Any surplus arising from the CSR Programmes will be used for CSR activities within
six months from the end of the relevant financial year. Accordingly, any income
arising from CSR Programmes will be netted off from the CSR expenditure and such
net amount will be reported as CSR expenditure.
If CSR expenditure in a financial year exceeds the statutory limit, such excess may
be set-off against CSR expenditure for the next three financial years with the
approval of the Board, on the recommendation of the CSR and Sustainability
Committee.