MIRA
INFORM REPORT
|
Report Date : |
11.08.2007 |
IDENTIFICATION DETAILS
|
Correct Name : |
ITC LIMITED |
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Formerly Known
As : |
INDIA TOBACCO
COMPANY LIMITED |
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Registered
Office : |
Virginia House,
37, |
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Country : |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
28.08.1910 |
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Com. Reg. No.: |
21-1985 |
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CIN No.: [Company Identification No.] |
L16005WB1910PLC001985 |
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TAN No.: (Tax Deduction & Collection Account No.) |
CALI01571D/CALI01969C/CALI01837D |
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PAN No.: (Permanent Account No.) |
AAACI5950L |
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Legal Form : |
Public Limited Liability
Company. Company’s shares are listed on Stock Exchanges. |
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Line of
Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
RATING & COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
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Maximum Credit
Limit : |
USD 350000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ITC is a reputed
group of companies, having multi products and multi business operations. Available
information indicates high financial responsibility of the company and its
management. Financial position of the company is good. Payments are usually
correct and as per commitments. The company
has been faring well. Its’ trade relations are fair. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Virginia House,
37, |
|
Tel. No.: |
91–33–22260034 /
22260029 / 22266426 / 22499371 / 9253
/ 22469373 / 22889371 |
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Fax No.: |
91–33–22452251-60
/ 91-033-22882259 / 2260 / 1256 |
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E-Mail : |
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Website : |
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Head Office : |
ITC Hotel
Kakatiya Sheraton & Towers 63-3-1187,
Begumpet, Hyderabad-500016 |
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Tel. No.: |
91-40-23400132 |
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Fax No.: |
91-40-23401045 |
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Corporate Office : |
Kakatiya Sheraton
and Towers, Begumpet, |
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Plants : |
Cigarette Factories
˜
P. O.
Pulikeshinagar, ˜
Sardar
Patel Marg, P. O. Box No. 25, ˜
93/1,
Karl Marx Sarani, P. B. No. 17203, Kolkata - 700 043, ˜
˜
Basdeopur
P. O., District Munger - 811 202, Munger Green Leaf Threshing Plants
˜
East
Godavari District, Anaparti - 533 342, Andhra Pradesh ˜
P. B.
No. 1, Chirala - 523 157, Andhra Pradesh Packaging & Printing Plants
˜
Basdeopur
P. O., District Munger, Munger - 811 202 ˜
P. O.
Box No. 2277, Tiruvottiyur, Chennai - 600 019, Tamilnadu Tel.
No. 91-44-2434 5298 / 3585 / 7092 Fax No. 91-44-2434 0294 ˜
Tribeni
Mill, P. O. Chandrahati, District Hooghly, Paper & Paperboard Mills
˜
Anrich
Industrial Estate, Village Bollarum, Medak District, Andhra Pradesh – 502 325 ˜
P. O.
Chandrahati, District Hooghly - 712 504, ˜
Sarapaka,
Khammam District - 507 128, Andhra Pradesh Cast Coating Plant
Anrich Industrial
Estate, Village Bollarum, Medak District - 502 325, Andhra Pradesh Lifestyle Retailing
Design & Technology Centre
86, Industrial
Estate, Phase I, Udhyog Nagar, Gurgaon - 122 016, Haryana Wills Lifestyle Stores
˜
A-6,
Sadar Bazar, ˜
Shop
No. 3, ˜
171/12,
˜
1381/13-4,
˜
Motiwala
Trade Centre, Shop No. B-10 & N-11, Nirala Bazar, ˜
No.
6, ˜
Shop
No. 42-44, Siddharth Complex, R. C. Dutt Road, Alkapur, Baroda – 243 001,
Gujarat ˜
48-A,
Civil Lines, ˜
1675,
˜
138/42,
˜
794,
Shaheed Nagar, Janpath, Bhubaneshwar – 751 001, Orissa ˜
SCO –
14, Sector – 17E, ˜
No.
19, Ground Floor, Quaiser Tower, Khader Nawaz Khan Road, Nungambakkam,
Chennai – 600 034, Tamilnadu ˜
Plot
No. 4676, No. AA/11, Ground Floor, Anna Nagar, Chennai – 600 040, Tamilnadu ˜
Aishwareya
Commercial Centre, 196/13, ˜
56, ˜
Ground
Floor No. 40/7182, M. ˜
No.
3293, Ground Floor, ˜
Shop
No. G 4 & 5, G. S. Chambers, ˜
Shop
No. 8 & 9, Bansi Trade Centre, 581, ˜
Gulab
Niwas, ˜
540-R,
˜
5
& 6 Residency Road, ˜
Rave
3, ˜
19 B,
Shakespeare Sarani, Ground Floor, Kolkata – 700 071, ˜
17/1491,
A-4 Malabar Gate, ˜
85/4A,
The Mall, ˜
No.
36, ˜
Shop
No. 1 & 2, 14-2-99/1, Ward No. 14, ˜
Plot
No. 386, Ground Floor, Durga Chambers, Linking Road, Khar (West), Mumbai –
400 052, Maharashtra ˜
Shop
No. 7 & 8, Ground Floor, Prema Building, Plot No. 67, J. P. Road,
Lokhandwala, Andheri (West), Mumbai – 400 058, Maharashtra ˜
No. 6
& 6A, Tirupati Apartment, ˜
Shop
No. 2, 3 & 32, Ruki Mahal Co-operative Housing Society Limited, Plot No.
46, 44, Sector 17, Vashi, Navi Mumbai – 400 705, Maharashtra ˜
3, 4,
61 & 62, Chadda Crescent Co-operative Housing Society Limited, Plot No. 46, 55, Sector 17, Vashi, New Mumbai –
400 705, Maharashtra ˜
No.
27-29, Poonam Chambers, ˜
F-41,
South Extension – 1, ˜
No.
10208, ˜
E-2, ˜
M-12,
Greater Kailash – I, ˜
No.
M-14 a & M-15, a, b, c, d, Plot No. 331, Block E, Sector – 27, Noida, G.
B. Nagar, Uttar Pradesh – 201 301 ˜
No.
1204/22, Ground Floor, Shivaji Nagar, Junglee Maharaj Road, Pune – 411 004,
Maharashtra ˜
119, ˜
1st
& 2nd Floor, GEL Church-Commercial Complex, ˜
1-7-293/2/A/1,
˜
UG-2,
Manav Mandir, Athawa Lines, ˜
Shop
No. 1, ˜
C-56,
˜
Shop
No. 1, Rednam Manor, Dwarka Nagar, Near Club Stores
Karnataka Golf
Association Gurgaon
Classic Golf
Resort
Beldih Club Kolkata
Tollygunge Club Royal Mumbai
United Services
Club |
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Hotels : |
ITC Hotel Sonar Bangla
Sheraton &
Towers, 1, ITC Hotel Grand Maratha Sheraton & Towers
Sahar, Mumbai -
400 099, ITC Hotel Maurya Sheraton & Towers
Diplomatic
Enclave, Chola Sheraton
10, WelcomeHotel Mughal Sheraton
Taj Ganj, |
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Division
Headquarters : |
Chief Executive
Head of Finance
Vice President - HRD
Chief Information Officer
Chief Manager - Processed Fruits
Vice President - Operations
Trader - Edible Nuts and Spices
Chief Trader - Coffee and Spices
Chief Manager - Aqua
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DIRECTORS
|
Name : |
Mr. Yogesh
Chander Deveshwar |
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Designation : |
Chairman and Wholetime
Director |
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Name : |
Mr. Sahibzada
Syed Habib-ur-Rehman |
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Designation : |
Executive Director |
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Name : |
Mr. Anup Singh |
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Designation : |
Executive Director |
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Name : |
Mr.
Krishnamoorthy Vaidyanath |
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Designation : |
Executive Director |
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Name : |
Mr. Charles
Richard Green |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ajeet Prasad |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pillappakkam
Bahukutumbi Ramanujam |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Basudeb Sen |
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Designation : |
Non-Executive Director |
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Name : |
Mr. John Patrick
Daly |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ram S.
Tarneja |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Balakrishnan
Vijayaraghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Yash Pall
Gupta |
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Designation : |
Non-Executive Director |
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Name : |
Mr.
Sunil Behari Mathur |
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Designation : |
Non-Executive
Directors |
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Name : |
Mr.
Dinesh Kumar Mehrotra |
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Designation : |
Non-Executive
Directors |
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Name : |
Mr.
Serajul Haq Khan |
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Designation : |
Additional
Director |
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Name : |
Mr. A
Baijal |
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Designation : |
Additional
Director |
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Name : |
Mr. R
K Kaul |
|
Designation : |
Additional
Director |
KEY EXECUTIVES
|
Name
: |
Mr. Biswa Behari
Chatterjee |
|
Designation
: |
Executive Vice President and Company Secretary |
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Managements :-
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Audit
Committee :- |
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Mr. P. B.
Ramanujam |
Chairman |
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Mr. S B Mathur |
Member |
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Mr. B Vijayaraghavan |
Member |
|
Mr. K Vaidyanath |
Director responsible for the Finance Function |
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Mr. S Basu |
Head of Internal Audit |
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Mr. B B
Chatterjee |
Company Secretary |
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Compensation Committee :- |
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Mr. B. Sen |
Chairman |
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Mr. C. R. Green |
Member |
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Mr. J P Daly |
Member |
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Mr. S B Mathur |
Member |
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Mr. Ram S. Taneja |
Member |
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Investor Services Committee :- |
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Mr. B. Sen |
Chairman |
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Mr. P. B.
Ramanujam |
Member |
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Mr. A. Singh |
Member |
|
Mr. B. B.
Chatterjee |
Secretary |
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Nominations Committee :- |
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|
Mr. Y. C.
Deveshwar |
Chairman |
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Mr. J P Daly |
Member |
|
Mr. C. R. Green |
Member |
|
Mr. S B Mathur |
Member |
|
Mr. D K Mehrotra |
Member |
|
Mr. P. B.
Ramanujam |
Member |
|
Mr. B. Sen |
Member |
|
Mr. Ram S.
Tarneja |
Member |
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Mr. B.
Vijayaraghavan |
Member |
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Corporate Management Committee:- |
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Directors:- |
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Mr. Y. C.
Deveshwar |
Chairman |
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Mr. S. S. H.
Rehman |
Member |
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Mr. A. Singh |
Member |
|
Mr. K. Vaidyanath |
Member |
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Executives :- |
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|
Mr. K. S.
Vaidyanathan |
Member |
|
Mr. R G Jacob |
Invitee |
|
Mr. A. Nayak |
Permanent Invitee |
|
Mr. R. Srinivasan |
Permanent Invitee |
|
Mr. B. B.
Chatterjee |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Category
|
No. of shares
|
% of shareholding
|
|
Banks, Financial Institutions, Insurance Companies and Mutual Funds |
1,35,91,45,869 |
36.19 % |
|
Foreign Companies |
1,20,86,86,701 |
32.19 % |
|
Foreign Institutional Investors |
53,84,43,002 |
14.34 % |
|
NRIs / OCBs / Foreign Nationals |
2,39,41,653 |
0.64 % |
|
Shares Underlying Global Depository Receipts |
6,87,00,497 |
1.83 % |
|
Indian Public & others |
55,62,61,138 |
14.81 % |
|
Total |
3,75,51,78,860 |
100.00 % |
Top Ten Shareholders of the Company as on 31st
March, 2006
Names of Shareholders
|
No of shares
|
% of shareholding
|
|
Tobacco Manufacturers
( |
99,27,82,440 |
26.44 % |
|
Unit Trust of |
44,55,54,160 |
11.87 % |
|
Life Insurance
Corporation of |
44,08,83,480 |
11.74 % |
|
Myddleton
Investment Company Limited |
16,21,03,980 |
4.32 % |
|
The New India
Assurance Company Limited |
9,77,56,835 |
2.60 % |
|
General Insurance
Corporation of |
7,43,32,465 |
1.98 % |
|
The Oriental
Insurance Company Limited |
7,39,05,780 |
1.97 % |
|
National
Insurance Company Limited |
6,89,55,110 |
1.84 % |
|
Citibank N.A. |
6,87,00,497 |
1.83 % |
|
Rothmans International Enterprises Limited |
5,16,51,630 |
1.38 % |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
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Product : |
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PRODUCTION STATUS
The company's
production status for the year ended 31st March, 2006 was as under :
|
Class of Goods |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Cigarettes |
Million |
1,23,547 |
99,349 |
59,123 |
|
Smoking Tobaccos |
Tonne |
N.A. |
N.A. |
118 |
|
Printing /
Packaging including Flexible |
Tonne |
N.A. |
47837 |
38,316 |
|
Redried Tobacco |
Tonne |
N.A. |
N.A. |
1,03,889 |
|
Pulp |
Tonne |
N.A. |
1,00,000 |
97,615 |
|
Paperboards and
Paper |
Tonne |
N.A. |
3,52,500 |
3,65,819 |
GENERAL INFORMATION
|
No. of
Employees : |
5000 |
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Bankers : |
˜
State
Bank of ˜
Standard
Chartered Grindlays Bank Limited, 41, ˜
United
Bank of ˜
Citibank
N.A., Kolkata, ˜
Facilities:
Cash / Export Credit of Rs. 363.7 millions secured by charge over certain
current assets of the company, both present and future. |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
A. F. Ferguson
and Company Chartered Accountants |
|
Address : |
Kolkata, |
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|
Associates : |
˜
Ansal
Hotels Limited ˜
Gujarat
Hotels Limited ˜
Megatop
Financial Services and Leasing Limited ˜
Newdeal
Finance and Investment Limited ˜
Peninsular
Investments Limited ˜
Russell
Investments Limited ˜
Asia
Tobacco Company Limited ˜
Maharaja
Heritage Resorts Limited ˜
Classic
Infrastructure & Development Limited ˜
International
Travel House Limited ˜
Tobacco
Manufacturers ( ˜
ITC
Filtrona Limited ˜
King
Maker Marketing Inc., |
|
|
|
|
Subsidiaries :
|
˜
Bay
Islands Hotels Limited ˜
BFIL
Finance Limited ˜
BFIL
Securities Limited ˜
Fortune
Park Hotels Limited ˜
Gold
Flake Corporation Limited ˜
Greenacre
Holdings Limited ˜
ITC
Hotels Limited ˜
ITC
Infotech ( ˜
ITC Infotech
India Limited ˜
ITC
Infotech Limited ˜
Landbase
India Limited ˜
MRR
Trading & Investment Company limited ˜
Surya
Nepal Private Limited ˜
Russell
Credit Limited ˜
Srinivasa
Resorts Limited ˜
Wills
Corporation Limited ˜
ITC
Global Holdings Pte. Limited, ˜
Hup
Hoon Traders Pte. Limited, ˜
Hup
Hoon Shipping Pte. Limited, ˜
Chai
Fu Trading Pte. Limited, ˜
AOZT
"Hup Hoon", ˜
Hup
Hoon Impex srl, ˜
Fortune
Tobacco Company Limited, ˜
Fortune
Tobacco Company Inc., |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,00,00,00,000 |
Ordinary Shares |
Rs 1.00/- each |
Rs. 5000.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,76,22,22,780 |
Ordinary Shares |
Rs 1.00/- each |
Rs. 3762.200
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3762.200 |
3755.200 |
2494.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
100608.600 |
86859.600 |
76461.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
104370.800 |
90614.800 |
78956.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
607.800 |
259.100 |
886.900 |
|
|
2] Unsecured Loans |
1401.000 |
938.200 |
1566.700 |
|
|
TOTAL BORROWING |
2008.800 |
1197.300 |
2453.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
106379.600 |
91812.100 |
81409.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
47447.700 |
41617.300 |
39507.600 |
|
|
Capital work-in-progress |
8661.400 |
2434.000 |
1861.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
30677.700 |
35170.100 |
38746.800 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
33540.300
|
26362.900 |
20029.900 |
|
|
Sundry Debtors |
6481.100
|
5590.200 |
5376.600 |
|
|
Cash & Bank Balances |
9001.600
|
8558.200 |
556.600 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
16542.500
|
13449.900 |
11502.500 |
|
Total
Current Assets |
65565.500
|
53961.200 |
37465.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
31244.300
|
27480.100 |
25090.000 |
|
|
Provisions |
14728.400
|
13890.400 |
11081.800 |
|
Total
Current Liabilities |
45972.700
|
41370.500 |
36171.800 |
|
|
Net Current Assets |
19592.800
|
12590.700 |
1293.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
106379.600 |
91812.100 |
81409.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
195050.500 |
162244.300 |
133495.800 |
|
|
Other Income |
6798.500 |
4408.800 |
7142.200 |
|
|
Total Income |
201849.000 |
166653.100 |
140638.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
39367.000 |
32241.700 |
30274.000 |
|
|
Provision for Taxation |
12367.300 |
9888.200 |
8360.000 |
|
|
Profit/(Loss) After Tax |
26999.700 |
22353.500 |
21914.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw materials |
56443.400 |
41249.000 |
28400.700 |
|
|
Excise duty |
72061.600 |
64380.900 |
|
|
|
Power and fuel cost |
2530.000 |
2451.700 |
2185.400 |
|
|
Other manufacturing expenses |
2762.300 |
2353.200 |
2650.000 |
|
|
Employee cost |
6280.000 |
5394.000 |
4649.900 |
|
|
Selling and administration expenses |
14088.100 |
11108.800 |
8689.200 |
|
|
Miscellaneous expenses |
5052.200 |
4097.200 |
2870.400 |
|
|
Interest and financial charges |
160.400 |
211.000 |
508.000 |
|
|
Depreciation |
3629.200 |
3323.400 |
3128.700 |
|
Total Expenditure |
163007.200 |
134569.200 |
24681.600 |
|
QUARTERLY RESULTS
|
Particulars |
|
|
30.06.2007 1st Quarter |
|
Sales Turnover |
|
|
33252.300 |
|
Other Income |
|
|
1015.700 |
|
Total Income |
|
|
34268.000 |
|
Total Expenditure |
|
|
21976.700 |
|
Operating Profit |
|
|
12291.300 |
|
Interest |
|
|
(8.300) |
|
Gross Profit |
|
|
12299.600 |
|
Depreciation |
|
|
1010.300 |
|
Tax |
|
|
3460.600 |
|
Reported PAT |
|
|
7828.700 |
200706
Quarter 1 --------------- Notes Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (1652.60)million Consumption of Raw Materials Rs 15996.80
million Staff Cost Rs 1765.50 million Other Expenditure Rs 5867.00 million Tax
indicate Provision for taxation (including prior year adjustments) EPS is Basic
Status of Investor Complaints for the quarter ended June 30, 2007 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved
at the end of the quarter Nil 1. The above results were reviewed by the Audit
Committee and approved at the meeting of the Board of Directors of the Company
held on July 27, 2007. 2. Figures for the corresponding previous quarter have
been re-arranged, wherever necessary, to conform to the figures of the current
quarter. 3. Gross Income comprises Segment Revenue and Other Income. 4. (a)
During the quarter Value Added Tax (VAT) (at 12.5% by most States), central sales
tax as applicable and trade tax (at 33.5% in UP) have been imposed on
cigarettes. Consequently the Company's Cigarette sales have been subject to
additional taxation amounting to Rs 3880 million (June 30, 2006 - Rs Nil).
Gross Income stated above is net of this figure. (b) Gross Income includes Rs
18530 million (June 30, 2006 - Rs 17840 million) being Excise Duties and other
Local Taxes. 5. Provision for Taxation includes Rs 87.60 million (corresponding
previous quarter Rs 30.80 million) for Fringe Benefit Tax. 6. The above is as
per Clause 41 of the Listing Agreement. Limited Review: The Limited Review, as
required under Clause 41 of the Listing Agreement has been completed and the
related Report forwarded to the Stock Exchanges. This Report does not have any
impact on the above 'Results and Notes' for the Quarter ended June 30, 2007
which needs to be explained.
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.02 |
0.02 |
0.03 |
|
Long Term Debt Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Current Ratio |
1.35 |
1.15 |
0.97 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.95 |
2.74 |
2.58 |
|
Inventory |
6.51 |
6.99 |
7.55 |
|
Debtors |
32.32 |
29.59 |
34.24 |
|
Interest Cover Ratio |
245.81 |
153.80 |
53.63 |
|
Operating Profit Margin (%) |
22.07 |
22.05 |
22.75 |
|
Profit Before Interest and Tax Margin (%) |
20.21 |
20.00 |
20.41 |
|
Cash Profit Margin (%) |
15.70 |
15.83 |
16.11 |
|
Adjusted Net Profit Margin (%) |
13.84 |
13.78 |
13.76 |
|
Return on Capital Employed (%) |
40.02 |
37.73 |
37.44 |
|
Return on Net Worth (%) |
27.86 |
26.55 |
25.91 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 164.40/- |
|
Low |
Rs. 156.30/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject a leading FMCG Cigarette major is one of the most
valuable companies of
Subject was incorporated on August 24, 1910 under the name of `Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on
Though the first six decades of the Company's existence were primarily devoted
to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses,
the Seventies witnessed the beginnings of a corporate transformation that would
usher in momentous changes in the life of the Company.
In 1975 the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'subject Welcomgroup Hotel Chola'. The objective
of subject's entry into the hotels business was rooted in the concept of
creating value for the nation. Subject 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 subject's Hotels business has grown to occupy a position of leadership,
with 65 owned and managed properties spread across
In 1979, subject entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in
In 1985, subject set Surya Tobacco Co. in
Recently, subject's Packaging & Printing business has launched a line of
high quality greeting cards under the brand name `Expressions'. Subject has
also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women. The company has recently
forayed into lifestyle Retailing business with its launch of 'Wills' range of
casual and formal wear products. It has also spun off its Information
Technology business into a wholly owned subsidiary to moreaggressively pursue
emerging opportunities. Subject is one of the largest exporters of Indian
agri-commodities.
ITC Bhadrachalam Paper Boards, a subsidiary company was merged with subject in
the year 2002. The shareholders of ITCPBL were allotted one equity share of subject
for every sixteen held. The company has decided to amalgamate ITC Hotels Ltd
& Ansal Hotels Ltd with itself.As per the scheme of amalgamation,i)the
shareholders of ITCHL will receive Three Equity Shares of Rs.10/- each of
subject for every Twenty Five Equity Shares of Rs.10/- each held, ii)the
shareholders of Ansal Hotels Ltd will get One Equity Share of Rs.10/- each of
subject for every One Hundred Fifty Equity Shares of Rs.10/- each held by them.
This amalgamation has come into effect from 1st April 2004.
During 2004-05, the company commissioned its second property 'ITC Grand
Central' in Mumbai. The company has proposed hotels at Chennai,
The company expanded the installed capacity of Cigarettes and Paperboards &
Paper during the year 2004-05 by 7329 Million Nos and 75000 Tonnes and with
this expansion, the total installed capacity of Cigarettes and Paperboards
& Paper increased to 94597 Million Nos & 352500 Tonnes
respectively.
In 2005,the company was awarded the ISO 9001:2000 standard By M/s. Det Norske
Veritas as a recognition of its quality products and processes. The company's
units at Munger and Tiruvottiyur are certified to ISO 9000,14000 and 18000. The
company has also won three
In 2005-06, the company acquired Wimco Ltd through its one of the subsidiary
company, Russell Credit Ltd. This acquisition is expected to further
consolidate the market standing of the company's matches business through
synergy benefits. The Installed capacity of Cigarettes and Printing &
Packaging including Flexibles expanded 4752 Million Nos and 9928 Tonnes during
the year, with this expansion the total installed capacity of Cigarettes and
Printing & Packaging including Flexibles increased to 99,349 Million Nos
& 47,837 Tonnes.
Milestones
1996
Flat 10 packs
launchced
1997
10s hinged-lid
packs introduced for regular size filters
1999
New factory at
2000
Brownfield project
at
Entry into
Lifestyle Retailing business with first store in
2001
Regular size
filters offered in 5s packs
‘Wills Lifestyle’
chain rapidly scaled upto 29 stores
Engry into the foods
Business with lauch of ‘Kitchens of India’.
‘Expressions valued
Customer’ programme started
2002
Beveled edge packs
introduced
‘mint-o’ trademark
acquired relaunched in lemon and mint flavours, ‘Candyman’ added to
confectionery rang, ‘ Aashirvaad’ atta rolled out
Chain expanded to
48 stores; Master Design Facility established; ‘Wills Classic’ formal wear
launched; ‘John Players’ introduced in the mid-priced popular segment.
Entry into Greeting
Cards business
‘Expressions
Paperkraft’ premium paper products launched
Entry into
marketing of safety matches
2003
‘
Integrated Group
Research and Development Centre established ‘Aashirvaad’ Salt introduced;
‘Candyman’ range expanded to deposited candies and eclaris; ‘Sunfeast’ biscuits
lauched; Aashirvaad Ready Meals’ offered; ‘mint-o’ in lemon mint flavour.
‘Wills Clublife’
evening wear launched.
‘Expressions
Classmate’ mass market notebooks for schools and colleges introduced.
Entry into
marketing of Agarbatties
2004
Long – Size filters
offered in wave packs
‘Kitchens of
‘Mangaldeep’ brand
of Agarbatties added to portfolio.
Fixed
Assets
Ø
Trademarks and Goodwill
Ø
Know-how, Business and Commercial
Rights
Ø
Land Freehold
Ø
Buildings Freehold
Ø
Leasehold Properties
Ø
Licensed Properties - Building
Improvement
Ø
Railway Sidings etc.
Ø
Plant and Machinery
Ø
Capitalised Software
Ø
Computers etc.
Ø
Furniture and Fixtures
Ø
Motor Vehicles etc.
Directors
Profile:
Y. C. Deveshwar
Y.C. Deveshwar, an engineering graduate from the Indian
Institute of Technology,
Under his leadership, ITC's Sustainability efforts were given shape through
unique business models. ITC became the first Indian company to publish its
Sustainability Report, 2004 in accordance with the guidelines of the Global
Reporting Initiative. For the efforts at creating sustainable livelihood
opportunities, ITC also won the inaugural World Business Award instituted
jointly by the United Nations Development Programme, International Chamber of
Commerce and the HRH Prince of Wales International Business Leaders Forum.
ITC's `e-Choupal', a digital infrastructure initiative to empower marginal
farmers in
Deveshwar is the Past President of the Confederation of Indian Industry. He is
also a member of the Board of Governors of the
Amongst several awards and recognitions during his distinguished career,
Deveshwar has been honoured with the Business Person of the Year Award by the
UK Trade & Investment by His Royal Highness Prince Andrew, the Duke of
York, in 2006. In January 2006, he was inducted to the prestigious Hall of
Pride at the Indian Science Congress. He was also named Manager Entrepreneur of
the Year 2001 by Ernst & Young.
Other
Directorships
|
Name of the
Company |
Position |
|
Surya Nepal
Private Limited |
Chairman and
Director |
|
International
Travel House Limited |
Director |
|
HT Media Limited |
Director |
|
Woodlands Medical
Centre Limited |
Director |
|
West Bengal Industrial
Development Corporation Limited |
Director |
Committee Memberships of other Companies:
Nil
S. S. H. Rehman
S.S.H. Rehman was appointed a Director on the Board of ITC on
November 21, 1997. He began his career with the Indian Army, moving over to the
hospitality industry in 1975 and joining ITC in 1979. Since then Rehman has
been General Manager of Welcomgroup's premier hotels across
Other
Directorships
|
Name of the
Company |
Position |
|
International
Travel House Limited |
Chairman and
Director |
|
Landbase
|
Chairman and
Director |
|
Fortune Park
Hotels Limited |
Chairman and
Director |
|
Gujarat Hotels
Limited |
Chairman and
Director |
|
Srinivasa Resorts
Limited |
Vice Chairman and
Director |
|
Maharaja Heritage
Resorts Limited |
Director |
|
Tourism Finance
Corporation and Exhibition Centre Limited |
Director |
|
Mumbai
International Convention and Exhibition Centre Limited |
Director |
Committee Memberships of other Companies:
Nil
Anup Singh
Anup Singh was
appointed a Director on the Board of ITC on November 21, 1997. He joined ITC in
1968 after receiving a Bachelor's degree in Electrical Engineering from NT,
Kharagpur. He was a key participant in the Company's major strategic initiative
in the mid seventies to implement the concept of 'Management by Objectives
(MBO)'.
Singh has had a long
stint in ITC's Cigarette business, including heading it as the Chief Executive.
He has also been the Chief Executive of the erstwhile Specialty Papers
Division. He is currently in charge of the Cigarettes, Information Technology
and Lifestyle Retailing businesses of the Company.
He is immediate
Past President and a Committee member of the Indian Chamber of Commerce. He is
also a Director of The Tobacco Institute of India.
Name of the Company
Committee Position
Other Directorships
|
Name of the Company |
Position |
|
ITC Infotech
India Limited |
Chairman and
Director |
|
ITC Infotech
Limited, |
Chairman and
Director |
|
ITC Infotech ( |
Chairman and
Director |
|
Asia Tobacco
Company Limited |
Chairman and
Director |
|
Surya Nepal Private
Limited* |
Director |
Committee
Membership of other Companies: Nil
K. Vaidyanath
K. Vaidyanath was
inducted into the ITC Board on January 1 7, 2001. He holds responsibility for the
Company's Finance and IT functions, its investment subsidiary, Agri Business
and Corporate Communications. Before his
elevation to the Board, he was the Company's Chief Financial Officer.
An MBA from XLRI,
Vaidyanath is a
Committee member of the Bengal Chamber of Commerce and Industry. He was
adjudged one of the best CFOs in the country in a survey conducted by Business
Today magazine in 2005.
Other Directorships
|
Name of the
Company |
Position |
|
Russell
Credit Limited |
Chairman and
Director |
|
Gold Flake
Corporation Limited |
Chairman and
Director |
|
Wills Corporation
Limited |
Chairman and
Director |
|
Greenacre
Holdings Limited |
Chairman and
Director |
|
ITC Infotech
India Limited |
Director |
|
Classic
Infrastructure and Development Limited |
Director |
Committee
Memberships of other Companies
|
Russell Credit
Limited |
Audit Committee |
Chairman |
|
Gold Flake
Corporation Limited |
Audit Committee |
Chairman |
|
Greenacre Holdings
Limited |
Audit Committee |
Chairman |
|
ITC Infotech
India Limited |
Audit Committee |
Member |
J. P. Daly
J. P. Daly
joined the ITC Board as a representative of BAT on January 21, 2005. His academic
qualifications include a Master of Business Administration from the
Other Directorships
|
Name of the
Company |
Position |
|
British-American
Tobacco |
Director |
|
British American
Tobacco ( |
Director |
Committee
Memberships of other Companies: Nil
C. R. Green
C. R. Green has represented
BAT on the ITC Board from April 16, 1999. He joined BAT in 1993 after a long
and distinguished career in the oil industry. He has spent over 18 years with
Texaco, the
In the tobacco industry, Green has worked with Brown &
Williamson, where he was Vice President for Latin America, Middle East &
Africa and President for
Other Directorships
|
Name of the
Company |
Position |
|
Alliance One
International Inc* |
Director |
Committee Membership
of other companies: Nil
S.H. Khan
S.H. Khan joined the ITC Board as a Non-Executive Independent Director on
October 30, 2006. Khan is the former Chairman and Managing Director of
Industrial Development Bank of India (IDBI). He holds a Master's Degree in
Commerce and is a university Gold Medalist. He is an alumnus of International
Management Development Institute,
He started his professional career with RBI and after serving it for a few
years moved over to IDBI in 1966. He served IDBI in various capacities and
retired as its Chairman and Managing Director in 1998. During his tenure as
Chairman, IDBI made impressive growth in its lending operations and other
support services to Indian industry. He was instrumental in expanding its
activities to several new areas like commercial banking, asset management and
stock broking. He played a significant role in the promotion of two premier
capital market institutions viz., NSE and NSDL and guided their operations for
5 years as their first Chairman. He was also involved in the promotion of the
rating agency, CARE and served as its Chairman for 10 years. He served as a
member of several committees / working groups set up by the Government of India
/ RBI on matters connected with the Indian industry and financial system. The
recommendations of the Working Group set up by RBI in 1988, of which he was
Chairman, formed the basis for conversion of DFIs like ICICI and IDBI into
commercial banks.
Khan in his capacity as IDBI Chairman has served on the Boards of a number of
important institutions such as UTI, LIC, GIC, IFCI, Exim Bank, Deposit
Insurance Corporation, Indian Airlines and Air
Other Directorships
|
Name of the
Company |
Position |
|
Bajaj Auto
Company |
Director |
|
The shipping
Corporation of India Limited |
Director |
|
National Stock Exchange
of India Limited |
Director |
|
Infrastructure
Devlopment Finance Company Limited |
Director |
|
Great Eastern
Energy Corporation Limited |
Director |
|
Bajaj Allianz
Life Insurance Company Limited |
Director |
Committee Membership of
other Companies
|
Name of the
Company |
Position |
|
The shipping
Corporation Audit Committee of India Limited |
Chairman |
|
Infrastructure
Development Audit Committee Finance Company Limited |
Chairman |
|
Investors
Grievance Committee |
Chairman |
|
Bajaj Auto
Limited Audit Committee Investors Grievance Member Committee |
Chairman |
|
National Stock
Exchange Audit Committee Member of India Limited |
Chairman |
|
Great Eastern
Energy Audit Committee Member Corporation Limited |
Chairman |
S.B. Mathur
S.B. Mathur joined the ITC Board as a representative of the Life
Insurance Corporation of India (LIC) on July 29, 2005.
A qualified Chartered Accountant, Mathur retired from LIC in October 2004 as its
Chairman. Subsequently, the Government of India appointed him the Administrator
of the Specified Undertaking of the Unit Trust of India in December 2004.
Mathur took over as Chairman of LIC at a time when the insurance sector had
just opened up. Under his leadership, LIC successfully rose to the challenges
of a competitive environment by enhancing product offerings.
He joined LIC in 1967 as a Direct Recruit Officer and rose to the rank of
Chairman. He held various positions in LIC including Senior Divisional Manager
of Gwalior Division, Chief of Corporate Planning, General Manager of LIC
(International) E.C., Zonal Manager in charge of Western Zone and Executive
Director.
Mathur is also a member of the Board of Trustees of Stressed Assets Stabilisation
Fund, IDBI.
Other Directorships
|
Name Of The
Company |
Position |
|
National Stock
Exchange Non Executive Of India Limited |
Director |
|
Uti Technology
Services Limited |
Chairman And
Director |
|
Uti
Infrastructure And Services Limited |
Chairman And
Director |
|
Eid Parry ( |
Director |
|
Grasim Industries
Limited |
Director |
|
Havell’s India
Limited |
Director |
|
Infrastructure
Leasing And Financial Services Limited |
|
|
National
Collateral Management Services Limited |
|
|
Uti Bank Limited |
|
|
Indian Railway
Catering And Tourism Corporation Limited |
|
|
Housing
Development And Infrastructure India
Limited |
|
|
Idfc Trustee
Company Limited |
|
|
Universal Sompo
General Insurance Company Limited |
|
Committee Membership
Of Other Companies
|
Name Of The
Company |
Position |
|
Uti
Infrastructure Audit Committee And Services Limited |
Chairman |
|
Havell’s India
Limited Audit Committee Member |
Audit Committee
Member |
D.K. Mehrotra
D.K. Mehrotra joined the ITC Board as a representative of the Specified
Undertaking of the Unit Trust of India on May 26, 2006. He is currently the
Managing Director of the Life Insurance Corporation of India (LIC). He joined
LIC as a Direct Recruit Officer in 1977.
Born in 1953, Mehrotra is an Honours Graduate in Science from the
Mehrotra has attended several important knowledge forums in
Other Directorships
|
Name Of The
Company |
Position |
|
Acc Limited |
Director |
|
Infrastructure
Leasing And Financial Services Limited |
Director |
|
Lic (Lanka)
Limited* |
Director |
|
Lic ( |
Director |
|
Lic
(International) B S C ©* |
Director |
Committee Membership Of
Other Companies: Nil
P. B. Ramanujam
P. B. Ramanujam has represented the General
Insurance Corporation of India (GIC) and its erstwhile subsidiaries on the
Board of ITC since October 30, 1998. He has held several responsibilities in
GIC covering finance, accounts / investments, reinsurance, information
technology etc. He was General Manager and Director with the National Insurance
Company Limited and the Managing Director of GIC till July 31, 2004.
Ramanujam
has served as a faculty member at the National Insurance Academy, Pune. He is a
guest faculty at the Institute of Financial & Management Research, Chennai
in the area of risk management & insurance. He was also the Chairman of the
committee appointed by the interim Insurance Regulatory Authority (IRA) for
prescribing norms, rules and regulations in the area of finance. He has also
been a member of two other IRA committees on technical issues and investment
matters, and Insurance Regulatory Information System. He was a member of
FICCI's Reinsurance Sub-Committee as also of the Insurance Tariff Advisory
Committee of Insurance Regulatory and Development Authority. He is a member of
the Educational Advisory Council of the
Other Directorships
|
Name of the Company |
Position |
|
Nicco Corporation
Limited |
Director |
Committee Memberships of other Companies:
Nil
Basudeb Sen
Basudeb Sen has been on the Board of ITC
since March 23, 1995, first as a nominee, then as a representative of UTI, and from
July 28, 2000 as an Independent Non-Executive Director. Sen has over 32 years
of management experience in different areas of commercial banking, development
banking and investment management. He is an M.A. in Economics and a Ph.D. from
Indian Statistical Institute, besides being an alumnus of the
financial
markets and energy.
He has served as Chairman and Managing
Director of the Industrial Investment Bank of India Limited and as Executive
Director of UTI. He has managed critical business responsibilities in various
areas including strategic planning, risk management system, investment
portfolio management and fund marketing and credit and project appraisal.
In the last two decades, Sen has served as
Chairman and / or Member of various working groups / committees set up by SEBI,
RBI, Indian financial institutions and industry associations on suth issues as
consortium lending, corporate governance, institutional disinvestment, overseas
investment by mutual funds, money markets and corporate debt restructuring, as
also on the Boards of several companies in sectors like infrastructure,
engineering, petrochemicals, electronics and financial services.
Other Directorships
|
Name Of The
Company |
Position |
|
Mahanaga Gas
Limited |
Director |
|
Gujarat Nre Coke
Limited |
Director |
|
South Asian
Petrochem Limited |
Director |
|
Srei Venture
Capital Limited |
Director |
|
Sumedha Fiscal
Services Limited |
Director |
Committee Memberships Of Other Companies
|
Name Of The
Company |
Position |
|
Mahanaga Gas
Limited |
Audit Committee
Chairman |
|
Gujarat Nre Coke
Limited |
Audit Committee
Chairman |
|
South Asian
Petrochem Shareholders Limited |
Grievance
Committee |
Ram S. Tarneja
Ram S. Tarneja joined the ITC Board as a Non-Executive Independent Director on November 25, 1996. His present Chairmanships include, among others, that of Jolly Board Limited, Nissin ABC Logistics Private Limited and the Pan Asian Management & Rural Research Organisation.
Tarneja was Managing Director - Bennett, Coleman & Co. Limited until May
1991 and continues to be on the Board of that company. Tarneja is past
President of Indian Merchants Chamber, All India Management Association, Indian
Newspaper Society, Indian Institute of Personnel Management, Asian Association
of Management Organisations and others. He is currently on the Boards of
National Bank for Agriculture and Rural Development and Engineering Projects (
Other Directorships
|
Name of the
Company |
Position |
|
jolly Board
Limited |
Chairman and
Director |
|
Transcorp
International Limited |
Director |
|
Nesco Limited |
Director |
|
Bharat Gears
Limited |
Director |
|
Bennett, Coleman
and Company Limited |
Director |
|
Housing Development
Finance Corporation Limited |
Director |
|
Ballarpur
Industries Limited |
Director |
|
Rallis India
Limited |
Director |
|
Otis Elevator
Company ( |
Director |
|
Phillips Carbon
Black Limited |
Director |
|
Gati Limited |
Director |
|
Phoenix Township
Limited |
Director |
|
SOWiL Limited |
Director |
|
Housinsing
Development Finance Corporation Limited |
Director |
Committee
Memberships of other Companies
|
Name of the
Company |
Committee |
Position |
|
Bharat Gears Limited |
Audit Committee |
Chairman |
|
Bennett, Coleman
and Company Limited |
Audit Committee |
Chairman |
|
Housing
Development Finance Corporation Limited |
Shareholders /
Investors Grievance Committee |
Chairman |
|
Ballarpur
Industries Limited |
Shareholders /
Investors Grievance Committee |
Chairman |
|
Rallis India
Limited |
Audit Committee Shareholders /
Investors Grievance Committee |
Member |
|
Otis Elevator
Company ( |
Audit Committee
Member |
Member |
|
Transcorp
International |
Audit Committee
Member |
Member |
|
Gati Limited |
Audit Committee
Member |
Member |
B. Vijayaraghavan
B. Vijayaraghavan joined the ITC Board as an
Independent Non-Executive Director on November 25, 1996. Vijayaraghavan was in the
Indian Administrative Service from 1957 to 1993, when he retired in the rank of
Chief Secretary to the Government of Tamil Nadu. He has served as Secretary to
the Tamil Nadu Government in the Public Works, Forests and Fisheries,
Prohibition and Excise and Home departments. He has been the Chairman of the
Tamil Nadu Electricity Board, Member – Board of Revenue and Commissioner of
Commercial Taxes, Tamil Nadu, Chairman and President - Tuticorin Alkali
Chemicals and Fertilisers Limited, Chairman and Managing Director – State
Industries Promotion Corporation of Tamil Nadu and Vigilance Commissioner and
Commissioner for Administrative Reforms, Tamil Nadu.
After his
retirement from Government service, Vijayaraghavan was a Member of the
Syndicates of Alagappa University and
Notes:
1. Other
Directorships and Committee Memberships of Directors are as on 31st March,
2005.
2. Other Directorships
exclude Directorships in Indian Private Limited Companies, Memberships of
Managing Committees of Chambers
of Commerce /
Professional Bodies and Alternate Directorships.
3. Committee
Memberships are in respect of Audit Committee and Investors Grievance Committee
of Indian Companies.
Denotes foreign
Company.
Business:
Subject is engaged
in the business as manufacturers of Cigarettes and Unmanufactured Tobacco. It is also engaged in Hotel Business.
Subject is one
of the most valuable companies
Awards
·
Golden Peacock
Global Award;
- Greentech Environment Excellence Gold Award;
- Highest Green Rating from Centre for Science and Environment;
- Cll ENCON Award;
- CAPEXIL Top Export Award; Indira
- Priyadarshini Vrikshamitra Award;
- Cll Vantech Industry Rolling Trophy;
- Rajiv Gandhi Parti Bhoomi Mitra Award;
- National Award for Energy Conservation;
- Gold Award for Safety from the Royal Society for Prevention of
Accidents (
Company
Performance
The Company completed yet another year of strong performance
with robust topline growth and high quality earnings. All business segments
posted strong growth in revenues and enhanced their market standing, testifying
to the robustness of the corporate strategy of creating multiple drivers of
growth. This performance is even more satisfying when viewed in the light of the
challenging business environment of the cigarette industry, incubation costs of
the new FMCG businesses and the rural marketing initiatives and the gestation
costs of fresh investments in the paperboards and hotels businesses.
Gross Turnover for the year grew by 20.2% to Rs. 195050 millions. Net Turnover
at Rs. 123690 millions grew by 26.3% driven by the non-cigarette FMCG
businesses, higher agri-business revenues and the continuing strong performance
by the Hotels business. The non-cigarette portfolio grew by 37.6% during the
year and now accounts for 52.3% of the Company's Net Turnover. Pre-tax profit
increased by 20.1% to Rs. 39270 millions, while Post-tax profit at Rs. 27000
millions registered a growth of 20.8%. Earnings Per Share for the year stands
at Rs. 7.19. Cash flows from Operations stood at Rs. 34020 millions during the
year.
In order to strike a balance between the need to sustain strategic investments
for a secure future and the annual expectation of shareholders for growing
income, the Directors are pleased to recommend a dividend of Rs. 3.10 per share
(previous year Rs. 2.65 per share) for the year ended 31st March, 2007. The
cash outflow in this regard will be Rs. 13645.0 millions (previous year Rs.
11347.0 millions) including Dividend Tax of Rs. 1982.1 millions (previous year
Rs. 1395.6 millions). The Board further recommends a transfer to General
Reserve of Rs. 12500 millions (previous year Rs. 11500 millions). Consequently,
the Board recommends leaving an unappropriated balance in the Profit and Loss
Account of Rs. 6475.3 millions (previous year Rs. 5620.6 millions).
Foreign
exchange earnings
The Company
continues to view foreign exchange earnings as a key priority. All businesses
in the ITC portfolio are mandated to engage with overseas markets in a bid to
test competitiveness and seek growth opportunities. The ITC Group's
contribution to foreign exchange earnings over the last ten years amounted to
nearly USD 2.8 billion, of which agri exports constituted 65%. Earnings from agri
exports is an indicator of the Company's contribution to the rural economy
through effectively linking small farmers with international markets.
During the financial year 2006-07, the Company, its subsidiaries and the
ITC-Welcome group hotel chain together earned Rs.24440 millions in foreign
exchange. Direct foreign exchange earned by the Company amounted to Rs.22830
millions. The Company's expenditure in foreign currency amounted to Rs.12190
millions, comprising purchase of raw materials, spares and other expenses at
Rs.7370 millions, and import of capital goods at Rs.4820 millions.
Branded
packaged foods
The Branded Packaged Foods business continued to expand rapidly with sales recording an impressive growth of 51% over the previous year. The range of offerings now comprises more than 150 distinct food products under six brands. The Company's unwavering commitment to internationally benchmarked quality standards enabled it to further enhance the market standing of all its brands. In terms of consumer spend, `Aashirvaad' and `Sunfeast' have both become more than five hundred crore rupee brands within a short span of time.
The year marked the Company's foray into the fast growing Rs. 19000 millions
organised Salty Snacks market with the launch of the Bingo! range of potato
chips and finger snacks. The launch, initially comprising 16 highly innovative
and differentiated flavours, is backed by extensive market research leading to
crafting of products/variants customised for the Indian palate. The Company is
confident of redefining this category on the strength of its insightful
understanding of consumers, a robust product development strategy bolstered by
the culinary expertise residing in the Hotels business and a strong sales and
distribution network. The Company's strong farm linkages ensuring access to
high quality and select grades of potatoes is a distinct source of sustainable
competitive advantage.
Sales in the Biscuit category grew by 55% over the previous year. The
`Sunfeast' range stood further expanded with the launch of `Sunfeast Special'
biscuits in select markets in the fast growing midprice creams segment and the
extension of midprice cookies to target markets. The year also saw the launch
of three exciting variants in the premium creams segment and the FITKIT range
of products endorsed by Sachin Tendulkar in two unique variants. On the
manufacturing front, the business expanded its production capacity by adding
facilities in two more locations. Product mix continued to improve driven by
enhanced sales of value added products like Creams, Cookies etc. which aided,
albeit only partially, in neutralising the impact of an unprecedented increase
in input costs.
The Union Budget 2007 has withdrawn excise duties on biscuits with retail sales
price not exceeding Rs. 100 per kg. However, since Biscuits form a good source
of nutrition particularly for children, lower income groups and the rural
population, it would be highly desirable to withdraw excise duties on the
entire biscuits category, as has been done in respect of other food products
such as noodles, traditional sweets, namkeens etc.
In the Staples category, `Aashirvaad Atta' grew from strength to strength with
impressive gains across regions. The brand now commands a 52% market share
amongst national branded players and is the clear market leader in most major
markets. `Aashirvaad Select', the premium atta offering, which was extended to
target markets during the year met with very good consumer response. Spices
volumes were scaled up, leveraging the equity of the `Aashirvaad' brand.
In the Confectionery category, `Candyman' and `Mint-o', registered strong
growth with sales growing by nearly 51% over the pervious year driven by
Eclairs, Cofitino and the new variants launched during the year viz. Natkhat
Mango and Maha Mango. The business added incremental capacity during the year
to meet the enhanced business volumes. Significant progress was made during the
year in the area of new product development with a slew of products ready for
launch going forward.
Product portfolio was further expanded in the Ready-to-Eat segment with the
introduction of twelve new products in the domestic market under the `Kitchens
of India' (KOI) banner. Exports of KOI products were also scaled up during the
year. The brand is now available in
The Company will continue to rapidly scale up the Branded Packaged Foods
business drawing upon the agri-sourcing strength of the e-Choupals, in-house
cuisine expertise, product development capabilities and branding, sales &
distribution competencies to establish itself as the `most trusted provider of
food products in the Indian market'.
Lifestyle Retailing
The market standing of the Lifestyle Retailing business stood significantly
enhanced with an impressive 52% growth in sales during the year. Both the
premium and the popular segments registered handsome growth. The export segment
also grew significantly during the year.
In the premium segment, the business continued to expand consumer franchise
with strong sales growth across its portfolio, viz. the `Classic' range of formal
wear, `Wills Sport' relaxed wear and `Wills Clublife' evening wear. The brand's
association with high fashion and premium imagery stood reinforced with the
resounding success of the `Wills Lifestyle India Fashion Week' the country's
most prestigious lifestyle event. As part of the `Ramp to Racks' initiative,
the business in collaboration with some of the leading designers of the country
successfully introduced the `Wills Signature' range of designer wear in select
`Wills Lifestyle Stores'. These product offerings have met with excellent
response from discerning consumers. The `Wills Lifestyle' range was further
augmented during the year with the extension of `Essenza Di Wills', an
exclusive line of prestige fragrance and bath and body care products, to select
`Wills Lifestyle' stores. The products have met with very encouraging response
from quality conscious consumers.
The business continued to post significant improvements in several operating
indices such as average realisations, footfalls/conversion and sell through
rates. The customer privileges programme saw a 66% increase in membership.
Superior visual merchandising and world-class in-store services enhanced
consumer experience, aiding substantial increase in customer loyalty. The
`Wills Lifestyle' range is currently available in over 200 locations through
`exclusive brand outlets' (EBOs) and `shop-in-shops'. Plans are afoot to
rapidly enhance the retail footprint primarily through opening new stores in
identified upcoming malls.
In a clear recognition of its enhanced market standing, `Wills Lifestyle' was
named a `Superbrand' by the Superbrand Council of India and honoured with the
`Retailer of the Year' award at the Idea Zee Fashion Awards.
In the popular `Youth' segment, `John Players' delivered a strong performance
leveraging its youthful and fashionable product range and a significantly
enhanced presence across target outlets. The celebrity association with style
icon Hrithik Roshan created high buzz for the brand among its youthful target
audience, mobilising high degree of trials and garnering enhanced consumer mind
share. The launch of the `signature line' of glamour wear incorporating the
fashion preferences of the brand ambassador, gave the brand portfolio its edgy
face. The brand continued to earn industry recognition winning the `The Most
Admired Fashion Campaign of the Year' at the Images Fashion Awards 2007.
`John Players' has now established a strong pan-India presence with
availability at over 170 Flagship Stores and 1,700 Multi Brand Outlets. The
number of `exclusive brand outlets' in which the brand is available doubled
during the year with a trebling of the associated retail space. The business is
in the process of significantly scaling up retail presence primarily in high
potential catchment malls.
The business continued to actively pursue opportunities in the Exports arena
consolidating the existing customer base and establishing long-term
partnerships with high potential customers. During the year under review, the
business established an exclusive manufacturing arrangement with a
state-of-the-art unit which, coupled with an expanded product portfolio,
enabled a threefold increase in export turnover. The business continues to
focus on increasing the fashion quotient of its offerings and delivering
world-class products. Towards this end, the business continues to invest in
enhancing capability in the areas of design and product engineering. Recent
investments in Information Technology are being effectively leveraged to obtain
real time information visibility across segments with a view to improving
operational effectiveness and customer intimacy.
Greeting, Gifting and Stationery
Business
The Stationery business was significantly scaled up with sales doubling over
the previous year. This growth was fuelled by the flagship brand `Classmate',
which has become
`Classmate' offers school and college students a memorable writing experience
with the superior `Alfa Plus' paper used in these notebooks, custom
manufactured at the Bhadrachalam Unit. `Alfa Plus' is
During the year, the business enlarged the scale and scope of its `Classmate
Connect' school contact programme. The `Classmate Young Author Contest 2006'
covered 5,000 schools across 34 cities and reached out to 200,000 students,
making it the largest literary event in the national school calendar.
Associated events like the `Classmate Young Artist Contest 2006' and panel discussions
with eminent educationists were held in selected cities. In line with its
`Citizen First' philosophy the Company contributes Re. 1/- towards its rural
development initiatives for every notebook sold.
During the year, a new designer range was unveiled under the premium stationery
brand, `Paperkraft', targeted at discerning executives and college students.
The range is available at all leading modern format stationery stores.
The Greeting & Gifting segment continues to be impacted by mobile telephony
and messaging services. However, `Expressions' remains a leading brand in this
value added segment. With the growing footprint of modern format retail, the
business plans to enlarge its presence in the gifting segment.
During the year, the business outsourced its products from over twenty
small-scale units across the country. The business remains committed to aiding
small-scale units to enhance the quality of their products and delivery
capability to meet the growing demand for its brands.
The Greeting, Gifting & Stationery Business continues to enjoy ISO
9001:2000 certification in recognition of its quality systems and
processes.
The logistics infrastructure was enhanced during the year to capture cost and
distribution efficiencies.
Growing levels of literacy, favourable demographics, and increased budgetary
allocation under the Government's `Sarva Shiksha Abhiyan' programme augur well
for the growth of branded notebooks. Accordingly, the Company plans to scale up
the notebooks business significantly by offering a superior and differentiated
product range, leveraging the investments in incremental paper manufacturing
capacity currently underway and a strong distribution network.
Paperboards, paper
and packaging
The Paperboards, Specialty Paper and Packaging segment recorded yet another year of strong performance. As set out in the Segment Report annexed as Schedule 20 to the Accounts, segment revenue grew by 11% to touch Rs. 21000 millions while segment results improved by 19% to Rs. 4170 millions. The segment generated strong operating cash flow of Rs. 5390 millions.
The company has joint venture with the following:
˜
ITC
Filtrona Limited
ITC Filtrona maintained its market leader in the Indian Cigarette filter
industry with nearly 58% value share.
˜
King
Maker Marketing Inc.,
King Maker Marketing Inc. (KMM), a company registered in the State of
New York, USA, has been enabling company’s foray into the
˜
Maharaja
Heritage Resorts Limited
˜
CLI3L
e-Services Limited
The company has
entered into Agreements with Ardath Tobacco Company Limited,
MEMBERSHIP
˜
Confederation
of Indian Industry
Website Details :
Overview
Stay at
the beautiful ITC Hotel Kakatiya Sheraton & Towers and enjoy modern
facilities and great service. Located just three kilometres from the airport,
they are close to major corporate offices,
Retreat
to their guest rooms, filled with the things you need to connect with most:
High Speed Internet Access, cable television for relaxing, and a bed created
for a great night’s sleep. There’s even fresh coffee/tea in the morning for the
day ahead.
Indulge
in some of the best cuisine from anywhere. Relax with colleagues at one of
their bars or enjoy some live entertainment. They have a variety of cuisines,
ranging from Irish pub classics to Indian specialties.
Being a
favoured conference destination, their staff is ready to help you plan and
create a memorable meeting, conference, or celebration. Their audiovisual
equipment is also on hand to cover every angle.
Find comfort
and experience something new at ITC Hotel Kakatiya Sheraton & Towers.
Features and Activities :
They
thought of the little things (and big things) that will make you feel at ease.
v
Hotel Services
v
24-Hour Front Desk
v
Babysitting Service
v
Business Center/Services
v
Car Rental Service
v
Concierge Service
v
Wake-up Service Available
v
Room Service
v
Tour Service
v
Golf Course Nearby
v
Fitness Facility
v
Parking Available
v
Smoke Detectors
v
Outdoor Pool
v
Whirlpool/Hot Tub
v
Safe Deposit Boxes
The welcomegroup Grand
Kakatiya Sheraton Hotel & Towers is a contemporary hotel with state of the
art facilities for the discerning business traveler and the finest cuisines of
the land.
Hotel Aminities
v
Fitness Room
v
Restaurant
v
Lounge
v
Meeting/ Banquet Space
v
Business/
v
Outdoor Pool
v
Child Care
Room Amenities
v
Coffe Maker
v
TV in room
v
Mni Bar in room
v
Room service
v
Hair Dryer
Hotel Policies :
v
Check in time : 12.00 p.m.
v
Check out time : 12.00 p.m.
Press Release:
ITC Limited & Starwood join
hands for luxury collection in India
Apr
12, 2007
ITC-Welcomgroup enters a new phase in its collaboration with
Starwood Hotels & Resorts through a new franchise agreement.
ITC-Welcomgroup will have an exclusive tie-up and partner Starwood in bringing in
its premium brand, the ‘Luxury Collection’, to
With this new tie-up, these ITC-Welcomgroup hotels will join the list of exclusive properties that are part of Starwood’s ‘Luxury Collection’. Globally recognized as a unique brand in the world, the Luxury Collection consists of 60 premium properties spread across the globe. The Luxury Collection brand philosophy of offering unique experiences indigenous to their destination complements ITC- Welcomgroup’s own ethos of being rooted in the Indian tradition of warm, personalized service.
Commenting on the new agreement, Mr Y C Deveshwar, Chairman,
ITC Limited, said, “A three decade old relationship has been strengthened and
enriched in a new partnership. The ITC-Luxury Collection exclusive arrangement
recognizes ITC’s leadership in the premium hotel segment and places it amongst
the finest hotel chains in the world. A new window to the world is now open to
us, and together with their aggressive growth plans in
S. S. H. Rehman Executive Director ITC Limited, in charge of
Hotels, Travel-Tourism & Foods, expressed his satisfaction, saying, “They
are delighted to partner Starwood in bringing the premium ‘Luxury Collection’
brand to
The tie up with Sheraton Hotels, came into being on January
1st 1979, when the ITC-Welcomgroup chain consisted of just three hotels. These
were the Chola in Chennai (then
Mr. Miguel Ko, President of Starwood Hotels & Resorts,
Asia Pacific says, “
Perspectives
Unlike
other trade players, they are focused on transforming their commodity export
business from being a price sensitive and cash leveraged trading operation to a
knowledge based and customer focused enterprise. With an objective to sustain
and strengthen their stringent quality standards, efficient execution of
contracts and accurate market information, they have become the most reliable
business partners with their customers.
The
mission of IBD is to become the first choice supply chain partner for
"select" international customers accessing the finest Agri and Aqua
product offerings from
Ingredients
for a Quality Story
Managed
by a team of highly qualified professionals, backed by sound experience and
product knowledge skills, ITC-IBD is equipped to deliver quality products and
services. Their range of agri products is procured from the most fertile of
Indian farmlands. This includes Soyabeans from Madhya Pradesh, Coffee from
Coorg in Karnataka, Basmati Rice from the Northern Plains, Groundnuts and
Sesame Seeds from
All
their products are carefully cleaned processed and hygienically packed to
maintain their wholesome goodness. At every stage - buying, milling,
state-of-the-art processing, storage, loading and despatch - a high standard of
quality control is maintained. This ensures that their customers get value
added products with their natural flavour, taste and aroma intact.
Awards
and Recognition
Recognising
ITC-IBD's effort, the Government of India has conferred on it the coveted
"Golden Star Trading House" status. IBD has earned many awards from
the Government and various trade organisations during the past decade for being
one of the topmost exporters in soyameal, rice etc. This impressive track
record symbolises IBD's unbeatable Sourcing and Execution Strength.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.45 |
|
|
1 |
Rs.82.03 |
|
Euro |
1 |
Rs.55.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|