MIRA
INFORM REPORT
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Report Date : |
07.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
ITC LIMITED |
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Formerly Known As : |
INDIA TOBACCO
COMPANY LIMITED |
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Registered Office : |
Virginia House,
37, Jawaharlal Nehru Road, Kolkata - 700071, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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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
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 602883500 |
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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
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Registered Office : |
Virginia House,
37, Jawaharlal Nehru Road, Kolkata - 700 071, West Bengal, India |
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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, Hyderabad, Andhra Pradesh, India |
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Plants : |
Cigarette Factories Bengaluru v Meenakunte Village, Jallahobli, Bangalore
(North) - 562 157, Karnataka Kolkata v 93/1, Karl Marx Sarani, P. B. No. 17203,
Kolkata - 700 043, West Bengal Munger v Basdeopur P. O., District Munger - 811
202, Munger Saharanpur v Sardar Patel Marg, P. O. Box No. 25,
Saharanpur - 247 001, Uttar Pradesh Green Leaf
Threshing Plants Anaparti v East Godavari District, Anaparti - 533
342, Andhra Pradesh Chirala v Prakasam, P. B. No. 1, Chirala - 523 157,
Andhra Pradesh Packaging and
Printing Plants Chennai v Tiruvottiyur, Chennai - 600 019, Tamilnadu Haridwar v Plot No. 1, Sector 11, Integrated
Industrial Estate, Haridwar – 249403, Uttarkhand Munger v Basdeopur P. O., District Munger, Munger -
811 202, Bihar Paper and
Paperboard Mills Bollaram v Anrich Industrial Estate, Village
Bollarum, Medak District, Andhra Pradesh – 502 325 Sarapaka v Sarapaka, Khammam District - 507 128,
Andhra Pradesh Thekkampatty v Thekkampatty Village, Vivekanandapuram
Post, Mettupalayam Taluk, Coimbatore – 641113, Tamilnadu Tribeni v P O Chandrahati, District Hooghly – 712
504, West Bengal Cast Coating Plant Anrich Industrial
Estate, Village Bollarum, Medak District - 502 325, Andhra Pradesh Lifestyle Retailing Design and Technology Centre
v
86,
Industrial Estate, Phase I, Udhyog Nagar, Gurgaon - 122 016, Haryana Foods Factories Haridwar v Plot No. 1, Sector 11, Integrated
Industrial Estate, Haridwar – 249403, Uttarkhand Ranjangaon v
Plot No. D –
1, MIDC, Ranjangaon, Taluka Shirur,
Pune – 412220, Maharashtra, India Personal Care Products Factory Haridwar v Plot No. 1, Sector 11, Integrated
Industrial Estate, Haridwar – 249403, Uttarkhand Choupal Saagars – Rural Services Centres Amravati v
Old Survey
No. 12/5, 12/6, and 12/7, Patwari Halika No. 48, Mouza Degaon, Pargana
Nandgaon Peth, Tehsil, Amravati – 444 601, Maharashtra, India Badaun v
Khasara No.
10 and 12/3 (Part), Village Khunak, Tehsil Pargana, badaun – 243 601, Uttar
Pradesh Chandouli v
Khasara No.
57 to 62 and 641, Muhabatpur Village, Ganj Khwaja, Pargana Dhoos, Tehsil
Sakaldeeha, Chandouli – 232 104, Uttar Pradesh Chindwara v
Khasara No.
16/1, to 16/7, Patwari Halka No. 7, Village Imaliya Bohata, Chindwara – 480
001, Madhya Pradesh Dewas v
Survey No.
295 and 294/2, Patwari Halka No. 26, Village Lohar Pipliya, Tehsil, Dewas –
455 001, Madhya Pradesh Dhar v
Plot No.
438, Village Jaitpura, Ahmedabad, Indore Road, Dhar – 454 001, Madhya Pradesh Hardoi v
Khasara No.
658 and 659, Village Korriyan, Pargana Gopamau, Shahjahanpur Road, Tehsil ,
Hardoi – 241 001, Madhya Pradesh Hathras v
Khasara No.
21, Village Srinagar Pargana and Tehsil Sasni, Hathras – 204 216, Uttar
Pradesh Itarsi v Survey No.
309/1, 309/2 & 310/3, Village Raisalpur, Tehsil, Itarsi, Hoshangabad - 461
111, Madhya Pradesh Jagdishpur v Khasra No.
2377-2380, Village Kathura, Pargana Jagdishpur, Tehsil Musafirkhana,
Sultanpur - 227 817, Uttar Pradesh Mandsaur v Patwari Halka
No. 14, Village Azizkhedi Tehsil, Mandsaur - 458 001, Madhya Pradesh Mhow v Village Gawli
Palasia, Patwari Halka No. 20, Tehsil Ambedkar Nagar, Mhow, Indore - 453 441,
Madhya Pradesh Nagda v Khasra No. 1393,
1394,1396 and 1397, Village Pandlya Kala, Nagda - 456 335, Madhya Pradesh Parbhani v Vasmat Road
Parbhani, Gate No. 803, Near Water Filter Plant (Assola), Parbhani - 431 401,
Maharashtra Ratlam v Survey No.107/1,
107/2 and 107/3, Village Kharakhedi, Tehsil Ratlam - 457 001, Madhya Pradesh Sehore v Khasra No. 208
and 209, Village Rafiqganj, Tehsil Sehore - 466 001, Madhya Pradesh Ujjain v Survey No.
433/3, 456 and 458, Patwari Halka No.
19, Village Kamed, Tehsil Ghattia, Ujjain - 456 001, Madhya Pradesh 26 Vidisha v Survey No. 18,
Patwari Halka No. 45, Village Bais,
Tehsil Vidisha - 464 001, Madhya Pradesh Wardha v Survey No. 151/1
and151/4, Mouza No. 17, Mouza Inzapur, Tehsil Wardha - 442 001, Maharashtra Washim v Survey No. 104,
Patwari Halka No. 10, Mouza Zakalwadi, Akola Road, Taluka Washim - 444 505,
Maharashtra Yavatmal v Bhumapan No.
15/2A, Village Parwa, Yavatmal - 445 001, Maharashtra Wills Lifestyle
Stores Ahmedabad v
Shop No. 3,
Time Square Building, C. G. Road, Navrangpura, Ahmedabad - 380 006 Tel No: 079-26402303 v
Shop No.
231-232, Iscon Mega Mall, Near Iscon Temple, Sarkhej, National Highway, Ahmedabad
380 054 Tel No: 079-40026308 Bengaluru v
6, Brigade
Road, Bengaluru 560 001 Tel No: 080-41123662 v
Binnamangala,
First Stage, 100 Ft. Road, Indira Nagar, Bengaluru 560 038 Tel No: 080-41715665 v Shop No. 39,
Ground Floor, Total Mall, Kaikondarahalli Village, Sarjapur Road, Bengaluru
560 037 Tel No:
080-41106326 Bhubaneshwar v 794, Shaheed Nagar, Janpath, Bhubaneshwar
751 007 Tel No:
0674-2544386 Chandigarh v SCO 14, Sector
17E, Chandigarh 160 017 Tel No:
0172-6549856 Chennai v 19, Quaiser
Tower, Khader Nawaz Khan Road, Nungambakkam, Chennai 600 034 Tel No:
044-28332515 v Shop No. 6,
Chennai Citi Centre, 10 and 11, Dr. Radhakrishna Salai, Chennai 600 004 Tel No:
044-43536214 Dehradun v 56, Rajpur Road,
Dehradun 248 001 Tel No:
0135-2743444 Ernakulam v 40/7182, M. G.
Road, Ernakulam 682 035 Tel No:
0484-3918800 Gurgaon v Shop No. 17, 18,
19 and 20, The Metropolitan, Mehrauli - Gurgaon Road, Gurgaon 122 002 Tel No:
0124-4104444 v Shop No. G 64
and 65, Ambi Mall, Ambience Island, National Highway No. 8, Gurgaon 122 001 Tel No:
0124-4665492 Hyderabad v Shop No. G 4 and
5, G. S. Chambers, Nagarjuna Circle, Hyderabad 500 082 Tel No:
040-66364700 Jaipur v Gulab Niwas, M.
I. Road, Jaipur 302 001 Tel No:
0141-2360684 Jammu v 5 and 6
Residency Road, Jammu 180 001 Tel No:
0191-2573153 Kanpur v Rave 3, Parvati
Bagla Road, Kanpur 208 002 Tel No: 0512-3042114 Kolkata v 19B, Shakespeare
Sarani, Kolkata 700 071 Tel No:
033-22826102 v C-008 and C-010,
City Centre, Block – DC, Sector 1, Salt Lake, Kolkata 700 101 Tel No:
033-23589137 v Shop No. S026,
South City Mall, 375, Prince Anwar Shah Road, Kolkata 700 068 Tel No:
033-40072208 Lucknow v B-1, First
Floor, Fun Republic Mall, Gomti Nagar,
Lucknow 226 010 Tel No:
0522-3914398 v Shop No. 25,
Sahara Ganj, Hazrat Ganj, Shah Nazaf Road, Lucknow 226 001 Tel No:
0522-4008401 Ludhiana v 85/4A, The Mall,
Ludhiana 141 001 Tel No:
0161-2441423 v Shop No. 44-45,
50-51, The Westend Mall, Ferozpur Road, Ludhiana 141 012 Tel No:
0161-4644436 Mumbai v Shop No. 2, 3
and 32, Ruki Mahal Co-operative Housing, Society Limited, Colaba, Mumbai 400
005, Maharashtra Tel No:
022-22818261 v Plot No. 386,
Durga Chambers, Linking Road, Khar (West), Mumbai 400 052, Maharashtra Tel No:
022-26465503 v F-8 and 9,
Inorbit Mall, Malad Link Road, Malad (West), Mumbai 400 064, Maharashtra Tel No:
022-66430498 v Unit No.10, SSP
Building, LBS Marg, Mulund (West), Mumbai 400 080, Maharashtra Tel No:
022-66490407 v Unit No. 4 and
5, Skyzone Level 1, Block 2, Phoenix Mills Compound, 462 Senapati Bapat Marg,
Lower Parel, Mumbai 400 013,
Maharashtra Tel No:
022-40040604 v Shop No. G11,
Mega Mall, Malad Linking Road, Oshiwara, Andheri (West), Mumbai 400 104,
Maharashtra Tel No:
022-40167330 New Delhi v F-41, South
Extension-I, New Delhi 110 049 Tel No:
011-41645555 v 10208, Padam
Singh Road, Karol Bagh, New Delhi 110 005 Tel No:
011-28750433 v E-2, Connaught
Place, New Delhi 110 001 Tel No:
011-23417960 v M-12, Greater
Kailash-I, New Delhi 110 048 Tel No:
011-29232555 v Shop No. GF 10
and 11, TDI Mall, Plot No. 11, Shivaji Place, Rajouri Garden, New Delhi 110
027 Tel No:
011-25105150 v Select Citywalk,
G 3 and 4, Ground Floor, Plot No. A3, District Centre Saket, New Delhi 110
017 Tel No:
011-42658267 Noida v Shop No. G 32,
Noida Amusement Park, Sector 32A, Noida 201 301 Tel No:
0120-2458992 Panjim v 3293, M.G. Road,
Panjim 403 001, Tel No:
0832-6641222 Pune v 1204/22, Shivaji
Nagar, Junglee Maharaj Road, Pune 411 004 Tel No:
020-66019402 v 11, Moledina
Road, Pune 411 001 Tel No:
020-26121222 Raipur v Unit No. 12,
City Mall 36, G. E. Road, NH 06, Raipur 492 006 Tel No: 0711-6454545 Ranchi v GEL
Church-Commercial Complex, Main Building, Main Road, Ranchi 834 001 Tel No:
0651-2330909 Siliguri v Shop No. 20 and
21, Lower Ground Floor, Cosmos Mall, Sevoke Road, Siliguri 734 001 Tel No:
0353-6453601 Surat v UG - 2, Manav
Mandir, Athawa Lines, Parle Point Circle, Surat 395 007 Tel No:
0261-2257283 v Shop No. 312 and
313, Second Floor, Iscon Prozone Mall, Domas Road, Surat 395 007 Tel No:
0261-6454599 Thiruvananthapuram v Shop No. 1, Pan
African Plaza, M.G. Road, Thiruvananthapuram 695 001 Tel No:
0471-3012008 Vadodara v Shop No. 42-44,
Ground Floor, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara 390 005 Tel No:
0265-2325764 v Shop No. 43-44,
Basement, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara 390 005 Tel No:
0265-2321594 Visakhapatnam v Shop No. 1,
Rednam Manor, Dwarka Nagar, Near Diamond Park, Visakhapatnam 530 016 Tel No:
0891-2702881 Club Stores Bengaluru v Bangalore Golf
Club Gurgaon v Classic Golf
Resort Kolkata v
Tollygunge Club v Royal Calcutta
Golf Club John Players Stores* Bengaluru v 48, Commercial
Street, Bengaluru 560 001 Tel No:
080-51185719 v G-2, Sigma
Arcade, Marathalli, Airport Road, Bengaluru 500 037 Tel No:
080-41264344 v 8th Cross,
Malleswaram, Bengaluru 560 003 Tel No:
080-23561632 v Shop No. 1,
Total Mall, Sarjapur Road, Bengaluru 560 037 Tel No:
080-41400080 Chennai v Shop No. 20,
Kasi Arcade, 116, Sir Thygaraya Road, T. Nagar, Chennai 600 017 Tel No:
044-28150297 v No. 68 (Old No.
89), Sir Thygaraya Road, Pondy Bazaar, T. Nagar, Chennai 600 017 Tel No:
044-43502651 v Shop No. 129A,
Spencer Plaza, Phase III, First Floor, 769, Anna Salai, Chennai 600 002 Tel No:
044-52652449 v Shop No. 145, AA
Block, Third Avenue, Anna Nagar, Chennai 600 040 Tel No:
044-42611257 v Shop No. 63, 1st
Main Road, Gandhi Nagar, Adyar, Chennai 600 020 Tel No:
044-42035939 Hyderabad v 3-6-198,
Sreemukh Complex, Street No. 11, Himmayath Nagar, Hyderabad 500 029 Tel No:
040-66784479 v Shop No. 16 and
17, Upper Ground Floor, Sonali Mall, Main Road, Abids Hyderabad 500 001 Tel No:
040-66135345 v Shop No. 211,
Second Floor, City Centre, Banjara Hills, Hyderabad 500 003 Tel No:
040-27810092 v Shop No.
16-11-740/5/A/9 and 10, Opp. Kala Niketan, Dilsukhnagar, Hyderabad 500 060 Tel No:
040-66562102 v 6-3-882/2 to 24,
Somajiguda X Road, Hyderabad 500 082 Tel No:
040-40033339 Kolkata v Metro Cinema
Building, 5, Jawaharlal Nehru Road, Kolkata 700 013 Tel No:
033-22288035 v 25B, Camac
Street, Kolkata 700 016 Tel No:
033-32963064 v 14, The
Metropolis, Hiland Park, 1925 Chak Garia, Kolkata 700 075 Tel No:
033-24367039 v 6/1, Lindsay
Street, Kolkata 700 087 Tel No:
033-22497887 v 200/2C, R. B.
Avenue, Gariahat, Kolkata 700 029 Tel No:
033-24664928 v 8, Brahmo Samaj
Road, Behala, Kolkata 700 034 Tel No:
033-24989752 Mumbai / Thane v Gala No. 4,
First Floor, Ajanta Industrial Estate, Off L. T. Road, Borivali (West),
Mumbai 400 092 Tel No:
022-28656154 v 20 Cusrow Bagh,
Colaba, Mumbai 400 005 Tel No: 022-22876461 v Nakshatra Mall,
Unit No. 21, 22, 23 and 24,Gokhle Road, Dadar, Mumbai 400 028 Tel No:
022-24360794 v Shop No. 2 and
2A, First Floor, Akshay Plaza Co-operative Society, Chembur, Mumbai 400 071 Tel No:
022-25290004 v Shop No. 1, 2, 3
and 4, Nadiadwala Chawl, SV Road, Opp. Paaneri, Andheri (West), Mumbai 400
058 Tel No:
022-26203660 v Shop No.6-A,
Ishkrupa Building, Nehru Nagar, Dombivali (East) 421 201 Tel No:
0251-2447787 v Shop No. F38A,
1st Floor, Eternity Mall, Near Eastern Expressway Tin Hath Naka, Thane (West)
400 601 Tel No:
022-25830838 v New Diwadkar
Building, Shivaji Chowk, Agra Road, Kalyan West, District Thane 412 301 Tel No:
0251-2300446 v Shop No. 1,
Martuvaibhav Naughar, Vasai West, District Thane 401 202 Tel No:
0250-2335477 v Shop No. 34/35,
City Centre Mall, Sector No. 19D, Palm Beech Road, Navi Mumbai, Vashi 400 703 Tel No:
022-27896912 New Delhi / NCR v D-35, Lajpat
Nagar, Central Market – II, New Delhi 110 024 Tel No:
011-46573240 v Shop No. 7/2,
West Patel Nagar, New Delhi 110 008 Tel No:
011-25889043 v UG – 05, TDI
Mall, Plot No. 11, Shivaji Place, Rajouri Garden, New Delhi 110 027 Tel No:
011-25160440 v F-16, District
Centre, Janak Place, Janakpuri, New Delhi 110 058 Tel No:
011-25618031 v P-15, Pandav
Nagar, Mayur Vihar, New Delhi 110 091 Tel No:
011-22756180 v 13/29-30, Rachna
Building, Ajmal Khan Road, Karol Bagh, New Delhi 110 005
Tel No: 011-25810440 v Shop No. 188,
Sarojini Nagar Market, New Delhi 110 023
Tel No: 011-24676188 v F-14 / 17 Model
Town, Phase II, New Delhi 110 009
Tel No: 011-47062048 v B-Block, Shop
No. 2, Unitech Mall, Rohini, Sector 11, New Delhi 110 085
Tel No: 011-27572652 v 16 Regal
Building, Connaught Place, New Delhi 110 001
Tel No: 011-43565499 v Block C, Opp.
Odeon Cinema, Connaught Place, New Delhi 110 001
Tel No: 011- 43575253 v Shop No. FF 101
and 102, Plot No. 12, Laxmi Nagar, District Centre, New Delhi 110 092
Tel No: 011-22446327 v UB-42 / 43,
Jawahar Nagar, Kamla Nagar, New Delhi 110 007
Tel No: 011-41530100 v Shop No. 1257A,
Main Market, Rani Bagh, Delhi 110 034 Tel No:
011-27022577 v G-8, Ground
Floor, Cross River Mall, CBD, Shahadra, Delhi 110 032 Tel No:
011-22308440 v G-54, Laxmi
Nagar, Vikas Marg, Delhi 110 092
Tel No: 011-22542495 v FF-33, First
Floor, MGF Mall, The Metropolitan, Mehrauli - Gurgaon Road, Gurgaon 122 002
Tel No: 0124-4085706 v Shop No. 106,
First Floor, MGF Mega City Mall, Mehrauli - Gurgaon Road, Gurgaon 122 002
Tel No: 0124-4203900 v UG-10, Omax
Mall, Sohna Road, Gurgaon 122 001
Tel No: 0124-4253687 v Shop No. G-53,
Ambi Mall, Ground Floor, National Highway 8, Gurgaon 122 001
Tel No: 0124-6451287 v Shop No. 16 and
30, 2nd Floor, Centre Stage Mall, Sector 18, Noida 201 301
Tel No: 0120-4351856 v Shop No. 225,
Ground Floor, C-134B, Shoprix Shopping Mall, Sector 61, Noida 201 301
Tel No: 0120-2582143 v 205, Second
Floor, Noida Amusement Park, Sector 32A, Noida 201 301
Tel No: 0120-4232952 v Shop No. 4, 5
and 6, Arjun Plaza, Jagat Farm, Gamma
– 1,Greater Noida 201 301 Tel No:
0120-2322563 v Shop No. F-6,
First Floor, Ansal Crown Plaza, Sector 15A, Faridabad 121 001
Tel No: 0129-5014077 v ‘SRS BTL’,
Barkhal Gurgaon Road, Faridabad 121 005
Tel No: 0129-4090100 v UGF-A103,
Manhattan Mall, Sector 20-A, Main Mathura Road, Faridabad 121 003
Tel No: 0129-6462032 v Shop No. 55,
First Floor, Shipra Mall, Plot No.9, Vaibhav Khand, Ghaziabad 201 012
Tel No: 0120-3023085 v Shop No. 21 and
22, Pacific Mall, Plot No.1, Site-IV, Sahibabad Industrial Area, Ghaziabad
201 010
Tel No: 0120-3053322 v 24, Gyan Deep
Building, Chaudhary More, Ghaziabad 201 002
Tel No: 0120-4112356 |
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Hotels : |
ITC Hotel Sonar Bangla
Sheraton &
Towers, 1, JBS Haldane Avenue, Kolkata – 700 046, West Bengal, India ITC Hotel Grand Maratha Sheraton and Towers
Sahar, Mumbai -
400 099, Maharashtra, India ITC Hotel Maurya Sheraton & Towers
Diplomatic
Enclave, New Delhi - 110 021, India Chola Sheraton
10, Cathedral
Road, Chennai - 600 086, Tamilnadu, India WelcomeHotel Mughal Sheraton
Taj Ganj, Agra -
282 001, Uttar Pradesh, India Owned Hotels Agra v ITC Mughal*, Taj
Ganj, Agra 282 001 v Bengaluru v ITC Windsor*,
25, Golf Course Road, Bengaluru 560 052 Chennai v Sheraton Chola
Hotel, Cathedral Road, Chennai 600 086 Jaipur v Sheraton
Rajputana Hotel, Palace Road, Jaipur 302 006 Kolkata v ITC Sonar*, 1,
JBS Haldane Avenue, Kolkata 700 046 Mumbai v ITC Maratha*,
Sahar, Mumbai 400 099 v ITC Grand
Central*, 287, Dr. B. Ambedkar Road, Parel, Mumbai 400 012, Maharashtra New
Delhi v ITC Maurya*,
Diplomatic Enclave, New Delhi 110 021 v Sheraton New Delhi
Hotel, District Centre, Saket, New Delhi 110 017 v Licenced Hotels Kota v WelcomHeritage
Umed, Bhawan Palace, Station Road, Kota 324 001 Port
Blair v Fortune Resort
Bay Island, Marine Hill, Port Blair 744 101 Vadodara v WelcomHotel
Vadodara, R. C. Dutt Road, Alkapuri, Vadodara 390 007 v Hotels Under Operating Services Aurangabad v WelcomHotel Rama
International, R-3, Chikalthana, Aurangabad 431 210 Chennai v ITC Hotel Park,
Sheraton and Towers, 132, T. T. K. Road, Chennai 600 018 Hyderabad v ITC Kakatiya*,
6-3-1187, Begumpet, Hyderabad 500 016 Visakhapatnam v WelcomHotel
Grand Bay, Beach Road, Visakhapatnam 530 002 |
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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 |
|
|
|
|
Name : |
Mr.
Dinesh Kumar Mehrotra |
|
Designation : |
Non-Executive
Directors |
|
|
|
|
Name : |
Mr.
Serajul Haq Khan |
|
Designation : |
Non
Executive Director |
|
|
|
|
Name : |
Mr.
Anil Baijal |
|
Designation : |
Non
Executive Director |
|
|
|
|
Name : |
Mr.
Ravindar Kumar Kaul |
|
Designation : |
Non
Executive Director |
|
|
|
|
Name : |
Mr.
Hugo Geoffrey Powell |
|
Designation : |
Non
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Biswa Behari
Chatterjee |
|
Designation : |
Executive Vice President and Company Secretary |
|
|
|
Managements :-
|
|
|
Audit
Committee :- |
|
|
Name : |
Mr. P. B.
Ramanujam |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S B Mathur |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. B Vijayaraghavan |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. K Vaidyanath |
|
Designation : |
Director responsible for the Finance Function |
|
Name : |
Mr. S Basu |
|
Designation : |
Head of Internal Audit |
|
|
|
|
Name : |
Mr. B B
Chatterjee |
|
Designation : |
Company Secretary |
|
|
|
|
Compensation Committee :- |
|
|
Name : |
Mr. B. Sen |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. C. R. Green |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. J P Daly |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S B Mathur |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Ram S. Taneja |
|
Designation : |
Member |
|
|
|
|
Investor Services Committee :- |
|
|
Name : |
Mr. B. Sen |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. P. B.
Ramanujam |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. A. Singh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. B. B.
Chatterjee |
|
Designation : |
Secretary |
|
|
|
|
Nominations Committee :- |
|
|
Name : |
Mr. Y. C.
Deveshwar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J P Daly |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. C. R. Green |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S B Mathur |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. D K Mehrotra |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. P. B.
Ramanujam |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. B. Sen |
|
Designation : |
Member |
|
Name : |
Mr. Ram S. Tarneja |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. B.
Vijayaraghavan |
|
Designation : |
Member |
|
|
|
|
Corporate Management Committee:- |
|
|
Directors:- |
|
|
Name : |
Mr. Y. C.
Deveshwar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. S. H.
Rehman |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. A. Singh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. K. Vaidyanath |
|
Designation : |
Member |
|
|
|
|
Executives :- |
|
|
Name : |
Mr. K. S.
Vaidyanathan |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. R G Jacob |
|
Designation : |
Invitee |
|
|
|
|
Name : |
Mr. A. Nayak |
|
Designation : |
Permanent Invitee |
|
|
|
|
Name : |
Mr. R. Srinivasan |
|
Designation : |
Permanent Invitee |
|
|
|
|
Name : |
Mr. B. B.
Chatterjee |
|
Designation : |
Secretary |
|
|
|
|
Name : |
Mr. Suresh Sundararaman Kannadiputhur |
|
Designation : |
General Counsel |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
Tobacco Manufacturers
(India) Limited |
99,27,82,440 |
26.34 |
|
|
Life Insurance
Corporation of India |
51,45,84,670 |
13.65 |
|
|
Unit Trust of
India |
44,86,27,748 |
11.90 |
|
|
Myddleton
Investment Company Limited |
16,21,03,980 |
4.30 |
|
|
The New India
Assurance Company Limited |
8,90,56,835 |
2.36 |
|
|
General Insurance
Corporation of India |
7,50,27,397 |
1.99 |
|
|
The Oriental
Insurance Company Limited |
7,32,60,780 |
1.94 |
|
|
National
Insurance Company Limited |
6,76,11,110 |
1.79 |
|
|
Euro Pacific
Growth Fund |
5,22,70,000 |
1.39 |
|
|
Rothmans International Enterprises Limited |
5,16,51,630 |
1.37 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS
|
Class of Goods |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|||
|
|
|
2008 |
2007 |
2008 |
2007 |
2008 |
2007 |
|
Cigarettes |
Million |
123547 |
123547 |
108570 |
107773 |
65770 |
63038 |
|
Smoking Tobaccos |
Tonne |
NA |
NA |
NA |
NA |
222 |
163 |
|
Printing /
Packaging including Flexible |
Tonne |
NA |
NA |
68726 |
59803 |
59293 |
46025 |
|
Corrugated Fibre
Board Conainers |
Million |
NA* |
60 |
180 |
60 |
109 |
23 |
|
Redried Tobacco |
Tonne |
NA |
NA |
NA |
NA |
113950 |
99483 |
|
Pulp |
Tonne |
NA |
NA |
235000 |
100000 |
113600 |
98950 |
|
Paperboards and
Paper |
Tonne |
NA |
NA |
352500 |
352500 |
414714 |
390458 |
|
Packaged Food
Products |
Tonne |
NA |
NA |
49840 |
5100 |
11763 |
465 |
|
Personal Care
Products |
Tonne |
NA |
NA |
48288 |
NA |
4063 |
NA |
GENERAL
INFORMATION
|
No. of Employees : |
5000 |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
v State Bank of India 38, Chowringhee Lane, Kolkata - 700 071, West Bengal, India v Standard Chartered Grindlays Bank Limited 41, Chowringhee Lane, Kolkata
- 700 071, West Bengal, India v United Bank of India 10 Netaji Subhas Road, Kolkata - 700 001, West Bengal, India v Citibank Kolkata, West Bengal, India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
Secured Loans
Rs. In millions
* Secured by charge over certain current assets of the company, both
present and future. Unsecured Loans
Rs. In millions
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
A. F. Ferguson
and Company Chartered Accountants |
|
Address : |
Kolkata, West
Bengal |
|
|
|
|
Membership : |
v
Confederation
of Indian Industry |
|
|
|
|
Associates : |
v Ansal Hotels Limited v Gujarat Hotels Limited v Megatop Financial Services and Leasing
Limited v Newdeal Finance and Investment Limited v Peninsular Investments Limited v Russell Investments Limited v Asia Tobacco Company Limited v Classic Infrastructure and Development
Limited v International Travel House Limited v Tobacco Manufacturers (India) Limited, UK v ITC Filtrona Limited |
|
|
|
|
Subsidiaries : |
v Bay Islands Hotels Limited v BFIL Finance Limited v BFIL Securities Limited v Fortune Park Hotels Limited v Gold Flake Corporation Limited v King Maker Marketing Inc., USA v Greenacare Holdings Limited v Wimco Boards Limited (amalgamated with
Wimco Limited with effect from 01.04.2007) v Wimco Securities Limited (amalgamated with
Wimco Limited with effect from 01.04.2007) v Pravan Poplar Limited (became a direct
subsidiary of Wimco Limited pursuant to amalgamation of Wimco Seedings
Limited with Wimco Limited) v Prag Agro Farm Limited (became a direct
subsidiary of Wimco Limited pursuant to amalgamation of Wimco Seedings
Limited with Wimco Limited) v Technico Private Limited, Australia and
its subsidiaries (became subsidiaries with effect from 17.08.2007) v Technico Technologies Inc, Canada v Technico Asia Holdings Private Limited,
Australia v Technico Horticultural (Kunming) Company
Limited, China v Technico Group America Inc (since
dissolved as on 15.03.2008) v ITC Hotels Limited v ITC Infotech (USA) Inc v ITC Infotech India Limited v ITC Infotech Limited v ITC Sangeet Research Academy v ITC Education Trust v ITC Rural Development Trust v Landbase India Limited v MRR Trading and Investment Company limited v Surya Nepal Private Limited v Russell Credit Limited v Srinivasa Resorts Limited v Wills Corporation Limited v ITC Global Holdings Private Limited,
Singapore v Hup Hoon Traders Pte. Limited, Singapore v Hup Hoon Shipping Pte. Limited, Singapore v Chai Fu Trading Pte. Limited, Singapore v AOZT "Hup Hoon", Moscow v Hup Hoon Impex SRL, Romania v Fortune Tobacco Company Limited, Cyprus v Fortune Tobacco Company Inc., U.S.A. |
|
|
|
|
Joint Ventures |
v Maharaja Heritage Resorts Limited v CLI3L E - Services Limited v ITC Filtrona Limited (Joint Venture of
Gold Flake Corporation Limited) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,00,00,00,000 |
Ordinary Shares |
Rs 1. /- each |
Rs. 5000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,76,86,10,050 |
Ordinary Shares |
Rs 1/- each |
Rs. 3768.610
millions |
Note:
A)
Of the above following were allotted:
a)
as fully paid up bonus shares
3,79,00,000 in
1978 – 79 by capitalization of Capital Reserve, Share Premium Reserve and
General Reserve;
4,54,80,000 in
1980 – 81 by capitalization of Capital Reserve and General Reserve;
33,16,81,100 in
1989 – 90 by capitalization of Capital Reserve, Share Premium Reserve, Export
Promotion Reserve and General Reserve;
39,80,17,320 in
1991 – 92 by Capitalisation of General Reserve;
1,21,31,81,770 in
1994 – 954 by Capitalisation of General Reserve;
1,25,17,12,290 in
2005-06 by Capitalisation of General Reserve.
b)
as fully paid up shares
10,59,50,750 in
1991-92 consequent to the amalgamation of erstwhile Tribeni Tissues Limited to
the shareholders of the erstwhile Tribeni Tissues Limited.
2,09,69,820 in
1991-92 consequent to the amalgamation of erstwhile ITC Bhadrachalam
Paperboards Limited to the shareholders of erstwhile ITC Bhadrachalam
Paperboards Limited.
1,21,27,470 in
2005-06 consequent to the amalgamation of erstwhile ITC Hotels Limited and
Ansal Hotels Limited to the shareholders of erstwhile ITC Hotels Limited and
Ansal Hotels Limited.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3768.600 |
3762.200 |
3755.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
116808.100 |
100608.600 |
86859.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
120576.700 |
104370.800 |
90614.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
55.700 |
607.800 |
259.100 |
|
|
2] Unsecured Loans |
2088.600 |
1401.000 |
938.200 |
|
|
TOTAL BORROWING |
2144.300 |
2008.800 |
1197.300 |
|
|
DEFERRED TAX LIABILITIES |
5450.700 |
4728.500 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
128171.700 |
111108.100 |
91812.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
61688.300 |
47447.700 |
41617.300 |
|
|
Capital work-in-progress |
11268.200 |
8661.400 |
2434.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
29345.500 |
30677.700 |
35170.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
40505.200
|
33540.300
|
26362.900 |
|
|
Sundry Debtors |
7369.300
|
6366.900
|
5590.200 |
|
|
Cash & Bank Balances |
5702.500
|
9001.600
|
8558.200 |
|
|
Other Current Assets |
1460.700
|
1830.400
|
0.000 |
|
|
Loans & Advances |
15155.000
|
12158.000
|
13449.900 |
|
Total
Current Assets |
70192.700
|
62897.200
|
53961.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
27869.700
|
23847.500
|
27480.100 |
|
|
Provisions |
16453.300
|
14728.400
|
13890.400 |
|
Total
Current Liabilities |
44323.000
|
38575.900
|
41370.500 |
|
|
Net Current Assets |
25869.700
|
24321.300
|
12590.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
128171.700 |
111108.100 |
91812.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
139475.300 |
121642.900 |
162244.300 |
|
|
Other Income |
6109.000 |
3364.900 |
4408.800 |
|
|
Total Income |
145584.300 |
125007.800 |
166653.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
45717.700 |
39267.000 |
32241.700 |
|
|
Provision for Taxation |
14516.700 |
12267.300 |
9888.200 |
|
|
Profit/(Loss) After Tax |
31201.000 |
26999.700 |
22353.500 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
15745.600 |
17195.100 |
NA |
|
|
Hotel Earnings |
5152.500 |
4871.900 |
NA |
|
|
Other Earnings |
786.000 |
765.100 |
NA |
|
Total Earnings |
21684.100 |
22832.100 |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
5164.000 |
5551.300 |
NA |
|
|
Stores & Spares |
712.600 |
698.700 |
NA |
|
|
Capital Goods |
4530.100 |
4824.800 |
NA |
|
|
Others |
104.300 |
117.600 |
NA |
|
Total Imports |
10511.000 |
11192.400 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
60167.000 |
51947.800 |
2353.200 |
|
|
Raw Material Consumed |
35315.000 |
30163.800 |
41249.000 |
|
|
Depreciation & Amortization |
4384.600 |
3629.200 |
3323.400 |
|
|
Other Expenditure |
0.000 |
0.000 |
87485.800 |
|
Total Expenditure |
99866.600 |
85740.800 |
134411.400 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity
Ratio |
0.02
|
0.02 |
0.02 |
|
Long
Term Debt-Equity Ratio |
0.01
|
0.01 |
0.01 |
|
Current
Ratio |
1.38
|
1.35 |
1.15 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.67
|
2.91 |
2.74 |
|
Inventory |
5.77
|
6.44 |
6.99 |
|
Debtors |
30.57
|
31.98 |
29.59 |
|
Interest
Cover Ratio |
186.77
|
245.81 |
153.80 |
|
Operating
Profit Margin(%) |
23.58
|
22.31 |
22.05 |
|
Profit
Before Interest And Tax Margin(%) |
21.52
|
20.43 |
20.00 |
|
Cash
Profit Margin(%) |
16.66
|
15.87 |
15.83 |
|
Adjusted
Net Profit Margin(%) |
14.61
|
13.99 |
13.78 |
|
Return
On Capital Employed(%) |
40.32
|
40.02 |
37.73 |
|
Return
On Net Worth(%) |
27.88
|
27.86 |
26.55 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject a leading FMCG Cigarette major is one of the most valuable companies of India. Rated among the World's Best Big Companies by Forbes magazine. Eventhough subject is renowned for its Cigarette business it also has business interests in Hotels; Paperboards, Paper & Packaging; agri exports and some other FMCG products like branded packaged foods, safety matches, Incense Sticks and Greeting Cards etc. Being the pioneer of manufacture of cigarettes in India, subject maintains its leadship positionsince 1910. subject has diversified its brands across products categories. Its successful brands include Gold Flake, Wills, Classic, Bristol and Scissors. It also sells two luxury filter brands of its parent company Benson & Hedges and 555.
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 Radha
Bazar Lane, Kolkata, was the centre of the Company's existence. The Company
celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, Kolkata, for the sum of Rs 310,000. This decision
of the Company was historic in more ways than one. It was to mark the beginning
of a long and eventful journey into India's future. The Company's headquarter
building, `Virginia House', which came up on that plot of land two years later,
would go on to become one of Kolkata's most venerated landmarks. The Company's
ownership progressivelyIndianised, and the name of the Company was changed to
I.T.C. Limited in 1974.
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 India. It also has a marketing and reservation
arrangement with the Sheraton Corporation, the reputed international hotel
chain.
In 1979, subject entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India. The
Company's technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution
to the development of `Sarapaka', an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection
and community development.
In 1985, subject set Surya Tobacco Co. in Nepal as a joint venture with the
reputed Soaltee group. In 1990, subject acquired Tribeni Tissues Limited, a
speciality paper manufacturing company and a major supplier of tissue paper to
the cigarette industry. Also in 1990, leveraging its agri-sourcing competency,
subject set up the International Business Division (IBD) for export of
agri-commodities. The Division is today one of India's largest exporters.
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, Bangalore and
Hyderabad.
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 India stars, three Asia Stars and one World star
Award for innovative packaging.
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
Bangalore commenced operations
2000
Brownfield project
at Saharanpur factory completed
Entry into
Lifestyle Retailing business with first store in Delhi
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
‘India Kings’
marketed in contour packs; ‘Insignia’ lauched in shoulder box
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 India’
extended to cooking pastes
‘Mangaldeep’ brand
of Agarbatties added to portfolio.
Directors
Report:
Management Discussion
and Analysis
Socio-Economic
Environment
India sustained its pre-eminent position as one of the fastest growing economies in the world in 2007/08. Despite the relative deceleration in several sectors, real GDP notched an impressive growth of 9%, as per revised estimates of the Central Statistical Organisation. India joined the ranks of the trillion dollar economies in the world, giving us yet another moment of national pride.
The Services sector, accounting for about 56% of GDP, emerged once again
as a primary driver of economic growth. Led by a continued upswing in the
trade, hotel, transport and communication sub-sectors, Services posted a
remarkable growth of 10.8%. The Manufacturing sector was under pressure this
year from a weaker growth in consumer durables, as well as a slowdown in cement
and steel that consequently impacted the construction sector as well. Despite
this setback, which knocked off 3.2% from the pace attained last year,
manufacturing grew by 8.8%, reinforcing India’s competitive strength in diverse
sectors.The revised estimates indicate that the Agriculture sector has grown by
a handsome 4.5%. While higher support prices and closely directed extension
services have been the primary growth drivers, the challenge of sustaining such
a growth level calls for focused attention to the sector, backed by substantial
investments.
Domestic demand continued to fuel economic growth, driven by Investment
demand, the fastest growing component. Strong private sector investment, buoyed
by surging capital inflows, easier bank credit and reinvestment of profits,
resulted in strengthening the build up of Gross Fixed Capital Formation, an
important pre-requisite for sustaining high rates of economic growth. Private
Consumption grew by 8.3%, supported by a steady growth in real wages and
remittances.
While the economic scorecard continues to record encouraging numbers, a
few fundamental challenges have emerged in certain sectors, causing concern.
The surge in capital inflows contributed to a sharp appreciation of the Indian
Rupee, particularly against the US Dollar.
This triggered a multi-pronged impact affecting exports across the
board, aggravating balance of trade and creating pressure on industry growth
and margins. The basic viability of certain export-oriented industries, like
textiles, was threatened, with reported job losses. The IT and BPO sectors
faced pricing pressures, raising fears of cutbacks in potential employment.
A major concern during the year has been the sustained high inflationary
trends. The Government initiated several policy measures to improve the supply
side and ease the pressure on consumers and industry. Measures such as the duty
free import of wheat and pulses, reduction or withdrawal of import duties on
cement, steel and non-ferrous metals, ban on export of rice and wheat and
prohibition of futures trading in certain commodities were
implemented. While these interventions temporarily softened prices, the
inflationary tendency persists in the face of global demand supply mismatches,
especially in food grains, metals, fuel, etc. A natural fallout of the
inflationary spiral has been a gradual erosion of consumer spends.
Additionally, RBI’s interventions on policy rates and liquidity, while justified
in the current context, have however had an adverse impact on growth in
rate-sensitive sectors.
The steep increase in the price of oil and the recent depreciation of
the Rupee are bound to further accentuate
inflationary pressures with consequential repercussions on economic
growth.
Currently, Agriculture contributes only 17.8% of GDP, despite engaging
52% of the total workforce. Structural weaknesses stemming from small land
holdings, low productivity, falling levels of public investment and steady
deterioration in public institutions that provide credit, inputs, research and
extension services have resulted in this sector performing far below its
potential. The Green Revolution that transformed productivity is well behind us
now and it is time that a new movement is unleashed to usher in the next wave
of agricultural development. Rural India remains overwhelmingly poor and the
gap between urban and rural incomes is unfortunately widening with faster
growth in urban-centric industries and the services sector.
The challenge of delivering stronger agricultural growth to boost the
rural economy, reinforce food security and secure inclusiveness demands a
multi-pronged approach to:
(a) Promote Public-Private and People Partnerships in rural India to enhance
productivity, strengthen market linkages and create additional income avenues
through efficient non-farm livelihoods
(b) Enable consolidation of fragmented rural land parcels to permit the
deployment of technology for improving agricultural productivity, given the
future scenario of fewer people being dependent on agriculture as the single
source of livelihood;
(c) Rapidly scale up rural infrastructure to eliminate wastages, ensure
last mile connectivity and build efficiencies for adding value to agricultural
produce;
(d) Promote engagement in rural services which can be employment
intensive and remunerative;
(e) Facilitate R and D in agriculture and life sciences to support
better horticultural and agricultural practices;
(f) Make available surplus land for industrial use, as a result of
higher productivity in agriculture.
The opportunities arising out of a fast growing economy are yet to bring
benefits to rural India due to lack of skills and education, rigidities in land
and labour markets, poor infrastructure and absence of alternative livelihoods.
In such a scenario, conversion of agricultural land for industrial use has met
with concerted resistance and caused significant socio-political unrest. A more
innovative approach can lead to the creation of inclusive models of growth that
marry the traditional strengths of the farm sector to modern technology and
markets, enabling more value creation and new employment opportunities.
Towards this, the ‘Integrated Strategy for Promotion of Agri-business’ approved by the Union Cabinet in June, 2007 is a positive step. With a view to trebling the size of the processed food sector, enhancing farmer incomes, generating employment opportunities and providing choice to consumers at affordable prices, the strategy document targets increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from about 1.5% to 3%. Accordingly, the strategy document calls for:
(a) Detailed mapping of the food cluster in the country;
(b) Clusterisation of farming in the shape of contract farming or other formal / informal arrangements;
(c) Strengthening backward and forward linkages and developing supply chains with cold storage facilities;
(d) Establishment of Mega Food Parks in identified Small Scale Industries like horticulture, meat, dairy and marine products.
The Company’s e-Choupal network, created to source agricultural inputs directly from farmers, is totally compatible with the Government’s strategy described above. The throughput of this value chain is growing rapidly as consumer franchise for the Company’s branded food products get increasingly established. Entry into newer categories of food products will progressively increase sourcing through this channel in the years ahead. This is well poised to deliver long term shareholder value even as it increasingly contributes to the larger societal purpose.
The e-Choupal system has played an important role in catalysing rural transformation. The ITC ‘Choupal Pradarshan Khet’, a collaborative and paid agri extension service, aimed at enhancing farm productivity through adoption of best practices in agriculture, grew exponentially by 210% during the year covering 43,500 hectares. In the light of the encouraging response received from farmers, the Company intends to further scale-up this activity in the coming years. The Company has also taken up a project jointly with the Government of Madhya Pradesh under the Agriculture Technology Management Agency (ATMA) initiative, wherein both classroom and on-field training would be provided to farmers by experts from various areas of agriculture including lead farmers. They are confident that these initiatives will contribute increasingly to build the competitiveness and productivity of India’s agricultural sector.
India’s growing economic clout is leading to a more
proactive and meaningful global engagement, particularly in areas like global
warming and climate change. It is today widely acknowledged that future generations
will be more secure and economic growth more sustainable only if national and
corporate strategies embrace the need to enhance environmental and social capital. In line
with this philosophy, the Company is proactively engaged in enlarging its
contribution across the three dimensions of the ‘triple bottom line’ –
economic, environmental and social – through a conscious strategy of investment
and operations that enhances the competitiveness of the value chains they are
engaged in.
Highlights of the Company’s progress in the pursuit of the ‘triple
bottom line’ objectives are discussed in the sections that follow.
Company Performance
The Company posted yet another year of impressive performance with
healthy topline growth and high quality earnings testifying to the robustness
of the corporate strategy of creating multiple drivers of growth. This
performance is even more satisfying since it has been achieved despite the
imposition of VAT on cigarettes, the incubation costs of the new FMCG
businesses including the recently launched personal care portfolio, the upfront
costs of rural marketing initiatives and the gestation costs of fresh
investments in the paperboards and hotels businesses.
Gross Turnover for the year grew by 10.7% to Rs. 213559.400 millions.
Net Turnover at Rs. 139475.300 millions grew by 14.7% driven by a robust 48.6%
growth in the non-cigarette FMCG businesses, and a healthy performance by the
Hotels and Paperboards, Paper and Packaging segments. The non-cigarette
portfolio now accounts for 52.4% of the Company’s Net Turnover. Pre-tax profits
increased by 16.4% to Rs. 45717.700 millions, while Post-tax profit at Rs.
31201.000 millions registered a growth of 15.6%. Earnings Per Share for the
year stands at Rs. 8.290 millions Cash flows from Operations stood at Rs.
41360.000 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. 3.50
per share (previous year: Rs. 3.10 per share) for the year ended 31st March, 2008. The cash outflow in this regard will be Rs. 15431.800 millions (previous year Rs. 13645.000 millions) including Dividend Distribution Tax of Rs. 2241.700 millions (previous year Rs. 1982.100 millions). The Board further recommends a transfer to General Reserve of Rs. 15000.000 millions (previous year Rs. 12500.000 millions). Consequently, the Board recommends leaving an unappropriated balance in the Profit and Loss Account of Rs. 7244.500 millions (previous
year Rs. 6475.300 millions).
Foreign Exchange
Earnings
The Company continues to view foreign exchange earnings as a priority. All businesses in the ITC portfolio are mandated to engage with overseas markets with a view to testing and demonstrating international competitiveness and seeking profitable opportunities for growth. The ITC Group’s contribution to foreign exchange earnings over the last ten years amounted to nearly USD 3.2 billion, of which agri exports constituted 60%. Earnings from agri exports are an indicator of the Company’s contribution to the rural economy through effectively linking small farmers with international markets.
During the financial year 2007/08, the Company, its subsidiaries
and the ITC Welcomgroup hotel chain together earned Rs. 23610.000 millions in
foreign exchange. The direct foreign exchange earned by the Company amounting
to Rs. 21680.000 millions (Rs. 22830.000 millions in 2006/07) was adversely
impacted by restrictions imposed by the government during the year on
exports of major agri-commodities. The Company’s expenditure in foreign
currency amounted to Rs. 11590.000 millions, comprising purchase of raw
materials, spares and other expenses at Rs. 7060.000 millions, and import of
capital goods at Rs. 4530.000 millions.
Details of foreign exchange earnings and outgo are provided in Schedule
19 to the Accounts.
BUSINESS SEGMENTS
FAST MOVING CONSUMER GOODS
FMCG – Cigarettes
The year under review witnessed an unprecedented increase in taxation on
cigarettes. The combined impact of the increase in the rate of excise duty by
more than 6% and imposition of VAT @ 12.5% ad-valorem – without a corresponding
reduction of excise duties collected in lieu of State level sales tax –
resulted in a total increase in tax incidence of about 30%. It is deeply
gratifying to report that not only did the Company meet the consequential
challenges successfully, but also retained its leadership position in the
market and improved its market standing in the consumer mind-space in key
competitive markets across the country evidencing the resilience of its brands
and the superiority of its competitive strategies. On the export front, the
Company is pleased to report a volume growth of more than 16% over the previous
year.
As reported last year, the Company uses a unique IT-enabled ‘Six Sigma’
based product development process. This product development process and the
deep consumer insights nurtured by the Company were leveraged during the year
under review for a series of key initiatives such as contemporary,
internationalised packaging for ‘India Kings’ and ‘Gold Flake Kings’, multiple
limited Edition Packs and flavour variants for ‘Classic’, etc. These
initiatives have resulted in considerable fortification of the Company’s strong
position in the premium, value-plus segment of the market.
The Company’s pursuit of creating global standards across the value
chain saw major investments in its manufacturing facilities. In addition to the
induction of state-of-the-art high speed making and packing machines reported
last year, significant investments were made during the year in upgrading
technology across all the cigarette factories. These include modernisation of
Primary Manufacturing in Munger, introduction of sophisticated
material handling systems at Bengaluru and implementation of cutting
edge Norwegian technology – Cold Plasma Odour Abatement Systems – at the
Bengaluru and Saharanpur primary manufacturing departments. In fact, the Company
is one of the first in the world to adopt this technology in
tobacco-manufacturing.
The re-certification of the tobacco research laboratories under ISO /
IEC 17025 Standards of the National Accreditation Board for Testing and
Calibration Laboratories (NABL) has ensured continuing international
recognition for the Company’s R and D capabilities from the scientific and
regulatory communities.
The focus on manufacturing excellence has resulted in the Company
achieving the highest ever level of productivity in the year under review. The
concurrent commitment to maintenance of impeccable Environment, Health and
Safety (EHS) standards has borne fruit by way of lowest ever levels of power
and water consumption per cigarette produced. Additionally, all the manufacturing
facilities have achieved 100% solid waste recycling.
It is a matter of deep satisfaction that in recognition of its
excellence in EHS standard, several awards were conferred on the Company during
the year. All the 4 cigarette factories won the ‘5-Star rating’ from the
British Safety Council, UK. The Bengaluru, Saharanpur and Kidderpore factories
won the ‘Occupational Health and Safety Gold Medal Award’ from the Royal
Society for Prevention of Accidents (ROSPA), U.K. and the ‘Greentech Gold Award
for Excellence in Safety Management’ from the Greentech Foundation, New Delhi.
The Bengaluru, Kidderpore and Munger factories won the ‘Greentech Gold Award
for Excellence in Environment Management’ from the Greentech Foundation, New
Delhi. Additionally, the Bengaluru factory won the ‘Safety Innovation Award’
from the Institution of Engineers, New Delhi and the Munger factory won the
‘Occupational Health and Safety Gold Award’ from the ROSPA, U.K., the Winners
Trophy – ‘Safety Health and Environment Award’, CII, Eastern Region, the
‘National Award for Excellence in Water Management’, CII and the ‘Innovative
Project Award for Energy Conservation Initiatives’, CII, whilst the Kidderpore
factory won the ‘Award for Outstanding Performance in Environment Health and
Safety’, CII, the ‘Suraksha Puraskar Award’ from The National Safety Council,
Mumbai and the ‘Golden Peacock Gold Award for Occupational Health and Safety’
from Institute of Directors, New Delhi.
The discriminatory taxation regime on cigarettes within the overall
tobacco industry remains the biggest challenge faced by the domestic cigarette
industry. The extremely high rates of excise duties coupled with VAT renders
cigarettes unaffordable to the common man and drives the growing consumption of
tobacco in the form of lightly taxed products like bidis, guthka, chewing
tobacco, zarda, etc. The steep imposition of taxes increases the arbitrage
opportunity not only for smugglers of international brands, but also for
clandestine domestic players who produce and sell cheap cigarettes by evading
Excise and VAT. It is estimated that consequent to the 30% equivalent increase
in tax rates on cigarettes during the year under review, the volume of these
illegal cigarettes has doubled from around 150 million per month to nearly 300
million per month.
The unprecedented increase in the rates of excise duties on non-filter
cigarettes in the 2008 Union Budget will only further induce consumers to move
to cheaper and revenue-inefficient tobacco products, including smuggled
and tax evaded cigarettes. The Company believes that the economic
potential of tobacco can be maximised through moderation of taxes on
cigarettes, minimisation of discriminatory taxes between different classes of
tobacco products and a regulatory framework that addresses the genuine concerns
of all the stakeholders of the tobacco industry. This is borne by the
experience of countries like Brazil and China where moderate taxes and
pragmatic policies have combined to serve the twin objectives of tobacco control
and Exchequer revenue.
As the 3rd largest tobacco grower and the 2nd largest tobacco consumer
in the world, India can also reap a rich economic harvest from tobacco even
while implementing tobacco control policies. The need, however, is for a
balanced agenda on tobacco, both fiscal and regulatory. The Company continues
to engage with the policy-makers in this regard.
As mentioned in earlier years, the Honourable Supreme Court declared the
various State luxury tax levies on cigarettes and other goods as unconstitutional.
The Court further directed that if any party, after obtaining a stay order from
the Court, had collected any amount towards luxury tax from its customers /
consumers, such amounts should be paid to the respective State governments.
Since the Company had not charged or collected any amounts towards luxury tax
during the relevant period, there is no liability on the Company in this
regard. However, the State of Andhra Pradesh has filed a contempt petition in
the Supreme Court claiming a sum of about Rs. 3232.500 millions towards luxury
tax, and a further sum of about Rs. 2619.700 millions towards interest, on the
allegation that the Company had charged and collected luxury tax from its
customers, but in view of a stay order passed by the Court on 1st April, 1999,
did not pay the tax to the Government. The State’s contention is baseless,
contrary to facts and is also contrary to the assessment orders passed by the
State luxury tax authorities consistently holding that the Company, right from 1st
March, 1997, did not charge or collect any amount towards luxury tax from its
customers. Accordingly, the State’s petition is being contested.
The year ahead is fraught with extreme uncertainties, since for the
first time in the history of the industry, manufacturers will not be able to
position viable offers for consumers of non-filter cigarettes in view of the
massive increase in excise duty rates in this segment. This challenge coupled
with the harsh regulatory climate presents a daunting operating environment
that will, undoubtedly, test the resilience of all legitimate players in the
industry. The Company is, however, confident that the trust reposed on it by
consumers together with its robust strategic initiatives – based on excellence
in product quality and innovation in manufacturing and operations – will enable
it to retain its leadership position in the market.
FMCG – Others
In the short to medium term, over half of India’s population will remain
below the age of 25 and according to the United Nations, India’s working age
population (i.e. 15-64 year olds) is projected to surge by 150 million to a
total of 854 million over the decade from 2005 to 2015. In 2020, the average
Indian will be only 29 years old, compared with the average age of 37 in China
and US, 45 in Western Europe and 48 in Japan. This ‘demographic dividend’
underlines India’s growth story.
The spurt in India’s per capita GDP to about Rs. 320000.000
millions is resulting in a rapidly growing middle class. According to one
recent study by McKinsey and Co., India’s middle class – defined as those with
annual incomes between Rs. 0.180 million and Rs. 0.890 million – has increased
to 13 million households or about 50 million people.
Further, as is well known, urbanisation increases with
rising per capita GDP in a ‘hockey stick’ fashion with cities providing large
economies of agglomeration for individual activity. If India’s per capita GDP
were to grow at a double-digit rate, as is being targeted by the government,
over 40% of Indians could be living in cities in the next decade against the
30% living in urban areas today. (Source: World Bank and Lehman Bros)
The Company’s bullishness on the future prospects of the
FMCG industry is anchored on the interplay of demographic dividend, rising
incomes and increasing urbanisation. The low penetration of many FMCG products
and the growing population of working women also augur extremely well for the
sector’s growth. The Company is uniquely positioned to tap the emerging
opportunities in this sector by blending and synergising the diverse pool of
competencies residing in its various businesses.
Accordingly, during the year under review, the Company
continued to rapidly scale up the new FMCG businesses comprising Branded
Packaged Foods, Lifestyle Retailing, Education and Stationery Products and
Safety Matches and Incense Sticks (Agarbattis). The Company’s presence in this
sector was further enhanced with the launch of a portfolio of Personal Care
Products under a carefully designed brand architecture.
It is a matter of immense satisfaction that the Trade
Marketing and Distribution initiatives of the Company continue to deliver high
value. The Directors are happy to report that the significant investments made
in scaling up the Trade Marketing and Distribution infrastructure, backed by
focused channel management, have substantially enhanced the market standing of
the Company’s FMCG products.
The Segment Report set out in Schedule 20 to the Accounts
reflects the outcome of this rapid scaling up. Segment Revenues grew by 49%
over 2006/07 to touch Rs. 25110.000 millions during the year.
Branded Packaged Foods
The Branded Packaged Foods business continued to expand
rapidly with sales growing by 57% over the previous
year. The impressive scale up spanned all categories,
attesting the market standing and consumer franchise of the Company’s brands.
Relentless focus on providing consumers well-differentiated best-in-class
products, supported by significant investments in product development,
innovation, manufacturing technology and unmatched distribution infrastructure
have dramatically enhanced brand equity of this business. It is a matter of
pride and satisfaction that both ‘Aashirvaad’ and ‘Sunfeast’ command consumer
spends of nearly Rs.10000.000 millions each in a short span of time.
Enthusiastic consumer response has enabled the ‘Bingo!’
range of potato chips and finger snack foods to acquire a double-digit market
share within just one year of launch. Consumer acceptance of this order is rare
and evidences the Company’s ability to leverage its deep consumer insights,
exploit the cuisine expertise of its Hotels Division and unleash its superior
brand building capabilities.
The ‘Bingo!’ launch received wide commendation for its width of
portfolio and the high-energy clutter breaking marketing campaign. The business
drew on the strong agri-sourcing linkages of the Company. It will progressively
leverage its access to potato tuber technology arising out of the acquisition,
during the year under review, of Technico Private Limited., Australia, by
Russell Credit Limited., a wholly owned subsidiary of the Company, to ensure
security of supply and achieve critical buying efficiencies in cost and
quality.
The biscuit category continued its growth momentum with sales growing by
53%. The ‘Sunfeast’ range of biscuits was further expanded with the launch of
‘Coconut’ and ‘Nice’ variants as well as ‘Sunfeast Benne Vita’ flaxseed
biscuits, Special Edition of ‘Sachin’s Fitkit’ multi grain biscuits and ‘Golden
Bakery’ premium cookies. The excise relief accorded in the budget to low and
mid-priced biscuits, consistent with the government’s stated intention to
promote the food processing industry, has given a fillip to the sector. It is
hoped that the government would respond favourably to the industry’s
representation and extend the relief to the entire category.
In the staples category, ‘Aashirvaad’ further built on its leadership
position with revenues growing by 43%. It continues to draw upon the agri
sourcing strengths of the Company’s e-Choupal network to gain competitive
advantage by obtaining superior quality wheat at competitive costs. The
business has successfully segmented the market through an expanded product
range at appropriate price points. ‘Aashirvaad Select’ was positioned as a
premium offering. ‘Aashirvaad MP Chakki’ atta was launched in target markets.
‘Aashirvaad’ spices grew by 49% leveraging the in-house agri-sourcing and crop
development skills.
The confectionery category recorded robust sales with revenues growing
by 40% over last year mainly driven by ‘Deposited Mint’ and ‘Eclairs’. New
variants in the ‘Mint-o’ and ‘Candyman’ range were launched during the year to
expand consumer choice. A combination of effective distribution and aggressive
trade marketing supported by a strong supply chain have helped the business to
overtake incumbent market leaders and establish ‘Candyman’ and ‘Mint-o’ as the
top brands in their respective segments.
In the Ready-to-Eat (RTE) group, ‘Sunfeast PastaTreat’ and ‘Aashirvaad
Instant Mixes’ have grown by more than 100%. ‘PastaTreat’ has created a new
category to address the snacking habits of urban consumers. Export of ambient
stable products under the ‘Kitchens of India’ banner has shown a robust growth
and is now well established in the US market for Ready-to-Eat Indian food.
These products are already available in more than 4,500 stores across the US.
They also enjoy a strong position in Canada.
During the year, the business received accolades from reputed organisations
such as NDTV Profit, Business Standard, Business Today and Avaya Global Connect
for a range of accomplishments: the successful launch of
‘Bingo!’, superior consumer relations and responsiveness, leadership in
the foods sector and the best managed FMCG business in India.
The year ahead presents a unique challenge to the business in the shape
of an unprecedented rise in commodity prices across the board, including wheat,
vegetable oil, maize and skimmed milk powder. Coupled with the soaring fuel
prices, the task of growing volumes without adversely impacting margins has
been rendered extremely challenging. However, the economic growth momentum in
the country is likely to lend support. Only a sustained supply side correction
can ease inflationary pressures. In the interim, the Government should consider
removal of Excise Duty and standardisation of the VAT rate at 4% for all food
products to provide relief to the consumers and sustain growth in this sector.
Lifestyle Retailing
The Company’s Lifestyle Retailing business continued to enjoy a high
brand salience in the minds of consumers, both in the premium and popular
segments of the branded apparel market. Domestic sales grew by 26% over the
previous year, while exports registered a growth of 17%.
In the premium segment, ‘Wills Lifestyle’ continues to be a leader with
a range that provides a classy expression of contemporary trends, styled and
accessorised to give discerning customers the look of the season, in tune with
the international fashion mood. The stature and premium imagery of the ‘Wills
Lifestyle’ brand was further reinforced during the year through its association
with the ‘Wills Lifestyle India Fashion Week’, the country’s most prestigious
lifestyle event. In a ‘Ramp to Racks’ initiative, the brand teamed up with the
leading designers of the country to create the ‘Wills Signature’ range of
designer-wear, which has been very well received by the consumers. The
introduction of the ‘Essenza Di Wills’ and ‘Fiama Di Wills’ range of personal
care products has helped augment the lifestyle portfolio. These products have
met with encouraging response at the ‘Wills Lifestyle’ outlets. The business
relaunched its customer privileges programme, ‘Club Wills’, by incorporating a
Platinum category, which offers more personalised services to enhance the
shopping experience. During the year the company also launched the new concept
‘Wills Lifestyle’ stores designed by a well known US based design firm
specialising in retail.
The ‘Wills Lifestyle’ brands are now available nationwide in the
Company’s exclusive stores, as well as in leading departmental stores. The
chain of ‘Wills Lifestyle’ stores offers a complete fashion wardrobe comprising
‘Wills Classic’ formal wear, ‘Wills Sport’ relaxed wear, and ‘Wills Clublife’
evening wear, along with accessories for both men and women. The soaring rental
costs have hampered the pace of store expansion, as it has for the rest of the
industry. The business is taking early positions in key malls and considering
selective ownership of stores to mitigate the impact of rising rental costs and
maintain its growth trajectory.
‘Wills Lifestyle’ was rated amongst the top 5 Luxury brands in the
country in a Global Luxury Survey conducted by
TIME Magazine. ‘Wills Lifestyle’ was also voted as the ‘Retailer of the
Year’ in ‘Fashion & Lifestyle’ category at the Asia Retail Congress, 2008.
In the popular ‘Youth’ segment, ‘John Players’ delivered a strong
performance, generating high buzz through its vibrant imagery, youthful product
portfolio and association with youth icon, Hrithik Roshan. The brand has
established a strong leadership presence in this segment. The vibrant portfolio
comprising youthful products such as cargoes, denims, suits and jackets helped
enhance brand appeal, while the ‘Signature Line’ a range of glamour wear
incorporating the fashion preferences of the brand ambassador, gave the brand
portfolio its edgy face. ‘John Players’ now enjoys a strong pan India presence.
The business will continue to aggressively expand its retail presence.
During the year, the business launched its new brand ‘Miss Players’. The
brand, positioned to make a lively and playful statement, brings to the market
trendy fashion wear for young women. It offers a vibrant wardrobe of
cool casualwear, exciting party-wear and chic work-wear. The wellknown film actor
Amrita Rao is the face of the brand. She brings life to the brand philosophy of
‘playing it cool’. ‘Miss Players’ is now widely available in ‘Miss Players’ exclusive stores,
select ‘John Players’ stores, leading large-format retail chains and key multi brand
outlets across the country.
In the area of apparel exports, the growth in turnover was healthy despite the depreciation of the US dollar against the rupee. However, margins were under serious pressure. Nevertheless manufacturing capacities were augmented to offer a wider product portfolio, the existing customer base was consolidated and relationships established with potential high value customers.
The business leveraged the expertise of leading global consultants to strengthen its product design and engineering capability. New dedicated high quality supply sources were added to further support the robustness of the supply chain. The business also made significant investments in Information Technology to augment real time data visibility. These strategic initiatives will enable the business to substantially increase the fashion quotient of its product range, improve operational effectiveness and enhance customer intimacy.
Education and Stationery Products
The Stationery business recorded an impressive sales growth of 72% over the previous year, positioning the Company as the largest marketer of notebooks in India. Its two flagship brands, namely ‘Classmate’ for the student community and ‘Paperkraft’ for the discerning working executives, have established a strong beachhead in the Indian stationery market in a short span of time. This success has clearly been achieved on the strength of quality and innovation, which have yielded a growing consumer franchise, particularly among students. The market for notebooks in India is highly fragmented and dominated by regional and local players. There has been little investment in product quality, brand building and national distribution. The business has played a pioneering role in partnering over 15 small-scale units to upgrade their quality, delivery capability and business processes. 8 of these units were awarded the ISO 9001:2000 certificate, which is a first for the stationery industry. This accomplishment underscores the mutual benefits of a marketing partnership between a large marketing company
and small scale manufacturers.
Incense sticks
(Agarbattis)
The Agarbatti business recorded an impressive 25% growth in revenues,
primarily driven by increasing consumer
franchise for the ‘Mangaldeep’ brand combined with improved distribution
reach. ‘Mangaldeep’ is already the second largest national brand in the
industry, riding on the success of two key sub-brands, namely ‘Madhur 100’ and
‘Yantra’. Launched last year, ‘Yantra’ has received wide consumer acceptance on
the strength of its unique fragrance which evokes a temple ambience. It is
expected to become a national drive brand.
In line with the Company’s commitment to the ‘triple bottom line’, the Agarbatti
business indirectly provides livelihood opportunities to 5000 people. The
business continues to work in conjunction with NGOs and Self Help Groups in
Tripura, Bihar, Andhra Pradesh, Tamil Nadu etc., extending support to them by
training village women in rolling agarbattis, thereby creating income streams
for women from poor rural households. The business continues to collaborate
with small and medium enterprises to harness the best of their entrepreneurial
skills and raise their process and quality standards. Specific and well
directed inputs from the Company have enabled 7 out of 10 agarbatti
manufacturing units to receive ISO 9001: 2000 certification.
In order to exploit other opportunities in the ‘air care’ segment, the
business has commenced export of premium perfumed candles to the US. The
business has also launched a range of premium aromatic candles in the Indian
market under the brand ‘Expressions’. Given the growing popularity of aroma
therapy and the changing gifting habits in India, these products are expected
to do well across segments.
Personal Care Products
In line with the Company’s stated strategy of aggressively scaling up
the FMCG initiatives through portfolio expansion, the Personal Care business
was commenced during the year with the launch of a range of shampoos, soaps,
shower gels and conditioners under the brand names of ‘Fiama DiWills’, ‘Vivel
Di Wills’, ‘Vivel’ and ‘Superia’. Anchored on meticulous consumer research,
these products have been formulated to bring a unique blend of nature and
science to discerning consumers. Each of these brands addresses an identified
segment of the market with differentiated value benefits
The initial market response to the Company’s products under the ‘Fiama
Di Wills’, ‘Vivel Di Wills’, ‘Vivel’ and ‘Superia’ brands has been encouraging.
The range is being progressively extended nationally. The ‘Di Wills’ family,
strongly endorsed by the ‘Wills Lifestyle India Fashion Week’, the country’s
premier fashion event, provides an opportunity for the business to engage with
consumers at the luxury end. The business has unleashed an aggressive
communication strategy with appropriate celebrity association. The combined
quality of promise and performance is expected to speedily build an appreciable
consumer franchise for these brands.
At a total size of Rs. 200000.000 millions, the Personal Care industry
in India continues to grow at a healthy 10 - 12% per annum due to the interplay
of economic, demographic and sociological factors discussed earlier in this
report. The sector holds immense appeal for the Company on account of its scale
and growth potential, given the low market penetration in these categories,
other than soaps.
A rapidly growing luxury segment adds to the appeal. This arena of
opportunity fits well with the Company’s established strengths in brand
building, trade marketing and lifestyle retailing, all of which can be
leveraged to build a successful business.
Hotels
The hotel industry witnessed yet another year of robust growth aided by
India’s economic momentum and its increasing attractiveness as a business and
tourist destination. Foreign tourist arrivals were buoyant, touching 5 million
in 2007, representing a growth of 12% over the previous year. Estimates of
foreign exchange earnings from tourism of US Dollar 10 billion during 2007/08
reflect an increase of 32% over the previous year. Domestic tourism posted a
handsome growth of about 20% in 2007 to touch 500 million travellers.
India has 27 properties on the World Heritage List, the second highest
in Asia after China’s 34. The World Travel and Tourism Council has, quite
rightly, identified India as one of the world’s foremost tourist growth centres
in the
coming decade. India’s comparative cost advantage in specific niches such as medical and adventure tourism can significantly synergise and enhance the country’s traditional tourism potential premised on its rich history and cultural heritage. Despite such enormous potential, India’s share in the world travel & tourism demand remains extremely low. India’s travel and tourism economy, as a share of GDP, is estimated at only 6.1% which is well below the world average of 9.9%.
India’s tourism infrastructure including airport facilities, hotels and roads to tourist destinations, needs to be upgraded to international standards. The number of hotel rooms in India, including approved projects, is estimated at 110,000 of which, around 30% is in the 5 Star / Luxury segment – a woefully inadequate capacity, lower than even some of the much smaller South-East Asian countries like Singapore, Malaysia and Thailand. It is estimated that India would need an additional 50,000 rooms in the next 2 to 3 years to cater to the projected tourist arrivals into the country. However, the astronomical price of land remains the key hurdle in the realisation of this objective.
During the year under review, the hotels business performed well with revenues growing by 12% to touch Rs. 11000.000 millions driven by better room rates and higher food and beverage sales. Gross Operating Profit (PBDIT) grew 15% over the previous year to touch Rs. 4750.000 millions while segment results (PBIT) at Rs. 4110.000 millions grew by 17%. The results would have been even more impressive but for the adverse impact of the strengthening rupee in the first half of fiscal 2007/08. The business resorted to rupee billing from September 2007 onwards as an insurance against rupee appreciation. The business maintained its leadership in terms of operating efficiency as measured by the ratio of PBDIT to Net Income.
Consequent to the exclusive tie-up with its partner Starwood, 7 of ITC’s finest properties were repositioned and associated with the premium ‘Luxury Collection’ franchise with effect from 15th May, 2007. Globally, only a limited number of exclusive properties carry the ‘Luxury Collection’ endorsement, offering unique experiences indigenous to their destination. In India, the Company’s ‘Luxury Collection’ properties stand for the true essence of Indian hospitality. This exclusive franchise acknowledges ITC’s leadership in the premium segment and positions it amongst the world’s finest hotel chains.
ITC-Welcomgroup has emerged as the country’s 2nd largest
hotel chain offering a choice of over 90 hotels across 77 destinations in India
under 4 different brand propositions - ‘ITC Hotels’, ‘Welcom Hotel’, ‘Fortune’
and ‘Welcom Heritage’ and 4 properties carrying the Sheraton franchise, aggregating to an
inventory of 6,000 plus rooms. About half of this room inventory is at the
premium end, owned between the Company and its subsidiaries. The balance
consists of third party owned properties operating under the ‘WelcomHotel’,
‘Fortune’ and ‘WelcomHeritage’ brands.
Comprehensive renovation and product Upgradation programmes were
completed at 4 properties including the premium Towers Block at ITC Maurya, New
Delhi. In keeping with the Company’s strategy of maintaining the
contemporariness and premium positioning of its properties, considerable
investments will continue to be made in
renovation and upgradation plans.
Buoyed by the continuing impressive performance of this sector, the
Company, as reported last year, has embarked on an aggressive investment led
growth strategy. Construction activity in respect of the super deluxe luxury
hotel projects at Bengaluru and Chennai is progressing on schedule and several
new projects entailing substantial investments are in various stages of
implementation.
The ITC-Welcomgroup chain, with its globally benchmarked levels of
product and service excellence and customer centricity is not only well
positioned to sustain its leadership position in the industry, but is also
poised to emerge as the largest hotel chain in the country over the next few
years.
Paperboards, Paper And Packaging
The Paperboards, Specialty Paper and Packaging segment recorded yet
another year of steady growth in revenues and profits. Segment revenues grew by
13% over the previous year to touch Rs. 23640.000 millions Segment results at
Rs. 4530.000 millions reflect a growth of 9%.
Paperboards and Specialty Papers
While the global paper & paperboard industry grew by about 2%, the
industry in India witnessed a 9% growth during the year under review. The
domestic paperboards industry, sized at 1.24 million TPA, is characterised by
fragmented capacities, with over 100 mills servicing the market. The top five
manufacturers account for over 45% of the domestic supplies. The Company is the
market leader and the only significant player in the premium value added
paperboard segment with integrated pulping operations.
Driven by macro economic factors, the outlook for the industry in India
remains positive on the demand side. The per capita consumption of paper and
paperboard in India at 7 Kgs. is exceptionally low compared to the world
average of about 55 Kgs. and the Chinese average of 45 Kgs. Sustained economic
growth will progressively bridge this gap, resulting in a consequent surge in
demand. Accelerated growth of the FMCG sector, driven by consumer spending, is
expected to boost demand for sophisticated packaging for branded products. The
Company, with its high quality value added paperboards, is well poised to
exploit this opportunity.
Production during the year touched 4,14,714 MT as compared to 3,90,458
MT in the previous year. Total sales increased to 4,03,063 MT from 3,85,005 MT,
a volume growth of 5%. Sales of Value Added Paperboards grew by 15% driving
revenue growth and market standing. Major planned upgrade programmes, involving
complex rebuild
and stabilisation of certain machines, adversely affected production
volumes during the year.
The year witnessed a continuing trend of steep inflation in the cost of
fuel and major raw materials. Globally, pulp and waste paper prices spiralled,
mainly due to the widening demand supply gap. China, as the largest importer of
input raw materials, influences the international prices of fibrous inputs.
Uncompetitive cost structures have forced many North American and European
mills to shut down operations, some of them permanently. Notwithstanding this high
cost scenario, the Company succeeded in partially neutralizing cost pressures
by optimising opportunity buying and increasing sales realisations.
Addressing the challenge of securing the long-term supply of fibre at
competitive prices is critical for the business. Given the downward trend in
import duties on paperboards, cost competitiveness will be of vital importance.
The
Company’s operating strategies, centered on expanding pulp capacities,
improving energy management and enhancing internal efficiencies, are robust
enough to yield sustainable cost advantages.
Building on its pioneering ‘Elemental Chlorine Free’ bleaching process,
the business has successfully commissioned a new pulp mill at its Bhadrachalam
unit. The new line, which is in the process of stabilising, will enable the
business to mitigate the impact of cost escalations in hardwood pulp. The new
‘Ozone bleached’ Pulp mill, the first of its kind in the country, meets
world-class environmental standards – a testimony to the Company’s commitment
to the ‘triple bottom line’. This differentiated capability will enable the
business to expand the market for superior value added paper and boards on the
strength of cost competitiveness.
As reported in previous years, the business has consistently pursued an
aggressive clonal propagation strategy. It makes available high-yielding clones
and seedlings of the desired pulp wood species to farmers engaged in plantation
on their marginal wastelands. It also provides extension services to such
farmers to improve productivity and output quality. The quality of these clones
and seedlings, products of the biotechnology-based R and D programme of the
business, has been tested for its effectiveness in more than 80,000 hectares of
plantations, including 15,000 hectares planted during the year under review.
The business continues to collaborate with the Council for Scientific and
Industrial Research (CSIR) to leverage contemporary bio-technology applications
to develop high yielding pulpwood species with low lignin content.
The Company continues to represent to policy makers to introduce
appropriate amendments to the Forest Conservation Act, 1980 and related Rules
with a view to permitting the industry to use degraded forest land for
afforestation linked to the end-use of such wood. An enabling Policy framework,
which would inter alia promote publicprivate partnerships for the development
of degraded forest lands, would go a long way in serving the twin objectives of
securing wood supply for the domestic paper and paperboards industry and
creating sustained livelihood providing economic activity in rural India.
Waste paper is a key input in the manufacture of recycled boards.
Unfortunately, mobilisation of waste paper in India is very low at 14% compared
to 60% in developed countries. The business has therefore commenced an
initiative for efficient collection and recycling of waste paper, targeting
large sources of aggregation such as schools, offices, residential colonies and
apartment blocks. This initiative, widely appreciated, will contribute to a
cleaner environment while enhancing the long term cost competitiveness of the
business.
The business is
well on its course to achieve ‘zero solid waste’ discharge status, with the
units at Tribeni and Kovai having already achieved 100% compliance, and the
units at Bhadrachalam and Bollaram being very close to achieving, the same. The
business has initiated a slew of projects that qualify for carbon credit in
terms of the Clean Development Mechanism (CDM) under the Kyoto Protocol.
The robust growth
in the value added printing and writing paper segment in India presents an
attractive opportunity, which the business plans to leverage by tapping the
Company’s institutional strengths in distribution. The Indian market is witnessing
a robust growth in demand for fine printing paper, premium quality coated paper
and branded copier paper. The business is at an advanced stage of commissioning
a new paper machine at its Bhadrachalam unit with a capacity of 1 lac ton per
annum, to service this demand effective middle of 2008 when this machine is
expected to commence commercial production.
During the year,
the British Safety Council awarded the ‘Sword of Honour’ to the Tribeni unit
and the ‘5 Star Rating’ to the Kovai and Bollaram units. The Bhadrachalam unit
was recognised for ‘Excellence in Energy Management’ by CII. The Bhadrachalam
and Kovai units were conferred with the ‘National Award for excellence in Water
Management 2007’ by CII. The Bhadrachalam unit received recognition for
practicing ‘Cleaner Production Technology and Climate Change Mitigation
Measures’ from the Andhra Pradesh Pollution Control Board.
The business with
its augmented capacity and capability, backed by the strength of its research
and development team and an all-pervasive culture of innovation and excellence
is well poised to become a major player in the Afro-Asian region.
Packaging
and Printing
The Packaging and
Printing business of the Company continued to invest in world class technology
and skills. It expanded its range of offerings to consolidate its position as a
leading provider of high quality paperboard and flexibles packaging in the
country. The business provided strategic support to the Company’s cigarette and
other FMCG businesses by ensuring security of supplies and sustaining
international quality at competitive prices.
Deliveries from the
flexibles and carton lines, commissioned at Haridwar and Chennai respectively
during the year, are being scaled up to cater to the distinctive and innovative
packaging requirements of the Company’s Branded Packaged Foods and Personal
Care businesses. The business also built up critical volumes in the supply of
value added packaging to the consumer electronics industry from its Chennai
facility.
The in-house capability
to deliver best-in-class packaging has enabled the Company to crash time in the
launch of new products by the Branded Foods and Personal Care businesses, while
simultaneously contributing to significant enhancement of brand image.
Capacities are being augmented further at both Haridwar and Chennai to cater to
the increasing packaging requirements of the Company’s
FMCG businesses.
The business won
several national awards for excellence in printing, as well as ‘Star’ awards
from the Paper, Film and Foil Converters’ Association (PFFCA). The Chennai unit
was certified at Level 8 of the International QualityRating System (IQRS) as
audited by Det Norske Veritas(DNV), becoming the first in India to receive this
rating. All three units, at Chennai, Munger and Haridwar, received the ‘5 Star
Rating’ for Safety from the British Safety Council. The Chennai Packaging unit
was awarded the ‘Appreciation Award for Safety’ by the Government of Tamil Nadu
for the second year in succession. The Munger unit received the ‘Greentech Gold
Award for Safety Management and Environmental Excellence’ and the ‘ROSPA Gold
Award’.
With substantial
investments in technology, quality management systems and manufacturing
practices, the business is well poised for rapid growth.
AGRI
BUSINESS
Cigarette
Leaf Tobacco
Global production
of burley and oriental tobaccos declined sharply in 2007 in Greece and the
major producing countries of East Europe consequent to the decoupling of
subsidies in the European Union. The constrained supply chain for such tobaccos
increased farm and trade prices. The increase in the production of flue-cured
tobaccos in Brazil, Zimbabwe, Argentina and the US was too moderate to mitigate
thedemand supply mismatch.
In India, the size
of the tobacco crop has been increasing in the past four years despite rising
labour and input costs, largely due to the fact that cigarette tobacco farmers
have been consistently well remunerated. Global supply shortages have spurred demand for
Indian tobaccos, considerably raising prices from their traditional lows.
Resultantly, Indian farmers have been insulated from the bargaining power of
large buyers in the wake of global consolidation, which has led to the top five
cigarette majors (including China) controlling 85% of world cigarette
production.
During the year the business achieved a new high in tobacco exports for
the 3rd consecutive year, and despite the sharp appreciation of the rupee,
recorded a 21% increase in export revenues over the previous year. In volume
terms, exports for the year grew at 27%. The Company won the ‘Golden Leaf
Awards’ in the TABEXPO 2007 held in Paris in the categories of ‘Most Committed
to Quality’ and ‘Most Impressive Public Service Initiative’. The business
continued to provide strategic sourcing support to the Company’s cigarette
business.
The R and D teams of the business focused on development of desired
styles of leaf and appropriate production practices for maximising productivity
in the Flue Cured Virginia and Burley growing regions. Trials on Advanced
Breeding Lines (ABL) and hybrid seeds continued during the year in close
collaboration with the Central Tobacco Research Institute (CTRI). Results
indicate the potential for increase in farm productivity. Micro irrigation
trials conducted in nurseries yielded superior quality seedlings at a lower
cost of production, besides conserving ground water to the tune of 30% to 40%.
The full benefits of the investments made in the modernisation of the
plants at Chirala and Anaparti were realised during the year. In-house
processing was maximised with significant improvement in asset utilisation. In
view of the accelerated growth of the Mysore crop, the Company has decided to
establish a green leaf processing plant at a location near Mysore. Land acquisition
for this project is in progress.
The company continues to focus on maintaining the highest safety
standards in its factories. During the year, the Units at Anaparti and Chirala
received the prestigious ‘Sword of Honour’ award from the British Safety
Council. These Units also received the ‘5 star Rating’ (Health, Safety and Environment) from the British Safety
Council. The Chirala Unit also received the ‘Safety Innovation Award’ from the
Institution of Engineers, New Delhi.
The global supply situation continues to be tight in 2008. Consequently,
the demand for Indian tobaccos has increased considerably with sharp increases
in the auction prices. In the absence of structural interventions to improve
farm productivity and develop and scale up the right types of tobacco in
alignment with demand, such short term opportunity as the present one would
moderate quickly as other countries step up production to bridge
the supply gap.
On the domestic front, fresh challenges have emerged. As explained in an
earlier section of this Report, Indian cigarette manufacturers will not be able
to position viable offers for consumers of non-filter cigarettes in view of the
massive increase in excise duties in this segment. This will adversely impact
domestic demand with severe consequences for tobacco farmers and all others who
depend on the tobacco value chain for their livelihood. An equitable and
balanced approach to cigarette taxation is needed to de-risk the tobacco
dependants from such large taxation induced discontinuities.
In order to strengthen the Company’s competitive standing, several R and
D initiatives were launched including some that provide insight into genetic
compositions in Flue Cured Virginia tobaccos. These initiatives will enable the
business to align R and D inputs with customer requirements and other market
opportunities.
The Company with its strong R and D capability, modern processing
facilities, crop development and extension expertise and deep understanding of
customer and farmer needs is in a position to leverage opportunities and
address challenges that lie ahead for the Indian leaf tobacco industry. The
business will continue to extend strategic sourcing support to the cigarette
business even as it sustains its leadership position as a major exporter of
quality Indian tobaccos, thereby catalysing the multiplier impact of increased
farmer incomes to benefit the rural economy.
Agri Commodities
The year under review witnessed substantial turbulence in agri
commodities trading. Rising crude prices and concerns over climate change are
driving most countries to develop bio-fuels as alternatives. The shift to
bio-fuel cultivation coupled with steadily increasing demand and all time low
inventory levels resulted in a major spurt in commodity prices worldwide. In
India, growing inflationary pressures compelled the Government to take drastic
measures such as ban on exports, imports at nil duty, market intervention at
subsidised prices and imposition of limits on inventory holding.
These challenging circumstances adversely impacted the performance of
the business during the first half of the year. The business was left with no
option but to liquidate its agri commodity inventories at prices lower than the
remunerative procurement prices paid to the farmers through its e-Choupal
network. The appreciating Rupee aggravated the situation. Subsequently, in the
second half of the year, with the restoration of market dynamics in the agri
sector, the business regained its growth momentum with a fine-tuned portfolio
mix. As a result, the Company retained its position as a prime player in agri
business, with strong performance in Soyabean trading driving revenues to a new
high. The value added segment of frozen foods, IQF (individually quick frozen)
fruits, niche products like baby food, quality purees, high brix pulp and
organic purees registered a strong sales growth of 41% over last year. Such a
performance revalidates the Company’s strategy of focusing on the value added
segment to capture better margins in products where India has a natural agro
climatic advantage.
During the year, the Company’s commodity trading operation was
accredited with ISO 9001:2000 certification, testifying to the high quality
process standards resident in the system. The business is progressively
aligning its commodity portfolio with the sourcing needs of the Company’s Foods
business to generate higher order value from its agri procurement
infrastructure.
The e-Choupal model continued to provide strategic competitive advantage
to the Company’s Foods business by enabling purchase of large quantities of
identity preserved, high quality wheat at competitive prices. During the year
the business commenced procurement of chipstock potatoes, one of the critical
raw materials in the manufacture of the Company’s ‘Bingo!’ brand of potato
chips. A judicious blend of sourcing from different growth zones, and
optimization through in-season and off-season purchases helped in competitively
meeting the requirement of chipstock potatoes despite a significant price
increase in the wake of high demand and adverse growing conditions.
The acquisition of Technico, an Australian company with technology
leadership in the production of early generation seed potatoes, helped the
Company access a ready pipeline of new high-yielding varieties of chipstock
potato seeds. In order to ensure uninterrupted supply of chipstock potato, the
business proposes to undertake initiatives like varietal and regional crop
development.
The horticulture pilot through ‘Choupal Fresh’ stores is progressing as
per plans. The business intends to further
strengthen its farmer linkages and its expertise in the management of
perishables before scaling up this business.
The spices business was scaled up to provide supply chain support for the
growing spice powder sales of the Company’s Foods business. In order to ensure
sustainable growth, the business is working closely with farmers, NGOs and Self
Help Groups for developing a reliable farm-to-factory spices supply chain.
Focus on special growing programs for organic spices and Integrated Pest
Management (IPM) chillies have helped the business access premium export
markets like Japan, US and the European Union. The business has entered into a
unique
tripartite agreement with the Spices Board and the Statenm Government of
Nagaland for developing the ‘Naga Chilli’ crop. The business is setting up a
state-of-the-art spices grinding and sterilisation facility to support growth
in the domestic and export markets. The business is well positioned to expand
the product range to include value added products such as oleoresins.
The agri-inputs part of the business grew its topline by a handsome 49%.
Its core product, ‘Wellgro Soil’, a neembased organic manure, is gaining
increasing acceptance amongst the farming community in Andhra Pradesh,
Karnataka and Maharashtra. A mobile based Dealer Ordering System was deployed
during the year to strengthen distribution. The business has developed a cost
effective neem-based organic fertiliser, ‘Wellgro Grains’ for field crops.
Initial results of large scale commercial trials on paddy crops have been very
encouraging in terms of higher yields. Usage of Hybrids and BT seeds require
application of specialty fertilisers. The business has launched a range of such
fertilisers.
The Company’s rural servicing initiative under the ‘Choupal Saagar’
banner now encompasses 21 centres across
3 states. These centres continue to be a one-stop shop for the farming
community with a host of services like sourcing, training soil testing,
cafeteria and health clinic being provided in the same complex. Apart from the
doubling of turnover, the year witnessed improvement across the key performance
drivers of footfalls, conversion, average realisation and product mix, with
consequent expansion of margins. Acquisition of suitable land however remains a
key challenge.
The throughput of the rural marketing businesses through the e-Choupal
network experienced robust growth during the year. Channel productivity
improved through focus on capability building of both internal staff and the
extended organisation of Sanchalaks / Sanyojaks. Distribution of FMCG and
Financial Services products through the network witnessed a growth of 36% and
335% respectively. The channel maintained its leadership in the distribution of
life insurance and weather insurance products. The marketing of Kisan Credit
Cards on behalf of State Bank of India was initiated in 4 States after a
successful pilot. The channel, having earned the trust of customers, is now
poised for a major expansion in the distribution of banking products.
Notes On Subsidiaries
The following may be read in conjunction with the Consolidated Financial
Statements enclosed with the Accounts, prepared in accordance with Accounting
Standard 21. The Company has been exempt from the provisions of Section 212(1)
of the Companies Act, 1956 relating to the attachment of the accounts of its
subsidiaries to its Accounts. Shareholders desirous of obtaining the annual
accounts of the Company’s subsidiaries may obtain the same upon request. The
report and accounts of the subsidiary companies will be kept for inspection at
the Company’s registered office and those of the subsidiary companies. Further,
the report and accounts of the subsidiary companies will also be available at
the ‘Shareholder Value’ in a user friendly, downloadable format.
ITC Global Holdings Private Limited., Singapore (‘ITC Global’) was
placed under liquidation on 30th November, 2007 by the High Court of the
Republic of Singapore vide its Order dated 30th November, 2007, on an
application of the Judicial Managers of ITC Global. ITC Global has been under
JudicialManagement since 8th November, 1996. Consequently, the Company is not
in a position to consolidate the accounts of ITC Global and its subsidiaries
for the financial year ended 31st December, 2007 or to make available copies of
the same for inspection by shareholders.
Surya Nepal Private Limited
The year under review has been a landmark year in the history of Nepal.
After a prolonged period of political uncertainty and economic blockades, the
twice postponed Constituent Assembly elections finally took place on 10th
April, 2008, transitioning Nepal from a monarchy to a parliamentary republic.
The resultant overwhelming victory gained by the Communist party of Nepal
(Maoist) has hopefully ended the protracted civil war.
The disturbed socio-political environment reflected in a lower GDP
growth of 2.3% for the year ended 16th July,
2007 against 3.1% in the previous year. However, with a politically
settled democratic scenario, it is expected
that the economy will be back on a growth trajectory during 2008/09.
Notwithstanding the challenging socio-political environment, the
twelve-month period ended 13th March, 2008, witnessed Sales growth of 16% to
Nepalese Rs. 6370.000 millions (net of VAT), while Profit After Tax stood at
Nepalese Rs. 920.000 millions representing an increase of 33% over the previous
year. The company continues to be the single largest contributor to the
Exchequer accounting for about 3.7% of total revenues of the Government of
Nepal. During the year, labour unrest at the company’s Simra factory resulted
in a stoppage of operations for 20 days. A Terai blockade from 13th February,
2008 for 15 days worsened the pressure on the supply chain. Despite the
difficult operating conditions, the company’s proactive supply chain and
inventory management minimised the impact of such disruptions.
The company’s cigarette business continued to make satisfactory progress
with focus on improving value share. New brands were launched to strengthen the
portfolio, consolidating its position in key product segments and channels.
During the year, the company launched ‘Surya 24 CARAT Lights’ and ‘Kings’ in an
international bevel edge pack at the super-premium end of the market and ‘Pilot
Filter’ at the lower end of the regular size filter segment. The new brands
reflecting the well researched consumer insight have been well received by
consumers. The cigarette factory at Simra was accredited with ‘OHSAS 18001:1999
Certification’. The Employee’s Housing Colony in Simra was accredited with
‘OHSAS 18001:1999’ and ‘ISO 14001:2004’ certification during the year.
The company’s garments business continued to fulfil export orders for
the ‘Wills Lifestyle’ and ‘John Players’ range of apparel from the Lifestyle
Retailing Business of the Company. The continued imposition of Additional
Customs Duty of 4% on all garment imports into India is a cause of concern for
the company. The company continues to make representations to the appropriate
authorities in this regard and is hopeful that this issue will be redressed
soon. The company’s state-of-the-art garment manufacturing facility at
Biratnagar is expected to commence production shortly. In the domestic market,
‘John Players’ has consolidated its position in the branded apparel segment.
‘Springwood’, the company’s mass-market brand, which offers an alternative to
low price imports from China and South East Asia, was successfully launched
across the country. Sales and consumer response have been extremely
encouraging.
The company remains committed to its role as a responsible corporate
citizen. As part of its commitment to promote Sports and Tourism in the country
under the Surya Nepal Khelparyatan initiative, the company in association with
the Nepal Tourism Board sponsored the country’s most premier professional Golf
tournament – the ‘Surya Nepal Masters’. The company also sponsored the ‘Surya
Nepal 9th SAARC Golf Championship’, which was held for the first time in Nepal
under the aegis of the Nepal Golf Association. During the year, the company was
conferred with the prestigious ‘Federation of Nepalese Chambers of Commerce and
Industry National Excellence Award’ in recognition of the highest standards
achieved in professional management.
The company declared a Dividend of Nepalese Rs. 120/- per equity share
of Nepalese Rs. 100/- each for the year ended 32nd Ashad, 2064.
Srinivasa Resorts Limited
During the financial year ended 31st March, 2008, the company recorded net
revenues of Rs. 689.700 millions (previous year – Rs. 776.200 millions) and a
Profit Before Tax of Rs. 215.700 millions (previous year – Rs. 310.000
millions). Net Profit stood at Rs. 144.100 millions (previous year – Rs.
206.900 millions) after providing for income tax of Rs. 71.600 millions
(previous year – Rs. 103.100 millions).
In order to sustain contemporariness and bolster the premium positioning
of the hotel, 38 guest rooms were renovated during the year under review. The
non availability of these rooms, coupled with the additional supply of new
hotel rooms in Hyderabad, adversely impacted the occupancy of the hotel,
leading to a temporary drop in
revenues and profitability.
The Board of Directors of the company has recommended a dividend of Rs.
2/- per equity share of Rs. 10/- each for the year ended 31st March, 2008.
Fortune Park Hotels Limited
During the financial year ended 31st March, 2008, the company recorded
net revenues of Rs. 101.985 millions
(previous year – Rs. 72.457 millions) and earned a Net Profit of Rs.
15.754 millions (previous year – Rs. 13.826 millions) after providing for
income tax of Rs. 9.435 millions (previous year – Rs. 7.879 millions).
The Board of Directors of the company has recommended a dividend of Rs.
4/- per equity share of Rs. 10/- each for the year ended 31st March, 2008.
The company, which caters to the mid range to upscale segment, signed up
nine alliances during the year for hotel properties situated at various
locations, taking the total number of properties under the ‘Fortune’ brand to
42,
with a total room count of 3,281. Of these, 23 are operating hotels,
while 5 hotels are slated to be commissioned during the course of the financial
year 2008/09. The company seeks to be a dominant player in the mid / upper
scale segment, providing quality services that would position ‘Fortune’ as the
premier ‘value’ brand in the Indian
hospitality sector.
Bay Islands Hotels Limited
During the year 2007/08, the company earned an income of Rs. 8.316
millions (previous year – Rs. 6.375 millions and a Net Profit of Rs. 5.414
millions (previous year – Rs. 4.138 millions) after providing for income tax of
Rs. 2.360 millions (previous year – Rs. 1.687 millions).
The Board of Directors of the company has recommended a dividend of Rs.
40/- per equity share of Rs. 100/- each for the year ended 31st March, 2008.
King Maker Marketing
King Maker Marketing Inc. (KMM), a company registered in the State of
New York, USA, became a wholly-owned
subsidiary of the Company in May 2007. During the year KMM expanded its
distribution capability to facilitate the Company’s export initiatives in the
US Tobacco market. It continues to provide to the Company market research
services relating to the US Tobacco and FMCG markets.
The year witnessed an increase in the customer base by nearly a third,
leading to an equivalent increase in Net Sales over last year, despite falling
industry volumes. Growth was driven by the strong performance of ‘Ace’ launched
in 2006 and increase in the sales of Roll The Own Tobaccos (RYO).
Operating profit margins were adversely impacted by the higher
manufacturing costs of Low Ignition Propensity Cigarettes (LIP) whose share in
the product mix is progressively increasing in the wake of more States
legislating LIP as mandatory. Profitability was also eroded by higher Master
Settlement Agreement (MSA) contributions resulting from KMM’s higher relative
tobacco market share. As reported last year, legislation to grant jurisdiction
to the Federal Drug Administration (FDA) for Tobacco products is pending before
the US Congress. The final shape of the legislation and its impact are likely
to be known only in the coming year.
Russell Credit Limited
During the year, the company earned a total income of Rs. 900.000
millions and a Profit After Tax of Rs. 860.000 millions. The company paid a
dividend of 11.6% aggregating Rs. 750.000 millions for the year ended 31st
March 2008. In line with its objective of making long-term investments in areas
of strategic interest for the ITC Group, the company acquired the entire
shareholding of Technico Private Limited, Australia (Technico) on 17th August,
2007. Upon such acquisition, Technico and its subsidiaries Technico ISC Private
Limited., Australia; Technico Asia Holdings Private Limited., Australia;
Technico Technologies Inc, Canada; Technico Group America Inc, USA; Technico
Horticultural (Kunming) Company Limited, China and Chambal Agritech Limited,
India have become subsidiaries of the company. The US subsidiary has since been
wound up.
The wholly owned subsidiaries of Wimco Ltd. namely Wimco Boards Limited
and Wimco Seedlings Limited have amalgamated with the parent company with
effect from 1st April, 2007. Consequent to such amalgamation, the shareholding
of the company in Wimco Ltd. has increased from 94.25% to 96.82%.
In order to consolidate strategic investments and streamline the
investment operations, 3 associate companies namely Newdeal Finance and
Investment Limited, Megatop Financial Services and Leasing Ltd. and Peninsular
Investments Ltd. amalgamated with the company with effect from 1st
April, 2007.
As stated in earlier Reports, a petition was filed by an individual in
the High Court at Calcutta, seeking an injunction against the company’s Counter
Offer to the shareholders of VST Industries Ltd., made in accordance with the
Securities and Exchange Board of India (Substantial Acquisition of Shares &
Takeovers) Regulations, 1997, as a competitive bid, pursuant to a Public Offer
made by an Acquirer, which closed on 13th June, 2001. The High Court at
Calcutta, while refusing to grant such an injunction, instructed that the
acquisition of shares pursuant to the Counter Offer by the company and the
other Acquirer, would be subject to the final Order of the High Court, which is
still awaited. Similar suits filed by an individual and two shareholders, in
the High Courts of Delhi at New Delhi and Andhra Pradesh at Hyderabad, had
earlier been dismissed by the respective High Courts.
BFIL Finance Limited
The company continues to focus its efforts on recoveries through
negotiated settlements, including property settlements. Legal cases against
various defaulters are being pursued. During the year, some negotiated
settlements were concluded and the company effected collections aggregating Rs.
0.144 million. As at 31st March 2008, the company had no liabilities outside
the ITC Group.
The company plans to intensify its efforts for collection of dues
through negotiated settlements in the coming year. The company will examine
options for further business opportunities at the appropriate time.
Gold Flake Corporation Limited, Wills Corporation Limited,
Greenacre Holdings Limited and MRR Trading
and Investment Company Limited
There were no major events to report with respect to these companies.
Wimco Limited
The company achieved a turnover of Rs. 2207.100 millions during the year
recording a growth of 14% over the previous year. The match business grew by
10% to Rs. 2016.800 millions and the Engineering business grew by 33 % to Rs.
131.800 millions during the year. Net profit of the company stood at Rs. 63.300
millions.
The agro forestry activity of the company witnessed appreciable
expansion. 2.5 million high quality ETPs (Entire transplants or saplings) were
sold to farmers in North India. Apart from creating a long term sustainable
supply of a critical raw material, the agro forestry mission of the company is
directly contributing to improving the green cover in the region.
The scheme of amalgamation of subsidiary companies, Wimco Boards Limited
(WBL) and Wimco Seedlings Limited (WSL) with the company has been sanctioned by
the Hon’ble High Court of Bombay Judicature and the order of the High Court has
been filed with the Registrar of Companies, thereby making the scheme effective
from 22nd February, 2008, although operative from 1st April, 2007 and
accordingly, WBL and WSL have been dissolved without winding up with effect
from 22nd February, 2008.
Landbase India Limited
Landbase India Limited (Landbase) owns and operates ‘The Classic Golf
Resort’, a Jack Nicklaus Signature Course, 45 kms from Delhi. As reported in
previous years, golf based resorts present attractive long-term prospects in
view of their growing popularity all over the world. The company proposes to
set up a destination luxury golf resort. The preparatory work towards
developing a resort hotel at the Classic Golf Resort is at an advanced stage.
Consultants were appointed during the year. Permissions required for the
commencement of the project are awaited from the concerned authorities.
In accordance with the directions of the Haryana Government, the lockout
declared in October 2006 at the Classic Golf Resort was lifted in August 2007.
Subsequently, the company settled the disputes with the workmen under the
supervision of the Labour Department of Haryana in January 2008 and
simultaneously reopened the golf course.
Operations at the Classic Golf Resort have resumed since then.
8
ITC Infotech India
Limited
The underlying drivers of the long term trend towards
outsourcing remain unimpaired. Nevertheless, the global outsourcing market,
dominated by the US, is expected to take a slight pause consequent to the
slowdown in the US economy and the fallouts of the sub-prime crisis. In
mainland Europe and the Nordics, the shortage of skills continued to drive
outsourcing. The Asia Pacific, India and Middle East markets remained on the
growth track.
India continued to be the dominant location for offshore
based IT services, despite the growing challenge from certain locations in East
Europe, Latin America and closer home from the Philippines. Indian companies
operating in this sector have grown on the strength of their ability to scale
up, quality of talent and maturity of processes, all of which will remain
sources of competitive advantage in the foreseeable future. However, the cost
advantage of Indian companies in the IT services space was considerably eroded
by the spiralling wage increases in the last few years, worsened by the sharp
appreciation of the Rupee during the year under review. Consequently, growth
and profitability were under pressure for a large number of industry players.
In these circumstances, the encouraging results achieved by
the company during the year under review are a matter of satisfaction. The
company, together with its subsidiaries in the US and UK successfully acquired
over 25 new customers in the US and Europe and posted a 47% increase
in total income.
Customer acquisition was driven by the development of new
capabilities, differentiated offerings and pioneering
solutions. The focus on the Nordic markets of Denmark,
Finland, Sweden and Norway; and the opening of branches at Finland and Norway
during the year in addition to the Denmark branch yielded excellent results and
accounted for a significant portion of the revenue growth.
Consequently, the underlying profitability, adjusted for the
profit on sale of investments of Rs.36 crores recorded in the previous year,
improved significantly.
(a) ITC Infotech India Limited registered a total income of
Rs. 2639.500 millions (previous year Rs. 205180.000 millions) and a PAT of Rs.
69.100 millions (previous year Rs. 206.700 millions).
(b) ITC Infotech Limited UK, a wholly owned subsidiary of
the company, registered a Turnover of GBP Rs. 17.870
millions (previous year GBP Rs. 16.810 millions) and a Net
Profit of GBP Rs. 0.290 million (previous year
GBP Rs. 0.120
million).
(c) ITC Infotech (USA), Inc., a wholly owned subsidiary of
the company, registered total revenues of USD 18.09 million (previous year USD
9.31 million) and a Net Profit of USD 0.43 million (previous year Net Profit
USD 0.18 million).
As reported last year, the company had restructured its
organisation into 3 business clusters each focused on specific business
verticals and supported with technical capabilities aligned to the target
vertical. This strategy of organisation has clearly yielded results, especially
in capability building, ‘go to market’ strategy formulation, aggressive
customer acquisition and building a global delivery model.
In a survey conducted by Global Services in association with
neoIT, the company was placed among the Top 100 service providers across four
continents, in terms of operations, service offerings, client relationships and
human capital. The company has been ranked in the ‘Leaders Category for 2008
Global Outsourcing 100’ by the International Association of Outsourcing
Professionals (IAOP) for the second year in a row. The customer satisfaction
survey carried out on behalf of the company clearly points to an increasing
trend of satisfied customers.
In the course of the year, the company added a new vertical,
Media and Entertainment, to the existing collection of verticals, namely
Banking, Financial Services & Insurance, Travel, Hospitality &
Transportation, Manufacturing and Consumer Packaged Goods and Retail. The
company has built up a sizable funnel across incumbent verticals. In line with
the Company’s focus on the ‘triple bottom line’, the company has devised a
holistic approach to deliver value to its customers through greener solutions
including those aimed at increasing efficiency of clients’ data centres.
The company is further strengthening its sales organization
with the opening of an office in Sweden to enhance its
presence in the Nordic region. It continues to focus on
deepening its capabilities to move up the value chain. It will also
aggressively pursue inorganic growth opportunities to rapidly scale up its
operations.
The company has reinforced its holistic approach to talent
management, significantly focusing on training, development, engagement and
retention of talent. It is constantly strategising to strengthen the value
proposition for its employees. The company has recently migrated to a higher
version of its ERP system to improve resource management and drive operational
excellence.
The government’s decision to extend tax holiday for export
oriented Software Technology Parks of India (STPI) by one year till March 2010,
is a favourable and supportive development.
In the light of its stronger customer relationships, deeper
capabilities, differentiated offerings and solutions and greater sales
bandwidth and wider geographic presence, the company is optimistic about its
rapid future growth. In the ITES segment, CLI3L e-Services Limited (CLI3L), a
joint venture company of ITC Infotech India Limited and Sitel Operating
Corporation, USA posted a total income of Rs. 1070.200 millions (previous year
Rs. 1244.300 millions) with post tax profits of Rs. 164.400 millions (previous
year Rs. 298.900 millions).The company has decided to exit from the Joint
Venture and exercise its Put Options in a staggered manner under the
Shareholders Agreement dated 28th May, 2003. As reported last year, the
Company, in accordance with Article 16 of the Articles of Association of CLI3L,
now holds the shares of the company in CLI3L and these shares shall be sold in
line with the company’s decision.
Technico Private Limited
As stated in the earlier part of this Report, Russell Credit Limited
acquired the entire shareholding in Technico Private Limited (Technico),
Australia effective 17th August, 2007. The principal activities of the company
are anchored on the ownership of a unique horticulture technology and its
downstream implementation and commercialisation. The company owns the
proprietary ‘Technituber’ technology for potatoes and has commercialised it
through its wholly owned subsidiaries in different geographies, namely: Chambal
Agritech Limited, India; Technico Asia Holdings Private Limited, Australia
(TAHL); Technico ISC Private Limited, Australia; Technico Horticultural
(Kunming) Company. Limited, China (100% subsidiary of TAHL); and Technico
Technologies Inc. Canada. The company is also engaged in the marketing of
‘Technituber’ seeds to global customers from theproduction facilities of its
subsidiaries in India and China.
The acquisition of Technico Pty Ltd. will bring strong synergies to the
potato value chain, enhancing farmer capabilities through access to high
quality seeds and internationally benchmarked best practices in agronomy.
Technico’s leadership in the production of early generation seed potatoes will
create significant value for the
Company’s Foods business by bringing distinctive product and quality
advantages to the ‘Bingo!’ brand of potato chips.
Acquisition of Technico will also support the Company’s abiding
philosophy of contributing to the development of
the agriculture-based rural economy and secure the competitiveness of
the value chains created through its Agri and Foods businesses.
a) Technico Private Limited, Australia registered a PAT of Australian
Dollar (A$) 4.59 million (previous year loss of A$ 1.27 million) after writing
back the provision of A$ 4.69 million created in earlier years towards
diminution in value of its investments in its Indian subsidiary, Chambal
Agritech Limited
b) Technico Asia Holdings Private Limited, Australia did not engage in
any activity, other than holding the entire
shareholding of Technico Horticultural (Kunming) Company Limited, China.
The company had no earnings or costs.
c) Technico ISC Private Limited, Australia continued to be dormant
during the year.
d) Technico Technologies Inc., Canada registered sales of Canadian
Dollar (C$) 0.18 million (previous year C$ 0.10 million) and posted a net loss
of C$ 0.28 million (previous year C$ 0.25 million).
e) Chambal Agritech Ltd., India registered a turnover of Rs. 308.400
millions (previous year Rs. 216.800 millions) and a Profit After Tax of Rs.
61.500 millions (previous year Rs. 30.800 millions). The Company’s field seed
program has been successfully demonstrated in the Indian market. The company
has developed a robust contract
farming network backed by a specialist team. For the year ended 31st
December, 2007 – Technico Horticultural (Kunming) Company Limited, China registered
a turnover of Chinese Yuan (CNY) Rs. 14.310 millions (previous year CNY Rs.
14.180 millions) and posted a net profit of CNY Rs. 0.820 million (previous
year CNY Rs. 2.160 millions).
ITC Global Holdings Private Limited
The Judicial Managers have been conducting the affairs of ITC Global
Holdings Private Limited (‘Global’) since 8th November, 1996 under
the authority of the High Court of Singapore.
As stated in the previous years’ Reports, the Judicial Managers of
Global had filed a Writ against the Company in November 2002 before the
Singapore High Court claiming approximately USD 18.10 million. Based on legal
advice, the Company filed an appropriate application for setting aside the said
Writ. On 2nd March 2006 the Assistant Registrar of the Singapore High Court set
aside the service of writ of summons on the Company and some individuals.
Subsequently in November 2006, the Company received a set of papers purportedly
sent by Global including what appeared to be a copy of the earlier Writ of Summons.
The Company filed a fresh Motion in the Singapore High Court praying for
setting aside the said Writ of Summons, which was upheld by the Assistant
Registrar of the Singapore Court on 13th August 2007. Global has since filed an
Appeal against this Order, which is awaiting hearing.
Meanwhile, pursuant to the application of the Judicial Managers, the
Singapore Court on 30th November, 2007 ordered the winding up of Global,
appointed a liquidator and discharged the Judicial Managers.
Notes On Joint
Ventures
ITC Filtrona
Limited
The company completed yet another year of sustained good
performance and maintained its market leadership in
the Indian cigarette filter industry with a 60% value share.
Gross Sales for the year ended 31st December, 2007 at Rs. 970.900 millions
represents a growth of 3.8% over the previous year. Pre-tax Profit increased by
8.7% to Rs. 118.400 millions The Board of Directors of the company recommended
a dividend of 80% for the year, in line with that of the previous year.
While quality continues to be its prime focus, innovation
and support to customers for product development has resulted in the company
attaining the status of a preferred supplier. In a clear demonstration of this
position, the company secured an export order for 370 million filter rods from
the Taiwan Monopoly. The company is in the process of acquiring new machinery
to augment production capacities and upgrade existing technology. Its superior
productivity standards and operating parameters have enabled the company to
rank among the best operating units in the Filtrona Group.
Maharaja Heritage
Resorts Limited
Maharaja Heritage Resorts Limited, a joint venture of the
Company with Marudhar Hotels Private Limited, currently operates 51 properties
under the ‘WelcomHeritage’ brand. 6 more properties are under development.
During the year, for the third consecutive time,
‘WelcomHeritage’ received the ‘Galileo-Express Award for Travel Tourism, 2007’
for the Best Heritage Hotels Chain in India.
Fortune Park
Hotels Limited
Shareholding
100% held by ITC Limited.
Nature
of Business
The company is in the business of operating hotels in the
mid range to upscale segment. It currently operates 23 properties.
Bay Islands Hotels
Limited
Shareholding
100% held by ITC Limited.
Nature
of Business
The Company owns the hotel “Fortune Resort Bay Island” at
Port Blair which is licensed to ITC Limited and is operated by Fortune Park
Hotels Limited under an Operating and Marketing Services Agreement.
King Maker
Marketing Inc., USA
King Maker Marketing Inc., USA became a wholly owned
subsidiary of ITC Limited effective 9th May, 2007.
Nature
of Business
Trading in cigarettes and ‘roll-the-own’ smoking mixtures in
USA.
Joint Ventures of
ITC Limited
CLI3L e-Services
Limited
CLI3L e-Services Limited was a joint venture of ITC Infotech
India Limited (I3L) with Sitel Operating Corporation (formerly known as
ClientLogic Operating Corporation). The ownership interest of 50% minus one
share held by I3L was transferred in March, 2007 to ITC Limited in accordance
with Article 16 of the Articles of Association of CLI3L e-Services Limited.
Nature
of Business
India based call/contact centre services.
Maharaja Heritage
Resorts Limited
Maharaja Heritage Resorts Limited, where ITC Limited has an
ownership interest of 50% is a joint venture with Marudhar Hotels Private
Limited.
Nature
of Business
The joint venture company currently operates 51 hotel
properties spread across 19 states under the “WelcomHeritage” brand.
Major Associates
of the Group
Gujarat Hotels
Limited
ITC Limited holds 45.78% in Gujarat Hotels Limited.
Nature
of Business
The Company owns the “WelcomHotel Vadodara” at Vadodara
which is operated by ITC Limited under an Operating Licence Agreement.
International
Travel House Limited
ITC Limited holds 3.6% and Russell Credit Limited, a wholly
owned subsidiary of ITC Limited, holds 45.36%.
Nature
of Business
Air ticketing, car rentals, inbound tourism, overseas and
domestic holiday packages, conferences, events and exhibition management.
Note : The full list of the Group’s Associates appears on
page 149.
Principles of
Consolidation
The Group’s interests in its subsidiaries, associates and
joint ventures are reflected in the Consolidated Financial Statements (CFS) in
accordance with the relevant Accounting Standards (AS) issued by the Institute
of Chartered Accountants of India.
Subsidiaries (AS
21)
Line by line consolidation of Profit & Loss Account and
Balance Sheet is done by aggregating like items of assets, liabilities, income
and expenses. The excess/deficit of the cost to ITC Limited of its investments
in its subsidiaries over its share of net worth (residual interest in the
assets of the subsidiaries after deducting all its liabilities) of the
subsidiaries at the date of investment in the subsidiaries are treated as
goodwill/capital reserve in the CFS. The goodwill is disclosed as an asset and
capital reserve as a reserve in the consolidated balance sheet.
Minority interest in the net income (profit after tax) for
the reporting period is identified and adjusted against the group income to
arrive at the net income of the Group; likewise the minority interest in the
net assets of the consolidated subsidiaries is identified and presented
separately on the liabilities side in the consolidated balance sheet.
Inter-Company transactions within the group (both Profit and
Loss and Balance Sheet items) are eliminated for arriving at the group CFS.
CFS is prepared applying uniform accounting policies of ITC
Limited to the group companies.
Associates (AS 23)
On acquisition of an associate, the goodwill /capital
reserve arising from such acquisition is included in the carrying amount of the
investment and also disclosed separately.
Only share of net profits/losses of associates is considered
in consolidated profit and loss statement. The carrying amount of the
investment in associates is adjusted by the share of net profits/losses in the
consolidated balance sheet.
Joint Ventures (AS
27)
Interest in joint ventures is reported using proportionate
consolidation method in the CFS. A separate line item is added in CFS for
proportionate share of assets, liabilities, income and expenses.
Directors
Profile:
Y. C. Deveshwar
Y.C. Deveshwar, an engineering graduate from the Indian
Institute of Technology, Delhi joined ITC Limited in 1968. He was appointed a
Director on the Board of the Company in 1984 and became the Chief Executive and
Chairman of the Board on January 1, 1996. Between 1991 and 1994, he led Air
India as Chairman and Managing Director.
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 India, is taught as a case study at the Harvard Business School.
This initiative won the Development Gateway Award at Beijing in September 2005
and the Stockholm Challenge Award in May 2006.
Deveshwar is the Past President of the Confederation of Indian Industry. He is
also a member of the Board of Governors of the Indian School of Business and
the immediate past Chairman of the Society and Board of Governors of the Indian
Institute of Management, Calcutta. He also serves on the National Executive
Committees of some of India's premier trade and industry bodies.
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 and 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 India as also its Regional Director, Vice President-Operations and President. Rehman was appointed Managing Director of the erstwhile ITC Hotels Limited in 1994 and continued in that position till July 2003. He is currently in charge of the Hotels, Travel andTourism and Foods businesses of the Company.
Other
Directorships
|
Name of the
Company |
Position |
|
International
Travel House Limited |
Chairman and
Director |
|
Landbase
India |
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, UK* |
Chairman and
Director |
|
ITC Infotech
(USA), Inc.* |
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,
Jamshedpur, Vaidyanath has been with ITC for the past 29 years. He has held
various positions in the Company's Finance function including that of Head of
Finance of ITC's Packaging, Hotels and International Businesses. He has also
been Head of Corporate Planning and Treasury, as well as Internal Audit.
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 University
of Dublin and a Diploma in Marketing from the Institute of Marketing, UK. Daly
was appointed Director, Asia Pacific, BAT in October 2004. He has occupied
senior positions for nearly 20 years in the tobacco and pharmaceutical
industries. Prior to the merger of British American Tobacco and Rothmans
International in 1999, Daly was the Strategic Planning Director - EU in
Rothmans Europe and the Managing Director - Japan and Korea in Rothmans Asia.
After the completion of the merger he was appointed Regional Manager – Middle
East, South and Central Asia and then as Area Director - Middle East.
Other Directorships
|
Name of the
Company |
Position |
|
British-American
Tobacco Middle East FZ-LLC* |
Director |
|
British American
Tobacco (Australasia Holdings) Pty. Limited* |
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 US oil major in a variety of roles including Director of
Texaco, Brazil and its Regional Manager for Latin America.
In the tobacco industry, Green has worked with Brown & Williamson, where he was Vice President for Latin America, Middle East & Africa and President for Japan. He became BAT's Area Director for Southern Europe in 1998. A year later, he assumed charge as BAT's Regional Director for the Middle East, South and Central Asia region. He retired from BAT on April 1, 2002.
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, Lausanne.
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 India. Currently he
serves as an Independent Director on the Boards of several companies. He is
also a member of the Governing Board of Indian Institute of Management,
Indore.
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 (India)
Limited |
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 Patna
University. In an illustrious career spanning 29 years, Mehrotra has held
various important positions spanning three Zones and the Corporate office of
LIC. He was Executive Director (International Operations) before being
appointed Managing Director.
Mehrotra has attended several important knowledge forums in India and abroad.
He is associated with theapex training institutes of insurance in India, like
the National Insurance Academy and the Insurance Institute of India. He is also
a member of the Supervisory Board of India Advantage Funds I & II of the
ICICI Venture Funds Management Company Limited.
Other Directorships
|
Name Of The
Company |
Position |
|
Acc Limited |
Director |
|
Infrastructure
Leasing And Financial Services Limited |
Director |
|
Lic (Lanka)
Limited* |
Director |
|
Lic (Mauritius) Offshore
Limited |
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 School of Management, SRM University,
Tamil Nadu.
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 Harvard Business
School. He has contributed several articles in academic / professional journals
and financial papers on a wide range of issues related to management,
economics, banking,
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
(India) Limited (a Public Sector Undertaking) as also a member of the Board of
Trustees of the Employees Provident Fund Organisation.
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 (India) Limited |
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 (India) Limited |
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 Bharathidasan University, Member of the
Governing Council, Salim AN Centre for Ornithology and Natural History and
Member of the Committee for Economic Reforms, jammu and Kashmir and a Trustee
of the Indian Bank Mutual Fund. Vijayaraghavan is currently Chairman, Chennai
Snake Park Trust. He does not hold directorship or committee membership of any
other company.
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 India. It is a market leader in India in
Cigarettes and Tobacco and also operates business like Hotels, Packaging,
Speciality Papers and Paperboards. It has recently entered the Lifestyle
Retailing business with the launch of the ‘Wills Sport’ range of relaxed wear.
It has also spun off its’ information Technology business into a wholly owned
subsidiary of Indian agri-commodities.
India is the
third largest tobacco producer in the world, after the U.S.A. and China. The
country produces an estimated 550 millions kg of tobacco annually. It is also
one of the world’s biggest market for tobacco. The company has pioneered the
manufacture of cigarettes in India and has, since 1910, maintained its
leadership position in the industry. It has diversified its brand across
product categories. Its successful brands include Gold Flake, Wills, Classic,
Bristol and Scissors. It also sells two luxury filter brands of its parent
company, Benson and Hedges and 555.
Awards
v
Golden Peacock Global
Award;
v Greentech Environment Excellence Gold Award;
v Highest Green Rating from Centre for Science
and Environment;
v Cll ENCON Award
v CAPEXIL Top Export Award; Indira
v Priyadarshini Vrikshamitra Award;
v Cll Vantech Industry Rolling Trophy;
v Rajiv Gandhi Parti Bhoomi Mitra Award;
v National Award for Energy Conservation;
v Gold Award for Safety from the Royal Society
for Prevention of Accidents (UK)
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, Hi- Tec City, and local attractions such
as Birla Temple, Salarjung Museum, and Charminar.
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 and 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 and 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/ Conference Center
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.
Fixed
Assets
v Trademarks
and Goodwill
v Know-how,
Business and Commercial Rights
v Freehold
Land
v Freehold
Buildings
v Leasehold
Properties
v Licensed
Properties - Building Improvement
v Railway
Sidings
v Plant
and Machinery
v Capitalised
Software
v Computers.
Servers and Other IT Equipments.
v Furniture
and Fixtures
v
Motor Vehicles
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 India. The seven hotels which will be part of this unique brand are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar Bangla in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in Bangalore, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. The agreement further includes the rebranding of WelcomHotel New Delhi as a Sheraton, while the Chola and the Park in Chennai, and the Rajputana in Jaipur, will continue to retain their Sheraton connections.
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 India, ITC is well poised to meet the emerging needs of the discerning global traveller.”
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 India, while retaining the Sheraton connection. ITC’s tie-up with Sheraton Hotels, came into being at a time when India was just stepping into the sophisticated and virtually unexplored business of hospitality. Lasting over almost three memorable and extremely significant decades, the partnership may be considered to have been an important link to international acceptance and a global presence.”
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 Madras), the Mughal in Agra and the Maurya in New Delhi. With the tie-up, these three hotels added ‘Sheraton’ to their name, while the chain’s burgundy flag with its distinctive ‘namaste’ logo, was thereafter partnered by the blue Sheraton flag.
Mr. Miguel Ko, President of Starwood Hotels & Resorts,
Asia Pacific says, “India is the fastest-growing Asia Pacific market for international
visitor spending. Visitor spending in India has grown at a phenomenal rate in
the last few years, and this growth is expected to accelerate significantly
over the next few years. They are thrilled to introduce the Luxury Collection
brand to India and to expand the footprint of the Sheraton brand in India. They
are equally excited to continue and expand their relationship with ITC Limited.
ITC and Starwood/Sheraton have had a strong and successful nearly 30-year
relationship. During that time period, the India market itself has changed and
grown significantly. The introduction of the Luxury Collection will offer savvy
travelers unique experiences that reflect the true essence of the destinations.
The 7 new Luxury Collection hotels will be a great complement to their
impressive portfolio of properties globally.”
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.
Mission
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 India.
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 Gujarat to name just a few.
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.
ITC Expands Personal
Care Portfolio with Vivel shampoos, June 25, 2008
ITC today launched Vivel shampoos in line with its aspiration to offer world class products to the Indian consumer. Vivel shampoos will be available in three variants - Shine and Glow, Soft and Fresh and Volume and Bounce - customized to meet specific consumer needs. Vivel shampoos are conveniently packaged in 200ml and 100 ml bottles and will also be available in sachets. The extension of the Vivel brand into the shampoo category follows the successful launch of Vivel soaps in February this year.
Vivel shampoos, enriched with a unique Actipro-K complex, provide the Power of 3 benefits - Nourishment, Protection and Hydration. Backed by consumer insight, this novel value proposition is a result of 4 years of extensive research and product development at the ITC R&D Centre. The convergence of these benefits provides the ever discerning consumer wholesome care for her hair and makes her look beautiful. This belief is encapsulated in the Vivel tag line, “Khoobsurti bas mein, Duniya kadmon mein’.
The exquisite fragrances for Vivel products have been developed by leading international fragrance houses. The soft vignette design and the unique braid design behind the brand logo are a reflection of the brand philosophy of delivering multiple, relevant and powerful benefits in each product.
The three Vivel shampoo variants offer clearly differentiated benefits to the consumer:
• Vivel Shine and Glow is suitable for dull to normal hair and is enriched with Green Tea Extract and Conditioners. It adds shine to hair.
• Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra Conditioners and Soya Protein. It makes hair feel soft and fragrant.
• Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba Oil and Conditioners. It adds volume and bounce to hair.
The 200 ml and 100 ml bottles and 8 ml sachets are priced at Rs. 89, Rs. 49 and Rs. 2, respectively.
Apart from Vivel and Vivel Di Wills, ITC’s personal care portfolio comprises Essenza Di Wills, Fiama Di Wills and Superia brands.
ITC wins TERI
Corporate Award for CSR, June 06, 2008
ITC Limited has won the top honours at the TERI Corporate Award for Social Responsibility 2008 in recognition of its exemplary initiatives in implementing integrated watershed development programmes across 7 states, providing precious water resources for agriculture, rural communities and livestock.. By empowering rural communities to independently conserve and manage their water resources, ITC has helped build capacity at the grassroots level. ITC-assisted watershed projects today cover over 35,000 hectares with over 2000 water-harvesting structures in moisture-stressed areas, providing precious water resources for agriculture, rural communities and livestock.
As an integral part of its triple bottom line commitment to augment economic, social and natural capital for the nation, ITC has undertaken several CSR activities focused on creating sustainable livelihoods. For sustainable agriculture and community development, these watershed development projects complement ITC’s eChoupal and Social Forestry initiative. Water availability, and its conservation and management is a critical issue for Indian agriculture, with more than 50 % of arable land being drylands with severe moisture stress. During the year, ITC also entered into a partnership with NABARD in Andhra Pradesh, Bihar and Madhya Pradesh to work on soil and moisture conservation on 17,500 hectares under a five-year programme. These interventions by ITC have till date created direct employment of 5.36 lakh person-days. Earlier, ITC had signed an agreement with the Government of Rajasthan for watershed development in the Bhilwara district under a public-private partnership programme.
ITC Infotech launches new services for the
Media and Entertainment Industry, May 27, 2008
ITC Infotech, a
global IT services company and a fully owned subsidiary of ITC Limited., is rapidly
increasing its portfolio of services and solutions for the Media and
Entertainment industry. ITC Infotech brings its robust outsourcing model and
comprehensive suite of solutions to enable media and entertainment houses
effectively monetize and deliver their media assets over multiple distribution
channels.
The ‘ITC Infotech
Information Architecture and Design’ service caters to the needs of the Media
and Entertainment industry to accurately describe and catalog vast repositories
of digitized but unstructured assets. The service, aimed at improving
“find-ability” and return-on-investment, is driven by meta-data modeling and
taxonomy design services.
The ‘ITC Infotech
Mobile Technology Services’, in partnership with Mobio, the global leader in
Mobile 2.0 application development, is focused on empowering customers with
Mobile 2.0 technology. This new technology will enhance end user experience
drastically, through better responsiveness.
According to Sanjiv
Puri, Managing Director, ITC Infotech, “The Media and Entertainment industry is
undergoing a major transformational phase, led by the explosive growth of the
Internet and the mobile platform. These media conglomerates no longer have a
choice but to provide innovative offerings to the discerning consumer.
This has propelled new business opportunities for us. With the domain
knowledge and technical expertise they believe that they are well equipped to
build sustainable and significant business advantages for the customers globally.”
With the internet
having established itself as a strong medium of distribution and reach to
consumers, ITC Infotech provides numerous years of experience using open source
and Microsoft based platforms to develop, test and deploy rich internet media
sites. In addition, ITC Infotech provides an array of services to manage the IT
Infrastructure needs and back office operations including HR and Finance and
Customer Relationship Management (CRM).
ITC Infotech has
enabled one of the fastest growing online retailers of greeting cards and gifts
in the UK with an increase of over 300% of average orders a day. The company is
also working with an independent public charitable trust to digitize and
restore more than 10000 hours of very rare classical music.
ITC Infotech has
partnered with numerous customers in the media and entertainment industry, both
in the US and in Europe, including a multi-billion dollar media conglomerate
with various worldwide interests in cable and satellite television networks,
movie production and distribution. Additionally, ITC Infotech has partnered
with a leading American developer, marketer, publisher and distributor of
computer and video games. The company is also working with some of the
world’s largest online media companies, along with startups that are
experimenting with new business models.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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 :
The 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.
The 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. 43.12 |
|
UK Pound |
1 |
Rs. 85.08 |
|
Euro |
1 |
Rs. 67.41 |
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. |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|