MIRA
INFORM REPORT
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Report Date : |
20.07.2011 |
IDENTIFICATION DETAILS
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Name : |
ITC LIMITED (w.e.f 1974) |
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Formerly Known
As : |
Imperial Tobacco
Company of India Limited |
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Registered
Office : |
Virginia House, 37,
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.08.1910 |
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Com. Reg. No.: |
21-001985 |
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Paid-up Capital
: |
Rs. 7738.100
Millions |
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CIN No.: [Company Identification
No.] |
L16005WB1910PLC001985 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALI01571D |
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PAN No.: [Permanent Account No.] |
AAACI5950L |
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Legal Form : |
A Public Limited
Liability Company. The 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. |
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No. of Employees
: |
5000
(approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (81) |
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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 640000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ITC is a
Diversified Group. It is a well established and a reputed company having good
track. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. Company can be
considered good for normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in medium to long run. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Virginia House,
37, |
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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
/ 22882259 / 2260 / 1256 |
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E-Mail : |
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Website : |
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Headquarters : |
84 (Old No.90) |
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Tel. No.: |
91-44-42081508 |
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Fax No.: |
91-44-24340294 |
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Factory 1: |
Integrated Industrial Estate, Sidcuil, Plot No. 1, Sector 11, |
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Tel. No.: |
91-1334-322483 |
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Fax No.: |
91-1334-235383 |
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Factory 2: |
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Tel. No.: |
91-44-25733121 |
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Fax No.: |
91-44-25733852 |
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Head Office : |
ITC Hotel
Kakatiya Sheraton and Towers, 63-3-1187, Begumpet, |
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Tel. No.: |
91-40-23400132 |
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Fax No.: |
91-40-23401045 |
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Corporate Office : |
Kakatiya Sheraton
and Towers, Begumpet, |
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Branch Office : |
International Sales No. 106, |
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Tel. No.: |
91-40-27843768 |
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Fax No.: |
91-40-27810034 |
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Plants : |
Cigarette Factories v
Kolkata v
93/1, Karl Marx Sarani, P. B.
No. 17203, Kolkata - 700 043, West Munger v
Basdeopur P. O., District
Munger - 811 202, v
Sardar Patel Marg, P. O. Box
No. 25, Green Leaf
Threshing Plants Anaparti v
East Godavari District,
Anaparti - 533 342, Chirala v
Prakasam,
P. B. No. 1, Chirala - 523 157, Packaging and
Printing Plants Chennai v
Post Box No. 2277, Tiruvottiyur, Chennai - 600 019, Tel No.: 91-44-25733121/25733171/25733181 Fax No.: 91-44-25733852 Haridwar v
Plot No. 1, Sector 11,
Integrated Industrial Estate, Haridwar – 249403, Munger
v
Basdeopur P. O., District
Munger, Munger - 811 202, Tel No.: 91-6344-220505/16/17 / 2201892/222126/142/146 Fax No.: 91-6344-222443/222839 Paper and
Paperboard Mills Bollaram v
Anrich Industrial Estate,
Village Bollarum, Medak District, Andhra Pradesh – 502 325 Sarapaka v
Sarapaka, Khammam District -
507 128, Thekkampatty v
Tribeni v
P O Chandrahati, District
Hooghly – 712 504, West Cast Coating Plant Anrich Industrial
Estate, Village Bollarum, Medak District - 502 325, Lifestyle Retailing Design and Technology Centre v
86, Industrial Estate, Phase
I, Udhyog Nagar, Gurgaon - 122 016, Foods Factories Haridwar v
Plot No. 1, Sector 11,
Integrated Industrial Estate, Haridwar – 249403, Ranjangaon v
Plot No. D – 1, MIDC, Ranjangaon, Taluka Shirur, Pune – 412220, Personal Care Products Factory Haridwar v
Plot No. 1, Sector 11,
Integrated Industrial Estate, Haridwar – 249403, Choupal Saagars –
Rural Services Centres 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, Chandouli v
Khasara No. 57 to 62 and 641,
Muhabatpur Village, Ganj Khwaja, Pargana Dhoos, Tehsil Sakaldeeha, Chandouli
– 232 104, Uttar Pradesh, India Chindwara v
Khasara No. 16/1, to 16/7,
Patwari Halka No. 7, Village Imaliya Bohata, Chindwara – 480 001, Dewas v
Survey No. 295 and 294/2,
Patwari Halka No. 26, Village Lohar Pipliya, Tehsil, Dewas – 455 001, Madhya
Pradesh, India Dhar v
Plot No. 438, Village
Jaitpura, Ahmedabad, Hardoi v
Khasara No. 658 and 659,
Village Korriyan, Pargana Gopamau, Shahjahanpur Road, Tehsil , Hardoi – 241
001, Madhya Pradesh, India Hathras v
Khasara No. 21, Village Itarsi v Survey No.
309/1, 309/2 and 310/3, Village Raisalpur, Tehsil, Itarsi, Hoshangabad - 461
111, Jagdishpur v Khasra No.
2377-2380, Village Kathura, Pargana Jagdishpur, Tehsil Musafirkhana,
Sultanpur - 227 817, Mandsaur v Patwari Halka
No. 14, Village Azizkhedi Tehsil, Mandsaur - 458 001, Mhow v Village Gawli
Palasia, Patwari Halka No. 20, Tehsil Ambedkar Nagar, Mhow, Nagda v Khasra No. 1393,
1394,1396 and 1397, Village Pandlya Kala, Nagda - 456 335, Parbhani v Ratlam v Survey No.107/1,
107/2 and 107/3, Village Kharakhedi, Tehsil Ratlam - 457 001, Sehore v Khasra No. 208
and 209, Village Rafiqganj, Tehsil Sehore - 466 001, v Survey No. 433/3,
456 and 458, Patwari Halka No. 19,
Village Kamed, Tehsil Ghattia, Ujjain - 456 001, Madhya Pradesh, India 26
Vidisha v Survey No. 18,
Patwari Halka No. 45, Village Bais, Tehsil Vidisha - 464 001, Wardha v Survey No. 151/1
and151/4, Mouza No. 17, Mouza Inzapur, Tehsil Wardha - 442 001, Washim v Survey No. 104,
Patwari Halka No. 10, Mouza Zakalwadi, Akola Road, Taluka Washim - 444 505,
Maharashtra, India Yavatmal v Bhumapan No.
15/2A, Village Parwa, Yavatmal - 445 001, Wills Lifestyle Stores
Ahmedabad v
Shop No. 3, 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 v
6, Tel No: 080-41123662 v
Binnamangala, First Stage, 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
751007 Tel No:
0674-2544386 v SCO 14, Sector
17E, Tel No:
0172-6549856 Chennai v 19, Quaiser
Tower, 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, Tel No:
0135-2743444 Ernakulam v 40/7182, Tel No:
0484-3918800 Gurgaon v Shop No. 17, 18,
19 and 20, The Metropolitan, Mehrauli - 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 v Shop No. G 4 and
5, G. S. Chambers, Tel No:
040-66364700 Jaipur v Gulab Niwas, Tel No:
0141-2360684 v 5 and 6
Residency Road, Tel No: 0191-2573153 v Rave 3, 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, Tel No: 033-23589137 v Shop No. S026,
South City Mall, 375, Tel No: 033-40072208 v B-1, First
Floor, Fun Republic Mall, Gomti Nagar,
Tel No: 0522-3914398 v Shop No. 25, Tel No: 0522-4008401 v 85/4A, The Mall,
Tel No: 0161-2441423 v Shop No. 44-45,
50-51, The Westend Mall, Tel No: 0161-4644436 Mumbai v Shop No. 2, 3
and 32, Ruki Mahal Co-operative Housing, Society Limited, Colaba, Mumbai 400
005, Tel No: 022-22818261 v Plot No. 386,
Durga Chambers, Linking Road, Khar (West), Mumbai 400 052, Maharashtra, India Tel No: 022-26465503 v F-8 and 9,
Inorbit Mall, Tel No: 022-66430498 v Unit No.10, 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, India Tel No: 022-40040604 v Shop No. G11,
Mega Mall, Malad Linking Road, Oshiwara, Andheri (West), Mumbai 400 104,
Maharashtra, Tel No: 022-40167330 v F-41, South
Extension-I, Tel No: 011-41645555 v 10208, Tel No:
011-28750433 v E-2, Tel No:
011-23417960 v M-12, Greater
Kailash-I, 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, Tel No: 011-42658267 Noida v Shop No. G 32, Tel No:
0120-2458992 Panjim v 3293, Tel No:
0832-6641222 Pune v 1204/22, Shivaji
Nagar, Tel No:
020-66019402 v 11, Tel No:
020-26121222 v Unit No. 12,
City Mall 36, Tel No: 0711-6454545 v GEL
Church-Commercial Complex, 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 v UG - 2, Manav
Mandir, Athawa Lines, Tel No:
0261-2257283 v Shop No. 312 and
313, Second Floor, Iscon Prozone Mall, Tel No: 0261-6454599 Thiruvananthapuram v Shop No. 1, 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 v Shop No. 1,
Rednam Manor, Dwarka Nagar, Near Tel No: 0891-2702881 Club Stores v Gurgaon v Classic Golf
Resort Kolkata v Tollygunge Club v Royal John Players Stores* v 48, Tel No:
080-51185719 v G-2, Sigma Tel No:
080-41264344 v 8th Cross,
Malleswaram, Bengaluru 560 003 Tel No: 080-23561632 v Shop No. 1,
Total Mall, 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), Tel No:
044-43502651 v Shop No. 129A, Tel No:
044-52652449 v Shop No. 145, AA
Block, Tel No:
044-42611257 v Shop No. 63, 1st
Tel No:
044-42035939 v 3-6-198, Sreemukh
Complex, Street No. 11, Himmayath Nagar, Tel No: 040-66784479 v Shop No. 16 and
17, Upper Ground Floor, Sonali Mall, Tel No: 040-66135345 v Shop No. 211, Second
Floor, City Centre, Banjara Hills, Tel No:
040-27810092 v Shop No.
16-11-740/5/A/9 and 10, Opp. Kala Niketan, Dilsukhnagar, Tel No: 040-66562102 v 6-3-882/2 to 24,
Tel No: 040-40033339 Kolkata v Tel No:
033-22288035 v 25B, Tel No: 033-32963064 v 14, The
Metropolis, Tel No:
033-24367039 v 6/1, Tel No: 033-22497887 v 200/2C, Tel No:
033-24664928 v 8, Tel No: 033-24989752 Mumbai / Thane v Gala No. 4,
First Floor, 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, Tel No:
022-24360794 v Shop No. 2 and
2A, First Floor, 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, 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 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 v D-35, Lajpat
Nagar, Central Market – II, Tel No:
011-46573240 v Shop No. 7/2,
West Patel Nagar, 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, Tel No: 011-25618031 v P-15, Pandav
Nagar, Mayur Vihar, Tel No: 011-22756180 v 13/29-30, Tel No: 011-25810440 v Shop No. 188, Sarojini
Nagar Market, Tel No: 011-24676188 v F-14 / 17 Model
Town, Phase II, Tel No: 011-47062048 v B-Block, Shop
No. 2, Unitech Mall, Rohini, Sector 11, Tel No: 011-27572652 v 16 Regal
Building, Tel No: 011-43565499 v Block C, Opp.
Odeon Cinema, Tel No: 011- 43575253 v Shop No. FF 101
and 102, Plot No. 12, Laxmi Nagar, District Centre, Tel No: 011-22446327 v UB-42 / 43,
Jawahar Nagar, Kamla Nagar, Tel No: 011-41530100 v Shop No. 1257A,
Main Market, Rani Bagh, Tel No: 011-27022577 v G-8, Ground
Floor, Cross River Mall, CBD, Shahadra, Tel No:
011-22308440 v G-54, Laxmi
Nagar, Vikas Marg, Tel No: 011-22542495 v FF-33, First
Floor, MGF Mall, The Metropolitan, Mehrauli - 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, Tel No: 0124-4253687 v Shop No. G-53,
Ambi Mall, Ground Floor, 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, Tel No: 0120-4232952 v Shop No. 4, 5
and 6, Tel No:
0120-2322563 v Shop No. F-6,
First Floor, Tel No: 0129-5014077 v ‘SRS BTL’, Tel No: 0129-4090100 v UGF-A103,
Manhattan Mall, Sector 20-A, 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, Tel No: 0120-3053322 v 24, Gyan Deep
Building, Chaudhary More, Tel No: 0120-4112356 203 Adalja Commercial Centre, 2nd Floor, Tel. : 91-265-2281180/2281732 Secunderabad ‘ Tel No.:
91-40-27804025,2293 Mumbai Tel 91-22-22830543 Fax 91-22-22832654 SBU-PPB, ITC Green Centre, 10
Institutional Area, Sector 32, Gurgaon 122 001 Tel No.: 91-124-4171417/4171000 Fax No.: 91-124-4173145 Bengaluru SBU:PPB, PO- Pulikeshinagar, Bengaluru 560
005 Tel No.: 91-80-25498580 Fax No: 91-80-25493677 |
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Hotels : |
ITC Hotel Sonar Bangla Sheraton and
Towers, 1, ITC Hotel Grand Maratha Sheraton and Towers Sahar, Mumbai -
400 099, ITC Hotel Maurya Sheraton and Towers Diplomatic
Enclave, Chola Sheraton 10, WelcomeHotel Mughal Sheraton Taj Ganj, Owned Hotels v ITC Mughal*, Taj
Ganj, v Bengaluru v ITC Chennai v Sheraton Chola
Hotel, Jaipur v Sheraton
Rajputana Hotel, Kolkata v ITC Sonar*, 1, v Kolkata
Marketing Brnach, 2nd Floor, Tel No. 91-33-22889371 Fax No.91-33-22882580 Mumbai v ITC Maratha*,
Sahar, Mumbai 400 099 v ITC Grand
Central*, 287, v ITC Maurya*,
Diplomatic Enclave, v Sheraton New
Delhi Hotel, District Centre, Saket, v Licenced
Hotels v WelcomHeritage
Umed, Port Blair v Vadodara v WelcomHotel
Vadodara, v Hotels
Under Operating Services v WelcomHotel Rama
International, R-3, Chikalthana, Chennai v v ITC Kakatiya*,
6-3-1187, Begumpet, v |
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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 Mr. S. Biswas |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Yogesh
Chander Deveshwar |
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Designation : |
Chairman |
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Other
Directorship: |
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·
Surya Nepal Private
Limited ·
HT Media Limited ·
ITC Infotech ·
ITC Infotech
Limited, ·
ITC Infotech USA, Inc.
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Name : |
Mr. Nakul Anand |
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Designation : |
Executive Director |
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Other
Directorship: |
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Name : |
Mr. Pradeep Vasant Dhobale |
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Designation : |
Executive Director |
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Other
Directorship: |
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Name : |
Mr. Kurush Noshir Grant |
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Designation : |
Executive Director |
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Other Directorship: |
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Name : |
Mr. Anil Baijal |
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Designation : |
Non Executive Director |
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Other Directorship: |
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·
International Travel House Limited ·
Agre Developers Limited ·
DLF Pramerica Life Insurance Company
Limited ·
IDFC PPP Trusteeship Company Limited ·
MMTC Limited |
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Name : |
Mr. Shilabhadra Banerjee |
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Designation : |
Non Executive Director |
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Other Directorship: |
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Name : |
Mr. |
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Designation : |
Non Executive Director |
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Name : |
Mr. Serajul Haq Khan |
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Designation : |
Non Executive Director |
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Other Directorship: |
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·
Infrastructure Development Finance
Company Limited ·
Apollo Health Street Limited ·
Bajaj Auto Limited ·
Bajaj Allianz General Insurance
Company Limited ·
Bajaj Allianz Life Insurance Company
Limited ·
Bajaj Holdings and Investments
Limited ·
Bajaj Finserv Limited |
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Name : |
Mr. Dinesh Kumar Mehrotra |
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Designation : |
Non-Executive Directors |
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Other Directorship: |
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·
LICHFL Care Homes Limited ·
LIC Housing Finance Limited ·
ACC Limited ·
Infrastructure Leasing and Financial Services Limited ·
LIC (Lanka) Limited |
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Name : |
Mr. Sunil Behari Mathur |
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Designation : |
Non-Executive Directors |
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Other Directorship: |
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Name : |
Mr. Hugo Geoffrey Powell |
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Designation : |
Non Executive Director |
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Other
Directorship: |
·
Reynolds American Inc. |
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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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Other
Directorship: |
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·
Srei Venture Capital Limited ·
Gujarat NRE Coke Limited ·
Sumedha Fiscal Services Limited ·
Mahangar Gas Limited ·
Himadri Chemicals and Industries Limited ·
Dhuneri Petrochem and Tea Limited |
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Name : |
Mr. Balakrishnan
Vijayaraghavan |
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Designation : |
Non-Executive Director |
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Name: |
Mr. Anthony Ruys |
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Designation: |
Non-Executive Director |
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Other Directorship: |
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· Schiphol Group NV, NL ·
British American Tobacco ·
·
Janivo |
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Name: |
Mr. Krishnamoorthy Vaidyanath |
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Designation: |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. B B Chatterjee |
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Designation : |
Secretary |
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Name : |
R. Tandon |
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Designation : |
Chief Financial Officer |
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Board Committee |
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Audit Committee : |
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Compensation
Committee : |
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Nominations
Committee : |
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Investor Services Committee
: |
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Sustainability
Committee : |
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|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,132,943,345 |
14.69 |
|
|
6,985,350 |
0.09 |
|
|
1,636,939,562 |
21.22 |
|
|
1,086,605,534 |
14.09 |
|
|
3,863,473,791 |
50.09 |
|
|
|
|
|
|
498,135,921 |
6.46 |
|
|
|
|
|
|
737,248,644 |
9.56 |
|
|
145,720,309 |
1.89 |
|
|
2,468,034,191 |
32.00 |
|
|
2,413,952,310 |
31.30 |
|
|
469,631 |
0.01 |
|
|
3,693,373 |
0.05 |
|
|
6,821,135 |
0.09 |
|
|
43,097,742 |
0.56 |
|
|
3,849,139,065 |
49.91 |
|
Total Public shareholding (B) |
7,712,612,856 |
100.00 |
|
Total (A)+(B) |
7,712,612,856 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
25,531,424 |
- |
|
|
25,531,424 |
- |
|
Total (A)+(B)+(C) |
7,738,144,280 |
- |
(1)
Indian
Mutual
Funds / UTI
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
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|
|
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|
Products : |
|
PRODUCTION STATUS (AS ON
31.03.2011)
|
Class of Goods |
Unit |
Licensed Capacity |
Installed
Capacity |
Actual
Production |
|
Cigarettes |
Million |
123547 |
141754 |
69171 |
|
Smoking Tobaccos |
Tonne |
NA |
NA |
26 |
|
Printing and
Packaging including Flexibles |
Tonne |
NA |
107852 |
72814 |
|
Unmanufactured
Tobacco |
Tonne |
NA |
NA |
104624 |
|
Pulp |
Tonne |
NA |
235000 |
255511 |
|
Paperboards and
Paper |
Tonne |
NA |
452500 |
558884 |
|
Packaged Food
Products |
Tonne |
NA |
107724 |
46101 |
|
Personal Care
Products |
Tonne |
NA |
235962 |
36704 |
NOTE
a) The “Registered/Licensed Capacity” (including as approved by “Letters of Intent”) is exclusive of additional capacities permissible under the policy of the Government of India.
b) Includes production meant for internal consumption.
c) Based on Capacity rated by equipment manufacturers / project consultants at the time of installation.
N.A. – Not Applicable
GENERAL INFORMATION
|
No. of Employees : |
5000
(approximately) |
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|
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|
Bankers : |
v State Bank of 38,
v Standard Chartered Grindlays Bank Limited, 41,
v United Bank of 10 Netaji Subhas Road, Kolkata - 700001, West
v Citibank ,
Kolkata, West |
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|
|
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|
Facilities : |
*secured by hypothecation of inventories of the company, both present
and future.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
|
|
|
|
|
Joint Ventures : |
· Maharaja Heritage Resorts Limited · Sitel Operating Corporation India Limited (till 31.05.2009) |
|
|
|
|
Associates : |
· Gujarat Hotels Limited · Russell Investments Limited · ATC Limited · Classic Infrastructure and Development Limited · International Travel House Limited · Divya Management Limited · Antrang Finance Limited-being associates of the Company, and ·
Tobacco Manufacturers ( |
|
|
|
|
Subsidiaries : |
·
Srinivasa Resorts Limited ·
Fortune Park Hotels Limited ·
Bay Islands Hotels Limited ·
Russell Credit Limited ·
ITC Infotech India Limited ·
Wills Corporation Limited ·
Gold Flake Corporation Limited ·
Landbase India Limited ·
BFIL Finance Limited ·
Surya Nepal Private Limited ·
King Maker Marketing, Inc. ·
ITC Global Holdings Pte. Limited, ·
BFIL Securities Limited (a subsidiary of BFIL Finance
Limited) |
|
|
|
|
Other Entities
under control of the company : |
·
·
ITC Education Trust ·
ITC Rural Development Trust |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Share |
Rs.1/- Each |
Rs.10000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7738144280 |
Equity Share |
Rs.1/- Each |
Rs.7738.100 millions |
NOTE
a) as fully paid
up Bonus Shares -
3,79,00,000 in
1978-79 by Capitalisation of Capital Reserve, Securities Premium Reserve and
General Reserve;
4,54,80,000 in 1980-81
by Capitalisation of Capital Reserve and General Reserve;
33,16,81,100 in
1989-90 by Capitalisation of Capital Reserve, Securities 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
1994-95 by Capitalisation of General Reserve;
1,25,17,12,290 in
2005-06 by Capitalisation of General Reserve;
3,82,67,01,530 in
2010-11 by Capitalisation of Securities Premium 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 erstwhile Tribeni Tissues Limited.
2,09,69,820 in
2002-03 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.
B) Under Employee
Stock Option Schemes the Company has granted (net of Options lapsed):
a) 13,60,568 (2010
- 13,77,495) Options in 2005-06 (including 4,75,638 Bonus Options allocated in
2005-06), of which 13,60,568 vested Options have been exercised.
b) 69,81,311 (2010
- 51,64,746) Options in 2006-07 (including 18,30,137 Bonus Options allocated
during the year), of which 68,18,460 vested Options have been exercised.
c) 85,69,960 (2010
- 47,82,423) Options in 2007-08 (including 38,29,364 Bonus Options allocated
during the year), of which 42,21,931
vested Options have been exercised.
d) 1,03,06,545
(2010 - 53,22,009) Options in 2008-09 (including 51,30,034 Bonus Options
allocated during the year), of which 15,55,885 vested Options have been
exercised.
e) 84,52,930 (2010
- 42,94,210) Options in 2009-10 (including 42,69,672 Bonus Options allocated
during the year), of which 3,00,840 vested Options have been exercised.
f) 83,47,150
Options in 2010-11 (including 42,21,225 Bonus Options allocated during the
year), of which none of the Options have vested and been exercised.
Note :
Each Option
entitles the holder thereof to apply for and be allotted 10 Ordinary Shares of
the face value of Rs. 1.00 each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
7738.100 |
3818.200 |
3774.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
151794.600 |
136825.600 |
133576.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
159532.700 |
140643.800 |
137350.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19.400 |
0.000 |
116.300 |
|
|
2] Unsecured Loans |
972.600 |
1077.100 |
1659.200 |
|
|
TOTAL BORROWING |
992.000 |
1077.100 |
1775.500 |
|
|
DEFERRED TAX LIABILITIES |
8018.500 |
7850.100 |
8671.900 |
|
|
|
|
|
|
|
|
TOTAL |
168543.200 |
149571.000 |
147798.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
83450.700 |
81424.000 |
72719.100 |
|
|
Capital work-in-progress |
13334.000 |
10089.900 |
12140.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
55546.600 |
57268.700 |
28377.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
52675.300
|
45490.700
|
45997.200
|
|
|
Sundry Debtors |
9076.200
|
8588.000
|
6686.700
|
|
|
Cash & Bank Balances |
22432.400
|
11262.800
|
10323.900
|
|
|
Other Current Assets |
3474.900
|
2884.400
|
2153.500
|
|
|
Loans & Advances |
14180.900
|
13060.600
|
16449.800
|
|
Total
Current Assets |
101839.700
|
81270.800
|
81611.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
43821.300
|
34449.100
|
29237.100 |
|
|
Other Current Liabilities |
758.100
|
542.300
|
408.100
|
|
|
Provisions |
41048.400
|
45499.400
|
17404.900
|
|
Total
Current Liabilities |
85627.800
|
80490.800
|
47050.100 |
|
|
Net Current Assets |
16211.900
|
788.400
|
34561.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
168543.200 |
149571.000 |
147798.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
211675.800 |
181531.900 |
156119.200 |
|
|
|
Other Income |
8188.400 |
6147.400 |
5349.300 |
|
|
|
TOTAL |
219864.200 |
187679.300 |
161468.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Selling etc Expenses |
59357.700 |
51366.500 |
59578.700 |
|
|
|
Raw Material Consumed |
81265.000 |
70072.600 |
48138.300 |
|
|
|
TOTAL |
140622.700 |
121439.100 |
107717.000 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
79241.500 |
66240.200 |
53751.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
6559.900 |
6087.100 |
5494.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
72681.600 |
60153.100 |
48257.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
22805.500 |
19543.100 |
15621.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
49876.100 |
40610.000 |
32635.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
613.100 |
8581.400 |
7244.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
4987.600 |
4061.000 |
15000.000 |
|
|
|
Proposed Dividend |
|
|
|
|
|
|
- Ordinary Dividend |
21666.800 |
17181.800 |
13965.300 |
|
|
|
-Special Centenary Dividend |
0.000 |
21000.000 |
0.000 |
|
|
|
Income Tax on Proposed Dividend |
|
|
|
|
|
|
- Current year |
5586.200 |
6341.500 |
2373.400 |
|
|
|
- Earlier year’s provision no longer
required |
(6.000) |
(6.000) |
(39.700) |
|
|
BALANCE CARRIED
TO THE B/S |
5486.700 |
613.100 |
8581.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
22951.800 |
19297.20000 |
16995.400 |
|
|
|
Dividends |
0.000 |
0.000 |
46.400 |
|
|
|
Hotel Earnings |
4762.700 |
3985.100 |
4868.500 |
|
|
|
Fright and Insurance Recoveries |
326.000 |
212.100 |
217.000 |
|
|
|
Other Earnings |
102.200 |
48.300 |
129.800 |
|
|
TOTAL EARNINGS |
28142.700 |
23542.700 |
22257.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
8449.000 |
6039.400 |
7179.100 |
|
|
|
Components & Spare Parts |
771.200 |
682.500 |
657.200 |
|
|
|
Capital Goods |
2259.400 |
2675.000 |
3447.400 |
|
|
|
Others |
169.600 |
111.200 |
155.600 |
|
|
TOTAL IMPORTS |
11649.200 |
9508.100 |
11439.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
Basic |
6.49 |
5.34 |
8.66 |
|
|
|
Diluted |
6.41 |
5.28 |
8.64 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
22.68 |
21.64 |
20.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
34.34 |
33.14 |
30.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
39.22 |
36.97 |
31.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.45 |
0.43 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.54 |
0.58 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19 |
1.01 |
1.73 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject a leading FMCG Cigarette major is one of the most
valuable companies of
Subject was incorporated on August 24, 1910 under the name of `Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on
Though the first six decades of the Company's existence were primarily devoted
to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses,
the Seventies witnessed the beginnings of a corporate transformation that would
usher in momentous changes in the life of the Company.
In 1975 the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'subject Welcomgroup Hotel Chola'. The
objective of subject's entry into the hotels business was rooted in the concept
of creating value for the nation. Subject chose the hotels business for its
potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment. Since
then subject's Hotels business has grown to occupy a position of leadership,
with 65 owned and managed properties spread across
In 1979, subject entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in
In 1985, subject set Surya Tobacco Company in
Recently, subject's Packaging and 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 more aggressively 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 Limited and Ansal Hotels Limited 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 Limited 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
01.04.2004.
During 2004-05, the company commissioned its second property 'ITC Grand
Central' in Mumbai. The company has proposed hotels at Chennai,
The company expanded the installed capacity of Cigarettes and Paperboards and
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 and
Paper increased to 94597 Million Nos and 352500 Tonnes respectively.
In 2005, the company was awarded the ISO 9001:2000 standard By M/s. Det Norske
Veritas as a recognition of its quality products and processes. The company's
units at Munger and Tiruvottiyur are certified to ISO 9000,14000 and 18000. The
company has also won three
In 2005-06, the company acquired Wimco Limited through its one of the
subsidiary company, Russell Credit Limited 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 and
Packaging including Flexibles expanded 4752 Million Nos. and 9928 Tonnes during
the year, with this expansion the total installed capacity of Cigarettes and
Printing and Packaging including Flexible increased to 99349 Million Nos and
47837 Tonnes.
MANAGEMENT DISCUSSION
AND ANALYSIS
SOCIO-ECONOMIC ENVIRONMENT
World output
staged a smart recovery in 2010 growing by 5% during the year after a decline
of 0.6% in 2009. While growth in the first half of the year stood at 5.25%,
there was a marked deceleration in the second half which recorded a growth of
3.75%. Receding fears of a global depression in 2009 initially led to a lower
rate of destocking by business and subsequently to a phase of rebuilding
depleted inventories. This fostered a sharp rebound in industrial production
and trade which lasted through the first half of 2010. Simultaneously,
accommodative policies adopted by most governments, improvement in business
confidence and financial conditions encouraged investments and helped arrest
rising unemployment levels and boost consumption.
Consequently,
recovery has become more self-sustaining and the risk of a double-dip recession
in advanced economies has abated. The recovery, however, is broadly moving at
two speeds. While economic growth in the advanced economies remained modest at
around 3% in 2010 after a decline of 3.4% in 2009, emerging and developing
economies recorded robust growth in excess of 7% during the year – led
primarily by
According to the
International Monetary Fund (IMF), world real GDP growth for 2011 is forecast at
4.4%, representing a modest slowdown from 2010 levels. Real GDP in the advanced
economies is expected to grow by 2.5% while that in the emerging and developing
economies is forecast to grow by 6.5%. However, downside risks to these
estimates continue to outweigh the upsides. In the case of advanced economies,
the key concerns revolve around weak sovereign balance sheets, the possibility
of financial troubles in peripheral Euro area spreading to core Europe, high
levels of unemployment, the continued weakness of the
While the
Agricultural sector posted an above-trend growth of 5.4% aided in part by a low
base effect, Industry and Services grew by 8.1% and 9.6% respectively. After
clocking an impressive growth of 8.9% in the first half of the year, the
economy showed signs of moderation in the second half especially in capital
goods production and investment spending. A good performance on the external
front with exports growing by 37.5% even as imports grew by 21.6% during the
year helped reduce the Current Account Deficit to approximately 2.5% of GDP
from 2.8% in the previous year. The Centre’s Fiscal Deficit for the year stood
at 5.1% of GDP – a significant improvement from 6.4% recorded in 2009/10 –
driven by buoyant tax collections and proceeds of the 3G spectrum auction.
However, amongst these positives, the persistently high level of inflation in
the economy despite good monsoons was a key cause for concern.
The year-on-year
headline WPI inflation started trending up from December 2009 through to April
2010 when it touched 11%. After remaining in double digits from April 2010 to
July 2010, headline inflation moderated progressively to 7.5% in November 2010
before reversing the trend from December 2010 mainly due to supply bottlenecks
in food items. Inflation levels remained elevated in the December 2010 to March
2011 period mainly on account of fuel, power and non-food manufacturing
products. Thus, the inflationary pressures, which emanated from food items
clearly spilled over and became generalised, as the year progressed. The recent
slowdown in Industrial growth, as reflected by the Index of Industrial
Production (IIP) and data pertaining to the six core industries, is also a
cause for concern.
According to the
monetary policy statement released on 03.05.2011, RBI’s baseline growth
projection for the Indian economy is expected to slow down to 8% with year-end
WPI inflation estimated at 6% with an upward bias. As the policy challenge
shifts to taming inflation, the economy will have to contend with high interest
rates which in turn could impact growth. Risks to global recovery as stated
earlier, high commodity prices especially of oil - with Brent crude crossing
USD 120 per barrel in April 2011 triggered by events in the MENA (Middle East
and North Africa) region, elevated levels of inflation including in food
prices, high subsidy burden arising out of high oil prices and commitments
arising out of the proposed implementation of the National Food Security Bill
pose the key downside risks to economic growth in the near term. In the medium
to long term,
A comprehensive
growth strategy for rural
The Company’s
e-Choupal network is a close replica of this model. It provides the farming
community with value-added services such as crop advisories, advance weather
forecasts, output price discovery, direct communication tools and distribution
of unadulterated agri inputs. The footprint of this network is well established
to source most requirements of the Company’s Branded Packaged Foods business
and is poised to grow in line with entry into newer categories. Similarly, the
Company’s unique and path-breaking ‘Choupal Pradarshan Khet’ (CPK) initiative,
a collaborative and paid extension service aimed towards enhancing farm
productivity with emphasis on adoption of sustainable agricultural best
practices, continues to attract the interest of both farmers and partnering
companies. The demonstration plots under CPK have recorded significant
productivity gains as compared to control plots.
An estimated
40,000 farmers participated in this programme during the year. In line with the
national agenda of pursuing sustainable and inclusive growth, the Company is
proactively engaged in enlarging its contribution across the three dimensions
of the ‘Triple Bottom Line’ - economic, environmental and social - through
investments and operations that foster the competitiveness of entire value
chain that it is engaged in. In line with this philosophy, it is the Company’s
endeavour to embed larger societal goals in its various business models. Major
initiatives in this direction include the e-Choupal network which is
contributing to increasing rural incomes by providing a wide range of support
services to the farming community, the Social and Farm Forestry programmes
which create sustainable livelihoods among marginal farmers and poor tribals,
adoption of environment friendly technologies including the increasing use of
renewable sources of energy, recycling processes and creation of rainwater
harvesting structures. Such initiatives have combined to make ITC the only
Company in the world, of comparable size, to be ‘carbon positive’, ‘water
positive’ and ‘waste recycling positive’. The following sections outline the
Company’s progress in pursuit of the ‘Triple Bottom Line’ objectives.
FINANCIAL
PERFORMANCE
The Company, in
its Centenary Year, posted yet another year of stellar performance with an
impressive topline growth and high quality earnings reflecting the robustness
of its corporate strategy of creating multiple drivers of growth. This
performance is particularly noteworthy when viewed against the backdrop of the
extremely challenging business context in which this was achieved, namely, the
steep increase in excise duties in the Union Budget 2010 coupled with the
amplified impact of arbitrary increases in VAT on cigarettes, brand building
and incubation costs of the new FMCG businesses, the impact of the significant
investments made in augmenting distribution infrastructure and the gestation
costs of the large investments in the Hotels business.
Gross Turnover for
the year grew by 16.5% to ` 306043.900 crores. Net Turnover at ` 211675.800
crores grew by 16.6% primarily driven by a 23.1% growth in the non-cigarette
FMCG businesses, 22.9% growth in Agri business and 17.6% growth in the Hotels
segment. Pre-tax profits increased by 20.8% to ` 72681.600 crores while
Post-tax
profits at `
49876.100 crores registered a growth of 22.8%. Earnings Per Share for the year
stands at ` 6.49 previous year - adjusted for Bonus Issue - ` 5.34). Cash flows
from Operations stood at ` 74600.000 crores compared to ` 66320.000 crores in
the previous year.
The Company
completed 100 years in August 2010. It is a matter of great pride to reflect on
the enormous progress made by the Company over the years. The Company today is
the leading FMCG marketer in
Over the last
fifteen years, the Company has created multiple drivers of growth by developing
a portfolio of world class businesses. During this period, the Company’s Gross
Turnover and Post-tax profits recorded an impressive compounded growth of 12.7%
and 21.7% per annum respectively. Profitability, as measured by Return on
Capital Employed improved substantially from 28.4% to 43.4% during this period.
Total Shareholder Returns, measured in terms of increase in market
capitalisation and dividends, grew at a compounded rate of 25.6% during this
period, placing the Company amongst the foremost in the country in terms of
efficiency of servicing financial capital. It is indeed a matter of pride that
the Company was ranked, by The Boston Consulting Group, an international
management consultancy firm, amongst the top 10 global consumer goods companies
in terms of sustained shareholder value creation for the period 2005 - 2009.
The Company today
is one of India’s most admired and valuable corporations with a market
capitalisation in excess of ` 1400000.000 crores and has consistently been,
over the last fifteen years, amongst the top 10 private sector companies in
terms of market capitalisation.
Last year, in
celebration of the Company completing a 100 years, the Directors had
recommended and you had approved a Special Centenary Dividend of ` 5.50 per share
(adjusted for bonus issue - ` 2.75 per share) in addition to a Dividend of `
4.50 per share (adjusted for bonus issue - ` 2.25 per share). The Directors had
also recommended and you had approved a 1:1 Bonus issue in the Centenary year.
This year, on the occasion of the Company convening its milestone Hundredth
Annual General Meeting, the Directors are pleased to recommend a Special
Dividend of ` 1.65 per share (previous year – Nil) in addition to a Dividend of
` 2.80 per share (previous year - adjusted for bonus issue - ` 2.25) for the
year ended 31.03.2011. Total cash outflow in this regard will be ` 40020.900
crores (previous year ` 44523.300 crores) including Dividend Distribution Tax
of ` 5586.200 crores (previous year ` 6341.500 crores). The Board further
recommends a transfer to General Reserve of ` 4987.600 crores (previous year `
4061.000 crores). Consequently, the Board recommends leaving an unappropriated
balance in the Profit and Loss Account of ` 5486.700 crores (previous year `
613.100 crores).
BUSINESS SEGMENTS
A. FAST MOVING CONSUMER GOODS
FMCG – Cigarettes
Disproportionate
taxation coupled with a growing incidence of smuggling and illegal manufacture,
continue to be the biggest challenge for the Indian cigarette industry. In
western countries, the belief is that loading the cigarette
sector with high
taxation would lead to a reduction in overall tobacco consumption. This
approach, when followed in
Consequently,
cigarettes, despite accounting for a minor portion of tobacco consumption,
contribute more than 75% of taxes raised from the tobacco sector. Latest
research findings published in the Global Adult Tobacco Survey (GATS) -
conducted under the stewardship of the Ministry of Health and Family Welfare,
Government of India – show that cigarettes are the least popular form of
tobacco consumption in
Disproportionate
and high taxation on cigarettes has led to a dwindling of its share in total
tobacco consumption from about 25% in the 1970s to about 15% currently.
However, at the same time total tobacco consumption in the country has
continued to grow by way of increased consumption of other revenue inefficient
forms of tobacco. The high taxation of cigarettes has not only sub-optimised
the revenue potential from the tobacco sector but has also failed to achieve
the objective of reducing aggregate tobacco consumption in the country.
The problem of
discriminatory central taxation on cigarettes was exacerbated during the year
with many States increasing the rate of VAT on cigarettes from the revenue
neutral rate of 12.5%. These rate increases by the States is completely against
the basic tenets of VAT enshrined in the White Paper on VAT issued by the
Empowered Committee of State Finance Ministers, wherein it is unequivocally
stated – “...the multiplicity of rates in the existing structure will be done
away with under the VAT system... Under 4% VAT rate category, there will be the
largest number of goods (about 270), common for all States, the remaining
commodities, common for all States, will fall under the general VAT rate of
12.5%.”
The Company has,
during the year, repeatedly drawn the attention of policy-makers to the fact
that:
- Sub-optimal taxation practices of
States – like differential VAT rates – may well derail the implementation
of GST with a unitary standard rate of tax across the Indian common
market.
- Being highly taxed products, cigarettes
are vulnerable to large scale smuggling.
- The differential rate of VAT across the
States only encourages unscrupulous tax arbitrage.
- In line with international trends, the
illegal trade in cigarettes results in funds flowing in to the coffers of
criminal syndicates with consequential detrimental impact on civil society
by way of heightened law and order problems.
In addition to the
taxation challenge, the legitimate domestic industry is grappling with another
complex problem – the burgeoning illegal trade in cigarettes which, according
to recent independent international market studies, accounts for more than 16%
of the total industry size. The high rates of Central Excise and VAT have
helped fuel the menace of illegal trade in cigarettes.
It is estimated
that the illegal cigarette trade costs the Exchequer more than ` 30000.000
crores per annum in lost revenues apart from offering products of dubious and
inferior quality to consumers. According to recent independent international
market studies,
The Company
continues to engage with the authorities on this issue, highlighting the fact
that punitive rates of tax and lack of tax harmonisation across States fuels
the menace of illicit cigarette trade with consequential adverse impact on the
legitimate industry. While there have been some reports of seizure of such
illegal stocks by enforcement agencies, illicit cigarette units continue to
mushroom and grow. Illegal cigarette trade has serious concerns for the country
and needs to be reined in quickly through appropriate policy and enforcement
attention. The effective and sustainable solution lies in eliminating the tax
arbitrage that encourages these activities by ensuring harmonious and moderate
tax rates on cigarettes. The year also saw unprecedented activity including new
brand launches by global cigarette companies trying to gain a foothold in
The year also saw
the Company’s premium line of hand-rolled cigars consolidating its position in
the market. ‘Armenteros’, which is specially manufactured for the Company in
the Dominican Republic, has already carved a niche for itself amongst
discerning cigar aficionados, further reaffirming the Company’s reputation of
delivering fully against consumer expectations of top quality tobacco products.
During the year,
the new cigarette factory set up at Ranjangaon scaled up operations to full
capacity, enabling the Company to service the markets better.
The Company also
continued the strategic initiatives of upgrading primary and secondary
technology platforms and running continuous improvement programmes in the areas
of operating efficiencies and quality at all cigarette factories. The ‘Process
Improvement Practices’ initiative, using structured problem-solving
methodologies such as ‘Lean’ and ‘Six Sigma’ have not only contributed to
quality and productivity improvements but also resulted in improvements in
operating metrics and internal processes across all the factories.
In line with the
Company’s commitment to building sustainable environmental capital, the
business continues to invest in wind energy farms to increase usage of
renewable sources of energy. Till date 14.7 Megawatt (MW) of wind energy farms
have been commissioned in Karnataka and 6.3 MW of wind energy farms are in the
process of being implemented in
To serve the
interests of all stakeholders of the industry the Company, as always, will
continue to engage with policy makers on:
- Implementation of a balanced regulatory
and fiscal framework for tobacco,
- Harmonisation of VAT rates across the
States and
- Creation of a true Indian common market
through implementation of GST with a unitary, standard rate of tax.
Despite the
manifold challenges, the Company remains confident that the continuing support
of consumers, coupled with the resilience of its brands, superior execution of
competitive strategies, leveraging of its internationally benchmarked product
quality and its ability to innovate will enable it to retain and reinforce its
leadership position.
FMCG - Others
The Indian FMCG
industry is estimated to be over ` 1300000.000 crores in size and accounts for
2.2% of the GDP of the country. The industry has tripled in size over the last
10 years and has grown at approximately 17% CAGR in the last 5 years, driven by
robust macroeconomic conditions, rising income levels, increasing urbanisation
and favourable demographic trends. These drivers are expected to continue to
favourably impact the industry which is estimated to further triple in size in
the next ten years to ` 4000000.000 crores by 2020 (Source: CII, FMCG Roadmap
to 2020). Relatively low levels of per capita consumption of many FMCG products,
the growing population of working women and increased government spending on
education are some of the other key factors that augur well for the sector’s
growth prospects.
According to a
study by the consultancy firm Deloitte Touche Tohmatsu Limited ‘Consumer 2020:
Reading the signs’,
the FMCG space.
Given these positive fundamentals, the Company has been rapidly scaling-up its
new FMCG businesses comprising Branded Packaged Foods, Personal Care Products,
Education and Stationery Products, Lifestyle Retailing, Safety Matches and
Incense Sticks (Agarbattis) with Segment Revenues growing at an impressive
compound annual growth rate of 35% during the last 5 years.
Within a
relatively short span of time, the Company has established several strong
consumer brands in the Indian FMCG market. Segment Results reflect the
gestation costs of these businesses largely comprising costs
associated with brand
building, product development, R and D and infrastructure creation. The year
saw a 23% growth in Segment Revenues and a significant improvement in Segment
Results which recorded a positive swing of ` 52 crores at the PBIT level.
The Company’s
unwavering focus on quality, innovation and differentiation backed by deep
consumer insights, world class R and D and an efficient and responsive supply
chain will further strengthen its leadership position in the Indian FMCG
industry.
Branded Packaged
Foods
The Company’s
Branded Packaged Foods business continued to expand rapidly with sales
recording an impressive growth of 25% over the previous year. During the year,
the business focused on enhancing consumer franchise through new product
launches, heightened communication and increased levels of consumer activation.
Value capture was improved through cost reductions across the supply chain and
optimisation of working capital deployment. A wide range of well differentiated
products, supported by significant investments in product development,
innovation, manufacturing technology and unmatched distribution infrastructure
have substantially enhanced the market standing and consumer franchise of the
Company’s brands. The quality of the Company’s products continues to be
‘best-in-class’ and is seen as a benchmark in the industry across all segments.
The year saw
unprecedented inflation in food prices around the world. In
During the year,
the Company launched ‘Sunfeast Yippee!’ noodles in the fast growing ‘instant
noodles’ category in two exciting flavours. Extensive consumer research and
product development were undertaken to incorporate consumer relevant
differentiation and uniqueness in the offerings. This was further fortified by
an effective communication campaign highlighting the product differentiators.
‘Sunfeast Yippee!’ has received an encouraging consumer response and holds out
the promise of emerging as a sizeable winner. In the Staples business,
‘Aashirvaad’ atta sustained its leadership position. ‘Aashirvaad’ multigrain
atta, launched last year, was well received by consumers and is witnessing
significant growth.
The Company also
scaled up its presence in the branded Spices segment during the year with the
launch of ‘Aashirvaad’ rasam and sambhar blended powders in target markets,
leveraging the brand’s market standing of superior and consistent quality. In
the Biscuits category, the Company’s ‘Sunfeast’ brand recorded significant
growth, especially in the value-added and premium end. The year witnessed the
launch of a slew of products in new and exciting formats. Research on consumer
preferences and understanding of regional palates were undertaken and led to
the launch of differentiated milk cookies for consumers in target markets. The
‘Sunfeast’ range witnessed enrichment and premiumisation of its product mix with
the re-launch of ‘Dark Fantasy’ and the introduction of premium ‘Dark Fantasy
Choco Fills’ biscuits. In the Confectionery category, ‘Candyman’ is the clear
market leader in the hard boiled segment. Further, growth through flavour
extensions continued with the launch of ‘mint-O GOL’
In the Savoury
Snacks segment, ‘Bingo!’ demonstrated robust sales performance during the year
and penetrated
new markets,
gaining further consumer franchise, driven by innovative product development
and impactful, clutter
breaking
communication. The entire product portfolio ranging from Potato Chips to Finger
Snacks continued to witness robust growth.
The business
continues to invest in manufacturing and distribution infrastructure to support
larger scale in the wake of growing volumes and exploit the benefits of
distributed manufacture to service proximal markets. The business continued to
focus on supply chain improvements to enhance market servicing and margins. In
the backdrop of a resilient economy, the year ahead is expected to witness
robust growth in the Branded Packaged Foods category despite anticipated
inflationary pressures. Product development and brand building will be critical
to driving sales. Innovative interventions will continue to be essential for
building strong consumer franchise. Well researched and robust product
development processes will continue to be leveraged to launch innovative and
differentiated products across all segments. With effective and cost-efficient
servicing of target markets continuing to be a key success factor, the business
will continue to leverage the Company’s sales and distribution network to
achieve deep penetration, visibility and availability for its products.
Personal Care
Products
The Company’s
Personal Care Products business made significant strides in gaining consumer
franchise during
the year. The
business continues to roll out its product offerings under the ‘Essenza Di
Wills’, ‘Fiama Di Wills’, ‘Vivel’ and ‘Superia’ brands and is focused on
addressing various consumer benefit segments with the introduction of new
variants in the soaps and shampoos categories. The business continues to
receive accolades for its product innovation initiatives. Last year the ‘Fiama
Di Wills’ gel bathing bar was voted the ‘Product of the Year’ in the soap
category and this year three of its products, namely ‘Fiama Di Wills Aqua
Pulse’ shower gel, ‘Vivel Active Fair’ skin cream and ‘Vivel Deo Spirit’ soap,
have been voted ‘Product of the Year’ in the shower gel,
fairness cream and
soap categories respectively. This year saw the successful introduction of
‘Vivel Active Fair’, the Company’s newest foray into the growing fairness cream
category. In a very short period of time, the brand has garnered a healthy
market share in launch markets. ‘Fiama Di Wills’ with its new ‘Aqua Pulse Bath
Care’ line of shower gel and bathing bar has augmented the brand franchise to
men. The Men’s range has been well received in launch markets. It is estimated
that ‘Vivel’ and ‘Superia’ soaps and shampoos have together reached over 9.9
crore households so far (according to IMRB Household Panel: February 2011).
The business
continues to focus on leveraging more effective ways of communicating with
consumers through multiple channels, including TV, digital social-networking,
print / outdoor advertising, point of sale merchandising and one-on-one
consumer interactions. The business grew at a pace distinctly ahead of industry
despite extreme competitive pressures from entrenched players. This was
achieved through a judicious mix of innovative consumer offers and by
leveraging the distribution network of the Company to reach consumers even in
remote areas. This has helped the business garner significant market share in a
short span of three years.
During the year,
the manufacturing unit at Haridwar received certifications for ISO 9001:2008
(Quality Management System), ISO 14001 (Environment Management System) and
OHSAS 18001 (Occupational Health and Safety Assessment System). To broad-base
process excellence knowledge as well as lead improvement initiatives across the
business, a program using ‘Six Sigma’ and ‘Lean’ methodologies was put in place
and is contributing to the competitiveness of the business.
Product innovation
and quality continue to be focus areas and are expected to provide the
requisite competitive advantage and impetus for growth in the near future.
Investments have been made, over the past few years, on product development and
research capabilities to support creation of new consumer-centric products with
enhanced consumer benefits. These interventions will enable the Company to
further strengthen its portfolio of value-added products. The Personal Care
industry in
Education and
Stationery Products
The Education and
Stationery Products business recorded an impressive sales growth powered
by brand ‘Classmate’ which continued to consolidate its leadership
position in student notebooks. Sales of non-paper categories registered
an impressive growth of 100% indicating a growing consumer acceptance of
‘Classmate’ pens, pencils, mathematical instruments, erasers and
sharpeners. The year also witnessed the launch of art stationery under
the ‘Classmate-Colour Crew’ brand. On the occasion of ITC’s Centenary,
the Company rolled out the ‘Classmate Ideas for India Challenge’ (CIIC)
– a contest that provided a platform for
The ‘Classmate’ range
of notebooks continued to be sourced from small scale manufacturers, who have
continuously improved their delivery and quality capabilities. A majority of
them, with the Company’s assistance, are ISO 9001:2008 certified. Paper and
recycled board are sourced from the Company’s mills at Bhadrachalam and Kovai
respectively. The paper used in ‘Classmate’ notebooks leverages the Company’s
world class fibre line at Bhadrachalam which is
During the year,
the business took significant steps to promote ‘Paperkraft’, its executive and
office supplies stationery brand. Working in tandem with the Company’s
Paperboards and Specialty Papers Division, the business has positioned ‘Paperkraft’
as the finest green paper for business applications viz. copy-scan-print-fax.
Paperkraft’s green credentials are supported, among other factors, by the
Company’s membership of the prestigious Global Forest and Trade Network, an
international initiative of the WWF (World Wide Fund for Nature) and the
Company’s social forestry programme which has created a green cover of nearly
1,14,000 hectares by planting high yielding varieties of trees. Paperkraft’s
‘green profile’ has begun to appeal to a number of corporate and other
institutional consumers who are switching over to ‘Paperkraft’ to symbolise
their commitment to reducing carbon footprint. The ‘Paperkraft’ range of
executive notebooks was enriched with the launch of a ‘Green Impression Series’
which showcases the Company’s sustainability performance. The education and
stationery products industry continues to grow on the back of massive
government and private investments in the education sector. The government’s
flagship Sarva Shiksha Abhiyan programme coupled with the mid-day meals
initiative is successfully enhancing enrolment and reducing dropouts at the
primary school level. Efforts are also underway to improve the enrolment ratios
at the secondary and tertiary levels. Progressive reforms will enable flow of
private sector investments into capacity building and quality enhancement in
education delivery. The recent enactment of The Right of Children to Free and
Compulsory Education Act, 2009 will further accelerate growth in the education
and stationery supplies sectors. The Company, with its widening high quality
product range and excellent distribution infrastructure, is poised
advantageously to respond to this opportunity.
Lifestyle
Retailing
During the year,
the Company’s Lifestyle Retailing business further strengthened its position in
the branded apparel market. Leveraging the revival in consumer sentiment after
a protracted period of sluggish demand post the global economic slowdown, the
business undertook several initiatives to further fortify its brands, expand
its retail reach and improve product and range vitality. In the Premium
segment, ‘Wills Lifestyle’, with its high fashion imagery, growing desirability
and richer product mix, continues to enjoy strong market standing and consumer
bonding.
During the year,
the brand reach was expanded to 73 exclusive stores in 40 cities and more than
150 ‘shop-in-shops’ in leading departmental stores. This was further supported
by significant improvements in product range, enhanced availability and impactful
visibility resulting in impressive growth in volumes. During the year, the
premium imagery of the brand was further reinforced through its association
with the ‘Wills Lifestyle India Fashion Week’, the country’s most prestigious
lifestyle event. Under the business’ ‘Ramp to Racks’ initiative, the brand has
tied up with leading designers of the country such as Rohit Bal, Tarun
Tahiliani, Rohit Gandhi-Rahul Khanna, Rajesh Pratap Singh, JJ Valaya, Satya
Paul and Ranna Gill to exclusively co-create the ‘Wills Signature’ range of
designer wear.
This initiative has been very well received by consumers and has enhanced the
brand’s exclusive aura, strengthened its premium standing and deepened its
aspirational dimension.
Product equity and
premiumness was further enhanced through several initiatives undertaken during
the year. The ‘Wills Classic’ ‘Luxuria’ range of super-premium formals for men,
finely crafted from luxurious cotton with high end trims and superior
garmenting, was introduced during the year and received extremely encouraging
response from consumers. The Women’s range was further augmented by offerings
in stylised formals, an extensive variety of trendy silhouettes and an
international collection crafted by a leading Milan-based design house.
During the year,
‘Wills Lifestyle’ opened its first Men’s luxury store in Chennai offering a
comprehensive ‘Formals’ collection of shirts, trousers, suits and jackets and
accessories aimed at the premium business consumer. The business added a ‘Wills
Lifestyle’ boutique store in the Company’s hotel, ITC Gardenia, Bengaluru,
enhancing brand availability to high-end business and leisure travellers. This
is in addition to the existing boutique stores in ITC Maurya,
The customer
privileges programme ‘Club Wills’ comprising over 1,10,000 loyal and discerning
members contributed significantly to sales. Social media was also leveraged
effectively to engage with customers, enhancing ‘word-of-mouth’ and driving
footfalls to stores. In the popular segment, ‘John Players’ has established
a strong pan
by consumers,
further enhancing brand desirability.
During the year,
the business received several industry recognitions, including ‘Retailer of the
year – Fashion and Lifestyle’ and ‘Best Retail Marketing Campaign of the Year’
at the Asia Retail Congress 2011 and ‘Winner – Customer and Brand Loyalty’ at
the Loyalty Awards 2011. Rising cotton prices and the re-imposition of Excise
Duty on branded apparel in this year’s Union Budget will exert inflationary
pressure on costs in the coming year. However, the business has initiated a
number of strategic cost management actions along with operational efficiency
improvement measures to minimise its impact on consumers.
Improvements in
business processes for creation of designs, including incorporation of regional
preferences in product design for wider brand appeal and further strengthening
of the supply chain led to better ‘sell-thrus’ and improved margins during the
year. Retail productivity continues to be a key focus area, and the business
undertook several initiatives to strengthen capabilities at the frontline
through training, knowledge and skill inputs. Investments are also being made
in store design, visual merchandising and customer service to enhance the
international quality shopping experience that has become synonymous with
‘Wills Lifestyle’. The business will continue to increase the fashion quotient
of its offerings on the basis of a deep understanding of consumer preferences,
and delivering products benchmarked to world class quality standards.
Safety Matches
The Company’s
Safety Matches business sustained its market standing through continued
consumer preference for its strong brand portfolio across all market
segments. Domestic volumes were impacted during the year as a result of
proliferation of cheaper low quality formats in the marketplace. Despite
increased competition, the Company’s flagship brand ‘Aim’, continued to
grow. While steep escalations in the prices of raw materials like wood,
paperboard and key chemicals subjected the industry to severe margin
pressure during the year, the business mitigated some of the adverse
impact through a series of strategic cost management and pricing
initiatives.
The Company
continues to partner the small scale sector by sourcing a significant portion
of its requirement from multiple units in this sector. This has helped improve
the competitive ability of these units with the Company providing technical
inputs to strengthen their process capabilities. Technology induction in
manufacturing is crucial for the long term sustainability of this industry. A
uniform taxation framework which provides a level playing field to all
manufacturers is necessary to trigger the required investments for modernising
this industry and enabling it to become globally competitive.
Incense sticks
(Agarbattis)
Market standing of
the Company’s ‘Mangaldeep’ brand of incense sticks was further strengthened
during the year with sales recording an impressive growth of 54%, driven by
increasing consumer franchise for the brand combined with enhanced distribution
reach and innovative product offerings. ‘Mangaldeep’ is currently the second
largest national brand.
During the year the business launched a new variant in the premium category,
‘Sarvatra’ under the umbrella brand ‘Mangaldeep’. This introduction has
received wide consumer acceptance and is being rolled out across
The business
continues to contribute to the Company’s commitment to the ‘Triple Bottom
Line’, by providing livelihood opportunities to more than 12,000 persons
through small scale entrepreneurs, NGOs and Self Help Groups across
The Company
continues to partner small and medium enterprises in raising their process and
quality standards.
HOTELS
The year witnessed
a gradual recovery for the Indian hotels industry after two successive years of
decline aided by a gradual revival in source markets like the
In the backdrop of
this mixed business environment, the Company’s Hotels business witnessed robust
growth of 18% and 23% in Revenues and Pre-tax profits respectively, reversing
the declining trend witnessed in the last 2 years. The business continues to
maintain its leadership position in terms of its operating efficiency with a
PBDIT to Net Revenues ratio of 36%.
The Company’s
Hotels business continues to be rated amongst the fastest growing hospitality
chains, with over 105 properties at more than 90 locations in India, operating
under 4 brands – ‘ITC Hotel’ at the luxury end, ‘WelcomHotel’ in the 5 star
segment, ‘Fortune’ in the mid-market to upscale segment and ‘WelcomHeritage’ in
the heritage leisure segment. In addition, the business has licensing and
franchising arrangements for two international brands – ‘The Luxury Collection’
and ‘Sheraton’ from the Starwood Group. These offerings make the Company one of
the leading hotel chains in
ITC Gardenia,
launched last year, has rapidly established itself as the premier hotel in
Bengaluru and delivered profits in its first full year of operations. ITC
Mughal,
Food and beverage
has been one of the business’ main strengths over the years, regularly bringing
accolades and awards from domestic and international media. Its restaurants ‘
In pursuit of the
Company’s ‘Triple Bottom Line’ objectives, the business has increased
investments in wind energy to provide clean power to its hotels in Bengaluru
(ITC Windsor and ITC Gardenia) and Jaipur (WelcomHotel Rajputana). Further
investments in wind energy are on the anvil. These are in addition to the wind
energy investments made in the previous year for ITC Maratha in Mumbai.
The Company’s
commitment to ‘Responsible Luxury’ has given it the unique distinction of being
the only green hotel chain in
In view of the
positive long term outlook for the Indian hotel industry, the Company continues
to sustain its aggressive investment led growth strategy. Construction activity
of new super luxury properties at Chennai, Kolkata and at Classic Golf Resort
near Gurgaon are progressing satisfactorily. In addition, several new projects
including joint ventures and management contracts are on the anvil to rapidly
scale up the business across all four market segments.
During the year,
the ‘Fortune’ brand which caters to the mid-market to upscale segment, forged
new alliances taking the total number of hotels in its fold to 63 with an
aggregate room inventory of 4,915. The brand now has 38 operating hotels and 4
more hotels are slated to be commissioned during the course of the next
financially ear. The remaining 21 hotels are in various stages of development.
The brand is now well established as a front-runner among the mid-market to
upscale segment of hotels in
The Company’s
Hotels business, with its globally benchmarked levels of product and service
excellence and customer centricity represented by its four brands, 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,
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 ` 36670.000 crores. Segment results at ` 8190.000 crores
reflect a growth of 20%.
Paperboards and
Specialty Papers
The global demand
for paper and paperboard recovered strongly to post a growth of nearly
7% over the previous year driven by resurgence in demand in Western
Europe, North America and growth in emerging Asian and Latin American
economies. The domestic paperboard industry also grew at about 8% aided by the
strong showing of the Indian economy with value-added paperboard growing
at a much faster rate. Though
MCG, pharma,
liquid packaging, apparel and consumer durables will continue to provide the
overall impetus for accelerated growth in derived demand for paperboard. The
growing potential of this industry is also attracting the attention of global
players who are keenly looking at
The domestic paper
industry is estimated at 10.3 million tonnes per annum, out of which paperboard
demand is estimated to be 2.3 million tonnes per annum. The Company, with its
wide range of products in the paperboard segment, is the market leader with a
value market share of 26% and a significantly higher share of the fast-growing
value-added paperboard segment. To further consolidate its pre-eminent position
in the paperboard segment, the business is in the process of investing in a
state-of-the-art machine which is expected to be operational by early 2013. The
‘Writing and Printing’ paper segment, estimated at 3.3 million tonnes grew by
7% in 2010-11. The Company’s state-of-the-art paper machine is being currently
optimally utilised to meet the demand for high quality copier and writing
paper, leveraging the strong forward linkages with the Company’s Education and
Stationery Products business. The growth in the value added writing and
printing paper segment will continue to be fuelled by initiatives like Sarva
Shiksha Abhiyan, together with increasing literacy levels, changing demographic
profiles and GDP growth. This segment is expected to grow at around 8% per
annum during the next 5 years, with higher growth expected in the Copier paper
and Fine paper categories at 16%. Specialty papers, with an estimated market
size of 4 lakh tonnes, is expected to grow at 9% over the next 5 years, with
increased spends on infrastructure and construction driving demand for quality
décor and insulating grades.
The Company is the
largest manufacturer of cigarette tissue in
The Company has
commenced this initiative with recycled board grades and will gradually include
more paper and paperboard products. In addition, the business improved its
service delivery to its customers through shortened order servicing timelines.
It also facilitated customers in the usage of the Company’s Forestry
Stewardship Certified boards. During the year a number of new paperboard
applications have been successfully developed for the communication,
entertainment and packaging industries.
The Company
continued with its aggressive clonal propagation strategy with the distribution
of over 54 million saplings to farmers during the year. Research on clonal
development has resulted in the introduction of topography specific, high
yielding and disease resistant clones. This initiative, besides securing the
long term supply of fibre at competitive costs, also assists in generating farm
incomes through utilisation of marginal wastelands. Enhanced R and D activity
has resulted in the development of high yielding eucalyptus and ‘subabul’
clones and the Company’s continued focus on clonal plantations in core areas is
expected to yield significant competitive advantage in the years to come.
The Company’s R
and D is actively collaborating with several expert agencies to further
leverage bio-technology for enhancing both farm and manufacturing yields. In
the last 15 years, the Company’s bio-technology based research initiatives have
resulted in the planting of nearly 487 million saplings which are currently
sown in nearly 1,14,000 hectares of plantations, including around 12,000
hectares planted during the year. These pioneering initiatives have generated
over 51 million person days of employment opportunities over this period for
small farmers and poor tribals.
Agro-forestry has
an important role to play in developing countries like
conservation of
the environment. During the year, the Company facilitated the introduction of
agro forestry models which incorporate inter-cropping practices where
eucalyptus trees are grown on the same land as
agricultural
crops, in Andhra Pradesh and Madhya Pradesh. By integrating tree growing with
crop production, the problems of poor agricultural production, worsening wood
shortages and environmental degradation can be addressed simultaneously.
Furthermore, inter-cropping technologies/practices also help to take pressure
off the remaining natural forests and to increase the diversity of vegetation
on existing farms.
The Company
continues to represent to policy makers the need to introduce appropriate
amendments to the
The Company’s
collaborative initiative called ‘Wealth out of Waste’ (WOW) continues to
promote and facilitate waste paper recycling, another major environmental
objective to conserve scarce resources. This initiative has now been extended
to 6 cities in
The Company has
invested significantly in the deployment of contemporary technologies including
environment-friendly Elemental Chlorine-Free (ECF) and Ozone bleaching for pulp
thereby improving environmental standards of its manufacturing operations. Such
investments are expected to provide customers with a sophisticated product, way
ahead of legislation, creating new dimensions in environmental stewardship. The
Industry would welcome policies that lay down environmental benchmarks in tune
with other industries such as automotives etc. and suitably reward those who
achieve or exceed such parameters. While all manufacturing units have already
achieved near 100% solid waste recycling by its usage for making products like
lime, fly ash bricks, grey boards, egg trays etc., the procurement and
recycling of over 1,19,000 tonnes of waste paper during the year has further
consolidated the business’ overall positive solid waste recycling footprint. In
addition, the Company is also working on various Clean Development Mechanism
(CDM) projects under the Kyoto Protocol to enable full realization of potential
benefits in this area. The Company’s unique social forestry project has been the
first of its kind in
The Bhadrachalam
and Tribeni units were awarded the ‘Sword of Honour’ by the British Safety
Council. All manufacturing units of the business received the ‘5 Star Rating’
from the British Safety Council for the third successive year. The Bhadrachalam
unit also won the ‘Most Innovative Project on Environment Best Practices’ Award
2011 from CII, Indian Paper Manufacturers Association (IPMA) - Paper Mill of
the year 2010 award and SIEMENS - Ecovatives award 2011. The Kovai unit won the
CII - National award for Excellence in Energy Management 2010. After having
laid a strong foundation in implementing Total Productive Maintenance (TPM) at
its units in Bhadrachalam and Bollaram, the programme has now been extended to
Tribeni and Kovai units. This is expected to further improve operational excellence
and profitability.
During the year,
the industry faced enormous challenges on account of steep hike in costs of key
domestic raw materials, coal and imported pulp. This hike in input costs,
coupled with the large additions to capacity in the industry, adversely
impacted overall industry profitability. It is expected that continuing
inflation in the cost of domestic raw materials and imported pulp will continue
to impact industry profitability in the near term. The Company with its
unwavering focus on quality, cost consciousness, integrated operations,
customer service and ability to create new market segments is well placed to
mitigate the impact of these cost escalations.
The integrated nature
of the business model – access to high-quality fibre from the economic vicinity
of the Bhadrachalam mill, in-house pulp mill and state-of-theart manufacturing
facilities on the one hand and a robust forward linkage with the Education and
Stationery Products business on the other – strategically positions the Company
to further consolidate and enhance its leadership status in the Indian paper
and paperboard industry.
Packaging and
Printing
The Company’s
Packaging and Printing business continues to invest in ‘best-in-class’
technology and skills to provide the most contemporary and superior value
delivery in paper, paperboard and flexible packaging. The business continued to
provide strategic support to the Company’s FMCG businesses by ensuring security
of supplies in addition to sustaining international quality at competitive
cost.
During the year,
business from external trade grew significantly, driven by growth in volumes
from existing customers as well as an enlargement of its customer base. The Company
continues to be a leading supplier of value-added packaging to the Consumer
Electronics and FMCG segments. The further consolidation of the business’
operations in the flexibles packaging segment at its state-of-the-art
manufacturing facilities at Chennai and Haridwar continued to provide
innovative packaging solutions to the Company’s FMCG businesses. This in house
capability has enabled the Company to facilitate quicker turnarounds of
designs, pack changes and reduced product launch timelines, thereby providing a
source of competitive advantage in the market place.
The business is
augmenting capability and capacity at its Haridwar plant to cater to the
increased packaging requirements of the Company’s FMCG business and external
trade customers based in the northern region. The business won several national
awards for excellence in packaging solutions and also won 20 ‘India Star’
awards in printing in several categories instituted by the Indian Institute of
Packaging for excellence in packaging during the year. The 14.1 MW wind energy
farm, which was commissioned in 2008, continued operating at optimum levels
providing clean energy to the Chennai unit. The initiative flowing from the
Company’s commitment to the ‘Triple Bottom Line’, is now a certified project
under the Clean Development Mechanism of the Kyoto Protocol under the auspices
of the United Nations Framework Convention on Climate Change and is generating
carbon credits and contributing to the reduction in the Company’s carbon
footprint.
The factories at
Chennai, Munger and Haridwar continued to maintain their highest standards in
Environment, Health and Safety (EHS) and quality management during the year.
The Chennai unit was awarded the British Safety Council ‘Globe of Honour’ for
Environment Management. The unit was also awarded ‘National Water Management’
Award 2010 by CII for being an excellent water efficient unit. During the year,
Chennai and Munger
units were also
certified for ISO 9001:2008, ISO 14001:2004 Quality Management System and have
been re-certified for OHSAS 18001:2007 Occupational Health and Safety
Management System. All the three units at Chennai, Munger and Haridwar received
the ‘5 Star Rating’ for safety from the British Safety Council.
With substantial
investments in world class technology, best-in-class quality management
systems, multiple locations and diversified packaging solutions portfolio, the
business is well poised to continue servicing all the requirements of the
Company’s FMCG businesses and to rapidly grow its external trade.
AGRI BUSINESS
Cigarette Leaf
Tobacco
Against a backdrop
of a decline in global leaf production in key regions over the past two to
three years and low inventory pipeline with international cigarette majors, the
current year saw global leaf production grow by 4% with countries like
Zimbabwe, Malawi, Tanzania, India and Brazil driving overall supply. On the
demand side, the year witnessed global cigarette production remaining flat,
primarily as a result of the slow and tentative recovery in the advanced
economies, as well as the growth in illicit trade triggered by excessive
taxation. This dramatically altered the demand-supply scenario during the year.
In
Despite these
adverse conditions, the Company was able to sustain the demand for Indian
tobacco through focused strategies based on delivering superior value to the
customer, variety offerings in the burley and oriental segment through
collaborative and customized programs and an enlarged customer base. The
business is exploring market opportunities in the growing smokeless tobacco
segment through customized offerings. While flavour has not been a source of
competitive strength for Indian tobaccos, focused attention to reliability,
scalability, product integrity, service and competitive pricing would continue
to be the imperatives to sustain and grow market share. The business continued
to provide strategic sourcing support to the Company’s cigarette business.
The Company’s
pioneering R and D efforts on varietal improvements in leaf tobacco was further
fortified with the development of various burley and oriental type tobaccos.
These initiatives such as improved nursery management designed for higher
efficiencies in seed use, optimised usage of crop production chemicals and
other agronomic practices are improving the potential of the newly developed
varieties. These efforts are not only helping to secure global demand for
Indian leaf tobacco, but also in improving the socio-economic status of the
small/tribal farmers and providing enhanced value to global customers. Vertical
growth to achieve enhanced productivity continues to be the focus area of
research and crop development initiatives. Similarly, substantial progress has
been made to strengthen the pipeline of new hybrid combinations for deployment
in the growth zones. Capitalising on the Company’s R and D efforts on varietal
improvement, the growing areas of Flue-Cured Virginia hybrids were
substantially increased in collaboration with the Central Tobacco Research
Institute and the Tobacco Board of India. Significant milestones were achieved
towards the development of a new curing regime in tobacco and further
experimental trials are underway to bring forth a unique product portfolio.
The Company
continues to focus on maintaining the highest quality and safety standards in
all its units. During the year, the Chirala unit won the ‘Globe of Honour’
award from the British Safety Council for best environmental practices and the
‘Best Management Award’ from the Government of Andhra Pradesh for industrial
relations and employee welfare. The Anaparti unit won the Gold Medal and Silver
Medal awards for Quality Circles in competitions held by ‘Quality Circle Forum
of India’ at regional level competitions and ‘Distinguished Awards’ at National
level competitions. Total Cost Management Maturity Model Level 3 from CII for
Total Cost Management was awarded to both the Chirala and Anaparti units.
In order to
service the growing demand for leaf tobacco, the Company is in the process of
commissioning additional capacities in Karnataka. The business is in the
process of reorganising the supply chain to address the ever increasing
complexity of the leaf supply chain from a strategic cost management
perspective. The Company with its unmatched R and D capability,
state-of-the-art facilities, unique crop development and extension expertise,
deep understanding of customer and farmer needs, is well poised to leverage
emerging opportunities for Indian leaf tobacco and sustain its position as a
world class leaf tobacco organisation.
Other Agri
Commodities
Global trade grew by
12% on the strength of robust growth witnessed in developing and emerging
economies as also on account of the fiscal stimulus provided by advanced
nations. This has been achieved despite the sluggish post recession recovery in
the world economy, reduced availability of credit and trade volumes which are
still ruling below the pre-recession levels in countries severely affected by
the financial crisis. Food grain production in the country is expected to touch
232 million tonnes representing a growth of 6.4% over the previous year.
Despite this impressive growth, food inflation continued to be high and a cause
of worry. Consequently, the ban on export of some key commodities like wheat,
rice and sugar continued during the year.
A decline in
global soya bean production led by a sharp drop in
In sourcing chip
stock potato for its ‘Bingo!’ potato chips business, the Company continued its
initiative of sourcing locally grown potatoes (closer to manufacturing units)
in order to provide encouragement to local farmers and to minimise logistics
costs. During the year, 57% of the consumption at the Company’s Haridwar
processing plant was sourced locally. Trials on development of new varieties
and new areas continued during the year.
In the last five
years, the spices business, apart from providing support to the ‘Aashirvaad’
range of spice powders has gained considerable market standing amongst large
domestic and export customers as a supplier of assured quality with customised
processes and infrastructure, with a significantly high level of ‘source
credibility’.
The Company’s
initiative of marketing Kisan Credit Cards on behalf of the State Bank of
Last year, the
Company launched an initiative to strengthen and expand the distribution reach
of its e-Choupal network for FMCG products in the rural markets. The year saw
throughputs increasing by more than 40%. Based on the learnings over the last
few years, the Company now proposes to synchronise its rural marketing and
rural distribution businesses. Towards this end, the Company has piloted
convergence programmes engaging a large number of rural consumers. These
convergence programmes which are called ‘Choupal Haats’, focus on product
awareness, demonstration and brand marketing and targets higher availability of
quality FMCG products in rural retail outlets.
Last year, the
Company had launched an employment portal ‘Rozgarduniya.com’ in alliance with
Monster
The Company has
piloted a ‘Market Based Partnership for Health’ programme in alliance with
United States Agency for International Development (USAID) and other partners.
The pilot, which has been launched in Gonda and Chandauli districts of Uttar
Pradesh focuses on improvement of maternal and child health and general hygiene
and thereby reducing mortality rates. Under the programme, several village
health workers have been trained. These village health workers will create
awareness among the rural womenfolk and will market products from partnering
companies which address health and hygiene issues. In the year ahead, the
Company plans to focus on market activation through these convergence
platforms, awareness creation through village level contacts by village health
workers and making the products available at the villages. These initiatives
will progressively transform the e-Choupal network into an all-weather venture
– relatively de-risked from regulatory uncertainties and market volatility –
even as it continues to provide strategic sourcing support to the Company’s
Foods business as well as to serve as an efficient intervention model for rural
development.
Fixed Assets
- Railway
Sidings
- Plant and
Machinery
- Computer,
servers and other I.T equipments
- Furniture and
Fittings
- Motor
Vehicles
- Leasehold
properties
- Capitalized
software
PRESS RELEASE
Mint: 18.07.2011
New Delhi, July 18 -- Aguest at one of ITC Limited's luxury hotels once
wrote in a feedback form that drinking water should be served in recyclable
glass bottles and not in the usual ones made of synthetic polymers, most of
which cannot be reused in any form.
Coming from her concern for the environment, the feedback ranks among
the most striking suggestions ever received from a guest, says Nakul Anand,
executive director, ITC, who looks after the company's fast expanding hotel
business.
It led ITC's management to figure out ways of producing drinking water
on its own, even if on a small scale for distribution in glass bottles only in
the firm's hotels, he says. In time, the company will decide whether to pursue
a greater business opportunity in packaged drinking water, but it may not be
long before plastic bottles disappear from ITC's hotels.
Five years ago, Anand launched what he fondly calls the six-sigma route
to perfection in ITC's hotels, and from it emerged the concept of responsible
luxury, which in some ways now sets standards "even for car makers".
Discerning hoteliers have always viewed this business as an art, says Anand.
"But customers were changing, and the challenge was to marry art with
science." In an interview, Anand recalls the journey of the past five
years that resulted in all of ITC's eight luxury hotels receiving the
recognitions from across the world for setting new standards in reducing carbon
footprint. Edited excerpts:
I am sure these initiatives-such as 50% reduction in water consumption;
own power generation from renewable sources; almost 100% recycling of solid
waste-cost a lot of money. How do these translate into return for shareholders?
Before introducing these eco-easy service designs, the first question
that we asked ourselves was whether we were compromising on luxury. At the end
of the day, hoteliers sell sleep. The first task was to make sure that we
didn't reduce the pressure of water in our showers to cut down on water
consumption.
Five years ago, when we adopted the six-sigma approach to improving
operating efficiency, we decided to measure everything-from the lux level of
lights in our rooms to the whiteness of our bed linen; from the pressure in our
showers to the quality of air in our rooms. What can be measured can be managed
and perfected. See, the back end of every hotel is pure technology; so
everything is measurable. We took a close look at every service design,
examining everything from power cables to air-conditioning systems to paints
and glass used in our rooms. Because we took that approach, we now offer air as
fresh as that in the lower
Yes, of course, these things come at a cost-we spend 15-25% more on
building our hotels. But we don't mind that because even if these initiatives
didn't immediately translate into higher revenues, we know they would pay back
on their own by way of long-term cost reduction. For instance, we generate 29.5
megawatt of wind power for captive consumption. Wind and solar combined, we
generate on our own about 25% of the electricity we consume in our premium
hotels. In the properties that we are currently constructing, we will be
generating 100% of electricity needs from renewable sources such as wind and
solar. These will lead to substantial cost savings.
In my view, these are game changers in the industry that guests, too,
are beginning to recognize. Our responsible luxury campaign is catching on, and
we are beginning to see an increased level of awareness among consumers. By
blending elements of nature and by adopting distinct green practices, ITC's
luxury hotels have created a unique value proposition for discerning guests.
We are a company that has always been driven by long-term opportunities.
Consider this: according to the latest available figures, only 5.58 million
foreign tourists come to
Our belief is that it will give us the confidence to expand so
aggressively. Currently, there are some 38-40 hotels on the drawing board. This
includes six-seven luxury properties currently under construction. We are
expanding across all segments in which we are present, and even in cities where
we already have hotels. For instance, in Kolkata, we are building a second
hotel. In
Whereas earlier, you'd have only one hotel in a city, now you need to
have more because these cities have expanded and demand for hotel rooms has
increased manifold over the years.
What are the key challenges to growth?
In my view, land is the biggest constraint at this moment. Our hotel
business has benefited immensely from ITC's land bank, and we are continuing to
expand in cities where we have land, for instance, in
The second biggest challenge is manpower. The tourism industry in
If you are hobbled by the lack of land and manpower in
We are driven by long-term opportunities. If there is an opportunity we
will seize it, but it doesn't make sense to pursue growth outside
Mint: 17.07.2011
New Delhi, July 17 -- A guest at one of ITC Limited's luxury hotels once
wrote in a feedback form that drinking water should be served in recyclable
glass bottles and not in the usual ones made of synthetic polymers, most of
which cannot be reused in any form.
Coming from her concern for the environment, the feedback ranks among
the most striking suggestions ever received from a guest, says Nakul Anand,
executive director, ITC, who looks after the company's fast expanding hotel
business.
It led ITC's management to figure out ways of producing drinking water
on its own, even if on a small scale for distribution in glass bottles only in
the firm's hotels, he says. In time, the company will decide whether to pursue
a greater business opportunity in packaged drinking water, but it may not be
long before plastic bottles disappear from ITC's hotels.
Five years ago, Anand launched what he fondly calls the six-sigma route
to perfection in ITC's hotels, and from it emerged the concept of responsible
luxury, which in some ways now sets standards "even for car makers".
Discerning hoteliers have always viewed this business as an art, says Anand.
"But customers were changing, and the challenge was to marry art with
science." In an interview, Anand recalls the journey of the past five
years that resulted in all of ITC's eight luxury hotels receiving the
recognitions from across the world for setting new standards in reducing carbon
footprint. Edited excerpts:
I am sure these initiatives-such as 50% reduction in water consumption;
own power generation from renewable sources; almost 100% recycling of solid
waste-cost a lot of money. How do these translate into return for shareholders?
Before introducing these eco-easy service designs, the first question
that we asked ourselves was whether we were compromising on luxury. At the end
of the day, hoteliers sell sleep. The first task was to make sure that we
didn't reduce the pressure of water in our showers to cut down on water
consumption.
Five years ago, when we adopted the six-sigma approach to improving
operating efficiency, we decided to measure everything-from the lux level of
lights in our rooms to the whiteness of our bed linen; from the pressure in our
showers to the quality of air in our rooms. What can be measured can be managed
and perfected. See, the back end of every hotel is pure technology; so
everything is measurable. We took a close look at every service design,
examining everything from power cables to air-conditioning systems to paints
and glass used in our rooms. Because we took that approach, we now offer air as
fresh as that in the lower
Yes, of course, these things come at a cost-we spend 15-25% more on
building our hotels. But we don't mind that because even if these initiatives didn't
immediately translate into higher revenues, we know they would pay back on
their own by way of long-term cost reduction. For instance, we generate 29.5
megawatt of wind power for captive consumption. Wind and solar combined, we
generate on our own about 25% of the electricity we consume in our premium
hotels. In the properties that we are currently constructing, we will be
generating 100% of electricity needs from renewable sources such as wind and
solar. These will lead to substantial cost savings.
In my view, these are game changers in the industry that guests, too,
are beginning to recognize. Our responsible luxury campaign is catching on, and
we are beginning to see an increased level of awareness among consumers. By
blending elements of nature and by adopting distinct green practices, ITC's
luxury hotels have created a unique value proposition for discerning guests.
We are a company that has always been driven by long-term opportunities.
Consider this: according to the latest available figures, only 5.58 million
foreign tourists come to
Our belief is that it will give us the confidence to expand so
aggressively. Currently, there are some 38-40 hotels on the drawing board. This
includes six-seven luxury properties currently under construction. We are
expanding across all segments in which we are present, and even in cities where
we already have hotels. For instance, in Kolkata, we are building a second
hotel. In
Whereas earlier, you'd have only one hotel in a city, now you need to
have more because these cities have expanded and demand for hotel rooms has
increased manifold over the years.
What are the key challenges to growth?
In my view, land is the biggest constraint at this moment. Our hotel
business has benefited immensely from ITC's land bank, and we are continuing to
expand in cities where we have land, for instance, in
The second biggest challenge is manpower. The tourism industry in
If you are hobbled by the lack of land and manpower in
We are driven by long-term opportunities. If there is an opportunity we
will seize it, but it doesn't make sense to pursue growth outside
ASSOCIATED PRESS
12.07.2011
SPAR Group, Inc. (NASDAQ: SGRP) today announced the signing of a joint
venture agreement with Krognos Integrated Marketing Services Private Limited to
expand its operations in
"SPAR Group is extremely pleased to partner with the Management of
Krognos in forming this New Venture allowing SPAR to enhance its merchandising
service offerings within the rapidly growing
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and
marketing services company that provides a broad array of services worldwide to
help companies improve their sales, operating efficiency and profits at retail
locations. SPAR Group provides product services, project services, in-store
events, radio frequency identification ("RFID"), technology services
and marketing research covering all product and trade classifications,
including mass market, drug store, convenience store and grocery chains.
Product services include product additions; placement, reordering,
replenishment, labeling, evaluation and deletions, and project services include
seasonal and special product promotions, product recalls and complete setups of
departments and stores. The company operates throughout the
Forward Looking Statements Certain statements in this news release and
such conference call are forward-looking, including (without limitation)
growing revenues and profits through organic growth and acquisitions,
attracting new business that will increase SPAR Group's revenues, continuing to
maintain costs and consummating any transactions. Undue reliance should not be
placed on such forward-looking statements because the matters they describe are
subject to known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond the company's control. The company's actual
results, performance and trends could differ materially from those indicated or
implied by such statements as a result of various factors, including (without
limitation) the continued strengthening of SPAR Group's selling and marketing functions,
continued customer satisfaction and contract renewal, new product development,
continued availability of capable dedicated
personnel, continued cost management, the success of its international
efforts, success and availability of acquisitions, availability of financing
and other factors, as well as by factors applicable to most companies such as
general economic, competitive and other business and civil conditions.
Information regarding certain of those and other risk factors and cautionary
statements that could affect future results, performance or trends are
discussed in SPAR Group's most recent annual report on Form 10-K, quarterly
reports on Form 10-Q, and other filings made with the Securities and Exchange
Commission from time to time. All of the company's forward-looking statements
are expressly qualified by all such risk factors and other cautionary
statements.
Guwahati, July 10 -- The experience of agricultural development in
Contract farming is agricultural production carried out according to an
agreement between a buyer and farmer, which establishes conditions for
production and marketing of a farm product or products. Under contract farming
the farmer agrees to provide established quantities of a specific agricultural
product, meeting the quality standards and delivery schedule set by the
purchaser. In turn, the buyer commits to purchase the product, often at a
pre-determined price. In some cases the buyer also commits to support
production through, for example, supplying farm inputs, land preparation,
providing technical advice and arranging transport of produce to the buyer's
premises. Another term often used to refer to contract farming operations is
'out-grower schemes', whereby farmers are linked with a large farm or
processing plant which supports production planning, input supply, extension
advice and transport. Contract farming is used for a wide variety of
agricultural products. This is widely used, not only for tree and cash crops
but also, increasingly for fruits and vegetables, poultry, pigs, dairy products
and even prawn and fish.
PepsiCo was the first company in
Contract farming in
AS PER WEBSITE
PROFILE
Subject is one of India's foremost private sector companies with a
market capitalisation of nearly US $ 22 billion and a turnover of over US $ 6
billion.* Subject is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes magazine, among India's
Most Respected Companies by Business World and among India's Most Valuable
Companies by Business Today. Subject ranks among
Subject has a diversified presence in Cigarettes, Hotels, Paperboards
and Specialty Papers, Packaging, Agri-Business, Packaged Foods and
Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products. While Subject is an outstanding
market leader in its traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods and Confectionery, Branded Apparel,
Personal Care and Stationery.
As one of
Subject's diversified status originates from its corporate strategy aimed at
creating multiple drivers of growth anchored on its time-tested core
competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service skills
in hoteliering. Over time, the strategic forays into new businesses are
expected to garner a significant share of these emerging high-growth markets in
Subject's Agri-Business is one of
Subject's wholly owned Information Technology subsidiary, ITC Infotech India
Limited, provides IT services and solutions to leading global customers. ITC
Infotech has carved a niche for itself by addressing customer challenges
through innovative IT solutions.
Subject's production facilities and hotels have won numerous national
and international awards for quality, productivity, safety and environment
management systems. Subject was the first company in
Subject employs over 24,000 people at more than 60 locations across
Milestones
1996
Flat 10 packs launched
1997
10s hinged-lid packs introduced for regular size filters
1999
New factory at
2000
Brownfield project at
Entry into Lifestyle Retailing business with first store in
2001
Regular size filters offered in 5s packs
‘Wills Lifestyle’ chain rapidly scaled upto 29 stores
Engry into the foods Business with lauch of ‘Kitchens of India’.
‘Expressions valued Customer’ programme started
2002
Beveled edge packs introduced
‘mint-o’ trademark acquired relaunched in lemon and mint flavours,
‘Candyman’ added to confectionery rang, ‘ Aashirvaad’ atta rolled out
Chain expanded to 48 stores; Master Design Facility established; ‘Wills
Classic’ formal wear launched; ‘John Players’ introduced in the mid-priced
popular segment.
Entry into Greeting Cards business
‘Expressions Paperkraft’ premium paper products launched
Entry into marketing of safety matches
2003
‘
Integrated Group Research and Development Centre established
‘Aashirvaad’ Salt introduced; ‘Candyman’ range expanded to deposited candies
and eclaris; ‘Sunfeast’ biscuits lauched; Aashirvaad Ready Meals’ offered;
‘mint-o’ in lemon mint flavour.
‘Wills Clublife’ evening wear launched.
‘Expressions Classmate’ mass market notebooks for schools and colleges
introduced.
Entry into marketing of Agarbatties
2004
Long – Size filters offered in wave packs
‘Kitchens of
‘Mangaldeep’ brand of Agarbatties added to portfolio.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.62.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.