MIRA
INFORM REPORT
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Report Date : |
23.05.2012 |
IDENTIFICATION DETAILS
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Name : |
ITC LIMITED (w.e.f 1974) ITC MARATHA - DIVISION OF ITC LIMITED |
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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.
INFORMATION DECLINED BY
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Name : |
Mr. Anurag |
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Designation : |
H.R. |
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Contact No.: |
91-22-28317820 |
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Date : |
22.05.2012 |
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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Theybsite : |
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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 Totheyrs, 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 Totheyrs, 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 / /222126/142/146 Fax No.: 91-6344-222443/222839 Paper and
Paperboard Mills Bollaram v
Anrich Industrial Estate,
Village Bollarum, District Medak-502325, 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: 91-79-26402303 v
Shop No. 231-232, Iscon Mega
Mall, Near Iscon Temple, Sarkhej, National Highway, Ahmedabad 380 054,
Gujarat, India Tel No: 91-79-40026308 v
6, Tel No: 91-80-41123662 v
Binnamangala, First Stage, Tel No: 91-80-41715665 v Shop No. 39,
Ground Floor, Total Mall, Kaikondarahalli Village, Sarjapur Road, Bangalore-
560 037, Tel No:
91-80-41106326 Bhubaneshwar v 794, Shaheed Nagar, Janpath, Bhubaneshwar
751007, Tel No:
91-674-2544386 v SCO 14, Sector
17E, Tel No:
91-172-6549856 Chennai v 19, Quaiser
Totheyr, Tel No: 91-44-28332515 v Shop No. 6,
Chennai Citi Centre, 10 and 11, Dr. Radhakrishna Salai, Chennai 600 004,
Tamil Nadu, Tel No:
91-44-43536214 Dehradun v 56, Tel No: 91-135-2743444 Ernakulam v 40/7182, Tel No:
91-484-3918800 Gurgaon v Shop No. 17, 18,
19 and 20, The Metropolitan, Mehrauli - Tel No:
91-124-4104444 v Shop No. G 64
and 65, Ambi Mall, Ambience Island, National Highway No. 8, Gurgaon 122 001,
Haryana, India Tel No:
91-124-4665492 v Shop No. G 4 and
5, G. S. Chambers, Tel No:
040-66364700 Jaipur v Gulab Niwas, Tel No:
91-141-2360684 v 5 and 6
Residency Road, Tel No:
91-191-2573153 v Rave 3, Tel No:
91-512-3042114 Kolkata v 19B, Shakespeare
Sarani, Kolkata 700 071, West Tel No: 91-33-22826102 v C-008 and C-010,
City Centre, Block – DC, Sector 1, Tel
No:91-33-23589137 v Shop No. S026,
South City Mall, 375, Tel No:
91-33-40072208 v B-1, First
Floor, Fun Republic Mall, Gomti Nagar,
Tel No:
91-522-3914398 v Shop No. 25,
Sahara Ganj, Hazrat Ganj, Tel No:
91-522-4008401 v 85/4A, The Mall,
Tel No:
91-161-2441423 v Shop No. 44-45,
50-51, The Westend Mall, Tel
No:91-161-4644436 Mumbai v Shop No. 2, 3
and 32, Ruki Mahal Co-operative Housing, Society Limited, Colaba, Mumbai 400
005, Tel No:
91-22-22818261 v Plot No. 386, Durga
Chambers, Linking Road, Khar (West), Mumbai 400 052, Maharashtra, India Tel No:
91-22-26465503 v F-8 and 9,
Inorbit Mall, Tel No:
91-22-66430498 v Unit No.10, Tel No:
9122-66490407 v Unit No. 4 and
5, Skyzone Level 1, Block 2, Phoenix Mills Compound, 462 Senapati Bapat Marg,
Lotheyr Parel, Mumbai 400 013, Maharashtra,
India Tel No:
91-22-40040604 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:
91-11-41645555 v 10208, Tel No:
91-11-28750433 v E-2, Tel No:
91-11-23417960 v M-12, Greater
Kailash-I, Tel No:
91-11-29232555 v Shop No. GF 10
and 11, TDI Mall, Plot No. 11, Shivaji Place, Rajouri Garden, New Delhi 110
027, India Tel No:
011-25105150 v Select Citywalk,
G 3 and 4, Ground Floor, Plot No. A3, District Centre Saket, Tel No:
91-11-42658267 Noida v Shop No. G 32, Tel No: 91-120-2458992 Panjim v 3293, Tel No:
0832-6641222 Pune v 1204/22, Shivaji
Nagar, Tel No:
91-20-66019402 v 11, Tel No:
91-20-26121222 v Unit No. 12,
City Mall 36, Tel No:
91-711-6454545 v GEL
Church-Commercial Complex, Tel No:
91-651-2330909 Siliguri v Shop No. 20 and
21, Lower Ground Floor, Cosmos Mall, Sevoke Road, Siliguri 734 001, West
Bengal, India Tel No:
91-353-6453601 v UG - 2, Manav
Mandir, Athawa Lines, Tel No:
91-261-2257283 v Shop No. 312 and
313, Second Floor, Iscon Prozone Mall, Tel No:
91-261-6454599 Thiruvananthapuram v Shop No. 1, Tel No:
91-471-3012008 Vadodara v Shop No. 42-44,
Ground Floor, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara 390 005,
Gujarat, India Tel No:
91-265-2325764 v Shop No. 43-44,
Basement, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara 390 005,
Gujarat, India Tel No:
91-265-2321594 v Shop No. 1,
Rednam Manor, Dwarka Nagar, Near Tel No:
91-891-2702881 Club Stores v Gurgaon v Classic Golf
Resort Kolkata v Tollygunge Club v Royal John Players Stores* v 48, Tel No:
91-80-51185719 v G-2, Sigma
Arcade, Marathalli, Tel No:
91-80-41264344 v 8th Cross,
Malleswaram, Tel No:
91-80-23561632 v Shop No. 1,
Total Mall, Tel No: 91-80-41400080 Chennai v Shop No. 20,
Kasi Arcade, 116, Sir Thygaraya Road, T. Nagar, Chennai 600 017, Tamil Nadu,
India Tel No:
91-44-28150297 v No. 68 (Old No.
89), Tel No:
91-44-43502651 v Shop No. 129A, Tel No:
91-44-52652449 v Shop No. 145, AA
Block, Tel No:
91-44-42611257 v Shop No. 63, 1st
Tel No:
044-42035939 v 3-6-198,
Sreemukh Complex, Street No. 11, Himmayath Nagar, Tel No:
91-40-66784479 v Shop No. 16 and
17, Upper Ground Floor, Sonali Mall, Tel No: 91-40-66135345 v Shop No. 211,
Second Floor, City Centre, Banjara Hills, Tel No:
91-40-27810092 v Shop No.
16-11-740/5/A/9 and 10, Opp. Kala Niketan, Dilsukhnagar, Tel No:
91-40-66562102 v 6-3-882/2 to 24,
Tel No:
91-40-40033339 Kolkata v Tel No:
91-33-22288035 v 25B, Tel No:
91-33-32963064 v 14, The
Metropolis, Tel No:
91-33-24367039 v 6/1, Tel No:
91-33-22497887 v 200/2C, Tel No: 91-33-24664928 v 8, Tel No:
91-33-24989752 Mumbai / Thane v Gala No. 4,
First Floor, Ajanta Industrial Estate, Off Tel No:
91-22-28656154 v 20 Cusrow Bagh,
Colaba, Mumbai 400 005, Tel No: 022-22876461 v Nakshatra Mall,
Unit No. 21, 22, 23 and 24, Tel No:
91-22-24360794 v Shop No. 2 and
2A, First Floor, Tel No:
91-22-25290004 v Shop No. 1, 2, 3
and 4, Nadiadwala Chawl, SV Road, Opp. Paaneri, Andheri (East), Mumbai 400
058, Maharashtra, India Tel No:
91-22-26203660 v Shop No.6-A, Tel No: 91-251-2447787 v Shop No. F38A,
1st Floor, Eternity Mall, Near Eastern Expressway Tin Hath Naka, Thane (West)
400 601, Maharashtra, Tel No:
022-25830838 v New Tel No:
91-251-2300446 v Shop No. 1,
Martuvaibhav Naughar, Vasai West, District Thane 401 202, Tel No:
91-250-2335477 v Shop No. 34/35,
City Centre Mall, Sector No. 19D, Palm Beech Road, Navi Mumbai, Vashi 400
703, Tel No:
91-22-27896912 v D-35, Lajpat
Nagar, Central Market – II, Tel No:
91-11-46573240 v Shop No. 7/2, West
Patel Nagar, Tel No:
91-11-25889043 v UG – 05, TDI
Mall, Plot No. 11, Shivaji Place, Rajouri Garden, New Delhi 110 027, India Tel No:
91-11-25160440 v F-16, District
Centre, Tel No:
91-11-25618031 v P-15, Pandav
Nagar, Mayur Vihar, Tel No:
91-11-22756180 v 13/29-30, Tel No: 91-11-25810440 v Shop No. 188,
Sarojini Nagar Market, New Tel No: 91-11-24676188 v F-14 / 17 Model
Town, Phase II, Tel No: 91-11-47062048 v B-Block, Shop
No. 2, Unitech Mall, Rohini, Sector 11, Tel No: 91-11-27572652 v 16 Regal
Building, Tel No: 91-11-43565499 v Block C, Opp.
Odeon Cinema, Tel No: 91-11- 43575253 v Shop No. FF 101
and 102, Plot No. 12, Laxmi Nagar, District Centre, New Tel No: 91-11-22446327 v UB-42 / 43,
Jawahar Nagar, Kamla Nagar, Tel No: 91-11-41530100 v Shop No. 1257A,
Main Market, Rani Bagh, Tel No:
91-11-27022577 v G-8, Ground
Floor, Cross River Mall, CBD, Shahadra, Tel No: 91-11-22308440 v G-54, Laxmi
Nagar, Vikas Marg, Tel No: 91-11-22542495 v FF-33, First
Floor, MGF Mall, The Metropolitan, Mehrauli - Tel No: 91-124-4085706 v Shop No. 106,
First Floor, MGF Mega City Mall, Mehrauli - Gurgaon Road, Gurgaon 122 002,
Haryana, Tel No: 91-124-4203900 v UG-10, Omax
Mall, Tel No: 91-124-4253687 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, Haryana, Tel No: 91-120-2582143 v 205, Second
Floor, Tel No: 91-120-4232952 v Shop No. 4, 5
and 6, Arjun Plaza, Jagat Farm, Gamma
– 1,Greater Noida 201 301, Uttar Pradesh, Tel No:
91-120-2322563 v Shop No. F-6,
First Floor, Tel No: 91-129-5014077 v ‘SRS BTL’, Tel No: 91-129-4090100 v UGF-A103,
Manhattan Mall, Sector 20-A, Tel No: 91-129-6462032 v Shop No. 55,
First Floor, Shipra Mall, Plot No.9, Vaibhav Khand, Ghaziabad 201 012,
Haryana, Tel No: 91-120-3023085 v Shop No. 21 and
22, Pacific Mall, Plot No.1, Site-IV, Sahibabad Industrial Area, Tel No: 91-120-3053322 v 24, Gyan Deep
Building, Chaudhary More, Tel No: 91-120-4112356 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, TheylcomeHotel 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 TheylcomHeritage
Umed, Port Blair v Vadodara v TheylcomHotel
Vadodara, v Hotels
Under Operating Services v TheylcomHotel
Rama International, R-3, Chikalthana, Chennai v v ITC Kakatiya*,
6-3-1187, Begumpet, v |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Yogesh
Chander Deveshwar |
|
Designation : |
Chairman |
|
Other
Directorship: |
·
Surya Nepal Private
Limited ·
HT Media Limited ·
ITC Infotech ·
ITC Infotech
Limited, ·
ITC Infotech USA,
Inc. |
|
|
|
|
Name : |
Mr. Nakul Anand |
|
Designation : |
Executive Director |
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Other
Directorship: |
|
|
|
|
|
Name : |
Mr. Pradeep Vasant Dhobale |
|
Designation : |
Executive Director |
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Other
Directorship: |
|
|
|
|
|
Name : |
Mr. Kurush Noshir Grant |
|
Designation : |
Executive Director |
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Other
Directorship: |
|
|
|
|
|
Name : |
Mr. Anil Baijal |
|
Designation : |
Non Executive Director |
|
Other
Directorship: |
·
International Travel House Limited ·
Agre Developers Limited ·
DLF Pramerica Life Insurance Company
Limited ·
IDFC PPP Trusteeship Company Limited ·
MMTC Limited |
|
|
|
|
Name : |
Mr. Shilabhadra Banerjee |
|
Designation : |
Non Executive Director |
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Other
Directorship: |
|
|
|
|
|
Name : |
Mr. |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Serajul Haq Khan |
|
Designation : |
Non Executive Director |
|
Other
Directorship: |
·
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 |
|
|
|
|
Name : |
Mr. Dinesh Kumar Mehrotra |
|
Designation : |
Non-Executive Directors |
|
Other
Directorship: |
·
LICHFL Care Homes Limited ·
LIC Housing Finance Limited ·
ACC Limited ·
Infrastructure Leasing and Financial Services Limited ·
LIC (Lanka) Limited |
|
|
|
|
Name : |
Mr. Sunil Behari Mathur |
|
Designation : |
Non-Executive Directors |
|
Other
Directorship: |
|
|
|
|
|
Name : |
Mr. Hugo Geoffrey Powell |
|
Designation : |
Non Executive Director |
|
Other
Directorship: |
·
Reynolds American Inc. |
|
|
|
|
Name : |
Mr. Pillappakkam
Bahukutumbi Ramanujam |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Basudeb Sen |
|
Designation : |
Non-Executive Director |
|
Other
Directorship: |
·
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 |
|
|
|
|
Name : |
Mr. Balakrishnan
Vijayaraghavan |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name: |
Mr. Anthony Ruys |
|
Designation: |
Non-Executive Director |
|
Other
Directorship: |
· Schiphol Group NV, NL ·
British American Tobacco ·
·
Janivo |
|
|
|
|
Name: |
Mr. Krishnamoorthy Vaidyanath |
|
Designation: |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. B B Chatterjee |
|
Designation : |
Secretary |
|
|
|
|
Name : |
R. Tandon |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Anurag |
|
Designation : |
H.R. |
|
|
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|
Board Committee |
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|
Audit Committee : |
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Compensation
Committee : |
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|
|
|
|
Nominations
Committee : |
|
|
|
|
|
Investor Services
Committee : |
|
|
|
|
|
Sustainability
Committee : |
|
|
|
|
|
Name : |
Mr. S. Sivakumar |
|
Designation : |
Chief Executive |
|
|
|
|
Name : |
Mr. C.V. Sarma |
|
Designation : |
Head of Finance |
|
|
|
|
Name : |
Mr. K.T. Prasad |
|
Designation : |
Vice President – HRD |
|
|
|
|
Name : |
Mr. V.V.
Rajasekhar |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. Ninad Bhosle |
|
Designation : |
Chief Trader - Coffee and Spices |
|
|
|
|
Name : |
Mr. Rajnikant Rai |
|
Designation : |
Vice President – Operations |
|
|
|
|
Name : |
Mr. Rahul Poddar |
|
Designation : |
Trader - Edible Nuts and Spices |
|
|
|
|
Name : |
Mr. Ninad Bhosle |
|
Designation : |
Chief Trader - Coffee and Spices |
|
|
|
|
Name : |
Mr. S. Biswas |
|
Designation : |
Chief Manager - Aqua |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,115,464,037 |
14.31 |
|
|
2,590,961 |
0.03 |
|
|
1,548,932,763 |
19.95 |
|
|
1360,250,786 |
17.40 |
|
|
4,026,143,607 |
51.65 |
|
|
|
|
|
|
450,351,701 |
5.76 |
|
|
|
|
|
|
703,189,210 |
8.99 |
|
|
134,724,828 |
1.72 |
|
|
2,467,722,193 |
31.56 |
|
|
2,413,224,203 |
30.87 |
|
|
468,881 |
0.01 |
|
|
3,853,144 |
0.05 |
|
|
8,149,345 |
0.10 |
|
|
42,026,620 |
0.54 |
|
|
3,755,987,932 |
48.04 |
|
Total Public shareholding (B) |
7,794,273,319 |
99.69 |
|
Total (A)+(B) |
7,794,273319 |
99.69 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
-- |
-- |
|
|
24,150,981 |
0.31 |
|
|
24,150,981 |
0.31 |
|
Total (A)+(B)+(C) |
7,818,424,300 |
100.00 |
(1) Indian
Mutual Funds / UTI
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionShareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital |
|
1 |
Tobacco Manufacturers India Limited |
198564880 |
25.40 |
25.40 |
|
2 |
Life Insurance Corporation of |
938740442 |
12.01 |
12.01 |
|
3 |
Specified Undertaking Of the Unit Trust Of |
896722590 |
11.47 |
11.47 |
|
4 |
Myddleton Investment Company Ltd |
324207960 |
4.15 |
4.15 |
|
5 |
New India Assurance Company Ltd |
164279072 |
2.10 |
2.10 |
|
6 |
General Insurance Corporation of |
144870157 |
1.85 |
1.85 |
|
7 |
Oriental Insurance Company Ltd |
129167513 |
1.65 |
1.65 |
|
8 |
National Insurance Company Ltd |
125682220 |
1.61 |
1.61 |
|
9 |
Rothmans International Enterprises Ltd |
103303260 |
1.32 |
1.32 |
|
10 |
ICICI Prudential Life Insurance Company Ltd |
90272818 |
1.15 |
1.15 |
|
|
Total |
4902810912 |
62.71 |
62.71 |
Shareholding
belonging to the category "Public" and holding more than 5% of the Total
No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital |
|
1 |
Tobacco Manufacturers India Ltd |
1985564880 |
25.40 |
25.40 |
|
2 |
Myddleton Investment Co. Ltd |
324207960 |
4.15 |
4.15 |
|
3 |
Rothmas International Enterprises Ltd |
103303260 |
1.32 |
1.32 |
|
4 |
Life Insurance Corporation of |
938740442 |
12.01 |
12.01 |
|
5 |
Specified Undertaking Of the Unit Trust Of |
896722590 |
11.47 |
11.47 |
|
|
Total |
4248539132 |
54.34 |
54.34 |
Details of Depository
Receipts (DRs)
|
Sl. No. |
Type of Outstanding DR (ADRs, GDRs, SDRs, etc.) |
No. of Outstanding DRs |
No. of Shares Underlying |
Shares Underlying Outstanding DRs as % of Total No. of Shares |
|
1 |
GDRS |
24150981 |
24,150,981 |
0.31 |
|
|
Total |
24150981 |
24150981 |
0.31 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
||||||||
|
|
|
||||||||
|
Products / Services : |
|
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 Flexible |
Tonne |
NA |
107852 |
72814 |
|
Un manufactured
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) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
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 |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
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 29.07.2011
Authorised Capital: Rs.10000.000 Millions
Issued, Subscribed and Paid Up Capital: Rs.7818.424 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Shares |
Rs.1/- each |
Rs.10000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7738144280 |
Equity Shares |
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 Subject and Ansal Hotels Limited to
the Shareholders of erstwhile Subject 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 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
58601.800 |
60852.200 |
62478.400 |
|
Total Expenditure |
38840.900 |
38662.300 |
38667.400 |
|
PBIDT |
19760.900 |
22189.900 |
23811.000 |
|
Other Income |
1438.400 |
1808.000 |
2851.200 |
|
Operating Profit |
21199.300 |
23997.900 |
26662.200 |
|
Interest |
164.500 |
141.800 |
156.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
21034.800 |
23856.100 |
26505.500 |
|
Depreciations |
1664.500 |
1701.300 |
1738.900 |
|
Profit Before Tax |
19370.300 |
22154.800 |
24766.600 |
|
Tax |
6043.100 |
7011.700 |
7756.800 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
13327.200 |
15143.100 |
17009.800 |
|
Extra Ordinary Item |
0.000 |
0.000 |
0.000 |
|
Prior Period Items |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
13327.200 |
15143.100 |
17009.800 |
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
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
No |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
DETAILS OF SUNDRY CREDITORS
(Rs.
In Millions)
|
Particular |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
Total outstanding dues of micro enterprises and small enterprises |
46.000 |
39.500 |
3.900 |
|
Total outstanding dues of creditors other than micro enterprises and small enterprises * |
43775.300 |
34409.600 |
29233.200 |
|
Total |
43821.300 |
34449.100 |
29237.100 |
* Includes amounts due to Subsidiary Companies Rs.579.600 Millions (2010 – Rs.546.200 Millions)
History
Subject a 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 theyre 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 welcome group 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 theyar 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 Subject
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 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 theyather
forecasts, output price discovery, direct communication tools and distribution
of unadulterated agri inputs. The footprint of this network is theyll
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 Rs.3060439.000 Millions. Net Turnover at
Rs.2116758.000 Millions 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 Rs.726816.000
Millions while Post-tax profits at Rs.498761.000 Millions registered a growth
of 22.8%. Earnings Per Share for the year stands at Rs.6.49 previous year -
adjusted for Bonus Issue – Rs.5.34). Cash flows from Operations stood at Rs,
746000.000 Millions compared to Rs.663200.000 Millions 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
Last year, in
celebration of the Company completing a 100 years, the Directors had
recommended and you had approved a Special Centenary Dividend of Rs.5.50 per
share (adjusted for bonus issue – Rs.2.75 per share) in addition to a Dividend
of Rs.4.50 per share (adjusted for bonus issue – Rs.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 recommend a Special Dividend of
Rs.1.65 per share (previous year – Nil) in addition to a Dividend of Rs.2.80
per share (previous year - adjusted for bonus issue – Rs.2.25) for the year
ended 31.03.2011. Total cash outflow in this regard will be Rs.400209.000
Millions (previous year Rs.445233.000 Millions) including Dividend Distribution
Tax of Rs.55862.000 Millions (previous year Rs.63415.000 Millions). The Board
further recommends a transfer to General Reserve of Rs.49876.000 Millions
(previous year Rs.40610.000 Millions). Consequently, the Board recommends
leaving an unappropriated balance in the Profit and Loss Account of
Rs.54867.000 Millions (previous year Rs.6131.000 Millions).
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 theyll 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 Rs.13000000.000 Millions 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 Rs.40000000.000 Millions 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 theyll 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 Rs.520.000 Millions 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
optimization of working capital deployment. A wide range of theyll
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 theyre 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 theyre 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’ shotheyr 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 theyll received in launch
markets. It is estimated that ‘Vivel’ and ‘Superia’ soaps and shampoos have
together reached over 99.00 Millions 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 theyar.
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
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 modernizing 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
A leader in the premium hospitality segment, Subject have had the
privilege of hosting world leaders, Heads of State and discerning guests from
across the world and within.
As one of
First to introduce branded cuisine, its restaurants
Subject has strategically customized its hotels and
appropriately categorized them to fulfill the service and budgetary needs of
travellers. With its exclusive strategic tie up with Starwood for its top of
the line premium brand the 'Luxury Collection', the group is strengthening
its international marketing stance. Subject was also instrumental in
bringing the 'Sheraton' brand to
ITC Hotels's properties are classified under four distinct brands:
ITC Hotels Luxury Collection
In 2007, Subject entered a new phase in its
collaboration with Starwood Hotels and Resorts. Subject now has an
exclusive tie-up with Starwood in bringing its premium brand, the 'Luxury
Collection', to
Welcom Hotels offer five-star hospitality for the discerning business and leisure traveller. Currently there are three hotels under this brand namely, Welcom Hotel Rama International Aurangabad, Welcom Hotel Vadodara and Welcom Hotel Grand Bay Vishakhapatnam. Two other Welcom Hotel Sheratons - Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer warm, comforting services to the global traveller and a chance to connect.
Fortune Hotels operates mid-market to upscale
properties in the first-class, full-service business hotel segment all over
Welcom Heritage brings together a chain of palaces,
forts, havelis and resorts that offer a unique experience. Welcom Heritage
endeavours to preserve ancient royal homes and the historical Indian grandeur
and opulence for the future Indian generations. Welcom Heritage provides a fine
range of hotel services inside these architectural legacies present in
Rajasthan, Madhya Pradesh, Uttarakhand,
Welcom Environ is ITC Hotels' vision for a green world. It's a multi-faceted programme started in order to propagate environmental causes in the cities where ITC Hotels' hotels are located. With the guiding principle of 'Reduce, Reuse and Recycle', each hotel has its own programme, encompassing local participation, creating awareness among employees and internal conservation.
ITC Green Centre
The ITC Green Centre in Gurgaon, the headquarters of ITC's Hotels Business is the physical expression of this commitment to sustainability - Ecological, Social and Economic. This building is one of the world's largest green buildings with space of over 170,000 square feet and the first non-commercial complex in the country to be awarded the United States Green Building Council-Leadership in Energy and Environmental Design's (USGBC-LEED) platinum rating - the highest in the order.
At ITC Green Centre, energy consumption has been reduced significantly through design integration. The building has been designed to maximize the effect of natural light during daytime, largely eliminating the need for artificial ones. At the same time, the window glass, while allowing light inside, does not allow heat. This not only keeps the office cool from inside during the day, but also decreases the load on air-conditioners. Again, there is minimum exterior lighting to limit night sky pollution. The water consumption has dropped by 40 per cent and, with a water re-cycling plant, the building is now a zero water discharge building.
Hillary Clinton's
visit to ITC Green Centre
ITC Hotels -
Empowering Differently-abled people
Subject has established that if provided with an opportunity to work and become self-sufficient, people who are differently abled can significantly contribute to the workplace, families and the community. Subject has taken a positive step in this direction by employing people who are differently abled across its hotels. Subject believes that everyone should be treated with sensitivity and empathy. The models it has created have been effective and have succeeded in sensitising other employees to the needs of those differently-abled. Keeping in mind their specific skills, over 100 differently abled have been employed in diverse functions like housekeeping, teleworking, bakery and as musicians. Special badges for the visually impaired, whistles for hearing impaired employees to use in an emergency and sign language classes for the staff to communicate with them are just a few examples of how Subject has created an atmosphere of sensitivity and caring.
Subject has also published a booklet aimed at sharing experiences with the rest of the corporate world and laying down a step-by-step guide to demystify the perceived complexities around employing persons with disabilities.
Awards
- ITC Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get the LEED Platinum rating - the highest green building certification globally.
- Subject was named the Best Premier Hotel Brand at the Galileo-Express Travel World Awards 2008 and 2006. ITC Welcom Heritage won the Best Heritage Hotel Brand award in 2006.
- ITC Maurya,
- Welcom Hotel Sheraton New Delhi won the Golden peacock Award 2008 for Environment Management. It was also conferred the '6th Annual Greentech Safety Award' in the Service Sector for the year 2006.
- The NCPEDP-Shell Helen Keller Award 2008, 2007 and 2006 to Subject for the vision, policies and practices demonstrating the belief in equal rights and gainful employment for persons with disabilities.
- The National
Tourism Award 2007-08 to ITC Grand Central, Mumbai for the best
private public enterprise providing facilities for physically challenged
guests at the hotel. Welcom Hotel,
- The PATA Gold Award 2005 in the Corporate Environmental category for the Welcom Environinitiatives of ITC Hotels.
- ITC
Sonar, Kolkata has been declared as one of the best hotels in the
worldby the Association of British Travel Agents (ABTA) in the
April 2004 issue of its magazine 'Business and Travel'.
ABTA also rated
- ITC
Maurya,
- ITC
Maurya,
- ITC
Maurya won the Golden Peacock Innovation Management Award in 2008. It
is the first hotel in
- ITC Maurya has been awarded certificate for Excellence in Food Safety Standard from Starwood Asia Pacific Hotels and Resorts in 2008.
- ITC
Maratha at Mumbai was declared to be the Best Luxury Hotel of the
Year 2002, by the Federation of Hotel and Restaurant Associations of
- ITC
Mughal at
- ITC Mughal was conferred the Greentech Silver Award for safety and Environment in 2008.
- The
prestigious 'Golden Fork Award', was also bestowed, by the International
Food and Wine Writers Guild, to
- ITC
Maurya has won Awards for the Best North Indian (DumPukht) and
the Best Whisky Bar (Golf Bar) in
- Kaya
Kalp - The Royal Spa at ITC Mughal Agra, launched in May 2008, has
been rated the 'World's Best City Spa', by Tatler. It is the only
winner from
- ITC Maurya and ITC Mughal have both won the 'Green Hotelier Awards'.
- ITC Maurya has also won the International Hotels and Restaurants Association (IH and RA) environmental award twice.
- ITC
Grand central received the Federation of Hotel and Restaurant Association
of
- Fortune Hotels won the Hospitality India Award for the year 2008 in the category of the Best First Class Hotel Chain for the second time since 2006.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED
31ST
DECEMBER, 2011
Rs. In Millions
|
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
Gross Income |
91786.200 |
88413.600 |
172828.300 |
|
Net Sales |
61954.300 |
59741.800 |
117416.500 |
|
Other Operating Income |
524.100 |
1110.400 |
1864.500 |
|
Net Income |
62478.400 |
60852.200 |
119281.000 |
|
Expenditure |
|
|
|
|
a) (Increase) I decrease in stock-in-trade and work in progress |
(733.300) |
(398.400) |
(1579.500) |
|
b) Consumption of raw materials |
19277.100 |
18560.400 |
37930.500 |
|
c) Purchase of traded goods |
3180.800 |
5029.400 |
9832.700 |
|
d) Employees cost |
2981.000 |
2650.400 |
6592.800 |
|
e) Depreciation |
1738.900 |
1701.300 |
3365.800 |
|
f) Other expenditure |
13961.800 |
12820.500 |
24553.700 |
|
Total |
40406.300 |
40363.600 |
80696.000 |
|
PROFIT FROM OPERATIONS BEFORE OTHER INCOME AND INTEREST (3-4) |
22072.100 |
20488.600 |
38585.000 |
|
OTHER INCOME |
2851.200 |
1808.000 |
3246.400 |
|
PROFIT BEFORE INTEREST (5+6) |
24923.300 |
22296.600 |
41831.400 |
|
INTEREST (Net) |
156.700 |
141.800 |
306.300 |
|
PROFIT AFTER INTEREST AND BEFORE TAX (7-8) |
24766.600 |
22154.800 |
41525.100 |
|
TAXEXPENSE |
7756.800 |
7011.700 |
13054.800 |
|
NETPROFITAFTERTAX (9-10) |
17009.800 |
15143.100 |
28470.300 |
|
PAID UP EQUITY SHARE CAPITAL |
7796.200 |
7773.000 |
7773.000 |
|
RESERVES EXCLUDING REVALUATION RESERVES |
|
|
|
|
EARNINGS PER SHARE (Rs.) |
- |
- |
- |
|
- Basic (Rs.) |
2.19 |
1.95 |
3.67 |
|
- Diluted (Rs.) |
2.16 |
1.93 |
3.62 |
|
PUBLIC SHAREHOLDING |
|
|
|
|
- NUMBER OF SHARES |
7772008729 |
7748871989 |
7748871989 |
|
- PERCENTAGE OF SHAREHOLDING |
99.69% |
99.69% |
99.69% |
|
PROMOTERS AND PROMOTER GROUP SHAREHOLDING |
Nil |
NIL |
NIL |
|
a) Pledged / Encumbered |
NA |
NA |
NA |
|
b) Non - encumbered |
NA |
NA |
NA |
Notes:
(i) The Unaudited Financial Results and Segment Results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the Company held on 20th January, 2012.
(ii) Figures for the previous periods are re-arranged, wherever necessary, to conform to the figures for the current period. The Company does not have any Exceptional or Extraordinary item to report for the above periods.
(iii) Gross Income comprises Gross sales / Income from operations, Other Operating Income and Other Income.
(iv) The launch and rollout costs of the Company's brands 'Fiama Di Wills', 'Vivel' and 'Superia' covering the range of personal care products of soaps, shampoos, conditioners, skin care and shower gels, and the continuing significant brand building costs of the Foods business are reflected under 'Other expenditure' stated above and in Segment Results under 'FMCG-Others’
(v) During the quarter, 2,31,22,990 Ordinary Shares of ` 1/- each were issued and allotted under the Company’s Employee Stock Option Schemes. Consequently, the issued and paid-up Share Capital of the Company as on 31st December, 2011 stands increased to ` 779,61,59,710/-.
(vi) During the quarter, no investor complaint was received. There were no complaints pending at the beginning of the quarter.
(vii) This statement is as per Clause 41 of the Listing Agreement.
Fixed Assets
- Railway
Sidings
- Plant and
Machinery
- Computer,
servers and other I.T equipments
- Furniture and
Fittings
- Motor
Vehicles
- Leasehold
properties
- Capitalized
software
AS PER WEBSITE
PROFILE
ITC is one of
ITC 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 ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods and Confectionery, Branded Apparel, Personal Care and Stationery.
As one of
ITC's diversified status originates from its corporate
strategy aimed at creating multiple drivers of growth anchored on its
time-tested core competencies: unmatched distribution reach, superior
brand-building capabilities, effective supply chain management and acknowledged
service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth
markets in
ITC's Agri-Business is one of
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions.
ITC's production facilities and hotels have won numerous
national and international awards for quality, productivity, safety and
environment management systems. ITC was the first company in
ITC employs over 26,000 people at more than 60 locations
across
PRESS REPORT
ITC hotels division
goes global, buys land in Lanka
The Times of
16 May 2012
The tobacco-to-FMCG-to-hospitality giant, ITC, is finally
foraying into foreign soil with its hospitality business. The multi-business
private sector conglomerate has incorporated a wholly owned subsidiary — Welcom
Hotels Lanka Private Limited (WLPL) — in
“The company has an intention to set up a mixed-use project, including a luxury hotel. The exact nature of the project will be decided on more detailed evaluation in the course of time,” said the spokesperson for ITC, which has a market capitalization of over $35 billion and a turnover of around $7 billion with business interests spanning consumer goods, hotels, paper and packaging, agri-business and IT.
Incidentally, now ITC hotels division has 100 properties in
90 locations across the country. Sources close to the company indicated that
though
ITC hotels division operates four brands — ITC Hotel at the luxury
end, Welcome Hotel in the five-star range, Fortune in the mid-market segment
and Welcome Heritage in the heritage leisure segment. It now has an exclusive
tie-up with luxury hotel chain Starwood in bringing its premium brand, the
‘Luxury Collection’, to
These are super deluxe and premium hotels located at
strategic business and leisure locations. The ten hotels which are part of this
collection include ITC Grand Chola in Chennai, ITC Maurya in
ITC launches common
loyalty programme
The Hindu Business Line
21 Mar 2012
Diversified business group ITC has launched a common loyalty programme – Club ITC. This primarily marks the coming together of Wills Lifestyle and ITC hotels, says Mr. B. Hariharan, Vice-President (Sales and Marketing), ITC Hotels.
The programme will enable members to earn points on purchases at Wills Lifestyle stores or by staying at ITC Hotels across the country, with multiple avenues to redeem them.
A member endorsing either of the two brands – ITC Hotels or Wills Lifestyle – automatically becomes entitled to get benefits of both brands.
"For example, points earned at Wills Lifestyle stores can be redeemed against further purchases or your stay at our hotels, or even your dinner at our restaurants," he explains.
In addition to ITC hotels and Wills Lifestyle, redemption options include ITC's personal care, ITC food products and select services from International Travel House.
Also, the members will get priority on room bookings, room upgrades and free Internet, besides a host of other facilities.
Launched a few weeks ago, "the programme has gathered good momentum. We registered close to one lakh members so far," Mr Hariharan said.
The Grand Chola a
fitting tribute to a great southern dynasty
13 Feb 2012
A couple of high-society weddings held before the formal inauguration saw the who’s who of the city assembling at the Grand Chola. The promoters say the seven-star hotel-cum-serviced apartments-cum-convention centre is a tribute to the spirit of the ancient Cholas of Tamil Nadu whose influence stretched across the seas.
Being the capital of a fast-developing state, Chennai
deserved a caravanserai of the highest standards and the Grand Chola promises
to be just that. Much like the
Only a part of the hotel was thrown open to the weddings, one of which was that of Aniruddha, the IPL cricketing son of the chairman of selectors, Kris Srikkanth. What was seen in that portion itself was like a tribute to the Cholas who were a great maritime power in their time as they ruled for several centuries, from about the 9th to the 13th.
In keeping with the spirit of modern times, the hotel will
have a helipad to match the specifications of the one at the White House in
The inauguration of the hotel may have been put off to March but those behind the massive project have been busy brushing up on the history of the Cholas, which revealed such gems as the coffee beans for the filter coffee - perfected in this part of the world whose most famous variant is the Kumbakkonam degree coffee - had originally been smuggled from Yemen.
Being intrepid seafarers, the Cholas were said to have also experimented the art of fermentation and steaming without which the likes of the Tamil origin idli - perhaps influenced in its preparation by the Indonesian kedli - may never have materialised as early as the third century, nor the dosas, appams and puttus, which are such a part of standard fare on the South Indian dining tables of today.
The booklet that ITC has produced on the ‘Imperial Cholas’ is well worth preserving as a fine work of non-fiction even if you are not a foodie and are least interested in the history and origins of what is a common dish on your plate almost every day of the week.
The one major point you could hold against the otherwise architectural splendor of the hotel is the many circular domes resembling a sombrero seem more out of temple architecture in Odhisa rather than copied from the majestic, towering vimanas that the Cholas built to announce their magnificent temples in Thanjavur and then Gangaikondacholapuram.
Wedding guests may have experienced that because the mandapam for any wedding has to face east, marriages are performed on the longitudinal arm of the long banquet hall thus limiting those who can sit facing the bride and groom.
But these are minor problems compared to the enormity of a project in which just the space for meetings, conventions, exhibitions and banquets is 60,000 square feet. Chennai gets an imposing international class hotel.
RRESS RELEASE
AIMA confers the
Business Leader of the Year Award on Mr Y C Deveshwar, Chairman ITC
18 Apr 2012
The All India Management Association (AIMA),
In its citation, AIMA said that under Mr Deveshwar's leadership, ITC had evolved into a leading Indian multi-business conglomerate, creating national assets in agriculture, industry and services. ITC's transformational story, under Mr Deveshwar's stewardship, is manifest not only in the growth of its market cap by more than 30 times to over $ 33 billion today, but also in the creation of sustainable livelihoods for over 5 million people, many of whom represent the poorest in Rural India. His vision to make ITC a global exemplar in Sustainability practices has led ITC to become the only company in the world, of comparable size to be ‘carbon positive’, ‘water positive’ and ‘solid waste recycling positive’. Mr Deveshwar's commitment to put Country before Corporation has not only inspired innovative business models that contribute meaningfully to societal development, but has also led to the creation of world-class Indian brands across ITC's businesses.
Earlier, Mr Deveshwar was honoured with one of the highest civilian awards- the Padma Bhushan by the Government of India in 2011. Amongst several other awards and recognitions during his distinguished career, he has also been honoured with the Global Leadership Award by the US-India Business Council of the US Chamber of Commerce in 2010; the Business Person of the Year Award from UK Trade and Investment in 2006; He was also inducted to the prestigious Hall of Pride at the Indian Science Congress in 2006.
Post-Tax Profits up
22.5%
20 Jan 2012
Financial Results for the Quarter ended 31st December, 2011
Post-Tax Profits up 22.5%
Net Turnover : +14.2%
Pre-tax Profits : +21.9%
Post-tax Profits : +22.5%
Non-Cigarette profits grow 27%
Non-Cigarette FMCG segment registers robust revenue growth of 25% and continues to improve profitability.
Hotels business continues to be impacted by the weak economic environment in global source markets and slowdown of the domestic economy.
Agri Business profits grow 10% driven by better realisations and higher volumes.
Paperboards, Paper and Packaging business registers strong growth in profits aided by improved mix and higher volumes.
ITC posted yet another impressive performance during the quarter with healthy topline growth and high quality earnings. Net Turnover at ` 6195 crores grew 14.2% driven primarily by Branded Packaged Foods, Personal Care, Agri and Cigarettes businesses. Pre-tax profits grew by 21.9% to ` 2477 crores while post-tax profits at` 1701 crores registered a growth of 22.5%. Earnings Per Share for the quarter stood at ` 2.19.
FMCG - Branded
Packaged Foods
The Branded Packaged Foods business continued to grow rapidly driven by further premiumisation of the portfolio, higher volumes and improved profitability. The business achieved significant growth in revenues aided by new launches and introduction of product variants and extensions in target markets. Improvement in profitability was further aided by improvements in product and process efficiencies and smart sourcing.
During the quarter, the 'Sunfeast' Biscuits category continued to grow significantly, especially in the value-added and premium end. The 'Sunfeast' 'Dream Cream' split cream variants, launched during the year in two flavours viz., 'Choco-Vanilla' and 'Strawberry-Vanilla', continued to gain consumer franchise. With the extension of its premium 'Dark Fantasy' range of cream and 'Dark Fantasy Choco Fills' biscuits to more markets and new variant launches, the 'Sunfeast' range witnessed further enrichment of its portfolio.
In the Staples category, 'Aashirvaad' atta continued to consolidate its leadership position with revenues being driven by improved realisations and higher volumes. At the premium end, Aashirvaad 'Multi-grain' and 'Select' brands continued to demonstrate increasing consumer franchise and grew rapidly.
In the Savoury Snacks segment, the 'Bingo!' range of potato chips and finger snacks achieved robust sales during the quarter, driven by further strengthening consumer connect, through clutter-breaking advertising, 360 degree brand inputs and impactful consumer offers. The initial response for 'Bingo! Tangles' – an innovative product format launched earlier this year – has been encouraging and the product is being extended to newer markets.
In the Noodles segment, 'Sunfeast Yippee!' continued to gain consumer preference and is being rapidly extended to target markets.
In the Confectionery segment, 'Candyman' sustained its market leadership position in its operating segment. ‘mint-o GOL Green Mango’, 'mint-o Strong' and variants of ‘Toffichoo’, that were launched earlier this year, have been well received in launch markets and are being rolled out to more target markets.
The business continues to invest in manufacturing and distribution infrastructure to support larger scale in view of the growing demand for its products and maximise the benefits of distributed manufacture for servicing proximal markets.
The Personal Care Products business’ product offerings under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands continued to gain consumer franchise with revenues growing significantly during the quarter. The business continues to launch new products that deliver various consumer benefits in the soaps, shampoos and skin care categories.
During the quarter, the business launched ‘Vivel Clear 3 in 1’ soap which offers a unique three-fold benefit by providing germ protection, moisturisation and nourishment. In the shampoos segment, the business launched the Fiama Di Wills range of hair care treatment in three variants viz., ‘Anti Hair fall Control Shampoo with Conditioner and Serum’, ‘Colour Damage Control shampoo with Conditioner and Serum’ and ‘Total Damage Control shampoo with Conditioner’ which are enriched with rare natural oils and incorporate damage repair technology. These are being rolled out to select markets and have been well received by consumers. With continuing extensions to target markets, 'Vivel Active Fair' fairness cream 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 and 'Vivel' with its new product variants - 'Vivel Luxury Crème', 'Vivel Healthy Glow', 'Vivel Sandal Glow' – rolled out earlier this year, continued to be well received by the consumer and are being extended to more target markets.
The business' foray into the domestic Talc market with the launch of 'Fiama Di Wills Face and Body Talc' in select markets has been well received.
The business continues to leverage its state-of-the-art manufacturing facilities and make investments in product innovation, quality and RandD aimed at delivery of specific consumer benefits. It is also continuously enhancing the quality of engagement with consumers through efficient deployment of media, direct contact and promotional activities across conventional and new age consumer connect avenues.
Education and
Stationery Products
The Education and Stationery Products business maintained its impressive revenue growth trajectory during the quarter. The business continues to consolidate its market leadership position in the notebooks segment under the brand 'Classmate' and is leveraging the 'Classmate' and 'Paperkraft' brands to enhance its portfolio of scholastic products comprising pens, pencils and geometry boxes.
The paper used in Classmate notebooks leverages the
Company's world-class fibre line at Bhadrachalam which is
Working in tandem with the Company's Paperboards and
Specialty Papers Division (PSPD), 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
Lifestyle Retailing
The Lifestyle Retailing business posted a strong growth in revenues during the quarter through an enhanced product range, retail expansion and robust performance in the large format and multi-brand outlet channel. Consumer experience levels were sustained at high levels with superior store ambience and facilitation through its retail footprint of 'Wills Lifestyle' stores which currently stands at 80 exclusive stores in 40 cities and more than 200 'shop-in-shops' in leading departmental stores. Continued association with the country's most prestigious lifestyle event 'Wills Lifestyle India Fashion Week', helped reinforce the premium imagery of the 'Wills Lifestyle' brand.
'John Players' continues to strengthen its position as a leading brand in the popular 'Youth' segment. The continued celebrity association with the popular film star, Ranbir Kapoor, further reinforced the core value proposition of the brand and further enhanced brand desirability.
Cigarettes
The Company’s relentless focus on providing world-class products to consumers enabled it to sustain its leadership position in the industry. Innovation and a consumer focussed strategy have enabled the business to deliver superior value through its brand portfolio of well crafted blends, contemporary packaging styles and use of state-of-the-art manufacturing technology. Several initiatives across the brand portfolio in terms of pack modernisation, improvement in smoke profile and introduction of new brands and variants such as ‘Player’s’, ‘Classic Citric Twist’ and ‘Hero’ during the quarter have bolstered the Company’s market standing in the premium categories and improved overall market share. On the manufacturing front, the business continues to make investments towards improving process efficiencies, enhancing quality and adding variety.
Despite cigarettes constituting only 15% of overall tobacco
consumption, the continuing discriminatory taxation and polarised regulatory
framework against cigarettes in
The Company has, 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 Goods and Services Tax (GST). In addition, cigarettes being highly taxed products are vulnerable to large scale smuggling. The differential rate of VAT on cigarettes across the States only encourages unscrupulous tax arbitrage.
The high rates of Central Excise and VAT have helped fuel the menace of illegal trade in cigarettes. It is estimated that the burgeoning illegal trade in cigarettes costs the Exchequer more than ` 3,000 crores per annum in lost revenues apart from offering products of dubious and inferior quality to consumers. As per recent independent international market studies, illegal trade constitutes more than 16% of the total industry size making India the 6th largest globally in illicit cigarette trade and one of the highest growing in the world - 58% over the period 2004 - 2009. In line with international trends, contraband trade in cigarettes results in funds flowing into the coffers of criminal syndicates with consequential detrimental impact on civil society by way of heightened law and order problems.
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.
Despite the challenging market conditions, the Company remains confident of leveraging its internationally benchmarked product quality, the resilience of its brands and the superiority of its competitive strategies to consolidate its leadership position in the industry.
Hotels
During the quarter, the hospitality industry was impacted by
the weak macroeconomic environment in the
During the quarter, the Company launched the pan-ITC consumer loyalty programme - ‘Club ITC’ – targeted at the premium clientele of ‘Wills Lifestyle’ and ‘ITC Hotels’.
The Company's commitment to 'Responsible Luxury' stands reinforced with all its premium luxury hotels being certified at the highest LEED platinum rating. This milestone has uniquely positioned the Company's Hotels business as the first hotel chain in the world to achieve such a distinction.
In line with the positive long-term outlook for the Indian
hospitality industry, the business continued to pursue its investment-led
growth strategy. While the setting-up of the new super luxury properties at
Chennai, Kolkata and at Classic Golf Resort near Gurgaon are progressing
satisfactorily, the Company is also in the process of investing in land for a
luxury hotel property in
Paperboards, Paper
and Packaging
The business witnessed healthy growth in Segment Revenues during the quarter with Segment Results growing at a faster pace at 17% despite facing challenges of high fuel and fibre costs that were offset by a combination of product mix enrichment and enhanced value capture through fully integrated operations.
The Company continued to leverage its integrated business model viz., access to high-quality fibre, in-house pulp mill and state-of-the-art manufacturing facilities and a robust forward linkage with the Education and Stationery Products business to further consolidate its leadership position in the Indian Paper and Paperboards industry. The new paperboard line project at Bhadrachalam with a capacity of one lakh tons per annum is progressing as per schedule.
The Packaging and Printing business continues to provide strategic sourcing support to the Cigarettes, Foods and Personal Care businesses. Sales to external customers also registered robust growth. The business also leveraged its state-of-the-art investments in flexibles and carton lines to deliver value-added packaging to key customers in the consumer electronics and FMCG industries. Significant Investments in new technologies and processes are underway to cater to the growing demand in this segment.
Agri Business
The Agri Business posted a strong performance during the quarter with Segment Revenues and Segment Profits growing by 10%. This impressive performance was primarily driven by higher trading volumes and improved realisations in leaf and wheat.
The business continues to provide strategic sourcing support to the Company's Cigarette and Branded Packaged Foods business by ensuring high quality supplies. The new green leaf threshing facility in Karnataka has commenced trial production and will be commissioned shortly.
Contribution to Sustainable
Development
The Company, with its abiding vision to subserve larger national priorities, and recognising the serious threats arising out of poverty, environmental degradation and climate change, has vigorously pursued a conscious strategy to align its businesses to create larger societal value. Unique business models have been crafted to synergistically build economic, environmental and social capital. ITC today, is the only company in the world of comparable size to be 'carbon positive', 'water positive' and 'solid waste recycling positive' even as it has created sustainable livelihood opportunities for over 5 million people.
The Company's Social Investments Programme aims to address
these challenges through a range of activities with the overarching objective
of creating sustainable sources of livelihood for the stakeholders. The
footprint of the Company's Social Investments Programme has spread to 60
districts in the States of Andhra Pradesh, Bihar, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Haryana, Uttar Pradesh and
ITC's sustainability initiatives, built assiduously in the
spirit of public-private-people partnership, have been able to contribute
meaningfully to
The Company pro-actively pursues a low-carbon growth strategy that addresses climate change mitigation and adaptation through several innovative and pioneering initiatives. This integrated strategy encompasses large scale afforestation initiatives for carbon sequestration, increasing use of renewable energy in its operations, continuous efforts towards energy conservation and efficiency, establishment of inspirational green buildings, extensive watershed development programmes and promotion of sustainable agricultural practices amongst farming communities. This is manifest in the Company's Social and Farm Forestry programme that covers over 1,25,000 hectares, its Integrated Watershed Development programme that irrigate over 77,000 hectares of water-stressed land. With the objective of improving the quality of life of people living in proximity of the Company's manufacturing units and catchment areas, the Economic Empowerment Programme for Women has benefited 16,075 women.
The Company's 'WOW - Wealth Out of Waste' programme has been instrumental in creating awareness amongst the public on the benefits of the 'Reduce-Reuse-Recycle' approach. The waste recycling initiatives implemented by the programme have contributed significantly to the protection of the environment, as well as in improving civic amenities, public health and hygiene. The Company benefits from the generation of sustainable raw material sources, while conserving precious environmental resources and providing considerable livelihood opportunities.
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 theyre 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
bettheyen 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.54.88 |
|
|
1 |
Rs.86.84 |
|
Euro |
1 |
Rs70.21 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
NTH |
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 theyighted scores obtained from each of the major sections of this report.
The assessed factors and their relative theyights (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.