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Approach towardsApproach towards CSRCSR

India Tobacco CompanyIndia Tobacco Company

LTDLTD

Imperial Tobacco CompanyImperial Tobacco Company

LTDLTD

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"Corporate social responsibility is not just about managing, red"Corporate social responsibility is not just about managing, reducing anducing and

avoiding risk, it is about creating opportunities, generating imavoiding risk, it is about creating opportunities, generating improvedproved

performance, making money and leaving the risks far behind."performance, making money and leaving the risks far behind." -- Sunil Misser,Sunil Misser,

Head of Global Sustainability Practice, PwCHead of Global Sustainability Practice, PwC

People Planet

Profit

3 Bottom-line

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ITC InitiativesITC Initiatives

nn Sunfeast Hara Banao CampaignSunfeast Hara Banao Campaign

nn Small Scale empowermentSmall Scale empowerment

nn Choupal SagarChoupal Sagar

nn Education InitiativeEducation Initiative

FMCG

Hotels

nn Energy Control (Carbon positive)Energy Control (Carbon positive)

nn

Reuse of water (Water positive)Reuse of water (Water positive)nn Orphanage supportOrphanage support

nn Dumped food Recycling (ZeroDumped food Recycling (ZeroSolid Waste)Solid Waste)

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ITC Initiatives (Cont..)ITC Initiatives (Cont..)

nn AfforestationAfforestation

nn Fly Ash ControlFly Ash Control

nn Water Treatment (Water positive)Water Treatment (Water positive)

nn Solid byproducts recycle (Zero SolidSolid byproducts recycle (Zero SolidWaste)Waste)

Papers &

Packaging

Agro-Business

nn ee-- ChoupalChoupal

nn AquaAqua-- ChoupalChoupalnn Training initiativesTraining initiatives

nn Growth loansGrowth loans

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ITCITCs GREAT Productss GREAT Products

nn GoldGold--Flake CigaretteFlake Cigarette

nn Ashirvaad AttaAshirvaad Atta

nn Mangaldeep AgarbattiMangaldeep Agarbatti

nn SunfeastSunfeastnn Classmate NotebookClassmate Notebook

nn ITC Sonar BanglaITC Sonar Bangla

nn ITC Welcomgroup HotelsITC Welcomgroup Hotels WelcomEnvironWelcomEnviron WelcomJawanWelcomJawan

WelcomTheatreWelcomTheatre

WelcomArtWelcomArt

WelcomeHeritageWelcomeHeritage

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Awards & AchievementsAwards & Achievements

8th Rank by 1999 in Green Rating and moved to 1st place in 2004

Most valuable FMCG Company in India by 2004

1st Company rated for Corporate Governance by ICRA

ITC Hotels 1st hotel in India accorded ISO 14001 certification forEnvironment Management System

Golden Peacock Environment Management Award by WorldEnvironment Foundation

PATA Gold Award 2005 to ITC Welcomgroup Hotels

Won the Top corporate at TERI corporate award for SocialResponsibility in 2008

e- Choupal reaching 3.5 million farmers and 31,000 villages

Triple green rating for 100% Water Positive, Carbon Positive& Zero Solid Waste

Three successive years of being Water positive Corporation

By 2006 reduction of 3,000 tons of CO2 emission

By 2007 Solid Waste status of 95% approaching Zero Solid Waste

By March, 2006 cover 43,000 hectares of Afforestation

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The Behind StoryThe Behind Story

nn Deep entry to FMCG marketDeep entry to FMCG market

nn Business Expansion in Rural IndiaBusiness Expansion in Rural India

nn Reducing Middle line by Energy savingsReducing Middle line by Energy savings

Reduction of electricity bill by 20 %

Middle line reduction by

Rs. 1,40,00,000 in 2nd year

nn Increasing Brand EquityIncreasing Brand Equity

nn Great messages to CustomersGreat messages to Customers

nn Increasing Upper line (Playing Suppliers role)Increasing Upper line (Playing Suppliers role)

Energy Mete r

70.5

24.6

4.9

Energy Produced internally from

Fossil Fuel

Energy Produced internally from

Waste

Energy Purchased

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The Behind Story (Cont..)The Behind Story (Cont..)

nn Sustaining Supply chain for future useSustaining Supply chain for future use

nn New method of increasing AgroNew method of increasing Agro-- BusinessBusiness

nn Removing middleRemoving middle--man & thus gaining profitman & thus gaining profit

Survey on Minicate Rice

Normal Market

Farmers sell at Rs. 19000/- per ton

Whole-sale marketers buy at the above price & sell at Rs. 23000/- (Profit Rs. 4000/- per ton)

Retail sellers buy from whole-sale and sell at Rs. 28/- per Kg, i.e., Rs. 28000/- per ton (ProfitRs. 5000/- per ton)

So finally it reaches consumer at Rs. 28000/- per ton with a price hike of Rs. 9000/- per tonfrom different market levels

What ITC has done

Farmers Sell at Rs. 21000/- per ton to ITC ltd [Quality products] (Gains excess of Rs. 2000/-per ton)

ITC process it and sell it to consumers at Rs. 27/- per Kg, i.e., Rs. 27000/- per ton (Profit ofRs. 7000/- less processing cost )

Finally consumer get it at Rs. 1/- per Kg less than normal market and they are attracted.

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ConcludingConcluding

3 R3 Rs:s:

ReduceReduce

RecycleRecycle

ReuseReuse

RethinkRethink

OR

3 R3 Rs:s:

Reduce costReduce cost

RevenueRevenue

Reach deepReach deep

Retain long termRetain long term

resourcesresources

ALSO

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Copyright reserved (IIPM/ ISBE-A/ 2010-12/ SA-3)

Thanks a LotThanks a Lot

Presented By :

SUMAN SAHA(M.Sc, MBA*, PGDPM

*)

* Ongoing