CONTENTS

1. INTRODUCTION 5

2. HISTORY 7

3. MISSION 8

4. PRODUCTS 9

5. ORGANISATION STRUCTURE 10

6. HUMAN RESOURCE PLANNING 11

7.CODE OF PROFFESSIONAL CONDUCT 12

8.POLICY ON HUMAN RIGHTS 14

9.PERFORMANCE MANAGEMENT SYSTEM 16

10.AWARDS & ACHIEVEMENT 17

11.ENVIRONMENTAL POLICIES 20

12.CORPORATE SOCIAL RESPONSIBILITY 21

13.SWOT ANALYSIS 22

14.RECOMMENDATIONS 23

15.CONCLUSION 24

1

INTRODUCTION

The Paperboards & Specialty Papers Division came into existence in November 2002 with the

amalgamation of ITC Bhadrachalam Paperboards Ltd. with ITC Ltd. and incorporates Tribeni

Tissues.

ITC entered the field of paperboards in 1975 when it incorporated Bhadrachalam Paperboards

Ltd. The new company was setup as a integrated paperboard manufacturing facility and

commenced operations at Bhadrachalam in Andhra Pradesh, 300 km east of Hyderabad. The

Bhadrachalam mill today produces 210,000 TPY of papers & boards and is the largest single

location mill in India. The mill is focused on producing paperboards for packaging and graphics

segments and product range includes Cyber XLPac (folding box boards), Pearl/Saphire Graphik

(solid bleached boards) high value boards apart from the Ecoviron range of recycled boards.

The mill also makes liquid packaging boards for Tetrapak in India.

With the commissioning of the new fibre line in September ,07 the Bhadrachalam mill will have a

Elemental Chlorine Free pulp capacity of 240,000 TPY. The Bhadrachalam location today has

three board machines and two smaller paper machines. A new paper machine of 90000 tonnes

per year capacity is scheduled for commissioning in April’08. This line will have the capability to

make both uncoated and coated woodfree and communication papers. The unit is ISO

9002:2000 series accredited. The unit is also ISO 14001 certified for Environment Management

Systems.

The Tribeni Tissues unit has a hoary history and traces its founding to British American Tobacco

and commenced operations in 1949 manufacturing papers for the cigarette industry. Between

1961 & 1988 Tribeni was part of the Wiggins Teape Co. of the UK. It merged with ITC Ltd. in

1992. ITC Ltd. modernized the mill with an investment of USD 35 million and refurbished two of

the paper machines with latest drives and electronic controls. The Tribeni mill has a capacity of

33,000 TPY and has expanded its product range beyond cigarette tissues to fine papers,

packaging papers and specialties. The unit now has three paper machines making a stunningly

diverse range of papers from Cigarette Tissues and Components, Laminating Base Tissue,

Acid-Free and Anti-Rust Tissues, Low Grammage Printing Papers, Décor Papers to Insulation

Grade and Medical Grade Papers. The unit is ISO 9001:2000 version and ISO 14001

accredited.

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The third manufacturing location at Bollarum near Hyderabad produces 5000 TPY of Cast

Coated Papers and Boards, 10,000 TPY of Poly Extrusion coated boards and 10000 TPY of

C2S art boards and Ivory cards. The unit is ISO 9001:2000 series accredited.

The Division is the market leader in South Asia in cartonboards and ranks second in turnover

within the Indian paper industry. We provide paperboard for most leading Fast Moving

Consumer Goods Brands in India. We are the largest Exporter of coated boards from India.

About 20% of our sales supplied to the international markets in Malaysia, Sri Lanka,

Bangladesh, Iran, Australia, UAE, Turkey, China, Singapore, UK, Greece, Germany and USA.

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HISTORYThe Paperboard facility at Coimbatore was acquired from BILT Industrial Packaging Company

in March, 2004. The Mill is located at Thekkampatti Village, near Mettupalayam, in Coimbatore

Dist of Tamil Nadu. The commercial production under ITC management began on 29th March,

2004.

The Mill at present has a single board machine with a capacity of 90000 TPY. The main products

are Coated Duplex Boards Greyback and whiteback made with 100% recycled fibre. The board

machine has a 3-wire fourdrinier section, MG Cyliner, size press and three coaters. A Siemens

DCS system and Measurex QCS system ensures that machine can delivery high quality recycled

boards for demanding print and converting applications. A modern Finishing House ensures the

delivery of rolls and sheets, with short turnaround and times. The fibre supply to the Board

machine was supplemented with a Deinking line in early 2006. A lamination line has been added

at the unit to produce composite solid boards in high calipers for the publishing , display and

packaging segments.

Eco Naturo and Eco Naturo-HS are the two grades of Coated Duplex Grey Back board made

from this unit. For almost the first time in India, a customer has the option to buy a higher bulk

and stiffness of Greyback Board (GD2 grade) for his carton requirements.

The unit has made rapid strides in becoming a world-class producer and has achieved ISO 9001,

ISO 14001 and OHSAS 18001 certifications.

The product range, true to ITC’s innovative streak, has been enlarged by developing cone boards

for textiles cones and greyboards for book binding boards.

Addition of power block and deinking facility will increase the competitiveness of the Unit, with

potential to make 200000 TPA of Recycled Boards for Indian and export markets.

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MISSIONTo enhance the wealth generating capability

of the enterprise, delivering sustained

competitive stakeholder value.

CORE VALUES• Trusteeship

We, as professional managers, are conscious that ITC Bhadrachalam has been given to us in

"trust" by all our stakeholders. We will justify the trust reposed in us by continuously adding

value to the institution.

• Customer focus

We are always customer focused and will deliver what the customer needs in terms of value,

quality and satisfaction.

• Respect for people

We are results focused, setting high performance standards for ourselves as individuals and

teams. We will simultaneously respect and value people and uphold humanness and human

dignity.

• Encouraging Individual Initiative and Teamwork

We acknowledge that every individual brings different perspectives and capabilities to the team

and that a strong team is founded on a variety of perspectives and abilities. We want individuals

to dream, value differences, create and experiment in pursuit of opportunities and achieve

leadership through teamwork.

• Opportunity based on Merit

We are committed to competitive, performance-based remuneration and rewards, and personal

growth based on open opportunities and merit.

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PRODUCTS A stunningly wide range of papers to meet communication, packaging and specific industrial

needs. The range reflects the amazing variety of human uses of paper and the depth of our

specialization and knowledge base in developing these unique grades.

Cigarette Tissue and Components

Cigarette Tissues

RYO Paper

Cork Tipping Base and White Tipping Base

Plug Wrap Tissue

Metallising Base Tissue

Fine Printing

Lightweight Communication (Bible Papers)

Alfa Plus (Wood free)

Security Papers

Premium Bond

Packaging

Medical Grade

Acid-Free Tissue

Anti-Rust Tissue

Twist Wrap Tissue

MG Poster

Niche Products

Electrical Insulating Paper

High Strength Match Tissue

Kraft Interleaving Paper

Automotive Filter Base

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ORGANIZATIONAL STRUCTURE

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HUMAN RESOURCE PLANNING Each function is expected to take the opportunity of the planning process every year to integrate

human resource plans with business plans. The focus should be on clearly highlighting how the

strategy of organisation of each function supports key business and functional strategies.

It is also necessary for functions to present their organisation structures clearly demarcating

responsibility levels, identifying the positions in each level as well as the number of job holders

in each position.

During the presentation of the business plan, the structure so presented will also be reviewed and

approved each year.

All decisions regarding recruitment, re-positioning of people, promotions etc., will be in

accordance with the approved structure.

Functions should avail of the opportunity of the planning process to review whether changes are

necessary to ensure that the structure supports strategy and key business imperatives. It will be

useful to address the following questions in this regard:

• To what extent does the current structure facilitate the achievement of business plans and

functional strategies?

• Do the current defined roles of all employees enable the business to effectively

implement the change required to achieve these strategies?

• Do the current roles of all employees enhance the business’ ability to compete for

customer satisfaction?

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• Does the structure allow for organisation flexibility and dynamism thus rendering it more

competitive?

The organisation structure with details of positions etc., will be approved by the CEC once every

year during the presentation of the business plan. Apart from providing a foundation for Career

Management and Management Development efforts, this approved structure will also be used

when decisions are taken on recruitment, re-positioning of people, promotions etc.

CODE OF PROFESSIONAL CONDUCT ITC expects its entire people to pursue the highest levels of professionalism in their work and to

this end has formulated a Code of Professional Conduct.

PREAMBLE

ITC is a professionally managed organisation and one of our core values is “trusteeship”. We

believe the various stakeholders in “trust” and we have handed over this organisation to us, as

professional managers are the “trustees” of these stakeholders. It is therefore, our responsibility

to ensure that the organisation is managed in a manner that protects and furthers the interests of

all our stakeholders.

It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we must

build ITC-PSPD into a business institution whose dynamism and vitality are anchored in its core

values.

CONFLICT OF INTEREST

All Company employees must avoid situations in which their personal interest could conflict

with the interest of the Company. This is an area in which it is impossible to provide

comprehensive guidance but the guiding principle is that any conflict or potential conflict must

be disclosed to higher management for guidance and appropriate action. we need to be perceived

to be at arms length from any situation that might compromise personal integrity.

TRANSPARENCY AND AUDITABILITY

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All Company employees shall ensure that their actions in the conduct of business are totally

transparent except where the needs of business security dictate otherwise. Such transparency

shall be brought about through appropriate policies, systems and processes, including as

appropriate, involvement of more than one manager in recording decision logic and maintaining

supporting records. All managers shall voluntarily ensure that their areas of operation are open to

audit and the conduct of their activities are totally auditable.

RELATIONS WITH FELLOW EMPLOYEES

In relating with each other, employees will uphold the values which are at the core of our HR

Philosophy – trust, teamwork, mutuality and collaboration, meritocracy, objectivity, self respect

and human dignity. In areas such as selection and recruitment, meritocracy will be the only

criterion and all managers will scrupulously avoid considerations other than merit and suitability.

RELATIONSHIPS WITH SUPPLIERS AND CUTOMERS

All company employees will ensure that in their dealings with suppliers and customers, the

Company’s interests are never compromised. Accepting gifts and presents of more than a

nominal value, gratuity payments and other payments from suppliers or customers will be

viewed as a serious breach of discipline as this could lead to compromising the Company’s

interests.

CONFIDENTIAL INFORMATION / PUBLICITY

No employee shall disclose or use any confidential information gained in the course of

employment with the Company for personal profit or for the advantage of any other person. No

employee shall provide any information either formally or informally to the press or any other

publicity media unless specifically authorised to do so.

COST CONSCIOUSNESS

No employee shall misuse Company facilities. Except where such facilities have been provided

for personal use either by policy or specific permission, no employee shall use Company

facilities for personal use. Even in their use for Company purposes, employees shall exercise

care to ensure that costs are reasonable and there is no wastage.

LEGAL COMPLLIANCE

Ensuring legal and regulatory compliance is the responsibility of the Chief Executive and the

Divisional Management Committee (hereafter referred to as DMC). The Company cannot accept

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practices which are unlawful or may be damaging to its reputation. DMC must satisfy itself that

soundly based and adequately managed arrangements exist, ensure that they comply with the

legal and regulatory requirements affecting the business and identify and respond to

developments in the legal environment in which they operate. In the event that the implication of

law is not clear, eminent legal counsel whose opinion should be documented must support the

course of action chosen.

HEALTH AND SAFETY

The Company attaches great importance to a healthy environment and to the safety of its

employees. Conditions should be such that there are no serous or fatal accidents. Good physical

working conditions, high standards of hygiene and housekeeping are essential.

Particular attention should be paid to training of employees to increase safety awareness and

adoption of safe working methods.

POLICY ON HUMAN RIGHTSITC is committed to sustain its position as one of India’s most valuable corporations through

world-class performance. ITC believes that the limits to sustainable growth will be determined

less by access to financial capital and more by the commitment to preserve and augment social

capital. ITC is therefore committed to employee engagement that upholds individual dignity and

respects human rights. ITC’s employment practices are premised on attracting and retaining

talent based only on merit. Its capability development agenda ensures the deepening and

enhancement of skills of all its employees through customised training and development inputs.

ITC is committed to conducting business in a manner that reflects its high ethical and moral

standards. It expects its employees and business partners to subscribe and adhere to this

philosophy, which honours all local laws and upholds the spirit of human rights as enshrined in

existing international standards such as the Universal Declaration and the Fundamental Human

Rights Conventions of the ILO.

In particular, ITC’s social policy is as follows:

• ITC’s commitment to human rights extends to all its significant investment decisions in

order to ensure integration of statutory compliances, environmental, occupational health and

safety, and human rights and labour policies into business decision-making processes.

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• ITC endeavours to ensure that all its service providers/vendors incorporate high standards

on human rights, safety and health, labour practices and environment in their operations as

practiced by ITC.

• ITC’s approach to its human resources is premised on the fundamental belief of fostering

meritocracy in the organisation which promotes diversity and offers equality of opportunity to all

employees. ITC does not engage in or support direct or indirect discrimination in recruitment,

compensation, access to training, promotion, termination or retirement based on caste, religion,

disability, gender, age, race, colour, ancestry, marital status or affiliation with a political,

religious, or union organization or minority group.

• ITC respects the employees’ right to organize themselves into interest groups,

independent from supervision by the management. In keeping with the spirit of this Policy,

employees are not discriminated against for exercising this right.

• ITC does not employ any person below the age of eighteen years at the workplace. ITC

prohibits the use of forced or compulsory labour at all its units. No employee is made to work

against his/her will or work as bonded/forced labour, or subject to corporal punishment or

coercion of any type related to work.

• All major changes in operations, involving work processes, manning norms and other

productivity linked issues are implemented after discussions with the employees and the

recognised unions at each location.

• The Company is committed to providing a safe and healthy workplace to all its

employees. It is the Company’s objective that employees will have access to health services to

prevent and manage HIV/AIDS. The Company will not discriminate against any employee

infected by HIV/AIDS with regard to promotions, training and other privileges and benefits as

applicable to all employees. The Company will not make pre-employment HIV/Aids screening

mandatory as part of its fitness – to – work assessment. HIV/Aids test will not be part of the

annual health check up unless specifically requested by an employee.

All employees are expected to adhere to, and comply with, the Policy on human rights, labour

practices and decent work environment.

ITC’s social policy is applicable at all units of the Company. The human resources function of

each business is the primary custodian of this Policy, under the supervision of the Divisional/

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SBU Chief Executives through the members of their Divisional Management Committees,

General Managers and Unit Heads.

The Corporate Human Resources provides specialist services to assist in the implementation and

for providing guidance and support to all concerned.

PERFORMANCE MANAGEMENT SYSTEM

The appraisal system is a key human resource management system which forms the

basis for performance management, career management and management development efforts.

While the system enables the setting of objectives and facilitates the review of performance

against these objectives, it is also a useful tool to build customer focus and enhance

competitiveness.

 The Performance Management System at ITC is one of its best available. Each manager is

appraised of his performance at the end of each year. The system is very transparent and mostly

driven by the Appraisee. The assessment is done against the mutually agreed Key Focus Areas

(KFAs) set at the beginning of the year between the Appraisee and the Appraiser. The KFAs so

agreed upon are reviewed mid-way at the end of 6 months period. The system allows one to

unleash his potential and gives an opportunity to exhibit his talents, which will be rightly

recognized and rewarded through the Performance Management System.

In the case of newly joined managers, they are assessed mid-way after six months of

training/probation. They are expected not only to understand the operational area in which they

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are working, but also know as to how the business is operated. They ought to know the process

involved and the system as a whole. They are expected to bring in their ideas and throw light on

various operational issues with a fresh lookout. To assess how far could they pick up the

knowledge and sensitize themselves with the business environment around, the mid-term

Appraisal is done by the HOD which will be reviewed by the Functional head and forwarded by

HR through the concerned Unit Head. This process helps in knowing the development of the

newly joined manager.

After assessment of the performance of the individual, a rating is given to the performance of the

individual on which his increment is sanctioned by HR Department. The Ratings are

Outstanding, Good, Satisfactory, Barely Satisfactory & Poor.

AWARDS & ACHIEVEMENTS

While we work quietly and set standards in Operational Excellence, Safety and Environment - a

few awards and achievements that showcase our commitment towards continuous improvement

are featured below:

ITC’S Bhadrachalam Paperboard mill adjudged the best in the country

ITC Limited ‘S Bhadrachalam Paperboard mill was declared the ‘Paper Mill of the year 2005 –

06’ by the indian Paper Manufacturers’ Association (IPMA) Mr Ashwani Kumar,Hon’ble Union

Minister of State for Industry, Government of India Presented the award at the seventh annual

General Meeting of IPMA in New Delhi held on January 11,2007.

Speaking on the occasion, Mr Pradeep Dhobale, the newly elected President of IPMA and Chief

Executive of ITC Paperboards and Specialty Papers business said, “The achievement

demonstrates the success of ITC’s triple bottom line approached to doing business – augmenting

economic environmental and social capital. Pioneering initiative like biotechnology based

plantations, eco-friendly Elemental Cholring free (ECF) pulping technology, cost effective fly

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ash bric manufacturing and product Innovation in packing and specialty papers have won us this

award.”

ITC PSPD - Bollaram wins Indian Manufacturing Excellence gold Award.

ITC PSPD - Bollaram has won the Indian Manufacturing Excellence Gold Award in the process

Category for the year 2006. The IMEA (Indain manufacturing Excellence Awards) given by frost

& Sullivan, acknowledge the best facilities in India that have achieved and sustained

Manufacturing Excellence. The manufacturing facilities are rated on 13 parameters that capture

excellence on cost, quality and delivery.

Other Awards and Accolades

• Five Star Rating from British Safety Council, UK for PSPD Units at Tribeni and

Bollaram

• National Award for Excellence in Energy Management 2006 front for PSPD Unit at

Bhadrachalam

• Certificate of Appreciation award for Excellence in water Management 2006, awarded by

CII, Hyderabad to PSPD Unit at Bhadrachalam

AWARDS WON BY ITC – PSDPD

Paper Mill of the Year 2005-06 Award to the Bhadrachalam Paperboards mill by the Indian

Paper Manufacturers Association (IPMA)

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Five Star rating from the British Safety Council to Tribeni Unit in 2006 for excellent

performance in Health & Safety Management.

.Indian Manufacturing Excellence Gold Award 2006 to the Bollarum Unit from Frost &

Sullivan. This Award acknowledges the best facilities in India that have achieved and sustained

Manufacturing Excellence.

The CII conferred the National Award for Excellence in Energy Management, Best Innovative

Project Award and National Award for Excellence In Water Management 2006 to

Bhadrachalam Unit. The awards were given for successful implementation of energy saving

projects and for significant reduction in specific energy and water consumption.

The Greentech Environment Excellence Gold Award 2006 in the manufacturing sector, for the

Bhadrachalam factory. Through these awards the Greentech Foundation recognizes industrial

and service sector organizations for their outstanding achievements in environment protection.

National Award for Energy Conservation 2006 to the Tribeni Unit in the Paper & Pulp Sector

from the Department of Power, Ministry of Power & Non-Conventional Energy Sources,

Government of India. The Bhadrachalam unit won the same award in 2005.

"Greentech Environment Excellence Gold Award 2006 "- in Paper Sector.

This prestigious award will be presented by Hon'ble Shri S C Lamir, Governer of Goa & Hon'ble

Shri Dr. Wilfred D'Souza, Dy. Chief Minister and Minister of Environment , Science and

Technology, Govt. of Goa during 7th Annual Greentech Environment Excellence Award

Program on 31st August, 2006, at Cidade De Goa, Goa.

National Award for Excellence in Energy Management 2005

"ITC - PSPD - Bhadrachalam Unit has won National Award for Excellence in Energy

Management 2005 of CII as Excellent Energy Efficient Unit. This award we have got 5 times

consecutively. (2001 TO 2005)"

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Out of 126 companies in various sectors who have applied for award competition 35 companies

(we are one of them) have been shortlisted for final round of competition. Two day conference

has been held in Chennai on 6 & 7 th and shortlisted companies have given presentation in the

format given by CII in front of Jury , participating Industries and delegates. Based on the

evaluation procedure, Jury has declared the results wherein 19 companies have been given

"Excellent Energy Efficient Unit" and balance 16 have been awarded as "Energy Efficient Unit"

ENVIRONMENTAL POLICIESThe Company recognizes management of environmental issues relating to its business as a key

component of responsible corporate citizenship and therefore accords the highest corporate

priority to it. We believe this is the key determinant of sustainable development.

Accordingly, the Company is committed to the “best international practices” in environmental

matters arising out of its business and activities and expects each functional head to ensure that

this objective is taken upon as his responsibility.

All the functions must establish procedures for assessing the environmental effects of present

and future activities and should, beyond applicable laws and regulations, pursue positive

environmental policies, practices and standards aimed at achieving the highest international

standards in their activities in relation to their physical environment.

LEADING BY EXAMPLE

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Regardless of how personally ethical and professional an employee is, or how much attention

management pays to developing a professional code for the organization, if the Company’s

senior managers act unprofessionally, they implicitly encourage managers down the line to do

the same. The opposite is also true : senior managers who visibly exhibit high professional and

ethical standards become role models for others in the organization and raise its overall standard

of professional behavior.

It is the organization’s senior management that sets the professional tone. Through both their

words and their actions – though what they do is more important than what they say – the

organization’s leadership conveys what is acceptable and unacceptable behavior. ITC-PSPD’s

senior management must constantly reinforce through their actions and behavior that our stated

beliefs of responsible corporate citizenship are rooted in individual conviction and personal

integrity

CORPORATE SOCIAL RESPONSIBILITYZero Waste Management Programme

The awareness and concern of the environment amongst the public at large is still very low in

India. Most believe that it is the concern of only a few. Waste management is one such issue. It is

essential to sensitize the future generation on the disastrous consequences of today's ways of

managing waste.

Two years ago, a unique campaign "Zero Waste Management Programme" was initiated by

ITC's Paperboards & Specialty Papers Division (ITC PSPD) as the company firmly believes in

environmental consciousness for sustainable development. The main focus of this initiative is to

create awareness among school children on waste management, its impact on the environment

and hence the importance of segregation of waste at source. The programme has been

implemented in about 100 schools in Hyderabad and Secunderabad and will touch 200 schools

by April 2005.

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Interactive workshop in August 2005

"ITC Limited, paperboards & Specialty Papers Division in association with PEAS (Program for

Environmental Awareness in Schools) and Sukuki Exnora has conducted an interactive

workshop on 18th August, 2005 in Hyderabad.

From a modest beginning of a handful of schools, the initiative has gathered momentum with

over 200 schools in Hyderabad actively participating in the program. While the schools are

encouraged to segregate waste at source, we facilitate pick up of segregated waste paper from

these schools.

Over 1,00,000 children are sensitized

ITC PSPD sponsor Eco-melaOrganized by Programme for Environment Awareness in Schools (PEAS), the Eco-Mela had a

participation of over 50 schools, displaying models and initiatives of school children.

SWOT ANALYSIS OF ORGANIZATION

STRENGTH Technical Team

Manufacturing Facility

Availability Of Raw Materials

Excellent Consultation

WEAKNESS Distance

Delays Due To Natural Calamities

OPPORTUNITIES Reference For The Future Projects

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Government Projects

Chances Of MNC Are More

Foreign Projects

THREATS Deadline Of The Projects

Environmental Issues

RECOMMENDATIONS

Frequent training programme may be conducted for improving personality development

& career development of the employee.

Promotion may be given regular intervals based on their potential.

Recognizing their potential by conducting potential appraisal.

The respective authorities should frequently collect the suggestions from the employees

by keeping suggestion box inside organization. It is useful to reduce the dissatisfaction

level among the employees.

People who come from long distance may be given transport facilities to the employees it

helps to reduce their stress and avoid the delay.

Participative decision making will bring a better sense of involvement among the

employees.

Organization can encourage employees through rewards ,awards and proper motivation.

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Counselling programs can be conducted to minimize the negative attitude of the

employees.

CONCLUSION

Attitude of the employees is important for the organization to which increase the

productivity and enhance the quality of work. The management should focus constantly reinforce

the employees to develop a positive attitude towards the organization .

Various techniques like wage rate system, participative decision making,

counselling programs career development and personality development training, grievances

handling and promotion policy will help the employees to analyse their behaviour and identify.

The researcher got a good exposure and it induced to have deep knowledge on

research and the study gave an opportunity to learn about the corporate life style and has a whole

knowing the psychology of people.

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