7/30/2019 Em_itc - Group 6

1/26

Name Roll Number

Ayushi Bhasin C006

Alok Bugde C009Ilhan Khan C033

Gaurav Lalwani C038

Ravi Ramchandani C047

Taranjeet Singh C053

Kanchan Tiwari C061

School of Business Management

NMIMS University

Mumbai

7/30/2019 Em_itc - Group 6

2/26

7/30/2019 Em_itc - Group 6

3/26

Sustainability

Contributed towards

Greening over 114,000 hectares of land

Bringing precious water to nearly 65,000

hectares of dry lands

Creating sustainable livelihoods for over 37,000

women entrepreneurs

Educating nearly 2,50,000 children

Supporting animal husbandry services to over

5.7 lakhs animals

Preserving our nation's culture and heritage

through a variety of other initiatives and

institutions.

:

Awards

ITCs Social and Farm Forestry programme won the

2nd NASSCOM Social Innovation Honours 2010

'The Papyrus Award' 2009: Contribution to the

recycling industry, in 2009.

In 2011, the British Safety Council, London conferred

the Globe of Honour Award for best EnvironmentPrevention and Protection to Bhadrachalam and

Kovai Units

The Greentech Environment Excellence Gold

Award 2008, 2006 and 2004 in the manufacturing

sector, for the Bhadrachalam factory

'Top Green Rating' in 2004 by the Centre for Science& Environment (CSE). The Bhadrachalam Unit was

adjudged as India's most environment-friendly paper

mill.

Golden Peacock Award - 2003 - The World

environmental foundation presents this award for the

highest achievement in environmental management.

Initiatives and Accomplishments

7/30/2019 Em_itc - Group 6

4/26

(Fig in Cr.)

Year ending

31st March2010 2011 2012

Gross

Income

26,814.32 31,399.10 36,072.59

Net

Income

18,767.93 22,038.80 25,999.16

PBDIT 6.688.77 7,992.53 9,673.96

Depreciati

on

608.71 655.99 698.51

PBIT 6,080.06 7,336.54 8,975.45

PBT 6,015.31 7,268.16 8,897.53

Tax 1,954.31 2,280.55 2,735.16

PAT 4,061 4,987.61 6,162.37

Dividends 4,452.33 4,002.09 4,089.04Year 2012: Rs. 177360 Cr.

Year 2012: Rs.36,072.59 Cr.

ITC : Figures for Year 2012

7/30/2019 Em_itc - Group 6

5/26

ITC Hotels

7/30/2019 Em_itc - Group 6

6/26

The ITC Grand Chola, Chennai

7/30/2019 Em_itc - Group 6

7/26

LEED Platinum Certified

ITC Grand Chola is the worlds largest LEED Platinum Certified Hotel in the NewConstruction category.

The salient Green Initiatives include

Digital Valet System which ensures customized room climate controls and prevents wastage of energy

100% of the Hotel's energy demand is met through self-owned wind farms.

Programmable computerized lighting controls to provide for the mood lighting in the public areas and therestaurants

Water cooled refrigerants in kitchen refrigeration equipment in place of air cooled equipment to saveenergy

100% of the car parking is located under cover thereby reducing paved areas onsite to eliminate heatisland effect.

The roof is a combination of green roof, reflective paints and high SRI finish on domes to reduce thermalgradient differences after sunlight hours.

100% recycling of waste generated by hotel operations by waste segregation at source and utilization foruseful purposes

7/30/2019 Em_itc - Group 6

8/26

7/30/2019 Em_itc - Group 6

9/26

Factors taken care of

AIR

The quality of air in our hotels is as fresh as the air in the lower Himalayan region.

Water

We treat & recycle enough water capable ofirrigating 65,000 trees, which aids in sequestering approximately 13,000 tonnes of CO2

Energy

We generate enough green energy through self-owned wind farms capable oflighting up the entire Delhi - Mumbai Highway.

Material

40% of our edible ingredients are procured locally, thus promoting sustainability & reducing carbon footprint.

7/30/2019 Em_itc - Group 6

10/26

7/30/2019 Em_itc - Group 6

11/26

Farm to Factory gate value chain

Need for the model

Vicious cycle in Indian farming

High procurement costs

Lost profit opportunities

Deterioration in quality of products

7/30/2019 Em_itc - Group 6

12/26

e-Choupal

The system tends to ensure a mutually beneficial procurement

and distribution channel.

7/30/2019 Em_itc - Group 6

13/26

Costs: Traditional model

The Mandi Chain

Farmer Incurs

Trolley Freight to Mandi = 100

Filling & Weighing Labour = 70

Labour Khadi Karai = 50

Handling Loss = 50

Rs per MT

270

Processor Incurs

Commission to Agent = 100

Cost of Gunny Bags (net) = 75

Labour (Stitching, Loading) = 35

Labour at Factory (Unload) = 35

Freight to Factory = 250

Transit Losses = 10

505

Total Chain 775

7/30/2019 Em_itc - Group 6

14/26

The eChoupal Chain

Farmer Incurs

Trolley Freight to Mandi = 100

Filling & Weighing Labour = 70

Labour Khadi Karai = 50

Handling Loss = 50

Rs per MT

270

Processor Incurs

Sanchalak = 50

Commission to Agent = 100

Cost of Gunny Bags (net) = 75

Labour (Stitching, Loading) = 35

Labour at Factory (Unload) = 35

Freight to Factory 100 = 250

Transit Losses = 10

Total Chain 185

185

505

Costs: e-Choupal

7/30/2019 Em_itc - Group 6

15/26

Going forward

Infrastructure

inadequacies

Impartingskills to firsttime users

Accessibilityof rural ares

Overcoming obstacles

Powerbackup by

solar panels

24/7helpdesk

Mobilechoupals

Equity = Markets co-created with Empowered communities

Identity preservation of produce

Supply chain traceability

Creation of Institutions

Elaborate rural marketing& distribution strategy

Sourcing IT enabled services from rural India

7/30/2019 Em_itc - Group 6

16/26

ITCs total Energy Consumption

Increasing energy usage efficiency

Stringent audit and Benchmarking

In- spite of significant growth in productionvolume, ITC lowered the total energyconsumption in 2011-12 by 6.3% as compared toprevious year

Enhanced use of renewable sources of energy

38.5% of ITCs total energy requirements are met

by renewable sources

ITC has invested in 14MW wind Energy generationplant in Chennai for its packaging business

Increase in large scale carbon sequestration

Sequestration is a process of capture and long-term storage of atmospheric CO2

Done physically through bio-energy with carbon

capture and storage method

7/30/2019 Em_itc - Group 6

17/26

Social Farm and Forestry

ITC has helped to bring 1,38,000 hectares of

wasteland under the Social farm Forestry

program

Addressed the livelihood problem of marginal

farmers

Converted the wastelands in Guntur and

Nellore to pulpwood plantations acommercially viable land use alternative that

ended farmers marginalization and also

satisfy the raw material need of Paperboard

business

ITC organizes wasteland owners into forest

user groups who are trained in silviculture,land development and plantation

maintenance

Package of loans and supplies of high-yielding,

disease-resistant saplings developed at ITCs

R&D Laboratory

Social & Farm Forestry NowArea developed ( hectares ) 1,38,162

Saplings planted ( nos.)599.05

million

Employment generated (

person-days )

62.17

million

7/30/2019 Em_itc - Group 6

18/26

Water stewardship

The concern

Global concern, climate change

Agriculture accounts for 90% of total

water consumption in India

Inequality in geographical distribution,monsoon rainfall period

ITCs approach

Water conservation audit, benchmarking,

practices, water per unit of product Zero effluent discharge recycling

Water positive footprint rainwaterharvesting

Water availability farmers during non-

monsoon period

7/30/2019 Em_itc - Group 6

19/26

Water stewardship

Water conservation

Water positive for 9th year ina row

29.36 million KL of freshwater, 79.7 % from river

water, 17.9% from groundwater sources and 2.4% frommunicipal

Bhadrachalam unit accountsfor 75.3% of the total freshwater intake

While production has tripled,freshwater consumptionremained at 1998-99 level

Effluent discharge

committed to achieving zeroeffluent discharge

treating & recycling wastewaterand harvesting all rainwater

Internal norms, regulatory bodies

7/30/2019 Em_itc - Group 6

20/26

Watershed development Objectives: Water conservation and soil enrichment,

enabling farmers to extend the cultivation cycle andmultiple cropping

Assisted farmer communities in 6 states to form wateruser groups

Trained in watershed management techniques thatcomplement traditional water harvesting practices

Create budgets, formulate rules and regulations forwater sharing, fix water user charges and tapgovernment development schemes

Advantages Community effort

Water usage, organic farming

Employment opportunity

7/30/2019 Em_itc - Group 6

21/26

Corporate Governance

2 Core Principles of ITC

Corporate Governance Mandate

Management must have the executivefreedom to drive the enterprise forward

without undue restraints

This freedom of management shouldbe exercised within a framework of

effective accountability

Audit

Committee

Nominations

Committee

Sustainability

Committee

InvestorServices

Committee

Compensatio

n Committee

Past Promises which ITC lived up to:

Promise of India first

Promise of shareholder value enhancement

Promise of value creation at society level

Future scope:

Sustain its efforts to achieve its goal e-Choupal 3.0

Past andFuture

Promises

7/30/2019 Em_itc - Group 6

22/26

Sustainability Issues

ITC has always aimed and achieved a CAGR of over 24 % in the past 15 years.

Information related to shareholding pattern, compliance with corporate governancenorms, etc. is also posted on SEBI's EDIFAR website

ITC is among the few companies to have obtained the coveted Quality Management

System Certification ISO 9001:2000 for its investor servicing

SHAREHOLDERS

Environment

Customers

Employees

SuppliersCommunity

Government

Farmers

7/30/2019 Em_itc - Group 6

23/26

Sustainability Issues

CUSTOMERS

Major sustainability issues - Good

Product/service quality, Low Cost, Ease

of Availability, etc

To meet these issues ITC invests in

R&D , leverages IT to improve supply

chain and also follows various

international standards.

EMPLOYEES

Key issuespersonal developmentand growth prospects, health & safety

ITC promotes policy of Freedom of

Association, training programmes,

effective feedback mechanisms

SUPPLIERS

Key issuesadequate return on

investments, growth of business.

Supporting small and medium

industries with guaranteed buyback

arrangements

ITC promotes constant feedback and

joint product development and sharing

best practices to upgrade quality.

GOVERNMENT

On time payment of taxes and duties

by the company along with legal

compliance.

Full alignment with the Government of

Indias National Action Plan on

Climate Change

7/30/2019 Em_itc - Group 6

24/26

Sustainability Issues

ENVIRONMENT

Carbon positive enterprise5th year

in a row

Water positive - 8th year in a row

Solid waste recycling positive3rd

year in a row

ITCs WOW Wealth Out of Waste

programme

FARMERS

e-Choupal - empowered more than 4mnfarmers in10 states and 40K villages

Transforming wastelands into

productive plantations

Boosting productivity through superior

high-yielding plant species

Virtual employment platform

www.rozgarduniya.com

COMMUNITY

Issues - Environmental impact, health & sanitation, Livelihood generation

Mission Sunehra Kal flagship programme. Several of its initiatives are in line with the

Millennium Development Goals (MDGs) set by the United Nations.

Rural supplementary education centresimpacted 2,00,000 primary goers.

The Sustainable Livelihoods initiative of ITC strives to create alternative employment for

surplus labour.

Invested Rs. 40 crores in the year on societal upliftment.

7/30/2019 Em_itc - Group 6

25/26

Benchmark and Standards Adherence

Climate Change

Low carbon growth path

Increased carbon sequestration

Water Conservation and Management

Zero effluent discharge

Rainwater harvesting

E-Waste Management

Maximize utilization of all IT assets

Air Emissions

Phased out ODS

7/30/2019 Em_itc - Group 6

26/26

THANK YOU