CSR at ITC Ltd –Viewing through Strategic Lens National Conference CSR- Issues & Challenges at BGIMS-Mumbai India March 26, 2011 Presented By: Shreeniwas V Bidwai Professor - Business Strategy IBS Mumbai Case Research CSR at ITC Ltd –Viewing through Strategic Lens

ITC -Ltd ITC Limited (BSE: 500875) public conglomerate company headquartered in Kolkata(1910-2010) - 100 years ITC is presently in - FMCG, Paper, Paperboards & Packaging, Hotels, and Agri-business. In FMCG space this includes segments such as Cigarettes, Branded Foods, Personal care products, lifestyle apparels and Accessories, Education and stationery products, Incense sticks and safety matches. Turnover(2009-10) of Rs.26,259 cr, post tax profits Rs.4061 cr and a market capitalization exceeding Rs.100,000 cr.(Centenary Bonus & Dividend to all shareholders)

Background & Major issues It started off as the Imperial Tobacco Company (1910) as British owned company, leader in single cigarette industry for decades ( THE SCISSORS COMPANY) After Indian independence the Government policies of increasing excise duty on tobacco products etc. severely affected their market and profit, and increase in regulatory pressure on foreign ownership ITC initiated diversification strategies

Contd.. ITC promotes Bhadrachalam Paperboards1979 Hotel Industry (1975), Paperboards(1977), Agri business as well as to developing FMCG space such as Cigarettes, Branded Foods, Personal care etc ITC has also expanded its FMCG portfolio to include items of daily consumption relevant to rural markets in a manner that leverages in-house capabilities. (includes safety matches, iodized salt, agarbattis)

Padmashree Y C Deveshwar ,the present chairman joined ITC in 1996. STRATEGIC LEADER . “Behind every successful company there lies a success strategy- There is a strategic leader behind every success strategy” Padmashree Y C Deveshwar ,the present chairman joined ITC in 1996. “ The potential of an enterprise for wealth creation is set as per distinctive amalgamation of its vision, value and vitality .Mix of constancy and change of a timeless core and constantly evolving strategy and process a built around cores”

Strategic Leadership LENSES Design Experience Ideas

THE STRATEGY LENSES Most people make sense of complex situations in more than one way. Think of everyday conversations or discussions. It is not unusual for people to say: ‘But if you look at it this way….’ It is useful to take more than one view of an issue, especially if it is complex. Taking one view can lead to a partial and perhaps biased understanding RATIONAL & ANALYTIC DESIGN PEOPLE’S EXPERIENCES VARIETY & DIVERSITY IN IDEA

ITC’s e-Chaupal – A path breaking initiative (2000) ITC believes that the inter-dependence between its agro-based businesses and the farm sector constitutes a sustainable platform to enlarge its contribution to the Indian rural sector Core principles involved Customize the development model to address the diversity of rural India Enable even marginal farmers to access knowledge to compete on an equal footing in the market place Empower rural communities, so that development planning and implementation are participatory  

Fig: Effective & Efficient Management of Business Processes at ITC

Global Environmental Milestone The three major global environmental milestone achieved by ITC are “carbon positive”, “water positive” and “solid waste recycling positive.

Milestones

e - Choupal 4 million farmers empowered 6,500 e - Chaupals installed Social & Farm Forestry 114,428 hectares greened generating 51.48 million person - days of employment Watershed Development 56,951 hectares brought under soil and moisture conservation Women's Empowerment 15,378 women member 1183 self - help groups Livestock Development 176 Cattle Development Centres 3,520 villages covered annually Primary Education 252,329 children covered through 2,334 Supplementary Learning Centres

STRATEGY CSR STRATEGY

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