A PROJECT REPORTON

STUDY OF ITC FMCG PRODUCTS

Submitted in Partial Fulfillment for the awardSubmitted in Partial Fulfillment for the award

OfOf

Bachelor of Business AdministrationBachelor of Business Administration

(Affiliated to CCS University, Meerut)(Affiliated to CCS University, Meerut)

Submitted To:

Miss Abhilasha Vihan

Faculty, BBA

Submitted By:

Mohd. Shanu

9673516

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DECLARATION

I Mohd. Shane hereby declare that the research work presented in this project report entitled “STUDY

OF ITC FMCG PRODUCTS” for fulfillment of the award of Bachelor of Business Administration

from Chodhary Charan Singh University, Meerut is based on my work. The project embodies the result

of original work and studies carried out by me and the contents of the project do not form the bases for

the award of any other degree to me or anybody else.

Date : Mohd. Shane

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ACKNOWLEDGEMENT

.First of all I would like to thank the Management at ITC for giving me the

opportunity to do my one-month project training in their esteemed organization.

I am highly obliged to Mr. D.K SHARMA for granting me to undertake my

training at Meerut branch.

I express my thanks to all Sales Managers under whose able guidance and

direction, I was able to give shape to my training. Their constant review and

excellent suggestions throughout the project are highly commendable.

And I would also like to thanks my teacher all Faculty of BBA for providing their

full support & guidelines under my training period

My heartfelt thanks go to all the executives who helped me gain knowledge about

the actual working and the processes involved in various departments.

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INDEX

Certificates 2

Acknowledgement 3

Executive Summary 5

Industry Profile 6

Company Profile 22

Objective of Study 41

Limitation 42

Scope of Study 43

Research Methodology 48

Data Analysis 52

Findings 60

Conclusion 63

Suggestions 64

Bibliography 67

Appendix 68

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PREFACE

To start a business the success depends upon the research done about the particular & consumer

attitude the product. Marketing research plays a vital role in a business to make it successful. I

tried to put my best effort to complete the task on the basis of skills. I am having this study done

about the flour sales & distribution in the city of different companies. In order to know about the

opportunities in the mareket.Inthe study, an attempt is made to cover every expect of these

objectives to find out solutions for the company.

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COMPANY OVERVIEW

ITC is one of the India`s foremost private sector companies with a market capitazation of nearly US $ 15 billion & a turnover of US

$ 6 billion. Rated among the World`s Leading Companies by Forbes manazine, ITC ranks third

in pre-tax profit among India`s private

Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty

Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting

Cards & other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri-Export, it is rapidly gaining

market share even in its nascent businesses of Branded Apparel, Greeting Cards & Packaged

Foods & Confectionery.

As one of India`s most valuable & respected corporations, ITC is widely perceived to be

dedicatedly nation- oriented. Chairman Y C Deveshwar calls this source of inspiration (a

commitment beyond the market).In his own words ;( ITC believes that its aspiration to

create enduring value for the nation provides the motive force to sustain growing

shareholder value. ITC practices this philosophy by not only driving each of its businesses

towards international competitiveness but by also consciously contributing to enhancing

the competitiveness of the larger value chain of which it is a part).

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 & acknowledged

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services skills in hoteliering. Over time, the strategic forays into new businesses are expected to

grammar a significant share of these emerging high-growth markets in India.

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ITC VISION

Sustain ITC’s position as one of the India’s most Valuable corporations through world

Class performance, creating growing value For the Indian & the company’s

Stake holders.

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ITC MISSION

To enhance the wealth generating capability of Enterprise in a globalizing environment,

delivering Superior & sustainable stake holder value.Over the years, ITC has evolved from a

single Product Company to a multiple business corporation.Its business separated over a wide

spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards &

international.

Commodities trading.

ITC defined Corporate Governance as a systemic Process by which companies are

directed & controlled to

Enhance their wealth generating capacity.

Since large corporation employ wast quantum of a societal Resources, we believe that

the governance process should Ensure that these companies are managed in a manner that

Meets stake holder’s aspirations & societal expectations.

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CORE PRINCIPLES

ITC`s Corporate Governance initiative is based on two core principles. These are

Management must have the executive freedom to drive the enterprise forward without

undue restraints; and

This freedom of management should be exercised with in a framework of effective

accountability

CONTROL

ITC believes that control is a necessary concomitant of its second core principle of governance

that the freedom of management should be exercised within a framework of appropriate checks

and balances. Control should prevent misuse of power, facilitate timely management response to

change, and ensure that business risks are preemptively and effectively managed.

HISTORY AND BACKGROUND

ITC was incorporated on August 24,1910 under the name of Imperial Tobacco Company of

India Limited. Its beginnings were humble. A leased office on RADHA BAZAR Lane,

Kolkata, was the centre of company`s existence. The Company celebrated its 16 birthday on

August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,(now renamed

J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.This decision of the Company was

historic in more ways

Than one. It was to mark the beginning of a long and eventful journey in to India` future. The

Company`s headquarter building,Virgina House, which came up on that plot of land two years

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later,would go on to become one of Kolkata`s most venerated landmarks. The Company`s

ownership progressively indianised, and the name of the Company was changed to I.T.C Limited

in 1974. In recognition of the Company`s multi-businesses portfolio encompassing a wide range

of businesses-Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &

Specailty Papers, Agri-Exports,Food, Lifestyle Retailing and Greeting Gifting & Stationery-the

full stops in the Company`s name were removed effective September 18, 2001. The Company

now stands rechristened ITC Limited.

In 1925 as a strategic backward integration for ITC`s Cigarettes business. It is today India`s

most sophisticated packaging house. In 1975 the Company launched its Hotels business with the

acquisition of a hotel in Chennai which was rechristened ITC-Welcome group hotel

Chola`.The objectives of ITC`S Entry into hotels business was rooted in the concept of creating

value for the nation.ITC 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 ITC`s Hotel`s business has grown to occupy a position of leadership, with 66 owned

and managed properties spread across India.

In 1979, entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India. Bhadrachalam

Paperboards amalgamated with the Company effective March 13,2002 and became a Division of

the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged

with the Company`s Tribeni Tissuses Division to from the Paperboards & specialty Papers

Division. ITC`S paperboards` technology, productivity, quality and manufacturing processes are

comparable to the best in the world.

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In 2004 ,ITC acquired the paperboard manufacturing facility of BILT Industrial

PACKAGING Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit allows ITC

to improve customer service with reduced lead time and a wider product range.

On 1985, ITC SET up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee

group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was

changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a

major supplier of tissue paper to the cigarettes industry. The merged entity was named the

Tribeni Tissues Division (TTD). To harness strategic and operational synergies TTD was

merged with the Bhadrachalam Paperboards Division to form Paperboards & Specialty Papers

Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business

Division (IBD) for export of agri- commodities. The division is today one of India‘s largest

exporters. ITC’s unique & now widely acknowledged e- Choupal initiative began in 2000 with

Soya farmers in Madhya Pradesh. Now it extends to 6 states covering over 3.1 million farmers.

In 2000, ITC’s Packaging business high quality greeting cards under the brand name

‘Expressions’. Launched a line of In 2002 , the product range was enlarged with the introduction

of the Gift wrappers, Autograph books & Slam books. In the same year, ITC also launched

‘Expressions Matrubhasha’, a vernacular range of greeting cards in eight. Language &

‘Expressions Paper raft’, a range of premium stationery products. In 2003, the company rolled

out ‘Classmates’, arrange of notebooks in the school stationery segment.

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ITC also entered the Lifestyle retailing business with the Wills Sport range of international

quality relaxed. Wear for men & women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear (2002) & Wills Clublife evening

wear (2003). ITC also initiated a foray into the popular segment with its men’s wear brand ,

John players, in 2002.

In 2000 . ITC pun off its information technology business into a wholly owned subsidiary , ITC

InfoTech India Limited. To more aggressively pursue emerging opportunities in this area.

ITC made its entry into the braded &packaged Foods business in August 2001 with the launch of

the Kitchens of India brand. A mare broad- based entry has been made since June 2002 with

brand launches in the Confectionery, Staples & Snacks Foods segments. In 2002, the ‘mint-o’

trademark was acquired & relaunched in orange &mint flavors’. In the same year ‘Candy man’

was added to the confectionery range & ‘Aashirvaad’ Atta was rolled out. The ‘Aashirvaad’

brand now extends to ready-to-eat foods, ready-to-cook pastes & salt. In 2003 the ‘Candy man’

range was expanded to include deposited candies & éclairs. In 2003 ‘Sun feast’ biscuits were

launched & ‘mint-o’ lemon mint flavor was introduced. In 2004 the ‘Kitchens of India’ brands

was extended to cooking pastes.

In 2002, ITC’s philosophy of contributing to enhancing the competitiveness of the entire value

chain found yet another expression in Safety Matches initiative. ITC now markets popular safety

matches brands like iKno, Mangle Deep , Vaxlit, Delite & Aim.

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ITC’s foray into the marketing of Agarbattis (incense sticks) in 2003 marked the

manifestation of its partnership with the cottage sector. ITC’s popular agarbattis brands include

Spriha & Mangle Deep across a range of fragrances like Rose, Jasmine, Sandalwood,

Madhur, Sambrani & Nagchampa.

ITC Registered Office

ITC Limited

Virgina House

37 J.L Nehru Road

Kolkata

Pin Code – 700071

INDIA

An overview of ITC Saharanpur Factory

ITC Saharanpur Factory was established in the year 1926 and is the second oldest among all the

cigarette factories after Merger. It manufactures processed cut tobacco and packed cigarettes. It

has a built up area of 26334 s-m. The facilities include the production block consisting of

primary manufacturing department (PMD) & secondary manufacturing department (SMD) ,leaf

go down ,WMS go down , FG (shipping department) , utilities , service block , administrative

block & gate house .

Tobacco leaves are purchased from farmers through auction by ILTD (leaf tobacco division)

& are sending to different ITD factories depending on their requirement. Tobacco leave is

divided in 2 parts, the lamina (leaf part) & the stem (the midrib separated from lamina by

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threshing). Tobaccos leaves are received in leaf go down & stored till the time they are issued to

PMD for processing.

The PMD process in 2 separated lines the (the lamina & the stem line respectively) which result

in processed cut tobacco which gets stored in Cut Tobacco Store (CTS). From CTS it is issued

to SMD for production of packed cigarettes. The SMD is divided in 2 sections – the maker & the

packer sections. Wrapping materials stores (WMS) materials are supplied from WMS go down

at this state both the maker & the packer for production. WMS materials are all other things

cigarettes packet other than the tobacco the maker is responsible for producing cigarettes sticks

& the packer section produces packed cigarettes These are then sent to the finished goods go

down for temporary storage & eventual shipment from there.

CAREERS WITH ITC

ENTRY LEVEL RECRUITMENT

ITC visits premier Engineering and Management campuses every year to induct quality talent for

its various Businesses.

Manufacturing

ITC inducts talent for the Technical function from the 5 IITs (Chennai, Delhi, Kanpur,

Kharagpur, Powai) and some of the NITs. Engineers from disciplines such as Mechanical,

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Electrical and Electronics, Production Engineering, Chemical and Civil are considered for

placement.

The process starts in August each year with a campus visit and a pre-placement presentation.

This provides an opportunity for young aspirants to learn more about the Company, its history

and achievements, its corporate strategy, details of its various businesses and the kind of careers

they can look forward to.

The selection process is objective and robust. A range of selection

tools are used. These include assessment centres, group tasks and in-

depth personal interviews.

Candidates found suitable for employment are immediately given offers to join ITC in July of

the following year. After a comprehensive induction programme, they are assigned to various

businesses of the Company.

Marketing and Human Resources

ITC sources talent from the premier Management Institutes of the

country for the Marketing and HR functions. These campuses

include the IIMs, ISB, XLRI, FMS, IIFT, TISS, JBIMS and

Symbiosis.

The pre-placement presentation at campuses, normally in September/October each year, provides

an opportunity for young aspirants to know more about the Company, its history and

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achievements, its corporate strategy, details of the various businesses and the kind of careers they

can look forward to.

During these visits, ITC also selects first-year students for Summer Internships during April to

July of the following year.

A team of ITC managers visits campuses once again between December and March for final

placement. The process consists of group discussions and personal interviews preceded by

psychometric tests and assessment centres. Employment offers are made to selected candidates

immediately. On joining ITC in July, candidates undergo an induction programme before being

assigned to one of the Company's businesses.

Trading, Sourcing and Logistics

ITC visits premier institutes such as IIMA, IIFT, IRMA and

MANAGE to induct talent for its Agri Business Division.

Pre-placement presentations at campuses normally take place in

September/October each year. These presentations provide an

opportunity for young aspirants to know more about the Company, its history and achievements,

its corporate strategy, details of its various businesses and the kind of careers they can look

forward to.

During these visits, first-year students are selected for Summer Internships

with ITC in April to July of the following year.A team of ITC managers

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visits these campuses once again between December and March for campus interviews. The

process consists of group discussions and personal interviews preceded by psychometric tests

and assessment centers.

Employment offers are made to selected candidates immediately. On joining ITC in July,

candidates participate in an induction programme. Thereafter they are assigned to responsibilities

in Trading, Sourcing and Logistics in the Agri Business Division.

Finance

ITC recruits entry-level talent for the Finance function from amongst

qualified Chartered Accountants and MBAs specializing in Finance.

Candidates are short-listed for selection from a pool of applicants that

apply to ITC on-line through the Company's portal at www.itcportal.com. Recruitment of entry

level talent in the Finance Function takes place twice a year.

Preliminary interviews are held at selected locations. The

short-listed candidates are called to Kolkata for the final

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selection process which extends over two days. The selection process comprises psychometric

tests, assessment centers, group tasks and personal interviews. The interviewing panel looks for a

strong conceptual base in finance and accounting. Effective inter-personal skills, integrity,

intellectual rigour, a "will do" attitude, creativity, leadership and high energy are other essential

attributes.

Candidates who receive offers of employment undergo a comprehensive induction programme

before being assigned to the Internal Audit function. The tenure in the Internal Audit function

normally extends over a period of 3 years. Following this, they are assigned operational

responsibilities in one of the Company's businesses.

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Manfred Boden (West-Germany) obtains 1980-81 unsolicited computer print-outs from

"spirit" comunicators. Before that he received telephone calls. Until 1983 he has also

unsolicited contacts with communicators of non-human evolution. 

     Hans Otto Koenig developed new spirit communication technologies from 1982 to 1988,

employing extremely low frequency oscillators, as well as lights in the ultraviolet and

infrared range. In 1983 he appeared on a popular radio program on Europe’s largest radio

station, Radio Luxembourg. The host, Rainer Holbe, had Koenig set up his equipment

under close supervision of the station engineers. One of the engineers asked if a voice

could come through in direct reply to a question, and a voice quickly replied, “We hear

your voice. Otto Koenig makes wireless contact with the dead.” Stunned, Rainer Holbe

addressed the millions of listeners across Europe, “I tell you, dear Listeners of Radio

Luxembourg, and I swear by the life of my children, that nothing has been manipulated.

There are no tricks. It is a voice, and we do not know from where it comes.” 

    

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Formals 3 – Tierd governance structure :

Board of director:

Comprising executive (4) &non executive directors (11) strategic supervision

Corporate management committee:

Comprising executive directors & senior managers strategic management

Divisional Chief executive & divisional management committee:

SHARE HOLDERS

↓

BOD

↓

CORPORATE MANAGEMENT COMMITTEE

↓

(CMC)

↓

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DMV DMC DMC DMC DMC (HOTEL) (PAPER) (TOBACCO) (IT)

(AGGI)

Board of Directors

Chairman

Yogesh Chander Deveshwar

Corporate Management

Committee

Directors

Y C Deveshwar Chairman

A Singh Member

K Vaidyanath Member

K N Grant Member

Executives

N Anand Member

A Nayak Member

T V Ramaswamy Member

S Sivakumar Member

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K S Suresh Member

R Tandon Member

B B Chatterjee Member & Secretary

Executive Vice President & Company Secretary

Biswa Behari Chatterjee

General Counsel

Kannadiputhur Sundararaman Suresh

Investor Service Centre

37 Jawaharlal Nehru Road, Kolkata 700 071, India

Phone: 033-2288 6426/2288 0034

Fax: 033-2288 2358

E-mail: isc@itc.in

Auditors

Deloitte Haskins & Sells

Chartered Accountants, Kolkata

Board Committees

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Investor Services Committee

A V Girija Kumar Chairman

P B Ramanujam Member

B Sen Member

K Vaidyanath Member

B Vijayaraghavan Member

B B Chatterjee Secretary

Compensation Committee

S H Khan Chairman

A Baijal Member

S B Mathur Member

H G Powell Member

B Sen Member

Nominations Committee

Y C Deveshwar Chairman

A Baijal Member

S Banerjee Member

A V Girija Kumar Member

S H Khan Member

S B Mathur Member

D K Mehrotra Member

P B Ramanujam Member

Sustainability Committee

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Y C Deveshwar Chairman

S Banerjee Member

H G Powell Member

A Ruys Member

B Sen Member

B Vijayaraghavan Member

B B Chatterjee Secretary

Anup Singh

Krishnamoorthy Vaidyanath

Kurush Noshir Grant

Executive Directors

Anil Baijal

Angara Venkata Girija Kumar

Serajul Haq Khan

Sunil Behari Mathur

Dinesh Kumar Mehrotra

Hugo Geoffrey Powell

Pillappakkam Bahukutumbi Ramanujam

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LINES OF BUSINESS

INDIA TOBACCO

FOOD DIVISION

LIFESTYLE RETAILING BUSINESS

PERSONAL CARE PRODUCT STRATEGIC BUSINESS UNIT

EDUCATIONARY & STATIONARY PRODUCT STRATEGIC BUSINESS UNIT

SAFETY MATCHES STRATEGIC BUSINESS UNIT

AGARBATTIS STRATEGIC BUSINESS UNIT

HOTEL DIVISION

PAPER BOARD & SPECIALITY PAPER DIVISION

PACKAGING & PRINTING STRATEGIC BUSINESS UNIT

AGRI BUSINESS DIVISION

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CIGARETTES & TOBACCO

Initially ITC was dealing only in Cigarettes & Tobacco.It's highly popular portfolio of

brands includes Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors, Capstan,

Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories at

Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of

quality, contemporary technology and work environment.

In pursuit of international competitiveness, ITC has launched four brands – Checkers

Cigarettes, Hi-Val Cigarettes, Royale Classic Cigarettes and Gold Crest Cigarettes –In the

extreme competitive us market recently ITC has launched Royale Classic Cigarettes, gold cut

and scissors filters Kings Cigarettes in the Middle East. The response to these brands has been

encouraging.

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The requirement to print pictorial health warnings on tobacco product packs under the 'Cigarettes

and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and

Commerce, Production, Supply and Distribution) Act, 2003' (COTPA) and the consequential

constriction in consumption will jeopardize the livelihood of 35 million people dependent on the

tobacco industry. Restrictive measures of this nature should be preceded by the creation of

alternative sources of income for those so affected.

Packaging & Printing Business-

ITC Packaging & Printing Business was set up in 1925 as a strategic backward integration

for ITC's Cigarettes business. It is today India's most sophisticated packaging house.

Hotels-

In 1975 the Company launched its Hotels business with

the acquisition of a hotel in Chennai which was rechristened

'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was

rooted in the concept of creating value for the nation. ITC 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 ITC's

Hotels business has grown to occupy a position of leadership, with over 100 owned and managed

properties spread across India.

Competitors:

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ITC had a competition from the Taj group of hotels and some international hotels like Hyatt

hotels, Hilton and le meridian. ITC has its hotels in every major city across India.

The standard of the ITC hotel comes from the fact that the Delhi based Maurya Sheraton is the

only hotel that is proffered by government of India for providing hospitality to their international

guest and delegates.

Future prospects:

With the success in hotel industry the company must move on further,

ITC should open a family restaurant chain or fast food restaurants in the metro cities. This would

definitely be a success. ITC should try to expand further in foreign countries

PACKAGING & PRINTING BUSINESS

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited, which today has become the market leader in India. Bhadrachalam Paperboards

amalgamated with the Company effective March 13, 2002 and became a Division of the

Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with

the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.

ITC's paperboards' technology, productivity, quality and manufacturing processes are

comparable to the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is

directly involved in education, environmental protection and community development. In 2004,

ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd

(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer

29

service with reduced lead time and a wider product range. In 1990, ITC acquired Tribeni Tissues

Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the

cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness

strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards

Division to form the Paperboards & Specialty Papers Division in November 2002.

The different paperboard brands of ITC are:

Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber

Propac

Solid Bleached Sulphate Boards: Safire Graphik, Art

Maestro, Carte Persona

Poly coated boards: Indobev, Indobarr

Recycled boards: Ecoviron, Fusion

ITC is one of the world's most modern and contemporary manufacturers of packaging and

graphic series of boards. ITC's Paperboards business has a manufacturing capacity of 360,000

tonnes per year and is India's market leader across all carton-consuming segments including

cigarettes, foods, beverages, pharma, personal care & toiletries, durables and match shells.

The business posted steady growth with segment revenues improving by 11% during the

quarter. This was driven by a 14% improvement in volumes of the Value Added Portfolio of

paper and paperboards and robust performance of the packaging business.

30

ITC is the largest exporter of coated boards from India. The Company exports nearly 20 per

cent of the coated boards it produces. Its coated boards fulfill exacting customer requirements in

Malaysia, Sri Lanka, Bangladesh, Iran, Australia, UAE, Saudi Arabia, Singapore, U.K., Italy,

Netherlands and China.

The new pulp mill project is nearing completion and is slated for commissioning in the last

quarter of this fiscal. Steady progress is also being made in the completion of the new paper

machine. The pulp mill with a capacity of 120000 tons of hardwood pulp will provide a distinct

cost advantage, apart from removing the dependency on imported hardwood pulp, which has

seen an unprecedented run-up in prices, adversely affecting margins across the industry. The

paper machine will augment capacity by about 100,000 TPA in 2008/09 and will drive growth

based on strong forward linkages with the stationery business.

Agri Business Division-

Also in 1990, leveraging its agri-sourcing competency,

ITC set up the Agri Business Division for export of

agri-commodities. The Division is today one of India's

largest exporters. ITC's unique and now widely

acknowledged e-Choupal initiative began in 2000 with

soya farmers in Madhya Pradesh. Now it extends to 10

states covering over 4 million farmers. ITC's first rural

mall, christened 'Choupal Sager' was inaugurated in

August 2004 at Sehore. On the rural retail front, 24

'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar

Pradesh.

31

Farmer empowerment, Choupal Saagar, Choupal Fresh, Choupal Pradarshan Khet Processed

Fruits, Marine Products, Customer Centric Approach.

The e-Choupal model has shown that a large corporation can combine a social mission and an

ambitious commercial venture; that it can play a major role in rationalizing markets and

increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and

rural communities as well as company shareholders.

32

ITC's example also shows the key role of information technology - in this case

provided and maintained by a corporation, but used by local farmers - in helping to bring about

transparency, to increase access to information, and to catalyze rural transformation, while

enabling efficiencies and low cost distribution that make the system profitable and sustainable.

Critical factors in the apparent success of the venture are ITC's extensive knowledge of

agriculture, the effort ITC has made to retain many aspects of the existing production system,

including retaining the integral importance of local partners, the company's commitment to

transparency, and the

33

respect and fairness with which both farmers and local

partners are treated. The sustainability of the engagement

comes from the idea that neither the corporate nor

social agendas will be subordinated in favor of the other.

Lifestyle Retailing business-

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife

evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear

brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most

premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from

34

buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To

mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to

consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular

segment for the young woman.

COMPETITORS AND SUGGESTIONS:

ITC had proved to be a tuff competitor in this segment too against the established brands like

MONTE CARLO, peter England, Allen Solly and many more. The launch of Miss Players was a

good move by the company as it gives an advantage to the company for introducing a complete

collection especially for women. Only few companies had introduced such exclusive brands. The

company can move on with the introduction of new products like jackets, winter shawls.

Information Technology-

In 2000, ITC spun off its information technology business into a wholly owned subsidiary,

ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.

35

Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services

companies and has

established itself as a key player in offshore outsourcing, providing outsourced IT solutions and

services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking,

Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,

Hospitality and Transportation) and

Media & Entertainment

Safety Matches-

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire

value chain found yet another expression in the Safety Matches initiative. ITC now markets

popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

36

FOOD-

ITC's foray into the Foods business is an outstanding example of successfully blending

multiple internal competencies to create a new driver of business growth. It began in August

2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002,

ITC entered the confectionery and staples segments with the launch of the brands mint-o and

Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of

Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded

snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a

significant size with over 200 differentiated products under six distinctive brands, with an

enviable distribution reach, a rapidly growing market share and a solid market standing.

.

ITC’S MINTO mouth freshener is emerging as a recognizing brand apart from rival

PREFETTI’S HALLS. A blend of effective distribution, aggressive trade level activity and

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consistent marketing efforts have helped the business to gain a substantial market share in this

segment.

Competitors:

Britannia

Parle

Priyagold

IMPROVEMENTS NEEDED:

The steady growth of the company is satisfactory since it had launched late in the market but the

significant growth in the product is amazing. In my view company should concentrate on the

brands by adding more flavors. for attracting kids company can introduce free gift items like

what lays had done previously when it had introduce tazo’s. During the research it is fund that

some retailers are not getting product due to the reasons like shortage, no approach of salesman

etc so being new in the market we have to firstly satisfy 4P’s to get success.

Agarbattis (incense sticks) –

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include

superia and Mangaldeep across a range of fragrances like

Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and

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Nagchampa. The Expressions range of Aromatic candles

comprises Amour - the Romance Series, Adora - the

Decor

Personal Care-

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body

care products for men and women in July 2005. Inizio, the signature range under Essenza Di

Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme)

and women (Inizio Femme). Continuing with its tradition of bringing world class products to

Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,

Shower Gels and Soaps in September, October and December 2007 respectively. The Company

also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select

markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel

range of shampoos in June 2008.

The 'Fiama Di Wills' range of shampoos and shower gels are now available at all major markets.

The company has recently launched Fiama Di Wills Polishing Drops (conditioner), which is

enriched with Avocado Oil and Burdock extract to make the hair feel smooth and shiny. These

superior products are an outcome of years of R & D based product development. They reflect

ITC's deep consumer insight.

COMPETITORS:

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The company had entered this segment very late; the market is still dominated by GARNIER and

L’OREAL with HINDUSTAN UNILEVER, PROCTOR AND GAMBLE and COLGATE

PALMOLIVE just behind them. It would be a matter of time for ITC to show its presence, since

it had become a name of trust among the people of India.

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CONCLUSION:

As per the company introduction of soap and shampoo’s, it can move on with the introduction of

cosmetics to the Indian market. It need to do more efforts in order to raise the sale of personal

products because products other than superia are not doing well.

Education & Stationery Products –

ITC made its entry into the stationery business in the year 2002 with its premium range of

notebooks, followed in the year 2003 with the more popular range to augment its offering. ITC’s

stationery Brands are marketed as “Classmate” and “Paperkraft”, with Classmate addressing

the needs of students and Paperkraft targeted towards college students and executives.

Classmate Fun N Learn , Classmate Invento , Classmate pens, Paperkraft are the

stationery products of ITC.

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COMPETITORS:

The major competitor of ITC in this field is NAVNEET publication whose notebooks are

very popular among people.

CONTRIBUTION IN THE MARKET:

The Classmate brand alone contributes about Rs 150 crore. Data estimates the market for

school and education sector at Rs 5,000 crore. Classmate lack behind the variety if compared to

Navneet publications. With the introduction of more varieties it can be a market leader.

The GREETING CARD section includes EXPRESSION greeting card which are gaining

huge popularity among the people .The main reasons behind is that they are available I wide

range apart from ARCHIE’S and HALLMARK which are very expensive.

The company can have a growth in this segment because of its quality in its brand and at a

reasonable price. On the other hand hallmark is charging more because of its brand name. The

card can be of wider acceptance if remain in same price range.

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FINANCIAL PERFORMANCE

In total sales of the ITC, FMCG division enjoys maximum share. FMCG is having the maximum

sales and that too in cigrate manufacturing in which company is a national player and oldest in

this manufacturing field.

The company is having negative profits in FMCG-other than cigrate as company has just

entered in this segment ,inspite of this, company is having 83.46% growth in it and loss

company is having in its.

FMCG-other than cigrate is all due to initial investment in sales and administration expenses in

this division.

In agricultural division company net sales has lowered down but the overall profit i.e PBT has

increased by 98.30% which shows the division has been able to maintain its below the line

expenditures i.e selling and administration expenses.

About hotel business, company is having loss in it and all this is because of that terrorist attack

in Mumbai on Taj hotel last year which has shaken the faith of public and also a step reduction in

international travel as a fallout of the global economic crisis has triggered a significant slide in

occupancies and average room rates and the company has to bear a loss in the of month of

September 2009.

In paper and paper boards Business Company is having 12% growth in PBT.

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Ten Years at a Glance

44

S.No

YEARS GROSS INCOME (RS. IN CRORES)

1. 2001 8827.11

2. 2002 9982.46

3. 2003 11194.47

4. 2004 12039.92

5. 2005 13585.39

6. 2006 16510.51

7. 2007 19636.53

8. 2008 21966.84

9. 2009 23678.46

10. 2010 26862.98

AWARDS

ITC`s Cigarettes business has won numerous awards for its quality, environmental management

systems and product excellence.

The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 2003-

2004 in the manufacturing sector.

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ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS

18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety

Management systems(OHSMS).

ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco

Products for 2003, by the Tobacco Board of India.

The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The

Royal Society for the Prevention of Accidents (ROSPA).

The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001

accreditation for their environmental management systems.

The Saharanpur and Bangalore factories have also received the ISO 14001 certification.

All cigarette factories have ISO 9002 Quality Certification.

The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern

Region) for 1998.

The ITC has also received the prestigious Sword of Honors Award from the British Safety

Council for highest standards of safety.

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Mission Sunehra Kal, ITC’s rural capacity building programme, now active in 11 States,

empowers rural people communities to sustainable changes that make them

economically competitive and socially secure.

In the rural communities where the mission has put down roots there is a new spirit of optimism

and confidence. People have augmented and diversified their livelihoods. Education for children,

employment for women, sanitation and family health have taken on a new urgency. Every family

and every farm has resources to build a better future. Stagnation and deterioration have given

way to change and improvement.

To accomplish this change, ITC targets four problems, which it believes are the fundamental

obstacles to productivity and growth in the farm sector :

1. Loss of productivity through soil erosion caused by intensification of land use and

decline of water tables and forest resources.

2. Dependence on out-moded farm practices and inferior inputs.

3. Loss and disruption of farm incomes and non-availability of alternative livelihoods.

Inadequate access to primary education and healthcare

4. Inadequate access to primary education and healthcare

ITC enables farmers to implement solutions that are sustainable because they are

1. mutually reinforcing,

2. based on knowledge transfer and co-operative application of technology,

3. dependent on mobilisation and optimisation of local resources.

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The delivery model mobilises a four-way partnership between village communities, specialist

NGOs, the Government and ITC, bringing to every initiative the best relevant management and

technical expertise.

ITC has also worked with State Governments in pioneering public-private partnerships. In

Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration

with the State Government’s rural poverty reduction project, Indira Kranthi Padham, and its

Comprehensive Land Development programme. ITC has also signed a landmark agreement with

the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the

drought-prone Bhilwara district.

By augmenting water resources and forest cover and fostering organic soil management, ITC

has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm

income and employment to reduce pressure on land.

RESEARCH PROBLEM

TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN

DIFFERENT- DIFFERENT PLACES OF SAHARANPUR CITY AND FIND OUT THE

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REASON FOR DECREASE IN IT SALES.AND ALSO FINDS OUT THE DIFFERSENCES

BETWEEN ITS COMPETITORS PRODUCT.

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50

OBJECTIVE OF RESEARCH

TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITY

OF SAHARANPUR.

TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD IN

THE CITY OF SAHARANPUR.

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RESERACH DESIGN

SAMPLE SIZE:

A sample size of100 shopkeeper was taken.

SAMPLE PROCEDURE :

Simple random sampling was done.

DATA COLLECTION INSTRUMENT :

The study is based on analysis and interpretation of a questionnaire which was distributed to

100 shopkeepers. The survey included open and ended questions the information about the

new shopkeeper who are open the shop recently or in few days.

SAMPLE DESIGN

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Data collection (primary & secondnary).

Graphical representation.

Data representation.

Select different-2 market of Saharanpur

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SOURCES OF DATA

Both Primary data and secondary data were collected to meet the objective. Data is taken as

per the requirements of the study.

TO collect the primary data, we went to the different-2 market of Saharanpur city.

In this research we collect the data from 10 markets & about 100 shops for collect primary

data, for collect the secondary data we use ITC website ,news paper ITC report, market

trend,magzine article.

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COLLECTION OF DATA

For collection of primary data we went to the different-2 market of Saharanpur city. For

collection of primary data we prepared a questionnaire to know about the research. In this we

meet the 100 retailers & ask him different-2 question to complete the objective that we have to

done in the research objective.

In collection of primary data we use ITC website, news paper ITC report, market trend,

magazine article & other related information to complete the objective of research.

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ANALYSIS OF DATA

In Saharanpur City there are mainly three brands competing each others. These are Aashirvaad , Shaktibhog & Local mill flour

S.NO COMMODITY WEIGHT (KG.) PRICE (Rs)

1.

Aashirvaad

Flour

10 kg. 190-195 Rs.

2.

Shakti Bhog

Flour

10 kg. 170-175 Rs.

3.

Local Mill

Flour

10 kg. 140-145 Rs.

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SALES ( IN %)

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S.No Area Aashirvaad

Flour

Shakti Bhogh Local Mill Flour

1. Naveen Nagar 20% 30% 50%

2. Chander Nagar 20% 30% 50%

3. Khalashi Line 10% 10% 80%

4. Sugar Mill 15% 10% 75%

5. Court Road 25% 35% 40%

6. Hakikat Nagar 15% 20% 65%

7. Behat Road 5% 5% 90%

8. Sharda Nagar 10% 15% 75%

9. Railway colony 10% 10% 80%

10. Ravi Nagar 10% 15% 75%

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INTERPRETATION

BASED ON THE FINDINGS OF THE SURVEY WE GET THE FOLLOWING RESULTS:

NAVEEN NAGAR

In this area aashirvaad had got all generally all positive review from the shop.

Shakti bhog

Local mill

Aashirvaad

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CHANDER NAGAR

In this area aashirvaad had got also all generally all positive review from the shop.

Shakti bhog

Local mill

Aashirvaad

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KHALASHI LINE

In this area the sale of aashirvaad very lower than its competitor local mill flour.

Shaktibhog

Local mill

Aashirvaad

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SUGAR MILL

In this area position of Aashirvaad better than to Shakti bhog, but not better than local mill flour

Shaktibhog

Local mill

Aashirvaad

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COURT ROAD

In this area there are great competition amongst all three product but local mill flour sales more than others.

ShaktibhogLocal millAashirvaad

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HAKIKAT NAGAR

In this area there are great competition in Shakti bhog & aashirvaad flour.

Shaktibhog

Local mill

Aashirvaad

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BEHAT ROAD

Sales- It is the one of the areas where rural area is nearby due to which here Local mill flour is doing well.

Shaktibhog

Local mill

Aashirvaad

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SHARDA NAGAR

In this area there is great share of local mill flour in this area of Saharanpur.

Shaktibhog

Local mill

Aashirvaad

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RAILWAY COLONY

In this area there is also a great share of local mill flour in Saharanpur market.

Shaktibhog

Local mill

Aashirvaad

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RAVI NAGAR

In this area also a great share of local mill flour in this area of Saharanpur market.

Shaktibhog

Local mill

Aashirvaad

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DISTRIBUTION

S.No AREA Aashirvaad Shakti Bhogh Local Mill Flour

1 NAVEEN NAGAR R.S R.S R.S

2 CHANDER NAGAR R.S R.S R.S

3 KHALASHI LINE O.B O.B R.S

4 SUGAR MILL O.B O.B R.S

5 COURT ROAD R.S R.S R.S

6 HAKIKT NAGAR O.B O.B R.S

7 BEHAT ROAD O.B O.B R.S

8 SHARDA NAGAR O.B O.B R.S

9 RAILWAY COLONY O.B O.B R.S

10 RAVI NAGAR O.B O.B R.S

O.B=ORDER BOOK, R.S=READY STOCK

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FINDINGS

After Conducting the Survey on Sales and Distribution of Aashirvaad Flour in the city of

Saharanpur,

We find that the rate of Aashirvaad Flour is more than its Competitor ( Shakti Bhogh and

Local Mill Flour.

The Retailers said that product is strong, but due to high rate than others its sale is less

than its competitors.

We also find that the packaging of Aashirvaad is better than its competitors.

We also find that the Distribution of ITC Aashirvaad is much better than others.

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CONCLUSION

Conclusion is that, there are 50% people of Saharanpur belong to the middle class family and

also the 30% people of Saharanpur living below than poverty line, so it is impossible to them to

purchase costly product.

If we talk about the flour of the weight of 10 Kg. The rate of local mill flour is between 140 -

145 Rs. To compare with Aashirvaad it is less than about 50 Rs. (Aashirvaad rate is between

190-195 Rs.)

It means that they purchase more 3 Kg. flour in 50 Rs.

If we talk about Shakti Bhogh it is also less than 20 Rs, in comparison to Aashirvaad (Shakti

Bhogh rate is between 170-175 Rs.)

So ITC should work on it, to increase the sales of Aashirvaad in the market of Saharanpur.

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SUMMARY

After going thick on the things, now the time is to make a complete picture. While

making a product SKU (stock keeping unit) of the shop retailers think about the GMROI (Gross

margin return on investment) & they promote the brand which pays them highest. They expect

return in the form of profit margin, company schemes and window displays. Among these

company schemes makes the difference & are the highest sources of motivation after profit

margins. Retailing demands a constant push from the company.

Marketers need to use advertising and brand building strategy to address the discerning

buyers and retail push to in the different buyers. The manufacturer should understand the

consumer behavior. Because retailers can’t help quality and price. It is only up to the

manufacturer to provide the consumer what he wants. I need to stress on it because 77% retailers

said that it is the demand for what we sell.

At the time of research it is found that the profit margins available to the all distributors of

different brands and retailers are same. Retailers are mainly getting profit of 10-12 %. But what

vary are the schemes introduced by the companies for retailers and end consumers.

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SUGGESION

These are the following suggestion.

Company should decrease the rate of aashirvaad.

Company should more work on advertising of aashirvaad.

Company should also work for its distribution.

Company should reduce the awareness of people about itc.

Company should start many scheme & offer to increasing of aashirvaad.

Company should also analysis its competitor’s strategy.

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LIMITATION

Time is short for deep research.

The rate will change in time to time.

The study is limited.

The study is limited to some areas of Saharanpur city.

We have to consider only 10 Kg. weights

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ANNEXURES

(1) Which flour you selling in the present?

(a) Shakti bhog

(b) Aashirvaad

(c) Local mill

(2) Which brand is delivering you proper service?

(a) Shakti bhog

(b) Aashirvaad

(c) Local mill

(3) Which factorsdo you considers while purchasing flour?

(a) Quality

(b) Price

(c) Resource

(4) Which brand do you store most?

(a) Shakti bhog

(b) Aashirvaad

(c) Local mill

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(5) When a consumer comes to your shop which brand you gives to him?

(a) Shakti bhog

(b) Aaswhirvaad

(c) Local mill

(6) Which brand is offering you highest margins?

(a) Shakti bhog

(b) Aaswhirvaad

(c) Local mill

(7) Which brand distribution in the best?

(a) Shakti bhog

(b) Aaswhirvaad

(c) Local mill

(7) which brand packagaging in the best?

(a) Shakti bhog

(b) Aaswhirvaad

(c) Local mill

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(8) Which brand is giving you more instruction about the product?

(a) Aashirvaad

(b) Shakti bhog

(c) Local mill

(9) Have you use aashirvaad?

(a) Yes

(b) No

(10) What is your opinion about aashirvaad?

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BIBLIOGRAPHY

ITC ANNEXURESITC REPORTS MARKETTING MANAGEMENT- P. KOTLERMARKETING RESEARCH-G.C. BERIwww.itcportal.com RESEARCH METHODOLOGY-C.R.KOTHARI

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