18-12-2012, 06:06 PM
ITC – Aashirvaad Atta
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Introduction
Preamble
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes
and tobacco to hotels, packaging, paper and paperboards and international
commodities trading. Each of these businesses is vastly different from the others in its
type, the state of its evolution and the basic nature of its activity, all of which influence
the choice of the form of governance. The challenge of governance for ITC therefore
lies in fashioning a model that addresses the uniqueness of each of its businesses and
yet strengthens the unity of purpose of the Company as a whole. Globalization will not
only significantly heighten business risks, but will also compel Indian companies to
adopt international norms of transparency and good governance. ITC's governance
policy recognizes the challenge of this new business reality in India.
Definition and Purpose
ITC defines Corporate Governance as a systemic process by which companies are
directed and controlled to enhance their wealth generating capacity. Since large
corporations employ vast quantum of societal resources, we believe that the governance
process should ensure that these companies are managed in a manner that meets
stakeholders aspirations and societal expectations.
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 within a framework of effective
accountability.
Cornerstones
From the above definition and core principles of Corporate Governance emerge the
cornerstones of ITC's governance philosophy, namely trusteeship, transparency,
empowerment and accountability, control and ethical corporate citizenship. ITC
believes that the practice of each of these leads to the creation of the right corporate
culture in which the company is managed in a manner that fulfíls the purpose of
Corporate Governance.
History and evolution
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 the Company's existence. The Company
celebrated its 16th 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 into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land two years
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-business
portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports,
Foods, 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'.
Though the first six decades of the Company's existence were primarily devoted to
the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the
Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company.
ITC's Packaging & Printing Business Division, was set up 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-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 66 owned and managed properties spread across India. It also has a
marketing and reservation arrangement with the Sheraton Corporation, the reputed
international hotel chain.
Aashirvaad ReadyMeals
ITC Foods launched a range of Ready-To-Eat dishes under the 'Aashirvaad
ReadyMeals' label, in Hyderabad, on 25th June 2003. The range now comprises nine
dishes and two Combo packs. The dishes on offer currently are Rajma Masala, Nav
Ratan Kurma, Dal Makhani, Aloo Mutter, Palak Paneer, Pindi Chana, Pav Bhaji, Mutter
Paneer and Yellow Dal Tadka. Rajma Masala & Basmati Rice and Yellow Dal Tadka &
Basmati Rice are available in Combo packs.