ITC: Building World-Class Indian Brands FMCG HOTELS PAPERBOARDS & PACKAGING AGRI BUSINESS www.itcportal.com INFORMATION TECHNOLOGY Building World-Class Brands for India A countrys brands are a reflection of its competitive strengths and a manifestation of its innovation and intellectual capacity. I strongly believe that a countrys economic capacity is significantly enriched when its institutions build and own internationally competitive brands. Winning brands serve as market anchors to support the competitiveness of the entire value chains of which they are a part. Strong domestic brands create much larger value since they create, capture and retain value within the country. ITC takes justifiable pride in creating world-class Indian brands that have demonstrated immense vitality in the global Indian market place. Y C Deveshwar Chairman, ITC Limited ITCs Brands: Powering Economic Growth Winning brands are the badge of a countrys economic competitiveness. Brands capture value for the nation in numerous ways creating intellectual capital, boosting R&D and innovation, creating large-scale livelihoods by empowering value chains, investing in physical infrastructure and expanding markets. ITC is today proud to have created over 50 energetic and popular brands across categories that delight millions of households and support and sustain around 6 million livelihoods across India. Within a relatively short span of time, ITC has established vital brands across diverse businesses that include branded packaged foods, personal care, education & stationery products, incense sticks and safety matches, lifestyle retailing and hotels. Each of ITCs brands has today garnered significant market standing in the global Indian marketplace. ITC Hotels, with its credo of Responsible Luxury, stands apart not only for its exquisite signature properties, cuisine and service excellence but also for being the greenest luxury hotel chain in the world. ITCs hotels business also contributes to the countrys tourism landscape and livelihood creation through its other high quality offerings embodied in the WelcomHotel, Fortune Hotels and WelcomHeritage brands. ITCs hotels have pioneered the concept of branded cuisine in India with globally acclaimed restaurants including Bukhara, Dum Pukht and Dakshin. ITC has also set new benchmarks in wellness with its Kaya Kalp Spa brand that offers a new dimension in luxury and an enriching experience. Branded Packaged Foods Winning consumer preference in fast growing consumption categories, supporting round the year productivity for millions of farmers Atta, Salt, Spices, Instant Mixes, Ready Meals, Dairy Offering nothing but the best for the Indian household, ingredients for Aashirvaad products are carefully hand-picked and processed with love and care. Aashirvaad offers superior products in the categories of atta, salt, spices, instant mixes, ready meals and dairy. Premium Cookies, Biscuits, Cakes Sunfeast offers high quality biscuits, cookies and cakes in exciting and innovative formats, reinforcing ITCs commitment to delivering a world-class product experience to the discerning consumer. Juices B Natural heralds ITCs entry into the juices category. Luscious and thick, but with no added preservatives, B Natural juices are packed with the goodness of fruit. Available in 8 delicious variants, they bring consumers a taste that is as close to the real thing as possible. Branded Packaged Foods Ready-to-eat Gourmet Cuisine, Masala Mixes, Chutneys, Conserves A leader in the premium ready-to-eat packaged foods market, Kitchens of India offers authentic gourmet Indian dishes from across the country, crafted by the Master Chefs of ITC Hotels. Consumers can recreate an exclusive fine-dining experience in their own homes with this delectable range of vegetarian and non-vegetarian ready-toeat dishes, masala mixes, chutneys and conserves. The entire range is made with 100% natural ingredients and is free of preservatives. Instant Noodles, Instant Pasta Sunfeast YiPPee! No. 2 in Indias instant noodles market continues to wow consumers across the country. Available in 3 flavours, its unique round block and long, slurpy and non-sticky noodles have created consumer delight. Sunfeast YiPPee! Tricolor Pasta a recently launched differentiated premium offering is available in 2 exciting flavours. Sunfeast Pasta Treat offers a delicious and nutritious range of Pasta products in 4 different flavours. Potato Chips, Indian Finger Snacks Bingo! Indias 2nd largest brand in the salted snacks segment offers multiple variants of potato chips and finger snacks to fulfil the Indian consumers need for variety and novelty with innovative formats and irresistible combinations in flavours. Confectionery A mouth-watering range of toffees, candies and mints, in a wide variety of formats and flavours which delight consumers of all ages. GumOn the most recent addition to ITCs confectionery range marks its foray into the gums segment. Personal Care Products A range of grooming and personal wash products that have redefined consumer perceptions and preferences through world-class offerings crafted for India Fine Fragrances, Deodorants, After Shave Lotions, Hair & Body Shampoos, Bathing Bars Essenza Di Wills personifies innate style with its exclusive range of fine fragrances and grooming products. The brand unites distinct craftsmanship and passion and is an embodiment of fine living. Shower Gels, Bathing Bars, Face Washes Fiama Di Wills offers a range of expert solutions designed to make consumers look and feel young. With innovation at its core, Fiama Di Wills offers an enviable portfolio of products developed through years of scientific research at Laboratoire Naturel. Soaps, Face Washes, Moisturisers, Body Lotions, Creams Adjudged as one of the most exciting brands in the Personal Care segment in India, Vivel has built a strong consumer franchise with its portfolio of bath care and skin care products. Specially formulated to cater to the skin care needs of Indian consumers, Vivels range of innovative products are enriched with Vitamin E and rich nourishing ingredients to fulfil its promise of soft glowing skin. Colognes, Deodorants, Perfume Sprays ITCs latest addition in Personal Care Products, Engage is one of Indias first ranges of fragrance products for couples offering deodorants, cologne sprays and most recently, perfume sprays. Crafted to enhance personal grooming and confidence, the products, such as 0% gas cologne sprays, are designed to provide long lasting freshness and fragrance. Antiseptic Liquid, Soaps & Handwash, Prickly Heat Talc ITC recently expanded its Personal Care Products portfolio with the acquisition of 2 established brands with rich heritage. While Savlons range of antiseptic/ anti-bacterial products are trusted for their gentle yet effective protection against germs, Shower to Shower offers superior protection from prickly heat and controls sweat. Lifestyle Retailing Differentiated offerings across several premium product platforms Formal Wear, Casual Wear, Evening Wear, Designer Wear Synonymous with fashion and elegance, Wills Lifestyle presents a premium lifestyle wardrobe for Indian men and women. With its high fashion imagery, rich product mix and delightful shopping experience, the brand offers a tempting choice of Wills Classic formal wear, Wills Sport relaxed wear, Wills Clublife evening wear and Wills Signature designer wear. Formals, Casuals, Denims John Players, a leading brand in the Youth fashion segment, embodies the essence of the Indian youth that is free-spirited, playful and fashionable. From smart formals and trendy casuals including jackets and knits, the brand incorporates an exciting mix of colours, patterns, styling and fits. John Players Jeans features an innovative collection of denims and casual wear in edgy styling, bold patterns and contemporary fits for fashion-forward youth. Education & Stationery Products Offering the greenest range of stationery products, supported by a green wood fibre supply chain that supports the spread of education among rural communities Notebooks, Writing Instruments, Art Stationery, Scholastic Products Premium Notebooks, Pens Paperkraft is the leading provider of premium executive and office paper stationery including notebook ranges of Green Impression and Signature Series as well as an assortment of premium pens. Indias No.1 notebooks brand built on a meticulous understanding of consumer needs, Classmates expanding portfolio today also includes pens and pencils, mathematical drawing instruments, scales, erasers and sharpeners. Classmates art stationery brand Colour Crew offers an exciting range of superior quality student art materials. To cater to the value segment, Saathi notebooks were launched recently and are targeted at smaller markets. Safety Matches & Incense Sticks (Agarbattis) Innovative business models that generate livelihood opportunities for rural women and raise the competitiveness of small and cottage enterprises Incense Sticks (Agarbattis) ITCs Mangaldeep agarbattis are manufactured by small-scale and cottage units, providing livelihood opportunities for more than 10,000 people. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and provide better livelihoods for women rollers. Safety Matches A range of safety matches that includes popular brands like Aim, Ship, Homelites and i Kno to effectively address the needs of different consumer segments. The safety matches are sourced from small-scale units. ITCs Brands: Anchoring Inclusive Growth ITCs Brands: Empowering Value Chains ITCs commitment to create meaningful societal value is manifest in its multi-dimensional efforts to enhance the competitiveness of its value chains. Innovative models have been crafted to enable social value creation through inclusive value chains that encompass the most disadvantaged sections of society, especially those residing in rural India, creating large scale sustainable livelihoods. ITCs winning brands have anchored the competitiveness of these value chains benefitting farmers and rural communities. Together with the Companys programme for integrated rural development, these brands have enabled the empowerment of millions of disadvantaged in Indias villages by generating sustainable livelihoods. These initiatives include ITC e-Choupal, Social & Farm Forestry, Watershed Development, Dairy Development, Women Empowerment, Primary Education, Skilling & Vocational Training and Health & Sanitation. ITC e-Choupal A very successful example of value chain augmentation is the ITC e-Choupal initiative that benefits over 4 million farmers, while at the same time providing significant competitive advantage in procuring raw material for ITCs Foods business be it for Aashirvaad atta produced from handpicked whole wheat, quality-assured Aashirvaad spices, superior chipstock potatoes for Bingo! snack foods or the highest quality fruit pulp for B Natural juices. Farmers are free to transact at will and sell to whoever they choose. ITC Dairy Development ITCs Dairy Development Programme is assisting dairy farmers by setting up modern milk collection networks for better realisation from the formal milk market. The milk collection centres are set up in motorable areas for easy access and have power backup to support the operation of milk analysers, modern weighing machines and data processing units that have ensured a fair and transparent milk collection system based on both the quality and quantity of milk. The Programme has played a major role in boosting the local rural economy by helping farmers sell 256.97 lakh litres of milk worth over Rs60 crore since 2011. ITC Social & Farm Forestry Renewable plantations cultivated under this initiative enable ITC to offer the greenest paper and paperboards products manifest in stationery brands such as Classmate and Paperkraft. The bedrock of this initiative is the development and greening of over 2,20,000 hectares including wastelands, which has also provided over 100 million person-days of employment to poor tribal communities and marginal farmers. Farmers are free to transact at will and sell to whoever they choose. ITCs Brands: Investing in World-Class Assets for the Nation An aspect central to ITCs capability to constantly craft and deliver best-in-class brands and products is creating top-notch physical infrastructure in the form of state-of-the-art manufacturing facilities. Significant investments made in creating world-class manufacturing infrastructure across India provide ITCs brands the much required competitive edge in terms of scale, quality and time-to-market whilst ensuring rigorous standards of safety and hygiene. As a manifestation of ITCs exemplary efforts towards sustainable growth, several of ITCs factories have also received the Platinum Green Factory Building Rating from the Indian Green Building Council. ITCs investment-led business growth strategy includes over 65 ongoing infrastructure projects in the country spanning globally benchmarked factories, warehouses, luxury hotels, R&D facilities, office and residential complexes. ITCs Brands: Creating Sustainable Livelihoods through a Robust Distribution Network Continued focus on supply chain improvements at ITC not only enhances market servicing but also generates significant livelihood opportunities. Substantial investments have been made in augmenting distribution infrastructure to support a larger scale of operations in the wake of growing volumes and to ensure the competitiveness of ITCs brands in the market place. Leveraging its unmatched distribution infrastructure and reaching consumers even in the remotest of areas, ITC has today enhanced the market standing and consumer franchise of all its brands. This supply chain infrastructure has reinforced its competitive capability significantly to ensure visibility, availability and freshness. ITCs brands are today available in hundreds of Stock Keeping Units (SKUs) covering over 1,00,000 markets. ITCs formidable distribution organisation directly services more than 2 million retail outlets across trade channels. This elaborate network provides significant sustainable livelihoods. ITCs Brands: Innovating for India Recognising that cutting-edge R&D can foster breakthrough innovation and create powerful sources of sustainable competitive advantage, ITC continues to invest in this area, leveraging its world-class infrastructure, benchmarked processes, state-of-theart technology and a business-focused R&D strategy. With a team of over 350 world-class scientists, the state-of-the-art ITC Life Sciences & Technology Centre in Bengaluru is engaged in developing unique sources of competitive advantage and building future readiness by harnessing contemporary advances in science and technology, applying them in product development and leveraging cross-business synergies. ITCs R&D capabilities are utilised to develop future products in nutrition, health and well-being. In agri sciences, its efforts are aimed at developing new crop varieties with higher yields, better quality and other traits relevant to the Companys businesses. In a short span of time, ITC has applied for over 350 patents in India itself. A multi-business conglomerate · FMCG · Hotels · Paperboards & Packaging · Agri Business · Information Technology Powered by the vitality of world-class Indian brands Market Capitalisation of around $ 40 billion Exemplar in Sustainability Initiatives The Only Company in the world to be · Carbon Positive · Water Positive · Solid Waste Recycling Positive Worlds greenest luxury hotel chain All ITCs premium luxury hotels are LEED®* Platinum certified Over 43% of ITCs total energy consumption is from renewable sources Creating around 6 million sustainable livelihoods * Leadership in Energy and Environmental Design @ITCCorpCom January 2016 www.itcportal.com