ITC: Creating lasting value for all stakeholders - Indian Express
September 27, 2010
ITC is one enterprise which like very few business enterprises across the world, is still firing on all cylinders to reach a higher orbit of growth even at 100 years, Started in 1910, ITC has today transformed from a single product company to one of the largest multi-business private enterprises in the country. The past 100 inspiring years have been marked by an overarching vision to serve a larger national purpose and live by the strong values of trusteeship and to nourish internal vitality to create superior value for all stakeholders.
As globalisation unfolded with the economic reforms of the '90s, ITC saw this turning point in the country's economic history as an opportunity to invest in the businesses for tomorrow.
A strategic choice was made to enter new businesses with adjacency by leveraging internal competencies that best matched emerging market opportunity.
Driven by the aspiration to become the country's leading FMCG company, ITC created a bouquet of businesses which spawned several brands that are popular household names today.
The expansion strategy in FMCG saw ITC making an entry into lifestyle apparel, branded packaged foods, education & stationery products, safety matches and incense sticks and more recently personal care products. Core competencies and group synergies lent strength to these businesses taking them to leadership positions in a short span of time.
In 2000, ITC launched the revolutionary e-Choupal, bringing information technology to farmers and providing them efficient access to markets and inputs. This initiative, now a Harvard Business School case study and a recipient of several prestigious global awards has transformed rural lives, empowered farmers and raised rural incomes in the command areas of its operation.
Today, more than 4 million farmers benefit from ITC's e-Choupal. In the same year, ITC entered the information technology space on the strength of its domain knowledge. This business today is one of the fastest growing IT companies in India, driven by the superior customer care it brings to its global clients.
In 1996, ITC had a gross income of 5,188 crore, with a profit after tax of 261 crore and a market capitalisation of 5,571 crore. A decade-and-a-half later - as ITC enters its Centenary year - the strategic choices made over the years, the untiring effort of its dedicated human capital, the support of its shareholders and the trust of millions of consumers and its partners have today transformed ITC into a 26,000 crore company with a profit after tax of over 4,000 crore and a market capitalisation that exceeds 100,000 crore. This financial value created for the stakeholders is just only one pillar of ITC's contribution.
An even more meaningful contribution lies in its efforts to build societal capital for the nation.
Inspired by the opportunity to contribute to a larger national purpose, Chairman Y C Deveshwar has redefined ITC's vision to embrace societal value creation as an integral part of its business goals. ITC has consciously chosen to measure its performance in terms of its contribution to the tripple bottom line benchmarks of enhancing economic, environmental and social capital for the nation.
Supporting large-scale social forestry programmes for poor tribals, creating large watershed projects, empowering women, providing supplementary education to the rural poor and enhancing the quality of animal livestock are some of ITC's large sustainability initiatives that have transformed the lives of thousands who live at the margin.
Arising from its commitment to a low carbon future, nearly one-third of ITC's energy comes from renewable sources. Its green commitment extends to its buildings, with two of its properties achieving Platinum LEED certification.
The journey so far has indeed been inspiring. World-class manufacturing assets have been created. ITC's green buildings and signature hotel properties that embody "Responsible Luxury" have come to symbolise India's commitment to sustainability. ITC's trademarks and brands are at the top of the FMCG space competing with the best of global brands. Notable contributions have been made to advancing management competencies in India, including pioneering consumer research, services marketing and brand building. Valuable insights have been gained from deep rural engagement.
The company has provided thought leadership to sustainability issues in the country, creating institutions and businesses that walk the talk in contributing to a more secure, sustainable and inclusive future. ITC has also built world-class human capital which is raring to take the company into its next century.
The next century promises to be even more exciting and rewarding.
ITC has assiduously invested in the future. Today, the company is already poised in the frontline of multiple businesses that will become the powerhouses of tomorrow as the Indian economy surges ahead. Significant investments in cutting edge R & D will deliver unique solutions for a better quality of life. ITC's deep commitment to sustainable business practices will be a source of competitive advantage as civil society becomes even more aware, discerning and demanding.
ITC steps into the next 100, inspired to create enduring value for all stakeholders, inspired to preserve and protect its deep-rooted Indian identity, and inspired to create value for the nation.
Indeed, the best is yet to come.
