Global growth slowed down from 3.5% in 2023 to 3.3%1in 2024 and remained appx. 40 bps below long-term trendrate 2 Amongst Advanced Economies which grew at 1.8%(Vs. 1.7% in 2023), uptick in EU (0.9% in 2024 Vs. 0.4%in 2023) was offset by a relatively slower pace of growth inUS & Japan. Emerging Markets & Developing Economiesgrew at a subdued rate of 4.3% (Vs. 4.7% in 2023), largelydue to structural weakness in China. Rising geopoliticaltensions, evolving global trade dynamics and extremeweather events have rendered the global macroeconomicenvironment highly uncertain and volatile.
Aggregate global economic growth, as per recent IMFestimates, is expected to decelerate sharply by 50 bpsto 2.8% in 2025. Advanced Economies are expectedto grow at a slower pace of 1.4% with US GDP growthprojected to decelerate by 100 bps to 1.8% in 2025.Growth in Emerging Markets and Developing Economiesis estimated to decelerate by 60 bps to 3.7% in 2025.
India continues to remain the fastest growing largeeconomy in the world - a relatively bright spot amidst thechallenging global operating environment. The pace ofgrowth, however, moderated from 9.2% in FY 2023-24to 6.5% in FY 2024-25. While headline inflation (CPI)remained within the RBI's target range at 4.6%, foodinflation witnessed a sharp uptick (FY 2024-25: 7.3% YoY).The impact of inflationary pressures on household savingsweighed on consumption expenditure, particularly in urbanmarkets; however, demand in rural markets was relativelyresilient. The weakness in consumption was reflected,inter alia, in the muted volume growth of the FMCG sector.
While growth in Industry witnessed decelerationat 5.6% (Vs. 10.8% in FY 2023-24), Services sector grewat 7.3% and the Agri sector witnessed an uptickat 4.6% (Vs. 2.7% in FY 2023-24).
India's macro-economic variables are expected toremain stable in the year ahead, with GDP growth forFY 2025-26 expected to be appx. 6.5%. Consumptionexpenditure is expected to pick up progressively led bycontinued recovery in rural demand backed by a goodmonsoon, along with improvement in urban demandas inflation stabilises and tax cuts announced in theUnion Budget boost disposable incomes. The cumulativeimpact of pick-up in capex in the second half ofFY 2024-25 and front loading of Government capex outlayin FY 2025-26, along with interest rate cuts and liquiditysupport from RBI, would also be supportive of growth.
The Indian economy is poised to grow rapidly in theyears ahead driven by structural factors such as afavourable demographic profile, increasing affluence,rapid urbanisation, accelerated digital adoption andthe entrepreneurial spirit of its people. Government ofIndia's thrust on strengthening the country's physicaland digital public infrastructure, focus on enhancing thecompetitiveness of the manufacturing sector, indirect/directtaxation and financial sector reforms, along with measuresto promote ease of doing business, are expectedto power the economy going forward. While highercapital expenditure outlays and focus on infrastructureare expected to drive growth and competitivenessof domestic manufacturing, focus on agri-relatedschemes is expected to boost farmers' welfare andrural consumption demand, spurring a virtuousconsumption-investment-employment cycle.
Policy interventions focused on supporting sustainablelivelihoods and fostering inclusive growth remain critical insustaining and accelerating India's economic growth path.
Structural support would need to be provided to sectorswith potential for large economic-multiplier impact.In this regard, the development of robust domestic agriand wood-based value chains hold special importancein the Indian context, given their enormous potential tocontribute to national objectives.
India is amongst the leading producers in the world ofseveral agri-commodities, including milk, rice, wheat,sugarcane, cotton, pulses, spices and fruits & vegetables.India's agri exports have witnessed strong performancein recent years; touching a peak of US$ 53 billion inFY 2022-23, moderating to US$ 50 billion in FY 2024-25due to trading restrictions on agri-commodities amidstconcerns over food security and inflation on the back ofgeopolitical tensions and climate emergencies. However,India's share of global agri-trade remains low at onlyabout 3%. Enhancing agricultural productivity and valueaddition to international standards, while simultaneouslyimproving market linkages, remain critical to enhancecompetitiveness of the agri sector and drive significantincrease in farmers' income.
The increasing severity and frequency of extremeweather events such as droughts and floods poseenormous threats to the farm sector, making it imperativeto strengthen climate resilience and adaptability of theagri-food sector. An exponential increase in cropproduction and productivity, backed by climate smartagriculture, will be critical in meeting the growing needsof an increasing population as also in mitigating thepotential risks. Evolving consumer preferences are alsodriving a shift towards nutritious and sustainably sourcedfood products. These developments accentuate the needto enhance the competitiveness of agri value chains tocater to the fast-evolving market requirements. India,with its tremendous strengths in this sector, has a uniqueopportunity to play a leading role in this global transitionand in forging an eco-system of sustainable, regenerativeand climate smart agriculture.
In this regard, the Government's focus on promoting FarmerProducer Organisations (FPOs) holds immense potentialto catalyse agricultural transformation by leveragingeconomies of scale, enabling sustainable agriculture,supporting market-led production and creating largermarket access. Government interventions encouragingprivate and public investment in post-harvest activitiesincluding aggregation, modern storage, efficient supplychain, primary and secondary processing, marketingand branding, along with measures to harness the powerof agri-tech across the agri value chain are steps in theright direction and will go a long way in unlocking the fullpotential of the agri sector.
Your Company has adopted targeted collaborativemodels to multiply the scale and impact of its agri and ruralinterventions. This collaborative approach, as opposedto a traditional transactional approach, can contributemeaningfully towards building next generation agriculturethat is climate resilient and capable of supporting gainfullivelihoods. Digitalisation of agriculture also offers thepotential to increase productivity and foster structuralchanges across the value chain thereby enablingefficient use of resources. Your Company had launchedITCMAARS (Metamarket for Advanced Agriculture andRural Services), that combines the power of cutting-edgedigital technologies with NextGen agri practices. Thisinitiative continues to be scaled up rapidly and currentlycovers over 2.1 million farmers and over 2,050 FPOs,across 11 states and over 18,000 villages. This 'phygital'ecosystem continues to empower the farming communityand FPOs by delivering personalised and dynamicadvisory services as well as hyperlocal offerings includingmarket linkages, agri inputs and credit enablement. Furtherdetails on this transformative initiative are provided in theAgri Business section of this report.
It is pertinent to note that a substantial quantum of food iswasted along the chain in India, depending on the seasonand the inherent perishability of the crop. Higher levels of
food processing in the economy can create a much largerpull for quality agri-commodities, thereby reducing farmwastages and raising farm incomes. This would requirefocused investments in developing product-specificclimate-controlled infrastructure as well as in brandedproducts that benefit large agri-value chains. Corporateparticipation is essential not only to invest in requisiteinfrastructure, but also to provide assured market linkagesto farmers. A strong focus on India's food processingsector can play a pivotal role in catalysing a large multipliereffect, leading to significant job creation, enhanced ruralincomes and sustainable management of food inflation.
Similarly, the Agro-forestry sector, as a source of rawmaterial for wood-based industry, is woefully constrainedby policies that not only impede job creation in Indiabut also promote avoidable imports. There is a need forappropriate policy interventions and regulatory changesat national level to utilise full potential of agro forestry inthe country.
Your Company's interventions across operating segmentsare aligned to the national priorities of enhancingcompetitiveness of Indian agriculture and industry,generating large-scale employment opportunities andsupporting sustainable livelihoods, driving importsubstitution, creating national brands to maximise valuecapture in India, increasing Indian agri exports andpromoting sustainable business practices. For instance,
' ITC Mission Millets', which leverages enterprisestrengths in agriculture, food and hospitality to implementmulti-dimensional interventions in this area, has resultedin significant increase in awareness and demand formillets. Investments made by your Company continue tobe guided by the national objectives of 'Make in India' and'Doubling Farmers' Income' and the overarching themeof 'Aatma Nirbhar Bharat' that seeks to make the countrystronger, resilient and more competitive.
As reported in earlier years, your Company's collaborationwith NITI Aayog, aimed at boosting agricultural and allied
activities in 27 Aspirational Districts across eight states,started in July 2022. The multi-year project covering a widerange of activities, was successfully completed in the firstquarter of the year, with the Government taking forwardthe farmer capability modules and the design elements ofmodel villages promoted by your Company. The farmertraining modules prepared by your Company are nowbeing used by district Krishi Vigyan Kendras (KVKs) in all27 districts. During the year, the KVKs themselves trainedover 3,500 Government agricultural department officialswho in turn cascaded the training in over 9,500 villages.Agricultural departments are promoting 1,350 hub villagesin these districts for demonstration of best practices.
Your Company is working towards developing communityinstitutions, promoting women agriculturists, facilitatingcadre of women service providers like Pashu Sakhis,Yojana Sakhis, and Krishi Sakhis and fostering nano andmicro entrepreneurship through Agri-Business Centresand Self-Help Groups. Custom hiring centres for farmmechanisation, post-harvest product managementinfrastructure and community managed seed banksfor self-reliance in quality seed material are also beingfacilitated. Environmentally sustainable farm practices,including zero-till sowing of wheat, direct seeding of rice,micro-irrigation and watershed development, continue tobe promoted.
Your Company had earlier collaborated with CGIAR's'Climate Change and Food Security Programme' tocreate a template for Climate Smart Villages (CSVs),under the Climate Smart Agriculture (CSA) programme.The template has since been further strengthened byyour Company basis the field experiences and nowcovers over 7,000 villages across 12 states covering over21.80 lakh acres, supporting farmers in the managementof risks arising from erratic weather events.
Including the acreage in CSVs, the Climate SmartAgriculture (CSA) programme now covers over31.70 lakh acres in 19 states. Further, as per the
studies done by reputed ICAR - Agricultural TechnologyApplication Research Institute, Kanpur, the CSA practicespromoted in Rice and Wheat crops together havedemonstrated reduction of costs up to 21%, improvementin yields up to 8% and consequently, increase in incomesup to 23% as compared to conventional practices.
In Kapurthala District, Punjab, your Company under itsflagship programme of 'ITC Mission Sunehra Kal' has,over the last seven years, implemented solutions thathave effectively substituted the burning of paddy stubbleby farmers. During the year, the programme coverednearly 2.84 lakh acres with appx. 96% of the area(2.73 lakh acres) witnessing total stoppage of stubbleburning, thereby avoiding appx. 2.14 lakh tonnes ofcarbon release into the atmosphere.
Although India accounts for appx. 18% of theworld population, its share of natural resources isdisproportionately low with only 2% of global land mass,4% of freshwater resources and 2% of forest resources.It is more critical than ever before to redouble efforts, bothat the national and corporate level, to fashion strategiesthat foster sustainable, equitable and inclusive growth.
It is your Company's belief that businesses can bringabout transformational change by pursuing innovativebusiness models that synergise the creation of sustainablelivelihoods and the preservation of natural capital whileenhancing shareholder value. This 'Triple Bottom Line'approach to creating larger 'stakeholder value', as opposedto merely focusing on uni-dimensional 'shareholder value'creation, is the driving force that defines your Company'ssustainability vision and its growth path into the future.
Your Company is a global exemplar in 'Triple Bottom Line'performance. The focus on creating unique businessmodels that generate substantial livelihoods across thevalue chains has led to your Company's Businessessupporting nearly nine million sustainable livelihoods,many of whom belong to the weaker sections of society.
Your Company sustained its 'AA' rating by MSCI-ESG forthe seventh successive year - the highest amongst globaltobacco companies. Based on its ESG score as assessedby S&P Global Corporate Sustainability Assessment (CSA),your Company has also been included in the Dow JonesSustainability Emerging Markets Index for the fifth year ina row - a reflection of being a sustainability leader in theindustry and a recognition of its continued commitment topeople and planet.
Your Company is a pioneer in the green buildingmovement, with 17 buildings having received Platinumcertification by USGBC (US Green Building Council)/IGBC(Indian Green Building Council). To continuously reduceyour Company's energy footprint, green features continueto be integrated in all new and old constructions includingmanufacturing units, warehouses and office complexes.
In addition, your Company is spearheading theimplementation of Alliance for Water Stewardship(AWS) Standard which is a credible, globally recognisedframework for ensuring sustainable water managementwithin the wider water catchment context. The Kovai unitof your Company is the first site in India and the first papermill in the world to achieve the highest Platinum ratingunder the 'Alliance for Water Stewardship Standards'.During the year, two of your Company's units received theAWS Platinum level certification. Till date, nine units ofyour Company have achieved Platinum level certificationunder the AWS Standard. Your Company is in the processof implementing the AWS Standard at other units in highwater stress areas and will progressively obtain AWScertification for these sites.
Your Company continues to pursue a low carbon growthstrategy through extensive decarbonisation programmesacross its value chains whilst also developing adaptationplans across its sites. Your Company is the onlyenterprise in the world of comparable dimensions tohave achieved and sustained the three key globalindices of environmental sustainability of being
'water positive' (for 23 years), 'carbon positive' (for 20 years),and 'solid waste recycling positive' (for 18 years). With itsbold Sustainability 2.0 agenda, your Company is settingthe bar even higher and remains committed to makinga meaningful contribution across all the three sectorsof the economy - Agri, Manufacturing and Services.Further details on this subject are available in theSustainability 2.0 section of this Report.
Your Company delivered a resilient performance duringthe year amidst a challenging macroeconomic andoperating environment.
- The FMCG-Others Segment delivered a resilientperformance amidst weak demand conditions andheightened competitive intensity. Further, the impactof sharp escalation in key input costs, viz. edible oil,maida, potato, cocoa, packaging inputs especiallyin the second half of the year, exerted pressure onmargins, which was partially offset through focusedcost management interventions, judicious pricingactions and premiumisation. Competitive marketingand trade investments were sustained during the yeardespite heightened inflationary pressures towardssupporting growth and market standing.
- In the FMCG-Cigarettes Segment, strategicportfolio/market interventions continued to be made,with focus on competitive belts and to counter illicit trade,to drive volume-led growth and reinforce marketstanding. Differentiated and premium offerings continueto perform well. Severe cost escalation in leaf tobaccowas partially mitigated through mix enrichment.
- The Agri Business Segment delivered robustperformance during the year. The value-addedagri portfolio recorded strong growth driven by scale upof exports of spices and coffee. While operationsremained constrained due to continuation of tradingrestrictions on certain agri-commodities, the Business
demonstrated execution agility in leveragingopportunities in rice exports in the second half of theyear when restrictions were eased. Strong customerrelationships and focus on new business developmentaided strong growth in leaf tobacco exports. Superiorgrade/crop mix and strategic cost managementinitiatives enabled expansion in margins, despitesteep escalation in green leaf tobacco costs.
- The Paperboards, Paper & Packaging Segmentcontinued to witness a challenging operatingenvironment, with low-priced Chinese andIndonesian supplies in global markets including India,soft domestic demand conditions, leading to subduedrealisations. Segment margins were impacted by theunprecedented surge in wood costs. The Businesscontinued to sharpen focus on portfolio augmentation,export customer/market development and structuralcost management to mitigate near term challenges,while enhancing resilience for the future. The Packagingand Printing Business continues to be acknowledgedas a 'first choice packaging partner' by several reputedFMCG companies in the country for providing superiorand cost-effective packaging solutions. The Businesscontinues to aggressively pursue new businessdevelopment across various segments.
Continuing Operations: In FY 2024-25, GrossRevenue and EBITDA stood at ' 73464.55 crores and' 24024.83 crores respectively. Profit Before Exceptionalitems and Tax at ' 26000.86 crores, grew by 1.4%over previous year. Profit After Tax grew by 0.9% to' 20091.85 crores (previous year ' 19910.23 crores).Earnings Per Share for the year stood at ' 16.07(previous year ' 15.98).
Discontinued Operations: Pursuant to the Scheme ofArrangement ('the Scheme') amongst your Companyand ITC Hotels Limited ('ITCHL') and their respectiveshareholders and creditors for demerger of theHotels Business of your Company into ITCHL,
which became effective from 1st January 2025,the Hotels Business (along with all assets and liabilitiesthereof, excluding ITC Grand Central, Mumbai) and theinvestments held by your Company in Hospitality entities 3,have been transferred to ITCHL on a going concern basis.Accordingly, the operations of the Hotels Business ofyour Company (excluding ITC Grand Central, Mumbai)have been classified as 'Discontinued Operations' for theyear ended 31st March, 2025.
- The Hotels Business posted its highest ever Revenueand operating profits on the back of strong growthin RevPar, for the 9 months ended 31st December2024. The Profit Before Exceptional items and Taxfor the 9 months ended 31st December 2024 stood at' 572.52 crores (' 445.04 crores for the same periodin previous year; ' 691.22 crores for FY 2023-24).Profit After Tax from Discontinued operations forFY 2024-25 stood at ' 15103.76 crores
(previous year ' 511.74 crores), including anexceptional gain on demerger of ' 15163.06 crores(FY 2023-24 - ' 7.57 crores). Refer Note 29(x) to thefinancial statements.
Overall Profit After Tax for FY 2024-25 (including Profitfrom Discontinued Operations) stood at ' 35195.61 crores(previous year ' 20421.97 crores). Total ComprehensiveIncome for the year stood at ' 34266.23 crores (previousyear ' 22703.03 crores).
The Directors of your Company are pleased to recommenda Final Dividend of ' 7.85 per share for the financialyear ended 31st March, 2025. Together with the InterimDividend of ' 6.50 per share paid on 7th March 2025, thetotal Dividend for the financial year ended 31st March, 2025amounts to ' 14.35 per share (previous year Dividendof ' 13.75 per share). Total cash outflow on account ofDividend (including Interim Dividend of ' 8133.11 crorespaid in March 2025) will be ' 17956.69 crores.
Over the last five years, the Value-Added by yourCompany, i.e., the value created by the economic activitiesof your Company and its employees, aggregated over' 315000 crores, of which over ' 211000 crores accruedto the Exchequer.
Including the share of dividends paid and retainedearnings attributable to government owned institutions,your Company's contribution to the Central and StateGovernments represented appx. 75% of its Value-Addedduring the year.
Your Company has, over the years, consistently rankedamongst the Top 3 Indian corporates in the private sectorin terms of Contribution to Exchequer.
Your Company continues to view foreign exchangeearnings as a priority. All Businesses in your Company'sportfolio are mandated to engage with overseas marketswith a view to testing and demonstrating internationalcompetitiveness and seeking profitable opportunities forgrowth. Foreign exchange earnings of the ITC Group overthe last ten years aggregated nearly US$ 9.5 billion, ofwhich agri exports constituted appx. 60%. Earnings fromagri exports, which effectively link small farmers withinternational markets, are an indicator of your Company'scontribution to the rural economy.
During FY 2024-25, your Company and its subsidiariesearned ' 10445 crores in foreign exchange. The directforeign exchange earned by your Company amountedto ' 7708 crores, mainly on account of exports ofagri-commodities. Your Company’s expenditure inforeign currency amounted to ' 3426 crores, comprisingpurchase of raw materials, spares and other expensesof ' 3280 crores and import of capital goods of' 147 crores.
PROFITS
2024 - 25
2023 - 24
a) Profit before exceptional items and tax fromcontinuing operations
26000.86
25632.12
b) Exceptional Items (refer note 29 (i) to theStandalone Financial Statements)
527.96
-
c) Profit before tax from continuing operations
26528.82
d) Tax expense
- Current Tax
5990.17
5516.91
- Deferred Tax
446.80
204.98
e) Profit for the year from continuing operations
20091.85
19910.23
f) Profit for the year from discontinuedoperations
15103.76
511.74
g) Profit for the year (e + f)
35195.61
20421.97
h) Other Comprehensive Income
(929.38)
2281.06
i) Total Comprehensive Income
34266.23
22703.03
STATEMENT OF RETAINED EARNINGS
a) At the beginning of the year
34488.10
33687.70
b) Add: Profit for the year
c) Add: Other Comprehensive Income (net of tax)
(23.66)
(17.18)
d) Add: Transfer from Share Options OutstandingAccount on lapse
1.00
1.67
e) Less: Dividends
- Final Dividend of ' 7.50
9363.54
8388.91
(2024: ' 6.75) per share
- Special Dividend of Nil
3417.70
(2024: ' 2.75) per share
- Interim Dividend of ' 6.50
8133.11
7799.45
(2024: ' 6.25) per share
- Income Tax on Dividend paid (refund)
(19.45)
f) Less: Transfer to General Reserve
4448.06
g) At the end of the year
47735.79
Your Company's leadership position in the cigaretteindustry continues to be driven by its unwavering focus onnurturing a future-ready portfolio of world-class productsanchored on its integrated seed to smoke value chain,superior consumer insights, robust innovation pipelineand world-class product development capabilities.The Business continues to make strategic portfolio andmarket interventions, with focus on competitive beltsand to counter illicit trade, to drive growth and reinforcemarket standing. Differentiated variants and premiumsegment continue to perform well leveraging mainstreamtrademarks & innovation. These interventions, coupledwith the recent stability in taxes enabling some claw backof volumes from illicit trade, resulted in volume led growthduring the year.
A punitive and discriminatory taxation / regulatory regimeover the years has led to significant operating challengesfor the legal cigarette industry in the country. The recentstability in taxes coupled with deterrent action on illegaland contraband cigarettes, has helped the legal industryin partially recovering its lost volumes, leading to higherdemand for Indian tobaccos and bolstering revenue to theexchequer from the tobacco sector.
Your Company continues to counter illicit trade andreinforce market standing by fortifying the product portfoliothrough innovation, democratising premiumisation acrosssegments and enhancing product availability backed bysuperior on-ground execution. The recent amendment tothe Central Goods and Services Tax Act, 2017, to includean enabling provision for implementing 'Track and Trace'mechanism, is also expected to strengthen the effortsof enforcement agencies towards controlling illicitcigarette trade.
The year continued to witness steep increase in theprices of leaf tobacco, which was partly mitigated througha combination of product mix enrichment, strategic costmanagement and judicious pricing actions. During thecurrent crop year, global supply chains are normalising,leading to moderation in leaf tobacco prices after a sharpincrease over the last couple of years.
The Business also strengthened its presence in focusmarkets with the launch of several differentiated offeringsacross segments leveraging its institutional strengths,demonstrating agility in responding to evolving marketdynamics. Several innovative variants have beenintroduced recently under the 'Classic', 'Gold Flake','American Club' and 'Flake' trademarks amongst others.
Your Company has further strengthened its direct reach intarget markets across trade channels and also augmentedthe stockist network to service rural and semi-urbanmarkets efficiently. Your Company's investments towardsbuilding a differentiated portfolio coupled with agile andlast mile focused micro market execution capabilitiesaugur well for the future.
Globally, cigarettes constitute the dominant form oftobacco use. In the Indian context, tobacco use comprisesa diverse range of chewing and smoking formats that areavailable at multiple price points consequent to punitiveand discriminatory taxation on cigarettes. While Indiais the world's second largest consumer of tobacco,legal cigarettes constitute only 10% of overall tobaccoconsumption in India, as against a global average of 90%.It is pertinent to note that India accounts for less than 2%of global cigarette consumption despite having 18% of theworld's population - making India's per capita cigaretteconsumption amongst the lowest in the world.
Over the years, high and discriminatory taxes onCigarettes, while aimed at reducing consumption, havehad unintended consequences of fuelling the growth ofsmuggled and domestically manufactured tax-evadedcigarettes, causing a shift to other lightly taxed/tax-evadedforms of tobacco products, comprising illicit cigarettes, bidi,chewing tobacco, gutkha, zarda, snuff, etc. Consequently,while the share of legal cigarettes in total tobaccoconsumption has declined from 21% in 1981-82 to amere 10%, aggregate tobacco consumption in the countryhas increased over the same period. Despite accountingfor 1/10th of the tobacco consumed in the country,duty-paid cigarettes contribute more than 4/5th of therevenue generated from the tobacco sector.
Taxes on cigarettes in India remain one of the highest inthe world as depicted in the chart:
Tax per
USA
Japan
China
Germany
Russia
Canada
Pakistan
Malaysia
Thailand
UK
Australia
India
Source:T
P
2000 Cigarettes as a percentage of Per Capita GDP
M 0.40%
0.80%
1.00%
1.03%m 1.13%
1.19%
1.50%
1.68%
ax data - WHO Global Health Observatory, 2024 (Cigarette tax data for 2022);er Capita GDP - World Bank (Data for the year 2022)
Taxes on cigarettes in India are multiple times higher thanin developed countries viz. 14x of USA, 7x of Japan, 6x ofGermany and so on. Further, the same is also substantiallyhigher than that in neighbouring countries.
It may also be noted that India's per capita cigaretteconsumption is amongst the lowest in the world and issignificantly lower compared to that of China, Japan, USA,UK and even neighbouring countries such as Bangladeshand Pakistan.
1971
Per Capita Consumption of Cigarettes
No. of Cigarettes per annum
1133
898
897
468
394
90
Bangladesh
UK_
Source: The Tobacco Atlas Ý
- 7th Edition, 2022
Historically, steep increases in taxation have adverselyimpacted tax collections and legal cigarette volumes, whilea stable tax regime has led to buoyancy in tax collectionsas evidenced in the table below:
Period
Increase inTax Rate
Increase inTax RevenueCollection
FY 2012-13 to FY 2016-17 (CAGR)
15.7%
4.7%
Apr 2018 to Jan 2020 over Jul 2017to Mar 2018
—
10.2%
Oct 2020 to Mar 2021 over Aug2019 to Jan 2020
13.0%
1.8%
FY 2020-21 to 2022-23 (CAGR)
16.0%
Punitive taxes on the legal cigarette industry in earlieryears have resulted in rapid growth of illicit cigarettetrade - making India the 4th largest illicit cigarette marketglobally according to Euromonitor estimates. Over theyears, this has created attractive tax arbitrage opportunitiesfor unscrupulous players indulging in illicit cigarette tradeaccounting for about 1/3rd of the legal industry.
During the year, there were extensive media reportson the multitude of cases of evasion of taxes/dutiesby dealers in illicit cigarettes which were unearthed byraids conducted by Directorate of Revenue Intelligence(DRI) and other enforcement agencies. ‘Illicit markets:A Threat to Our National Interests’, a study publishedby FICCI-TARI in September 2022, noted that“The consumption of illegal cigarettes in India hasincreased, signalling a shift from legal products to cheapersubstitutes or illicit products, which have no or little taxelement in them. When taxes are raised beyond a certainoptimum level, consumers gravitate towards cheaperalternatives orillicitsupplies, which are normally smuggledor tax evaded goods”. It is estimated that illicit tradecauses an annual revenue loss of appx. ' 21000 croresto the Exchequer. With respect to other tobaccoproducts as well, the revenue losses are significant since
about 68% 4 of the total tobacco consumed in the countryremains outside the tax net.
The Directorate of Revenue Intelligence (DRI), in itsreport “Smuggling in India 2023-24” acknowledges thehigh incidence of taxes in India providing opportunitiesfor illicit trade of cigarettes. The report states: “Cigarettesmuggling in India has become a growing concern, posingserious challenges to the public health, the economy, andlaw enforcement. With high domestic taxes and importduties on tobacco products, intended to curb tobaccoconsumption and safeguard public health, smugglinghas become a profitable venture of criminal networks.The illegal trade in cigarette not only underminesgovernment policies aimed at reducing tobacco use butalso results in significant revenue loss”.
Tobacco control measures in India have ranked amongstthe most stringent in the world from the time of enactmentof the Cigarettes (Regulation of Production, Supply andDistribution) Act, 1975, to the present. India is also one ofthe few countries where tobacco products are regulatedacross the value chain - from their manufacture to sale toconsumers. The Cigarettes and Other Tobacco Products(Prohibition of Advertisement and Regulation of Tradeand Commerce, Production, Supply and Distribution) Act,2003 (COTPA) requires cigarette packages to displaythe statutorily mandated pictorial and textual warningscovering 85% of the surface area of the packet - one ofthe largest in the world.
It is pertinent to note that smuggled international brandsof cigarettes do not bear any of the pictorial or textualwarnings mandated by Indian laws or, bear much smallerpictorial/textual warnings as per the tobacco laws of thecountries from where these cigarettes originate. As reportedin prior years, findings from research conducted byIMRB International, an independent market researchorganisation, show that the lack of pictorial warnings on
4 Report on the impact of current tax framework on the tobacco sector in Indiaand suggestions for its improvement - 2014, by ASSOCHAM and KPMG.
packets of smuggled international brands of cigarettesor their diminutive size creates a perception in theconsumers' mind that these illicit cigarettes are 'safer' thandomestic duty-paid cigarettes that carry the 85% pictorialwarnings. The combination of low prices to consumersdue to tax evasion and the misleading perception createdby the absence of statutory pictorial warnings providessignificant buoyancy to illicit cigarette volumes.
India is among the top three tobacco growing countriesin the world. Tobacco plays a significant role in the Indianeconomy on account of its considerable contribution to theagricultural, industrial and export sectors 5 Illicit cigarettetrade also has a deleterious impact on farmers and farmworkers engaged in the tobacco value chain.
It may be noted that several major tobacco producingcountries, including the USA, have established regulatoryframeworks taking into consideration the economicinterests of their tobacco farmers. The punitive anddiscriminatory taxation & regulatory regime on cigarettesin India over the years, has adversely affected thelivelihood of Indian tobacco farmers with correspondinggains to those countries that have opted for moderateand equitable tobacco regulations. These developmentscoupled with lower export incentives in India and relativeweakness of currencies in certain competing geographieshave, in the past, had a debilitating impact on millions oflivelihoods, dependent on the tobacco value chain in India.However, recent stability in taxes on cigarettes backed bydeterrent actions of enforcement agencies has enabledthe legal cigarette industry to partially combat illicit tradeand claw back volumes, thereby improving demand forIndian tobaccos.
As reported in earlier years, your Company and severalother stakeholders had challenged the validity of thepictorial and textual warning covering 85% of thesurface area of the packet prescribed under COTPA.
The Honourable Karnataka High Court, by its judgementin December, 2017, held the 85% pictorial warnings tobe factually incorrect and unconstitutional. Upon SpecialLeave Petitions filed by the Government and others, theHonourable Supreme Court has stayed the judgmentof the High Court. The cases are pending before theHonourable Supreme Court.
The extremely stringent regulations along with thediscriminatory and steep taxation on cigarettes have hadnumerous negative, albeit unintended repercussions.These include:
- rapid growth in illicit cigarette volumes, which resultedin sub-optimisation of the revenue potential of thetobacco sector and significant loss to the Exchequer.It is estimated that on account of illicit cigarettes alone,revenue loss to the Government is appx. ' 21000 croresper annum.
- widespread availability of illicit cigarettes and othertobacco products of dubious quality and hygieneto consumers at extremely affordable prices. As aresult, despite accounting for 1/10th of the tobaccoconsumed in the country, duty-paid cigarettescontribute more than 4/5th of the revenue generatedfrom the tobacco sector.
- a large component of tobacco consumption in thecountry, aggregating around 68%, remaining outsidethe tax net.
- persistent negative impact on the livelihood of tobaccofarmers and others dependent on tobacco. Studiesby the Central Tobacco Research Institute (CTRI)indicate that on account of agro-climatic conditions,there is no equally remunerative alternate crop thatcan be grown in the FCV tobacco growing regions ofthe country.
Your Company continues to engage with policy makers fora framework of pragmatic, equitable, non-discriminatory,evidence-based regulations and taxation policies thatbalance the economic imperatives of the country and
tobacco control objectives, cognising for the unique tobaccoconsumption pattern in India. Stability in taxes is critical toaddress the interests of all stakeholders of this industry,including tobacco farmers, consumers and the Exchequer.
Manufacturing facilities of the Business continue to setnew benchmarks in the areas of quality, sustainability,supply chain responsiveness and productivity, driventhrough investments in new technology induction, digitaltechnologies, innovation, and ensuring product & processexcellence. Cutting-edge technologies in the areas ofIndustry 4.0 and Data Sciences are being leveraged tobuild a smart manufacturing environment of connectedsystems. These initiatives, coupled with innovativecapabilities, in-house design and development expertise,have further improved the speed-to-market for launch ofnew and differentiated offers of the Business.
It is extremely satisfying to report that your Companycontinues to be recognised for its operational excellence.The Bengaluru, Pune and Munger units won the'Apex Prize for Operational Excellence' at the IntegratedManufacturing Excellence Initiative (IMExI) Awardsorganised by Kaizen Hansei Institute, a wing ofKaizen Institute of India.
In line with your Company's commitment to the'Triple Bottom Line' philosophy, the Business continued tofocus its efforts for resource conservation and adoption ofbest-in-class technologies and processes. Sustainabilityinitiatives of the Business continue to receive industryrecognition, with the Kidderpore unit receiving the'National Energy Leader Award' at the CII National Awardfor Excellence in Energy Management, and the MungerUnit being awarded the 'Winner' Award under the BestEnergy Efficient Organisation (Large Sector) at theCII National Energy Efficiency Circle Competition.The 21 MW wind farm in Karnataka received the'Best Performing Wind Farm Award' from Indian WindPower Association in its geographical zone. Additionally,the Pune unit secured the coveted 'SarvashreshthaSuraksha Puraskar' awarded by National Safety Councilof India demonstrating its commitment to safety.
As a testimony to the success of digital initiatives onHR practices, the Business was honoured with theprestigious CII National HR Award for Excellence inDigital Practices.
Your Company remains well positioned to fortify itsmarket standing in the legal cigarette industry, leveragingits superior strategies, integrated seed to smoke valuechain, future-ready portfolio, robust innovation pipeline,cutting-edge manufacturing & digital technologiesand best-in-class execution capabilities. A stable andequitable taxation & regulatory regime remains critical toenable the legal cigarette industry to claw back volumesfrom illicit trade, as also borne out by recent experience.
The FMCG - Others Segment delivered a resilientperformance amidst subdued demand conditionsand significant increase in competitive intensity fromlocal/regional players. Costs of several major inputssuch as edible oil, wheat, maida, potato and cocoawitnessed sharp escalation, especially in the second halfof the financial year, weighing on margins. The inflationarypressures were partially mitigated through focused costmanagement, portfolio premiumisation, supply chainagility, digital interventions and calibrated pricing actions.Trade and marketing investments were sustained atcompetitive levels during the year towards supportinggrowth and market standing. Additionally, the Notebooksportfolio was impacted by sharp deflation in paperprices on account of cheap imports of paper, leading toheightened competitive intensity with opportunistic play bylocal/regional brands.
Your Company's FMCG Businesses recordedSegment Revenue of ' 21981.57 crores (previous year' 20966.83 crores), with Segment EBITDA at' 2163.92 crores (previous year ' 2338.50 crores).
A consumer-centric approach, driven by purpose-ledbrands, a future-ready portfolio including value-addedadjacencies and agility in execution backed by smart
omni-channel capability and excellence in supply chain,remains at the core of your Company's strategy to rapidlyscale-up the FMCG Businesses.
Across your Company's FMCG Businesses, the powerof digital is being leveraged to drive superior consumerinsights & innovation, deepen consumer engagement andenhance brand loyalty. Strategic interventions continue tobe made towards delivering delightful brand experiencesseamlessly using an 'Always On' approach acrosstouchpoints through personalised journeys mapped toindividual needs, preferences and context.
Your Company continues to leverage deep consumerinsights and cutting-edge R&D capabilities to addresspresent and emergent consumer need spaces. Over100 new products anchored on the vectors of Health &Nutrition, Hygiene, Protection & Care, Convenience &On-the-Go, Indulgence etc., were launched across targetmarkets during the year, leveraging the R&D platforms ofyour Company's Life Sciences and Technology Centre(LSTC) and agile product development teams acrossBusinesses.
Cutting-edge digital technologies including Industry 4.0,Advanced Analytics, Big Data and industrial Internet ofThings (loT) continue to be deployed towards strengtheningyour Company's real time operations and executionplatform, enhancing productivity, driving efficiency andcost agility. These initiatives are anchored on the keypillars of synchronised planning and forecasting, agile,resilient & efficient supply chain, smart buying & valueengineering, smart manufacturing and smart demandcapture & fulfilment. Strategic investments have beenstepped up to build platforms of insights by harmonisingand integrating large and isolated datasets poweredby AI/ML technologies and 'human-centred design' &visualisation tools.
The FMCG Businesses comprising Branded PackagedFoods, Personal Care Products, Education and StationeryProducts, Incense Sticks (Agarbattis) and Safety Matches
have grown at an impressive pace over the pastseveral years.
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Your Company's vibrant portfolio of over 25 world-classIndian brands, largely built through an organic growthstrategy leveraging institutional synergies in a relativelyshort period of time, represents an annual consumerspend of over ' 34000 crores and reach over 260 millionhouseholds in India. These home-grown, purpose-ledIndian brands, powered by agile innovation, support thecompetitiveness of domestic value chains, especially inthe agri space, thereby ensuring creation and retention ofvalue within the country.
Your Company's FMCG brands have achieved impressivemarket standing6 in a relatively short span of time in theirrespective categories viz. Aashirvaad is No. 1 in Branded Atta,Bingo! is No. 1 in the Bridges segment of Snack Foods,Sunfeast is No. 1 in the Cream Biscuits segment,Classmate is No. 1 in Notebooks, YiPPee! is No. 2 inNoodles and Mangaldeep is No. 2 in Incense Sticks.
Your Company remains focused on rapidly scaling up theFMCG Businesses anchored on strong growth platformsand a future-ready portfolio. It is pertinent to note that the
chosen categories, which are largely characterised bylow household penetration levels and/or low per capitaconsumption, offer significant headroom for long-termgrowth. This is borne out by several reports whichhighlight that your Company's total addressable marketexpansion potential is amongst the highest in the IndianFMCG space. In this context, it is noteworthy that a keyelement of your Company's growth strategy is to forayinto value-added adjacencies and categories of the futureby leveraging the 25+ powerful mother brands it hasestablished over the years. Recent examples of such brandextensions include Aashirvaad to Dairy, Ready-to-Eat,Vermicelli, Rava, Besan, Indian breads, Salt and Spices;Sunfeast to Dairy Beverages and Cakes; Bingo!to Namkeens; ITC Master Chef to Frozen Snacks andCooking pastes; Classmate to Writing instruments;Savlon to Sanitisers, Wipes and Disinfectant spraysetc. Simultaneously, the FMCG Businesses continue tomake strategic investments in building categories of thefuture and establishing your Company's 'right to win'by progressively scaling up nascent categories wherebeachheads have been created. In line with theITC Next Strategy of building a future-ready portfolio,accelerating growth and enhancing competitiveness,several value accretive acquisitions were announcedduring the year viz. M/s. Sresta Natural Bioproducts(24 Mantra Organic Foods), Mother Sparsh Baby Care(Mother Sparsh) and Ample Foods (Prasuma & Meatigo).These interventions are expected to augment yourCompany's presence and market standing in high-growthand future-facing businesses.
The FMCG Businesses continue to expand their exportfootprint leveraging the equity of their world-class brands -with a reach now spanning over 70 countries. Your Companyis also exploring strategic opportunities in proximalmarkets as a potential vector of growth going forward.
The FMCG Businesses continue to create structuralcompetitive advantages and enhance profitability byleveraging world-class distributed manufacturing andlogistics infrastructure, multi-channel distribution network
and newer routes to market, smart buying & valueengineering and smart manufacturing. Investments overthe years in several state-of-the-art Integrated ConsumerGoods Manufacturing and Logistics facilities (ICMLs) havelaid a strong foundation to drive structural advantagessuch as economies of scale and scope, ensuring productfreshness, enhancing agility and responsiveness ofthe supply chain, reducing cost of servicing proximalmarkets through lower distance-to-market, etc. Capacityutilisation at the 11 operational ICMLs continues to beramped up along with focused smart manufacturinginterventions leveraging automation and Industry 4.0technologies to drive operational efficiencies, yield andenergy management and further enhance safety andquality. With growing scale, supply chain operations arebeing increasingly delayered through direct-to-marketshipments, thereby reducing freight costs and eliminatingmultiple handling. Your Company is confident that thesestrategic interventions which are already deliveringsubstantial benefits will realise their full potential over themedium term and continue to create long-term value.
Your Company continues to counter the impact ofinflationary headwinds through proactive measures acrossall nodes of operations and deliver competitively superiorperformance leveraging its institutional strengths andharnessing advantages of scale, smart buying initiativesand world-class talent in a consumer-centric, agile andinnovative manner.
Notwithstanding the short-term challenges, thestructural drivers of long-term growth such as risingdisposable incomes and consumer awareness, lowlevels of penetration of consumer goods, favourabledemographics, increasing urbanisation and growingpreference for trusted brands remain firmly in place. YourCompany remains confident of rapidly scaling up its FMCGBusinesses on the back of a strong future-ready portfoliopowered by purpose-led brands, world-class quality, deepconsumer insights, cutting-edge innovation and an agile,resilient and efficient supply chain. Your Company'sinstitutional strengths - strong backward linkages with the
Agri Business, deep and wide multi-channel distributionnetwork, cuisine knowledge resident in ITC Hotels Limited(a group entity), industry-leading packaging knowhow andaccess to robust R&D platforms nurtured by LSTC - willcontinue to be leveraged to serve as unique sources ofcompetitive advantage for the FMCG Businesses.
The Branded Packaged Foods industry witnessed severeheadwinds during the year due to subdued consumerdemand and unprecedented inflationary pressureacross several key inputs viz. edible oil, wheat, maida,potato, cocoa, packaging inputs etc. In this backdrop,your Company sustained its position as one of India'slargest and fastest growing branded packaged foodsbusinesses, leveraging a robust portfolio of brands,a slew of first-to-market products, regionally curatedofferings, supported by an efficient supply chain anddistribution network.
The Branded Packaged Foods Businesses remainfocused on addressing emerging consumer preferencesthrough innovations anchored on the vectors of health,nutrition, wellness, immunity, naturals, indulgence andconvenience. Several innovative and first-to-marketproducts were launched during the year, leveragingyour Company's institutional strengths including superiorconsumer insights, innovation capabilities of theLife Sciences and Technology Centre (LSTC) and cuisineexpertise resident in ITC Hotels Limited, a group entity.While fortifying core portfolio, the Businesses continued toscale-up presence in value-added adjacencies leveragingpowerful mother brands and invest in categories ofthe future.
Relentless focus on delivering superior quality productsto consumers continues to be a key source of sustainablecompetitive advantage for the Branded Packaged FoodsBusinesses. In this context, the Businesses continue toleverage the agri-commodity sourcing expertise residentin your Company's Agri Business to procure high qualityraw materials, thereby ensuring the highest level ofquality, consistency and safety in its products. In addition,
each of your Company's branded packaged food productsis manufactured in HACCP/ISO-certified manufacturinglocations ensuring compliance with all applicable laws andadherence to the highest quality norms.
- In the Staples Business, 'Aashirvaad' delivered robustgrowth on an elevated base, consolidating its marketleadership position. The value-added Atta portfolio,consisting of Multigrain, Select and Sugar ReleaseControl Atta posted healthy growth driven by superiorvalue proposition. Millet products ('Atta with Millets','Gluten Free Flour', 'Ragi Flour'), Organic portfolio('Organic Atta' and 'Organic Dals'), 'AashirvaadVermicelli', 'Aashirvaad Rava' (Suji Rava, Bansi Rava,Samba Rava) and 'Ready to Cook Chapati' continuedto witness strong growth. 'Aashirvaad Besan',with the unique proposition of smooth & lump-freebatter, was extended to more markets and continuesto scale up rapidly. With the objective of catering toregional preferences, a differentiated range of Attawas launched in Mumbai ('Premium MP Sehori','MP Sehori', 'MP Lokwan' and 'Khapli' variants).The Vermicelli range was expanded with thelaunch of 'Roasted Short Vermicelli' in Tamil Nadu.'Aashirvaad Soya Chunks', with the proposition of'Juicy and Tasty' as the differentiator was launchedand has seen positive consumer response. Withsuperior product development, purposeful marketinginputs, consumer activations and region-specificinterventions supported by manufacturing excellenceand sharply targeted media investments, especiallyacross digital platforms, your Company is confidentof further fortifying Aashirvaad's position as apreferred 'centre-of-plate' choice amongst Indianhouseholds, catering to all future-ready 'staple' needsof consumers.
'Aashirvaad Salt' continued to post robust growthin focus markets during the year, supported by itsdistinctive positioning of “Iodine Assured salt for aSmarter India”.
In the Spices category, your Company continued todeliver strong growth with its endeavour to provide
consumers unique and personalised experiencesthat meet their taste preferences and reflect regionalflavours and ethos. During the year, the Businessgrew on the back of distribution expansion in focusstates, sharp region-specific communication, andan enhanced portfolio with innovative new offerings.The 'Sunrise' brand strengthened its marketleadership position in the core market of West Bengaland made significant gains in newer launch markets ofthe Northeast region and Bihar. The brand continuedto delight consumers by introducing unique anddifferentiated products catering to regional tastes andpreferences, such as 'Sunrise Soya Curry Masala','Sunrise Chinese Fried Rice Masala', 'SunriseSchezwan Masala' and augmenting the portfolio withnovel products such as 'Sunrise Peri Peri Masala' &'Sunrise Restaurant Magic Masala' for new ageconsumers. 'Aashirvaad Spices' continues to enhanceits presence in new gen channels and core marketsto enable a full portfolio play along with expansionof the blended portfolio. The brand's range of wholespices, launched in the previous year, also witnessedrapid scale-up across online platforms. Aashirvaadhas appointed Natural Star Nani as the brandambassador to strengthen the brand's alignment withcultural values such as the appreciation for cinema,culinary traditions, and a profound connection to theregion's unique customs and beliefs.
On April 17, 2025, your Company signed a SharePurchase Agreement to acquire 100% of the sharecapital of Sresta Natural Bioproducts Private Limited('SNBPL'), an Indian company primarily engagedin the business of manufacture and sale oforganic packaged food products under the'24 Mantra Organic' brand in the domestic as well asin international markets. SNBPL's portfolio comprisesa wide range of 100+ organic products spanningbranded grocery staples, spices and condiments,edible oils, beverages, etc. SNBPL has a stronginternational presence with a deep connect with
the Indian diaspora. SNBPL's vertically integratedsupply chain promotes sustainable livelihoods forits network of appx. 27,500 farmers spread acrossappx. 1.4 lakh acres of certified organic land in10 states. The strong network of farmers andcertified organic sourcing capability are key sourcesof competitive advantage for the company. Theacquisition reinforces your Company's commitmentto build a portfolio of future-facing winning brands thataddresses the evolving needs of Indian consumersand will unlock value creation opportunities byleveraging your Company's institutional strengths todrive synergies in areas such as product development& innovations, sourcing, manufacturing, supply chainand distribution.
- The Biscuits category witnessed resilient performanceamidst a challenging operating environment. TheBusiness continues to strengthen its core portfolio withinvestments behind powerful brand ideas, superiorproducts, cultural marketing with local insights andunique innovations to drive growth. The 'Sunfeast DarkFantasy' range of differentiated cookies sustained itsleadership position in the premium segment. 'Mom'sMagic' range of cookies witnessed healthy growthduring the year. The 'Bounce' range of cream biscuitswas augmented with scale up of 'Bounce Day & night'- a delicious dark choco biscuit with soft vanilla cream.'Sunfeast Supermilk' biscuit harnessing the goodnessof 'Naatu Maatu Paal' continued to be scaled up intarget markets. The portfolio mix was further enrichedwith the launch of 'Sunfeast Wowzers', a 14-layeredcracker enrobed with cream (currently availablein Cheese and Lemon variants) and 'EveningMarie' - a differentiated Marie with a savoury twist,in select markets. The Business also introduced aportfolio of Super Premium Cookies under'Sunfeast Baked Creations' with globally sourcedingredients to leverage the advent of emerging nichespaces in the Quick-commerce channel.
Towards further deepening consumer engagement,the brand launched several meaningful and
clutter-breaking campaigns during the year.The Dark Fantasy brand, synonymous withturning everyday moments into extraordinaryexperiences, launched its 'Big Fantasies' campaignleveraging cutting edge technology to deliverfantastical experiences to consumers on ground.Mom's Magic further strengthened its core philosophyof 'Iss Dil Ke Aage Sabki Har Hain' with the launchof the 'Will of Change' digital campaign which putsa spotlight on the deep-seated societal bias thatdenies daughters their inheritance rights andadvocates a shift towards equality, with mothers asthe pillars of change.
'Bingo!' Snacks delivered resilient performance duringthe year and strengthened its product portfolio withthe launch of exciting variants of snacks/namkeens.During the year, Bingo! forayed into the Popped Chipssegment with the launch of three excitingvariants - 'Sour Cream & Herbs', 'Salt n Pepper' and'Indian Spice Mix', with 30% less fat proposition forconsumers indulging in mindful snacking. Leveragingthe 'Hot & Spicy/Korean' trend, the Bingo! Snacksportfolio was augmented with a slew of differentiatedofferings straddling across product categoriesincluding 'Bingo! Tedhe Medhe Xtraa Teekha','Bingo! Mad Angles Red Alert' and 'Bingo! NachosKorean Flavour'. Other launches during the yearinclude an innovative Pink Salt flavoured'Bingo! Original Style Pink Salt Chips' and Millet basedoffering under 'Bingo! Tedhe Medhe Pudina Twist'.Having forayed into traditional snacks throughBingo! Tedhe Medhe Namkeens in the recent past,the Business continues to register robust growth inthe segment. Bingo! remains the market leader inthe Bridges segment across the country, and in thepotato chips segment in South India. With a view toreinforce its leadership position and build consumerengagement, 'Bingo! Tedhe Medhe' launched an
exciting on-pack consumer offer with attractive prizes;the campaign was well received with over 13 millionentries.
YiPPee! sustained its position as a strong No. 2 brandin the Instant Noodles segment amidst heightenedcompetitive intensity. The Business continued tostrengthen its portfolio through a combination ofproduct laddering across multiple price points, widerassortment to cater to diverse consumer cohortsand scale up of differentiated offerings. The portfoliowas further augmented with the launch of 2 excitingflavours in the Korean Noodles segment. Further,the brand also forayed into Pasta Masala segment in2 flavours - Masala and Cheese. The brand refreshedits communication outreach with popular Indiancricketers Jasprit Bumrah, Surya Kumar Yadavand Rahul Dravid as celebrity brand endorsers.Investments in several high decibel campaigns werestepped up to connect with regional culture codesto generate positive consumer buzz and increasevisibility across focus markets such as South region,UP, MP, Bihar and Odisha.
The Frozen Foods Business operating under Brands'ITC Master Chef', 'Farmland' and 'Aashirvaad'continued to grow at an accelerated pace, poweredby a range of delicious and innovative productscatering to 'any time' snacking and meal occasions.The launch of no-onion-no-garlic 'ITC Master ChefSabudana Tikki' made from 'sendha namak', suitablefor fasting occasions and innovative products likeChicken Kievs has helped to further strengthen theproduct portfolio in Retail and Food Service channels.The Business directly distributes to over 200+ townsleveraging emerging and traditional channels andsmart digital marketing to expand consumer franchise.The frozen portfolio now comprises of over 80+ Indianand Western Snacks, Parathas, Naans, Prawns andVegetables.
During the year, your Company signed DefinitiveAgreements for acquisition of 100% of the sharecapital of Ample Foods Private Limited (AFPL) in oneor more tranches. AFPL's flagship brand, 'Prasuma',is a leading player in the frozen, chilled and ready tocook foods space in India and is a specialist in orientalcuisine (viz. momos, baos, Korean fried chicken),high-quality delicatessens and raw meats, etc.,sells a wide assortment of 170+ products, backedby unparalleled innovation expertise in developing'Good-for-You' products. This acquisition will furtherfortify your Company's presence in thesefuture-facing categories, with current annual marketsize of over ' 10000 crores and poised for rapidgrowth in the years ahead.
- On April 4, 2025, your Company completed the firsttranche of acquisition in AFPL to the extent of 43.75%of the shareholding of the company, in line with theDefinitive Agreements.
- 'Aashirvaad Svasti' - fresh dairy portfolio continuedits strong growth momentum during the year, led bystrengthening its premium milk variant 'Select' anddriving significant growth in value-added products(Curd, Lassi, Mishti Doi & Ghee) through superior &differentiated offerings. The fresh dairy portfolio iscurrently available across Bihar, West Bengal &Jharkhand markets and it continues to enhance marketpenetration through rapid scale-up of its distributionnetwork. The Business rolled out a new premiumvariant 'Shahi Lassi' under 'Aashirvaad' brand whichelicited excellent consumer response in the launchmarkets. Ghee portfolio was further augmented withthe launch of a health-focused product proposition,'Cow Ghee with 90% low cholesterol'.
- The Beverages portfolio has been refreshed withlaunch of innovative offerings to address the evolvingconsumer needs. During the year, the Businessentered the Ethnic beverages segment, a growingspace, with the launch of region-specific offers around
product formats of badam milk, lassi and buttermilkunder the mother brand 'Aashirvaad'. The coreportfolio of Dark Fantasy milkshakes has been furtheraugmented with the launch of a new unique product'Vanilla milkshake with white chocolate'.
- The Confectionery Business continued to nurtureits range of premium portfolio by leveraging'Fantastik Chocostick', 'Jelimals' and'Candyman Fruitee Fun 3 in 1 chews'. The Businessstrengthened its leadership in the wafer rollscategory with the launch of 'Sunfeast Dark Fantasy'creme filled choco wafer rolls. The offerings havereceived excellent consumer response while theclutter-breaking communication has enabled strongbrand recall among target groups.
- 'Fabelle' chocolates continue to receive excellentresponse from discerning consumers, setting newbenchmarks in the luxury and premium chocolatesegments. During the year, your Company openedan exclusive Fabelle store at Bengaluru airport,expanding the availability of the luxury range ofchocolates beyond the luxury boutiques at ITC Hotelsand Quick-Commerce channel. The 'Sunfeast Fantastik'range of chocolates, comprising Choco Almond andFruit & Nut variants launched in the previous year, wasscaled up across markets after receiving excellentfeedback from consumers in launch markets. Theproduct range was further augmented during the yearwith the launch of 'Sunfeast Fantastik! 4D', a uniqueproduct offering four indulgent layers of crunchywafer, milk choco, soft caramel and nutty peanutsin every bite. The product, endorsed by celebritiesSreeleela & Siddhant Chaturvedi, has elicited strongconsumer traction.
- Exports remain a key focus area for the BrandedPackaged Foods Businesses. In addition toAashirvaad Atta exports, which is already a clearmarket leader across several markets, the Businesshas been continuously sighting opportunities to
scale up exports of value added adjacencies.The Business is also witnessing green shoots inexports of other categories such as Biscuits, Noodlesand Snacks, leveraging the equity of its core brandssuch as Aashirvaad, Sunfeast Dark Fantasy,Sunfeast Moms Magic, Sunfeast YiPPee!, Bingo! andKitchens of India.
With the overarching vision to 'Help India Eat Better',your Company's Nutrition strategy seeks to create asustainable ecosystem anchored on a portfolio of healthier,affordable & accessible 'Better For You/Free From'value-added products, supported by responsible policiesin line with national priorities on health and nutrition.Your Company's institutional strengths, as aforestated, arebeing leveraged to develop products providing consumerswholesome and enjoyable food experiences.
In line with your Company's commitment to fosteringnutrition, health and wellness, the Business has launcheda range of nutrition dense products under the 'Right Shift'brand to address the nutritional needs of consumers agedover 40. The portfolio has been curated using natural andproprietary ingredients developed at LSTC. Anchoredon the vectors of better digestion, strength and energybuilding, your Company launched a range of productssuch as 'Jaggery Ragi Cookies', 'Millet Oats Kheer mix','Millet Oats Upma mix' and 'Millet Chana Mixture' duringthe year. The recent acquisition of 24 Mantra Organicwould also further augment the Business' portfolio ofnutrition-led healthy food products.
The Businesses continue to use a data drivenapproach to make sharp targeted brand investments,clutter-breaking communication and deepen consumerengagements across all touch points, along with focusedmarket development efforts to reinforce market standingacross operating categories. Several campaignslaunched during the year received wide recognitionand won prestigious awards across leading platforms.'Aashirvaad Atta' won Gold at Effie’s for its innovative'Atta - Rap' campaign in the Food, Snacks & Dessertscategory, and Bronze at E4M in the Regional Campaign
category. At the E4M IDMA Awards, the Bingo AI MemeGallery received a Silver for Best Use of User GeneratedContent and Bronze for Leveraging Social Media toBoost ROI and Engagement; 'Sunfeast Dark Fantasy'won Silver for Best Digital Innovation with its 'Biting into aMillion Fantasies' campaign. 'Sunfeast YiPPee!' secureda Bronze at Effie Awards for the 'Better World - Create Magic’campaign, under Positive Change - EnvironmentalBrands category. At the E4M IMA South Awards,ITC Mission Millets won Gold in Best Use of IntegratedMarketing - FMCG, Bingo Mad Angle Song wonGold in Branded Content - Food & Beverages,
Bingo Meme Premier League won Silver in Occasion/FestiveBased or Seasonal Marketing - FMCG along with
Aashirvaad Masala Karam winning Bronze in
Best Use of TV - FMCG. From advancing nutritionaland sustainable food practices with the 'Mission Millets'campaign to empowering farmers and consumersalike, the Business earned a Gold SABRE in the
Marketing to Consumer (New Product) category.
The year marked a major step in advancing the Business'digital maturity journey. With the vision of having aconnected digital ecosystem, the Business has launchedReal Time Consumer Data Platform. With the objective ofconsistently engaging with consumers, the Business is alsobuilding 'always-on' brand experience digital platforms,rooted in the respective brand philosophies. In thiscontext, the Business went live with www.letsboing.comfor the Bingo! portfolio - an always on comedy content andexperiences platform which takes the consumer througha fun journey of value exchanges through a curatedselection of amusing local news, newsmakers, memes,and horoscopes, all presented in the distinctive Bingo!flavour. During the year, the Business also launched an'all things food & recipe' content website - www.foodiesonly.in;with an endeavour to become a go-to website forrecipes, tips & tricks, menu planners, masterclasses forhome-chefs etc. The platform has generated excellentconsumer traction and has been one of the largest andfastest platforms in terms of garnering consumer traffic.
Over the years, your Company has made significantinvestments in setting up state-of-the-art IntegratedConsumer Goods Manufacturing and Logistics facilities(ICMLs) proximal to large demand centres. These facilitiesare at the heart of your Company's strategy to createstructural advantage by enhancing product freshness,elevating market agility, minimising the cost of servicingproximal markets, enabling scalability, while alsosetting new benchmarks in safety and product quality.Your Company continues to leverage the benefits of thestate-of-the-art Ancillary Manufacturing cum LogisticsFacilities (AMLFs) at Pudukkottai, Kapurthala and Panchla.These automated facilities are co-located with the ICMLsand provide several structural advantages includinginventory optimisation, delayering operations and loweringcost of market servicing.
11 ICMLs are operational in locations proximal to largedemand centres, enabling delivery of fresher products,reduction in distance to market and delayering ofoperations. The capacity utilisation at these ICMLscontinues to be ramped up while contributing to aprogressive increase in workforce diversity and inclusionwith each new investment. During the year, the Businessalso commenced operations at the new confectionerymanufacturing facility at Jammu.
With its relentless focus on quality and manufacturingexcellence, your Company received over 100 prestigiousexternal awards & accolades in the areas of Safety,Sustainability, Quality & Food Safety, ManufacturingExcellence, Cost Competitiveness, Manufacturing &Supply Chain and HR from prestigious institutions suchas the Confederation of Indian Industry (CII), IntegratedManufacturing Excellence Initiative (IMexI), etc. Theseaccolades are testament to your Company's unwaveringcommitment to providing products with the highestlevels of quality while reducing environmental impact ofthe same.
To counter input cost volatility and support long-termprofitability, your Company has implemented several
strategic cost management initiatives in areas suchas supply chain optimisation, smart procurement andproductivity improvement through automation, leveragingnew-age technologies such as Industry 4.0, ArtificialIntelligence/Machine Learning, advanced visual analyticsand smart utilities. These measures are instrumental incountering significant input cost volatility witnessed duringthe year, as well as offsetting gestation costs of newinitiatives and strategic brand development investmentsin emerging categories. Going forward, these strategicinitiatives will aid the Business in further enhancing itscompetitive positioning in the industry.
The food processing industry has immense potentialto boost agriculture by improving market linkages,resource efficiency and exports. The development ofthe food processing sector is vital for addressing foodsecurity, controlling inflation, improving nutrition, andpreventing wastage, thereby enhancing farmer incomes.Acknowledging the large economic multiplier impact ofthe food processing industry, and growth opportunities inthe Indian market, your Company has made substantialinvestments in this sector and remains focused onestablishing itself as the leading player in the brandedpackaged foods industry.
Your Company's strong farm linkages, procurementefficiencies, world-class brands and deep & widemulti-channel distribution network, with growing presencein new gen channels such as e-Commerce, ModernTrade, On-the-go and Institutional sales, continues todeliver competitive advantage through superior productavailability, visibility and freshness. Recent investmentsin establishing a world-class distributed manufacturingfootprint have created a solid foundation to secure structuraladvantage over time. Cutting-edge R&D platforms ofyour Company's LSTC are driving agile innovation andfaster turnaround times for introduction of differentiated &first-to-market products catering to constantly evolvingconsumer needs. Investments in leading-edge digitaltechnologies and platforms continue to be stepped upacross the value chain to drive competitive advantage.
Your Company is well poised to strengthen its positionas one of the fastest growing food companies and the'most trusted provider of food products' in the Indianmarket. Your Company remains confident of rapidly scalingup the Branded Packaged Foods Businesses leveragingthe strong growth platforms nurtured over the years inchosen categories which offer immense headroom forgrowth, address opportunities in value added adjacenciesby leveraging mother brands and nurture new vectors ofgrowth where beachheads have been created.
The Personal Care industry witnessed a challengingyear, marked by muted demand conditions, heightenedcompetition and unprecedented volatility in commodityprices which intensified margin pressures. The premiumsegment, however, continued to grow faster, reflecting anongoing shift towards value-added offerings, brand-drivendifferentiation and increased demand for high-quality,ingredient-led & sustainable products.
Despite headwinds in the operating environment,your Company's Personal Care Business achieved robustvolume growth led by rapid scale-up in new gen channels(E-commerce/Q-commerce & Modern Trade). Strategicpartnership with key accounts, channel specific packs &launches and agile execution continue to drive growth.The premium portfolio remains a significant growth driver,reinforcing your Company's focus on delivering superiorconsumer experiences through innovative offerings anddifferentiated value propositions.
In the Personal Wash segment, 'Fiama' continued itsrobust growth trajectory, in both gel bars and showergels. The Business augmented its product portfolio withthe launch of 'Fiama Moisturising Bars with JapaneseHokkaido Milk' in 3 variants, offering moisture richindulgence, non-sticky nourished skin and mood upliftingfragrances. Beyond product innovation, Fiama expandedits Virtual Therapy platform with the MINDS Foundation.During the year, the brand also collaborated with Filmfare
for an exclusive 'Fiama presents Best Portrayal of MentalHealth in Cinema' Award which was a first in the industry.With a focus on premiumisation and innovation, Fiama iswell-positioned to drive continued growth.
The 'Vivel' portfolio continued to strengthen its coreassociation with aloe vera and natural ingredients, withthe launch of Sandal Soap, Aloe Vera based Bodywash &a new range of naturals based Handwash liquids. Vivel'srepositioning of 'Magic of Soft Touch', is anchored on thebenefit of soft skin and highlights heartfelt emotions thatcan be sparked by a gentle touch, creating cherishedmemories and stories. The brand continued to strengthenits association with Women Empowerment with itscollaboration with Azad Foundation, through 'Parvaz',a year-long leadership training programme that fosterswomen's empowerment and enables young womenleaders to be catalysts of change in their communities.
'Savlon' delivered strong growth leveraging initiativessuch as 'Savlon Lao Shaan Badhao'. As a testament tothe Business' focus on innovation, Savlon was recognisedwith the NIQ BASES Breakthrough innovation award byNielsen, making it one of 15 winners out of 40000 newlaunches across the country. Post pandemic, the brandhas been successfully transitioning its proposition from'protection' to 'caring protection', strengthening itsdifferentiation and creating a base for sustained growthmomentum.
In the Home Care segment, the 'Nimyle' range of productscontinued to expand rapidly across geographies andchannels. The brand provides a markedly differentiatedproposition to consumers with a 100% natural actionwhich is safe for kids and pets. To further enhance shelfpresence and consumer affinity, the product packagingwas revamped during the year. The brand also launched'Nimyle Clean Equal Mission' - a first-of-its kind educativemodule for children across schools, designed to fostercleaning at homes as a shared responsibility, by raisingawareness and inspiring action among the next generation.Anchored in its core values and a clear brand proposition,
Nimyle remains committed to deepen consumer connectand expand availability across touchpoints.
During the year, 'Engage' continued to strengthen itsposition in a dynamic and evolving fragrance market.In recent years, the brand has pivoted based on theemerging consumer preference for perfumes & gifting,with both premium and mass perfume offerings growingwell. Innovation and superior fragrance profiles remaincentral to the brand's strategy for scaling up consumertraction. During the year, the 'Spirit' range of deos,with olfactive profiles of Oudh, Musk, fruity & floral waslaunched. The premium L'amante range was extendedwith differentiated variants such as Oudh, Fern,Soie and Fluer. During the year, a new range of giftpacks known as Vibes was introduced, providing apremium gifting experience. The brand stepped upconsumer engagement to drive fragrance education with'Engage Scents & Senses' with influencers & perfumeexperts and amplified its digital content. Leveragingrobust R&D capabilities and in-house manufacturing,the Business continues to deliver high-quality fragrancesthat resonate with discerning consumers.
In the Skincare portfolio, the 'Digital-first' brand'Dermafique' continued to leverage an Al-powered smartskin advisor to provide personalised skin health analysis,empowering individuals to know their skin better andadopt solutions suited to the unique skincare needs ofIndian consumers. During the year, offline expansiongained momentum with entry into new large-formatstores, eliciting promising consumer response. Sustainedconsumer education on customised skin health remainsa core focus as Dermafique seeks to build for the futurewith data, science, and differentiated storytelling.
The Business achieved a major milestone this year withthe commissioning of the state-of-the-art Neemgarhplant, situated in Uluberia, West Bengal. This modern,digitally-enabled facility marks the first Personal CareProducts plant in one of its most salient markets.This site also houses the largest varieties of Neem plants
in the world, with 50 neem ecotypes sourced fromacross India; your Company has tied up with a renowneduniversity for conducting primary research on these,to help deepen knowledge on Neem with a view to facilitatedevelopment of new products. This facility also enhancesthe Business' ability to serve high-potential eastern andnorth-eastern markets with greater agility, optimised costsand reduced lead time.
Your Company continues to strengthen its commitment tosustainability with meaningful progress across packagingand consumer engagement. Fiama has expanded its useof 50% recycled plastic across all PET bottle SKUs ofshower gels and hand wash, with clear on-pack calloutsto build consumer awareness. To further promote refilladoption, refill pouches made with recyclable plastic havealso been introduced and are proposed to be scaledacross variants.
Your Company continued to earn widespread recognitionacross national and international forums for its innovativeproduct design, impactful communication, and purpose-ledbrand initiatives. Fiama's Mental Wellbeing Survey washonoured with the SABRE South Asia Diamond forexcellence in PR, while the recyclable Fiama Handwashpouch won the prestigious Global DOW Innovation Award.Savlon Swasth India Mission received a Silver at theLondon International Awards for its impactful use ofsocial media in Health and Wellness and secured multipleaccolades at the Effie Awards and ET Brand EquityBrand Disruption Awards, including Golds for InfluencerMarketing and Viral Content. Vivel was awarded a Bronzeat the APAC EFFIES and a Gold at the ET Sharks Awardsfor its tech-enabled campaign. Engage, Dermafique,and Nimyle were also celebrated across forums likeET Digi+, Fulcrum, and Entrepreneur India Awards.These awards are a testament to the brands' growingconsumer franchise across target segments.
The Business received 14 INDIASTAR 2024 awards forexcellence in packaging and its commitment to inclusivitywas recognised with the FICCI Women Empowerment
Award. Further, the Haridwar Unit was also felicitated withthe CII Quality Circle Competition Winner Award in theNorthern Region.
The Business, with its purpose-led brands servingdiscerning consumers in a dynamically evolvingenvironment, is well poised to seize future opportunitieson the back of innovations, impactful communications,institutional R&D strength & formulations, state-of-the-artmanufacturing, packaging know-how and multi-channeldistribution.
The Education and Stationery Products industry witnessedheightened competitive intensity with the widespreadresurgence of regional players on the back of sharpmoderation in input prices, accentuated by cheap importsof paper. Against this challenging operating environment,the Business delivered a resilient performance with theflagship brand 'Classmate' sustaining its market leadershipposition in the Notebooks segment. The Businesscontinues to leverage your Company's institutionalstrengths which provide unique sources of competitiveadvantage such as paper manufacturing expertiseincluding the capabilities of your Company's Life Sciencesand Technology Centre to enhance product superiority &differentiation in the core notebooks category and drivepremiumisation, multi-channel distribution infrastructureand brand building expertise.
In keeping with its proposition of 'Enjoy Learning',the Classmate brand continues to provide differentiatedofferings through technology via eduGAMES Infinity,that provides students the opportunity to play and learnnew skills. During the year, the Business acceleratedthe adoption of 'Classmate Pulse' through targetedactivations focused on new consumer cohorts and alsostrengthened the 'Paperkraft' portfolio with the launch ofa new range of notebooks with discrete design themes.The 'Classmate Interaktiv' Notebook portfolio continues to
witness encouraging consumer response driven by widerange of offerings that enable 'Do It Yourself' activities,immersive technologies such as augmented reality andplayful covers.
The Writing Instruments portfolio is being furtherstrengthened through superior writing systems andproduct designs, enhancing differentiation throughstrategic tie-ups and by expanding the portfolio withinnovative launches, bringing playfulness around thebrand proposition of 'Enjoy Learning'. To further strengthenthe premium portfolio, the Business introduced a set ofrevamped designs elevated by premium finishes andaesthetics under its range of Mathematical Instruments.
'Classmate All Rounder', an inter-school initiative topromote holistic learning in line with the National EducationPolicy 2020, continued to gain strong momentum inits third edition, with participation from top schoolsacross the country. The initiative has engaged nearlyone million students across 33 cities since inception.
The multi-channel capability of your Company's strongdistribution network was leveraged to enhance availabilityand drive sales. The Business sustained its leadershipposition on e-Commerce platforms through consistentavailability of a wide assortment of products, backed byfocused interventions to enhance consumer traction.Consumer engagement was further augmented throughClassmateshop.com, a D2C platform that providesconsumers the opportunity to 'Personalise & Capture'memories on Classmate notebooks. The myClassmate app,a gamified app focused on developing co-curricular skillsand make learning engaging and enjoyable, has garnerednearly 2.5 million downloads.
Equipped with state-of-the-art technology and a newlyinstalled quality lab, the dedicated manufacturingfacility at Vijayawada is enabling the Business developdifferentiated notebook formats, drive cost reductionand enhance capabilities to exploit opportunities inoverseas markets.
The Classmate and Paperkraft range of notebooksleverage your Company's world-class fibre line atBhadrachalam - India's first ozone treated elementalchlorine free facility - and embody the environmentalcapital built by your Company in its paper business.The Business also continues to scale-up thePaperkraft range (FSC®-C181115) of notebooks usingForest Stewardship Council® (FSC®) certified paper(FSC®-C064218), made at your Company's paper millat Bhadrachalam.
With over 300 million students, India has one of the largesteducation systems in the world. The Indian Educationand Stationery Products industry holds immense potentialdriven by growing literacy, increasing enrolment ratios,the Government's continued thrust on the educationsector and a favourable demographic profile of thecountry's population. Your Company's Education andStationery Products Business, with its strong brands,robust product portfolio, collaborative linkages withsmall & medium enterprises and superior distributionnetwork, is well poised to sustain its leadership positionin the industry.
The Incense Sticks (Agarbattis) category witnessedrobust growth during the year with your Company'sflagship brand 'Mangaldeep' further strengthening itsmarket standing across formats including Agarbattis,Dhoop and Sambrani. Anchored in deep consumerinsights and spiritual relevance, Mangaldeep offers aunique product experience that combines traditionaldevotional appeal with modern sensibilities. The Businesssuccessfully navigated an inflationary cost environmentthrough judicious mix enhancement and strategiccost optimisation, thereby sustaining profitability andvolume growth.
The Brands visibility and engagement were enhancedthrough a high impact thematic campaign -“Dil Se Karo Baat, Bhagwan Ke Sath” - which strucka powerful chord with consumers across the country.The campaign was completed by targeted marketinginterventions across channels, further deepeningMangaldeep's spiritual connect.
Responding to evolving consumer preferences, theBusiness expanded its product portfolio through severalimpactful launches. Notably, the new sub-brand 'Fusion'was introduced with contemporary fragrances such asSambrani & Oud, Sandal & Vetiver and Lavender & Sageeach blending traditional aroma with a modern twist.The 'Scent' sub-brand was also extended with newofferings in premium dry dhoop sticks and cones, delivering'perfume like' experiences true to its positioning.
Catering to the emerging wellness segment, the Businesslaunched 'Pranah', a premium range inspired byearth-sourced aromatherapy. This included scentedcandles, incense sticks, and cones, harmonising naturalinspiration with scientific wellness benefits.
To further strengthen consumer engagement, the brandundertook large-scale on-ground activations duringthe Maha Kumbh Mela in Prayagraj. These includedimmersive spiritual experiences, participation in sacredrituals, and bhajan evenings. The Jalbatti initiative — asymbolic and sustainable ceremonial offering — addeda powerful dimension to consumer connection andreceived extensive media coverage. On the digital front,augmented reality-based experiences brought the sanctityof Kumbh into homes, further enhancing brand resonance.
The Mangaldeep mobile app was also relaunched with amodernised, intuitive user interface. Redesigned withWatch, Read & Listen content streams, gamified elementsand improved navigation, the app reinforces Mangaldeep'sambition of being a holistic spiritual companion.
In a pioneering step towards inclusive innovation,Mangaldeep continues to collaborate with over150 visually impaired fragrance evaluators under theSixth Sense initiative. This unique programme empowersdifferently-abled individuals to co-create fragrances,
helping the brand deliver long-lasting and sensorially richofferings while fostering inclusive growth.
Over the years, the Business has implemented severalmeasures to enhance the competitiveness of theagarbatti value chain in India. This includes scaling upbamboo procurement through local sources, workingclosely with manufacturers and state nodal agencies topromote bamboo plantation and indigenous bamboostick manufacturing. Mangaldeep remains at theforefront of driving bamboo stick manufacturing, enablingimport substitution while advancing national priorities ofemployment generation, rural livelihood enhancement,and inclusive economic growth.
In the Safety Matches industry, the Business strengthenedits market leadership position by leveraging the brand'Homelites' - built on differentiated positioning of stronger,longer and karborised sticks. The Business continues tofocus on scaling up the share of value-added productsin its portfolio and enhancing supply chain efficiency bysourcing products manufactured closer to markets.
Leveraging its world-class brands and innovative &superior product offerings, your Company remainsconfident of scaling up its Agarbattis & Safety Matchesportfolio, and strengthen its position in the segment.
Your Company's Trade Marketing & Distribution (TM&D)vertical continues to strengthen its multi-channelgo-to-market capabilities towards ensuring effective marketservicing and product availability. Proactive interventionscontinue to be made towards addressing emergingtrends such as the rapid growth of new gen channels(Modern Trade, e-Commerce, Quick-Commerce) andincreasing demand for premium products.
The dynamic interplay of varied and evolving consumerpreferences, multiplicity of channels including rapidacceleration in new gen channels, diverse demographicprofiles & socio-economic factors, and a vast geographicallandscape pose a high degree of complexity for distributionof FMCG products in India. Recognising the multifacetednature of these challenges, TM&D continues to sharpenchannel-specific strategies to efficiently service consumerdemand across the country. Valuable insights of consumerbehaviour and channel/region specific trends gained overthe years continue to be leveraged to deliver superiorperformance in terms of product availability, visibility andfreshness.
The rapid growth of Modern Trade, e-Commerce andQuick-Commerce channels, coupled with the emergenceof several new players, has necessitated the deploymentof tailored market/outlet specific strategies to seize theemerging opportunities. Omni-channel presence in urbanmarkets enabled accelerated growth while shoppermarketing insights and agile supply chain capabilitieswere leveraged to enhance operational and executionefficiencies.
The surge in internet usage, particularly throughsmartphones, amongst convenience-seeking consumers,widespread adoption of digital payments, wide assortmentof products and faster deliveries continue to drive therising salience of e-Commerce and Quick Commercechannels. Your Company's collaborations with leadinge-Commerce and Quick Commerce platforms on allaspects of operations viz. category development, supplychain, consumer offerings and customer acquisitionhas enabled it to significantly scale-up sales in thesechannels. This was augmented by development ofexclusive pack assortments, channel-specific businessplans and 'Digital First' brands. Joint Business Plansexecuted in coordination with these platforms coupledwith agile supply chain initiatives have further fortified yourCompany's market standing in e-Commerce and QuickCommerce channels. Growth in the premium portfoliowas accelerated through increased visibility, focus ontarget cohorts and jointly curated campaigning, includingcollaborating on topical events across accounts. Digitallyenabled sales have grown rapidly in recent years and,together with Modern Trade, now account for 31% of yourCompany's FMCG 7 portfolio (Vs. 17% in FY 2019-20).
Your Company's multi-channel distribution network, whichfacilitates availability of its products in nearly seven millionretail outlets of which more than one-third are serviceddirectly, was further strengthened during the year with theaddition of new markets and outlets to its direct servicingbase. Market coverage was stepped up by more than 2x ofpre-pandemic levels. TM&D's wide and deep distributionnetwork and cutting-edge digital capabilities render theFMCG Businesses with significant competitive strength.
In the General Trade channel, your Company continuedto demonstrate resilient performance through focusedmarket approach and differentiated product assortment.During the year, urban markets witnessed heightenedcompetitive intensity from regional/local players andaccelerated channel shift with the increasing salienceof Modern Trade, e-Commerce and Quick Commerce.Automation, data-led insighting and machine-learningenabled solutions continue to be increasingly leveragedto drive last mile productivity and performance acrossmarkets. Further, emerging technologies like GenerativeAI are being increasingly leveraged to automate operationsand enhance efficiency. Customised servicing based onoutlet potential and retail engagement programmes havebeen deployed to stimulate demand for your Company'sproducts with enhanced focus on premium groceryoutlets. Specific interventions were undertaken to drivepremiumisation in General Trade outlets with store levelmissions led by sharper data analytics.
In rural markets, your Company continued to deploymarket-specific interventions to enhance direct coverageon the basis of socio-economic indicators and marketpotential. This has been supported through a hub andspoke distribution model with the continued expansion ofrural stockists network to 1.4x over the last three years.Leveraging the synergies arising out of the deep ruralconnect of your Company's Agri Business, extensiveconsumer activations were undertaken in high potentialrural areas during the year aided by concerted market
development activities and further enhancements tothe digital ecosystem for the stockist channel. Theseinitiatives have substantially enhanced the availability ofyour Company's range of products in rural markets.
The Food Service and Institutional channels continued towitness robust growth during the year leveraging existingpartnerships and your Company's wide product range.Strategic partnerships unlocked new routes-to-market,catering to specialised segments including 'on-the-go'consumption, direct marketing and QSRs. Customisedproduct portfolios continue to be deployed for identifiedhigh potential segments of railways, airports and airlinesto strengthen presence in this channel.
TM&D remains at the forefront of leveraging cutting-edgedigital technologies and building a digital ecosystem todraw actionable insights for sharp-focused interventions,augment sales force capability, drive productivity, improvemarket servicing and deepen connect with retailers.Technology enablement in the form of customised mobilityand routing solutions, machine learning algorithms,data science models, data analytics comprising insightfulvisualisation tools and predictive analytics are beingincreasingly leveraged to enable speedy and accuratedata capture, enable real-time informed decision makingand aid in optimisation of trade & marketing inputs toenhance visibility and sales. The machine learningmodels have been augmented to sharpen outlet level SKUrecommendations. Use cases for self-service analyticstools have increased to analyse data and present insightswhich are digitally integrated into business decisions,resulting in intelligent digitalisation of business processes.
The digitally powered eB2B platform of your Company,UNNATI, has been rapidly scaled up during the year,covering nearly eight lakh outlets. UNNATI facilitatessharp and direct engagement with retailers, superioranalytics, personalised recommendations of hyperlocalbaskets based on consumer purchase insights, anddeeper brand engagement.
To cater to the digital payments and financing needs ofcustomers and retailers, your Company has entered intostrategic collaborations with banks and Fintech partners.These solutions have been seamlessly integrated withthe UNNATI platform to digitally empower and unlockbusiness growth for your Company's trade partners.
The scale and diversity of your Company's distributionnetwork remains pivotal in enhancing market presence,gaining valuable insights into consumer & trade behaviourand facilitating the execution of product launchesacross geographies. In order to effectively leverage newroutes-to-markets and meet the assortment needs ofnew gen channels, your Company executed over100 new product launches across target markets besidesextending the availability of several existing productsin the portfolio.
Several interventions were undertaken by TM&D duringthe year to drive structural improvement in operationaleffectiveness and productivity. During the year, yourCompany continued to leverage the integrated planningand supply chain tool, powered by best-in-class algorithmsfor inventory optimisation and productivity enhancementto significantly improve supply chain agility and marketservicing through enhanced forecast accuracy. Thesupply chain network was redesigned to enhance thepremium portfolio availability both in existing and targetmarkets across urban and rural markets. TM&D continuesto augment warehousing infrastructure leveragingcutting-edge technologies to cater to the growing scale ofyour Company's FMCG Businesses.
In line with your Company's commitment to the'Triple Bottom Line', TM&D continued to focus its effortsfor adoption of renewable energy sources in its operations.As part of your Company's Sustainability 2.0 agenda,TM&D is rapidly expanding its Green Logistics efforts formid mile and last mile deliveries in key cities across thecountry. Collaborations with multiple Original Equipment
Manufacturers (OEMs) and fleet aggregators facilitatedadoption of Electrical Vehicles (EV) in TM&D operations.The number of EV trips increased by 3x over theprevious year.
TM&D's distribution highway is a source of sustainablecompetitive advantage for your Company's FMCGBusinesses and is well-positioned to support the rapidscale-up of operations in the ensuing years leveragingits best-in-class systems and processes, an agile andresponsive supply chain, and a synergistic relationshipwith its channel partners.
After achieving record highs in FY 2022-23, the domesticindustry has faced significant challenges over the past twoyears. The industry contended with a difficult operatingenvironment, characterised by low-priced supplies ofpaperboards and paper from China and Indonesia inglobal markets, including India, as well as weak demandconditions, resulting in subdued realisations.
On the inputs front, wood prices witnessed sharpescalation during the year, with wood availability andquality being significantly sub-optimal on account oflower plantations during the pandemic period and higherdemand from competing Wood Based Industries (WBI).
The cumulative impact of subdued realisations, excesssupply in domestic markets led by unprecedentedincrease in low-priced imports into India from China,Indonesia etc., sharp surge in wood costs, andcurrency-led volatility exerted pressure on margins duringthe year. The Business was able to partially mitigatethe impact of these challenges by leveraging structuraladvantages of the integrated business model, stepped-upend-user engagements, Digital interventions andincrease in salience of exports and Plastic substitution(PlaSub) products.
The Business has also undertaken several initiatives toaddress the challenges of wood availability and surge incosts, including inter alia, opportunity based wood imports,evaluation of leased plantation models, and accelerationin plantations in collaboration with industry stakeholders.Your Company is pioneering a first ever initiative inIndian Wood Based Industry using satellite imaging forplantation monitoring and wood assessment to monitorpulpwood plantations and assess future harvestablewood quantity available in various catchments.
The Business sustained its leadership position in theValue-Added Paperboard (VAP) segment through focusedinnovations and development of customised solutionsfor end-use industries. The Business also consolidatedits leadership position in the eco-labelled products andpremium recycled paperboards segments.
During the year, the Specialty Papers segment witnessedrobust growth driven by capacity augmentation inDecor paper. Market standing in the segment continuesto be driven by product mix enrichment and diversificationof the customer base. The domestic industry remainedunder pressure due to cheap supplies from China.The levy of Anti-dumping duty on Decor paper haspartially provided a level playing field for domestic industry,which is critical towards fostering domestic value chainsand enabling import substitution.
During the year, your Company signed a Business TransferAgreement to acquire the Pulp and Paper Undertaking('CPP') of Aditya Birla Real Estate Limited ('ABREL') atLalkuan (Nainital, Uttarakhand). Commissioned in 1984,CPP is a well-established player in the Indian Paperindustry with an installed capacity of 4.8 Lakh tonnesper annum. CPP is a one-of-a-kind asset with a strongstrategic fit with your Company's Paperboards & SpecialtyPapers Business. The acquisition (which is expected tobe completed in about six months) will immediately addsignificant scale and economies to existing operationswith potential for further capacity expansion, providelocational advantage for efficient customer servicing and
proximity to key raw material sources, mitigate operationalrisks through multi-site operations and enhance resilienceacross industry cycles through portfolio diversification.The Business expects to drive structural improvementin profitability of CPP through several value unlockinterventions such as capacity debottlenecking, productquality upgrade, efficiency improvement leveragingTPM/Digital initiatives, supply chain optimisation, costsand procurement efficiencies. The acquisition is alsoexpected to strengthen the market standing of yourCompany's Paperboards and Specialty Papers Businessand engender new opportunities in the domestic andinternational markets. The acquisition aligns with yourCompany's strategy of driving the next horizon of growthin the Paperboards and Specialty Papers Business byexpanding capacity at a new location considering thatthe existing facilities are already saturated. The stronglinkages to afforestation and livelihood creation pursuedby both the entities will also contribute meaningfully tonational priorities.
The paperboards and packaging industry is poisedfor transformative change in the medium term.Customers are increasingly seeking solutions that arebio-degradable, substitute single use plastic and meetstakeholder & regulatory expectations across industriesincluding food serving & delivery, pharmaceutical, beautyand electronics.
The Business has adopted a multi-tiered strategy tobuild solutions that will replace single use plastics andmeet emergent consumer needs. Within the sustainableproducts portfolio - 'Platform 1’ comprises a range ofrecyclable, compostable and barrier coated boards andincludes the 'Filo' series - 'FiloBev' (for beverage cups),'FiloServe' (for QSR, bakeries, food retail) & 'FiloPack'(packaging for sweets and deep freeze applications).'FiloBev Mini' (for economic cup variant for short servings)was developed during the year and has quickly gainedmarket share in focus markets. The Filo series hasbeen certified compostable by the Central Institute ofPetrochemicals Engineering & Technology (CIPET) and themanufacturing unit at Bollaram has been registered as a
compostable products manufacturer. The state-of-the-artCoater machine set up during the year has enabled thebusiness to quickly penetrate this fast-evolving spacewhich holds immense growth potential, supported bythe R&D capabilities of your Company's Life Sciences &Technology Centre, and through external collaborationswith global specialists. The range of products in thissegment is witnessing strong growth momentum bothin domestic and international markets. 'Platform 2’comprises a range of first-to-market Fusion boards thatare fully recyclable and replace plastic 'foam' board.End-use applications include indoor display solutionsinvolving replacement of plastic signboards and shelves.
‘Platform 3’ offers futuristic packaging solutionscomprising premium Moulded Fibre Products (MFP) madefrom renewable natural fibres such as wood, bamboo,bagasse, waste paper etc. Your Company's wholly-ownedsubsidiary, ITC Fibre Innovations Limited (IFIL), forayedinto the fast-growing MFP space with the commissioningof a state-of-the-art MFP manufacturing facility inBadiyakhedi, Madhya Pradesh in March 2024. Duringthe year, IFIL has substantially stabilised operationsand scaled up commercial shipments. Going forward,IFIL will leverage the expertise of the Business infibre value chain, manufacturing excellence and strongsustainability credentials to rapidly scale-up businesswith continued focus on developing innovative plasticsubstitution solutions.
Your Company's Packaging Board Centre of Excellencewas institutionalised during the year to further drivecustomer engagement on technical aspects, improveproduct performance and focus on new-gen productdevelopment.
The Business continues to procure wood, a key rawmaterial, from sustainable sources. Research on clonaldevelopment has resulted in introduction of high-yieldingand disease-resistant clones that are adaptable to awide variety of agro-climatic conditions. This has not onlyaided in increasing farmer incomes but has also enabled
greater consistency in farmer earnings. In this context,your Company's Life Sciences & Technology Centre isengaged in developing higher yielding second generationclones with enhanced pest and disease resistant attributes.The Business continues to focus on scaling up woodsourcing from core areas and has increased plantationsin core area during the year. In addition, initiatives suchas bund plantations and scaling up plantations in newcatchment areas in Odisha and Chhattisgarh have enabledprocurement of nearly 10% of total wood requirement ofthe Business from such new areas, with further potentialfor increasing cost-effective access to fibre in the future.Business has achieved highest ever plantation area of~65000 ha (growth of appx. 30%) during the year.
Your Company has the distinction of being the first in Indiato have obtained the Forest Stewardship Council-ForestManagement (FSC®-FM) certification (FSC®-C102390),which confirms compliance with the highest internationalbenchmarks of plantation management across thedimensions of environmental responsibility, social benefit,and economic viability. Till date, your Company has receivedFSC®-FM certification for over 1.49 lakh acres ofplantations involving over 25000 farmers. During the year,nearly 4.85 lakh tonnes of FSC®-certified wood wasprocured from these certified plantations. Your Companysustained its position as the leading supplier ofFSC®-certified paper and paperboards (FSC®-C064218)in India.
Your Company's Paperboards & Specialty PapersBusiness is a pioneer in the adoption of Digitaltechnologies. In recent years, the Business has embarkedupon a comprehensive Digital Transformation Programmeacross the vectors of manufacturing, supply chain andsupport services to achieve operational excellence,enable decarbonisation of operations, drive improvementin profitability and improve safety across the value chain.The multi-dimensional digital interventions encompassIndustrial IoT for Smart Operations, Integrated DataPlatform, AI/ML algorithms for manufacturing processoptimisation, AI/ML based image analytics and IoT based
crop monitoring & advisory, and computer vision-basedsolutions to improve workforce safety. The Businesscontinues to collaborate with partners from the start-upecosystem, as well as established solution providers,in building scalable solutions that are custom fit to businessrequirements. The Business' Digital App Suite has morethan forty applications across themes of automated datareporting, image and video analytics, intelligent rootcause analysis, smart simulation, numerical optimisation,advanced AI models, low-code/no-code applications,process digital twins, etc. The Business was the Globalwinner at the BRICS Industrial Innovation Contest underthe theme of 'Intelligent Manufacturing using AI/ML' andthe Asia-Pacific Regional winner at the Gartner's Eye forInnovation Awards under the categories of 'AdvancedManufacturing', and 'Energy, Power and Utilities'.
The Business also embarked upon a Supply ChainTransformation Project 'OJAS', establishing a dedicatedsupply chain vertical to enhance customer service and realisevalue from supply chain optimisation. This initiative hasled to significant improvements in On-Time-In-Full (OTIF),reductions in Order to Delivery Time (ODLT), and othercustomer service delivery metrics.
The Business has adopted the principles ofTotal Productive Maintenance (TPM), Lean andSix Sigma for over a decade and continues to reapsubstantial benefits through several Business Excellenceinitiatives.
All manufacturing units of the Business continue torecycle nearly 100% of the solid waste generated duringoperations by converting the same into lime, fly ashbricks, cement, grey boards, egg trays etc. In addition,the Business recycled around 1.1 lakh tonnes of wastepaper during the year, thereby sustaining positive solidwaste recycling footprint of the Business.
In line with the objective of enhancing the share ofrenewable energy in its operations, the Business hasimplemented several initiatives including investments in agreen boiler, high efficiency circulating fluidised bed boiler,solar & wind energy and increased usage of bio-fuel.The recently commissioned state-of-the-art andfuture-ready High Pressure Recovery Boiler at theBhadrachalam mill is progressively enhancing energyefficiency and reducing the carbon footprint of the unit'soperations by significantly lowering coal consumptionby appx. 25%. These investments are a testamentto your Company's commitment towards embeddingsustainability in its operations and supporting the'Make in India' initiative. With these initiatives, renewablesources presently account for more than 50% oftotal energy consumed at the four manufacturing unitsof the Business.
The Business continues to strengthen its safetymanagement processes, adopt globally recognisedbest practices and ensure that facilities are designed,constructed, operated and maintained in an inherently safemanner. Business continues to deploy various measuresincluding the use of Data Analytics Tools to identify riskprone areas for proactive mitigation of incidents, videoanalytics, digitally enabled systems such as Mobile basedapp, 'Gensuite', etc.
The manufacturing facilities at Bhadrachalam, Kovai,Tribeni and Bollaram continue to receive industryrecognition for their green credentials and safetystandards in line with the focus on sustainable businesspractices. The Bhadrachalam unit is the first pulp & paperplant and the second in the country overall, to be rated'GreenCo Platinum+' by CII, as part of the Green Companyrating system. The Kovai unit has also been ratedGreenCo Platinum+ by CII. The Kovai unit is thefirst site in India and the first paper mill in the world toachieve the highest platinum rating under the 'Alliancefor Water Stewardship Standards'. Bhadrachalam unit
also received Alliance for Water Stewardship Platinumcertification. Bhadrachalam mill was also awarded the'Excellent Energy Efficient unit' at National Awards forEnergy Management, 2024. The Kovai Unit was awardedfor Excellence in water Management, 2024, under the'Beyond the Fence' category.
With structural drivers of demand in the Indian economyremaining strong over the medium term, paperboardsdemand is expected to remain robust. Enablingfactors include India's emerging demographic trends,urbanisation, rising middle class, continued substitutionof plastic with greener alternatives and India emerging asthe Global manufacturing hub. End-user segments suchas Pharmaceuticals, Apparel, QSR, FMCG, consumerdurables and e-Commerce are projected to register stronggrowth. Writing & Printing paper demand is also expectedto remain firm on the back of demand from the publishingand notebooks industries driven by the Government'sthrust on primary and secondary education.
While cheap imports from China as well as from ASEANcountries remain a potential threat in the short run, theBusiness remains confident of leveraging its competitivestrengths to mitigate the impact thereof. Representationscontinue to be made at appropriate forums for suitablemeasures to safeguard domestic industry. DirectorateGeneral of Trade Remedies (DGTR), Ministry ofCommerce and Industry, India has also initiated anAnti-Dumping investigation on Virgin Paperboardoriginating from China and Chile. Indian PaperManufacturers Association (IPMA), National Industrybody has also approached Ministry of Commerce forconsidering imposition of Minimum Import Price (MIP) onimport of paperboards into India.
Your Company continues to engage with policy makersto address key industry challenges including increasingwood availability through collaborative public-privateplantation models to strengthen the competitiveness ofdomestic industry and arrest the rapid increase of lowpriced imports of paper & paperboard into the country.
Over the years, your Company has continued to laythrust on structural interventions to provide sustainablecompetitive advantage across the value chain withsignificant structural cost savings and enhancedproductivity across all key operating nodes to enhance themargin profile of its portfolio.
The integrated nature of your Company's businessmodel - comprising access to high-quality, cost competitiveand renewable fibre supply chain, continued developmentof high yielding and disease-resistant clonal saplings,enhancing energy efficiency, continuous improvementthrough product & process innovation, in-house pulpmanufacturing capability, imported pulp substitution,world-class product quality, state-of-the-art manufacturingfacilities, increasing usage of data analytics andIndustry 4.0 technologies along with robust forwardlinkages with the Education and Stationery ProductsBusiness and the Packaging and Printing Business - is akey source of competitive advantage for your Company'sPaperboards & Specialty Papers Business. Your Companyis confident of further consolidating its leadership positionin the Indian Paper and Paperboards industry leveragingrecent investments in innovation platforms anchored onthe development of sustainable products and cutting-edgedigital technologies to set new benchmarks in customersatisfaction, operational excellence, and sustainability.
Your Company’s Packaging and Printing Businessis a leading provider of value-added, differentiatedand innovative packaging solutions leveraging itscomprehensive capability-set spanning multipletechnology platforms for cartons and laminates,supported by in-house cylinder making and blown filmmanufacturing lines. The recent capacity addition atNadiad, Gujarat, with state-of-the-art equipment to caterto markets in the Western region, has further augmentedthe Business’ capabilities in Cartons packaging. Capacity
utilisation at the facility was progressively ramped upduring the year.
The Business caters to the packaging requirements ofleading players across several industry segments viz.Food & Beverage, Personal Care, Home Care, Footwear,Consumer Electronics & Electricals, QSR, Pharma,Liquor and Tobacco. The Business continues to beacknowledged as a 'first choice packaging partner' byseveral reputed FMCG companies in the country forproviding superior and cost-effective packaging solutions.The Business also provides strategic support to yourCompany's FMCG Businesses and Cigarettes Businessby facilitating faster turnaround for new launches,innovative & sustainable packaging solutions, designchanges and ensuring security of supplies.
Amidst sluggish consumer demand and heightenedcompetitive intensity in the packaging and printing industry,the Business continues to aggressively pursue newbusiness development across various segments. Duringthe year, the Business acquired several key accounts,creating a sound base for robust growth going forward.
The Business continues to craft innovative packagingsolutions leveraging its deep understanding ofend-user needs and the capabilities of your Company'sLife Sciences and Technology Centre. The Businessfurther scaled up the flagship 'InnovPack' campaigntargeting specific end-use segments with potential forrapid adoption of sustainable packaging and plasticsubstitution solutions. Along with a pipeline of solutionsdeveloped through molecular science research, such as'Bioseal' (compostable coating to replace plastics),'Oxyblock' (recyclable coating solution to enhance barrierproperties in packaging) and 'Germ free coating' (solutionfor microbial free packaging surface addressing theconsumer consciousness towards hygiene and safety),the Business continued to focus on developing severalinnovative solutions towards 'Reducing, Reusing andRecycling' of plastic substrates; these are under variousstages of commercialisation.
The Business has consistently demonstrated executionexcellence vis-a-vis key operational parameters byimplementing various operational excellence tools andprojects. These initiatives focus on improving efficiency,reducing waste, and enhancing quality, supported byemployee skill development. The Business amplifiedand sustained these benefits through deployment ofnew-age Industry 4.0 technologies and digital facilitationby establishing a core foundation of IT-OT integrationacross all units.
During the year, the Business received the prestigiousWorldStar and AsiaStar awards in the categories ofpack premiumisation and sustainability. The Businessalso received several national level awards such as theIFCA Star Award and SIES SOP Star Award forits excellence in Packaging. The Business wasalso recognised as the Packaging Company of theYear 2024 - Folding Cartons (Large Volumes) & PackagingConvertor of the Year 2024 (Foods & Beverages)by PrintWeek.
All four units of the Business are certified underthe Integrated Management System, consisting ofISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.Cartons Packaging lines at Tiruvottiyur and Haridwarunits received the 'Grade A' and the Nadiad unit received'Grade AA' - Brand Reputation Compliance GlobalStandards (BRCGS) certifications for global standards inpackaging materials, a key accreditation for supplies tothe packaged foods industry. All key units of the Businesshave Sedex certifications for social ethical compliances;with the Business also receiving the Ecovadis Bronzecertification for sustainability performance.
Notwithstanding the recent headwinds in the sector, theIndian packaging industry is positioned for significantgrowth in the near term, considering the low per capitapackaging consumption of appx. 10 kgs per annumin India as against per capita consumption of60 to 100 kgs per annum in Advanced Economies.Demand for consumer linked packaging in India isexpected to be further benefited by rising affluence,
favourable demographics and growing share ofModern Trade and e-Commerce. Growing awarenessof decarbonisation and heightened regulatory attentionon plastic packaging are expected to drive growthin sustainable packaging, including recyclable andcircular solutions.
With world-class technology across a diverse range ofplatforms, leadership in sustainable packaging solutionsand best-in-class quality management systems, thePackaging and Printing Business has established itselfas a one-stop packaging solutions provider to severalindustry segments viz. Food & Beverage, Personal Care,Home Care, QSR, Footwear, Consumer Electronics,Pharma and Tobacco. With focused investments inskill development and a distributed manufacturingfootprint, the Business is well positioned to grow itsmarquee customer base while continuing to service therequirements of your Company's FMCG Businesses.
Global demand for leaf tobacco exceeded supply during theyear, due to supply disruptions in major sourcing regionscaused by adverse weather events and internationalmanufacturers rebuilding depleted inventory levels fromprevious years' crop shortages. Despite growth in IndianFlue Cured Virginia (FCV) tobacco crop production duringthe year, the surge in global demand caused heightenedcompetitive intensity amongst leaf exporters resultingin sharp rise in FCV procurement prices for the thirdconsecutive year.
The Business continued to leverage its deep customerrelationships, crop development expertise, superiorproduct quality, world-class processing facilities and strongsustainability credentials to strengthen its position as areliable supply chain partner for global customers besidesaccessing new customers/markets. During the year, theBusiness continued to increase its share of business
with international buyers of Indian Burley tobacco byfacilitating increased crop production, adopting WeatherResilient Tobacco Production Systems and strengtheningcrop competitiveness leveraging its sustainable tobaccoprogramme. Deeper farmer & customer engagement,operational agility and supply chain efficiency enabledthe Business to deliver enhanced value to customers andconsolidate its pre-eminent position as the largest Indianexporter of unmanufactured tobacco.
The Business has enhanced focus across the tobaccovalue chain on the key vectors of Quality, Consistency,Compliance, Climate risk mitigation and Sustainability.To deliver on these parameters, sustained investmentsare being made in your Company's Green Leaf Threshingplants (GLT) at Anaparthi, Chirala and Mysuru towardscapacity enhancement, delivering world-class quality andupgrading processing technology. Crop & region-specificagronomic practices are being implemented at scale tomeet new and emerging customer needs.
The Business continues to set benchmarks in leafthreshing operations through focused initiatives andinnovative technological & digital solutions such as realtime chemistry measurement & analysis (chemosensoryevaluation) for finished goods, Historian AI/ML engine foradvanced data analytics, AI based NTRM (Non-TobaccoRelated Matter) removal system, automation of materialhandling, etc.
Strategic cost management remains a key focus areafor the Business. Digital tools such as AI/ML poweredreal-time price discovery system continue to be scaledup facilitating efficient leaf tobacco buying across auctionplatforms. Several other digital initiatives, implementedacross the value chain in recent years, have led to improvedoperating efficiencies in areas of crop development,leaf procurement and supply chain.
Synergistic R&D initiatives with focus on varietaldevelopment, climate smart farming techniques, farmlevel digital interventions and usage of water efficient
technologies are being scaled up towards enhancingproductivity & product quality, reducing cultivation costs,strengthening resilience and capacity building of the farmvalue chain to increase crop security and enhance farmerincomes.
The Business has stepped up its engagement with farmersto implement integrated energy management initiativesspanning energy conservation, increasing alternativefuel usage and energy plantations towards achieving fuelself-sufficiency in the curing process of FCV tobacco.The Business implemented several decarbonisationmeasures for farms, GLTs, and supply chain operationsthroughout the year. The electrical energy needs of allthree GLTs are substantially met from renewable sourcesin line with your Company's philosophy of adopting alow-carbon growth path. In addition to these initiatives,your Company is taking up integrated watershedmanagement programmes to ensure availability of waterfor irrigation during critical phases of the crop cycle.
In recognition of its commitment to the higheststandards of Sustainability, EHS & Quality, the Businessreceived several awards during the year including the'SEEM National Energy Management award' withPlatinum rating for Excellence in Energy Conservationfor Chirala GLT, 'Silver Category in Industrial SafetyLeadership Award' from Confederation of Indian Industry(CII) for Anaparthi GLT, 'Excellence Energy Efficient Unit'for Mysuru GLT from CII, as well as various awards fromthe Quality Circle Forum of India and CII for operationalexcellence, etc.
While the recent stability in taxes on cigarettes and supplyshortages in global markets has led to an increase inthe demand for Indian leaf tobacco during the year, it isimperative to address certain structural factors to facilitatesustained growth and competitiveness of leaf tobaccoexports from India. Punitive taxation on the legal cigaretteindustry has over the years resulted in rapid increase inillicit cigarette trade which has in turn adversely impacteddemand for Indian leaf tobacco as illicit products do notuse leaf tobacco grown in India. Lower export incentives in
India and high import duty/tariffs levied in several markets,including the USA and Europe, also continue to weigh onthe competitiveness of Indian leaf tobacco exports.
As stated in earlier years, a more balanced regulatoryand taxation regime that cognises for the unique tobaccoconsumption pattern prevalent in India and the economicrealities of the country remains critical to support theIndian tobacco farmer and the 46 million livelihoodsdependent on tobacco. It is also imperative that the Indianleaf tobacco sector receives necessary policy support,including restoring export incentives to earlier levels, toenhance the competitiveness of unmanufactured tobaccoexports from India and contribute to increase in farmerincomes. According to an ASSOCHAM TARI 8 Study,the tobacco sector in India contributes substantialsocio-economic benefits in terms of agriculturalemployment, farm incomes, revenue generation andforeign exchange earnings. Your Company continues toengage with policy makers on these matters.
The Business will continue to provide strategic sourcingsupport to your Company's Cigarettes Business andfortify its leadership position as a major exporter of qualityIndian tobacco, thereby catalysing the multiplier impactof increased farmer incomes on the rural economy.With its strong R&D capability, unique crop development& extension expertise, sustainability leadership,digital expertise, state-of-the-art processing facilitiesand deep understanding of customer & farmer needs,your Company is well positioned to meet the current andemerging requirements of global customers and sustainits position as a world-class leaf tobacco organisation.
Amidst persistent geopolitical tensions, climateuncertainties and macroeconomic challenges, concernsover global food security and inflation have intensified.Various policy measures implemented by the Governmentof India, including stock limits and export restrictions,
continued to pose myriad challenges to your Company'sAgri Business during the year.
The Business continued to map risks and opportunitiesarising out of the unfolding global trade dynamics andbuild adaptive capacity to enhance resilience of itsbusiness models. In spite of the challenging operatingenvironment, your Company leveraged its strongfarm linkages, extensive sourcing expertise, enablingtraceable, attribute-based and identity-preserved sourcingof commodities, multi-modal logistics capability, agilesupply chain operations, deep customer relationships,and focus on scaling up the Value-Added Agri Products(VAAP) portfolio, to drive robust growth during the year.Easing food inflationary pressures and higher inventoriesof food grains have enabled partial lifting of certain traderestrictions towards the end of the year, which augurs wellfor the year ahead.
As reported in earlier years, the scope and scale ofoperations of your Company's Agri Business have grownmanifold over the years and currently encompassesover 3.5 million tonnes of annual throughput in 22 statesand over 20 agri-value chains. The strategic focus ofthe Business continues to be on accelerating growth byrapidly scaling up its Value-Added Agri Products (VAAP)portfolio, straddling multiple value chains comprisingSpices, Coffee, Frozen Marine Products and ProcessedFruits, amongst others.
- Your Company further consolidated its position asa preferred supply chain partner to buyers in spicessuch as Chilli, Cumin, Turmeric, and Coriander.The Business enhanced its presence in 'food safe'markets, viz., the USA, EU, and UK, by leveragingits institutional strengths, such as identity-preservedsourcing expertise, strong backward integration,supply chain control, and customer-centric strategies.
The Business continues to scale up its Organic andIntegrated Crop Management (ICM) programmes,expanding organic cultivation across multiplestates to meet the growing demand for certified
organic products. Committed to sustainable farmmanagement practices backed by Rainforest Allianceand Global GAP accreditation, your Company hassuccessfully leveraged ITCMAARS to strengthenfarmer connections, improve traceability, and drivesustainable agricultural practices. During the year,the Business significantly expanded its value-addedportfolio, achieving substantial growth in organic,steam-sterilised, and processed powder segments.The Business remains committed to executionexcellence - capacity utilisation at the state-of-the-artspices processing facility in Andhra Pradesh has beenfurther scaled up; the Business continues to maintainits unblemished track record in terms of complyingwith stringent food safety parameters. The proportionof custom-made products in the overall portfolio hasincreased considerably, underscoring your Company'sstrategic focus on premium offerings. The Businesshas successfully broadened its customer baseacross various markets, showcasing strong customeracquisition capabilities and a commitment to buildinglasting relationships. Additionally, the Business hasgained market share in the export market, reinforcingits position as the leading Indian exporter of wholeand value-added spices.
- During the year, international coffee prices surgedprimarily due to lower supply in global markets byleading coffee producers viz. Brazil and Vietnam.Driven by strong demand, Indian coffee exportswitnessed robust growth.
Your Company leveraged its strategic sourcingpresence in major coffee-growing regions of Indiaand deepened its focus on certified and sustainablysourced coffees to expand its market share in exports.The Business strengthened its footprint across keyinternational markets, particularly in Europe and theMiddle East, by leveraging its long-standing customerrelationships, strong sustainability credentials andagile execution. Continued expansion of certified
acreage and investments in traceable and sustainablesupply chains demonstrate the Business' commitmentto responsible sourcing and future-readiness.
Your Company continues to be one of India's leadingexporters of value-added frozen marine products,with strong capabilities in processing individuallyquick-frozen (IQF), raw, and cooked products,adhering to the highest safety and hygiene standardsdemanded by discerning markets such as the US, EU,and Japan. The Business strengthened its positionin the 'Aquaculture Stewardship Council (ASC)certified shrimp' segment, reinforcing its leadershipin sustainable seafood and aligning with customers'responsible procurement goals.
During the year, the Indian shrimp industry faced achallenging environment marked by volatile farmgate prices and supply chain headwinds. Despitethese challenges, your Company expanded its reachthrough market development in countries such asGreece, Israel, and Malaysia, and by launchingstrategic product extensions, in line with its portfoliodiversification goals.
- Your Company continues to enhance its capabilitiesin the Medicinal and Aromatic Plant Extracts (MAPE)segment by strengthening backward integration,cultivation programmes, and its portfolio of plant-basedextracts. Focusing on Ayurvedic ingredients likeashwagandha, turmeric, and marigold, the Businessdeepened farmer engagement to ensure traceabilityand quality compliance. Your Company's MAPE farmin Madhya Pradesh continues to play a pivotal rolein varietal selection trials, seed production, andestablishing standardised package of practices,enhancing the Business' technical capabilities.The Business also initiated organic cultivation to meetthe growing demand for certified organic extracts inpremium export markets and is developing uniquevalue-added products leveraging the researchplatforms of the Life Sciences and Technology Centreof your Company.
Your Company continues to drive agricultural
transformation at scale through ITCMAARS
(Metamarket for Advanced Agriculture and Rural Services),a pioneering 'Phygital' platform that integrates digitalcapabilities with on-ground engagement. ITCMAARS is acrop-agnostic full-stack AgriTech platform, that has beensteadily enhancing procurement efficiency, optimisingsupply chains, and creating new avenues for valuegeneration while delivering meaningful benefits to thefarming community. Using Farmer Producer Organisations(FPOs) for physical engagement and a super app fordigital services, ITCMAARS is catalysing farmer impactat scale.
The ITCMAARS super app, which farmers can downloadon their phones, acts as a single point resource for farmers,providing personalised agricultural services through a plugand play model. This digital platform provides AI/ML drivenpersonalised climate-smart crop advisories, intelligentnudges, customised soil nutrition, vernacular and voiceenabled Generative AI, satellite sensing and real-timeimage recognition tools for the farming community.The physical layer enables access to cutting edgeagricultural techniques such as biological agri inputs,nano fertilizers, drones, precision farming technologies,scientific quality assaying, market linkages andseamless access to formal credit at villages throughFPOs and partners.
This initiative now spans across more than 2,050 FPOsencompassing over 2.1 million connected farmersacross 11 states. Operating across more than10 crop value chains, the platform partners withover 100 leading institutions, including banks, agri-inputcompanies, Indian Council of Agricultural Research (ICAR),and agri-tech startups. The ITCMAARS super app,available in 8 regional languages, has emerged asIndia's highest-rated agriTech app. The 'KrishiMitra'voice assistant, the world's first Gen AI-based chatbot forfarmers, has significantly boosted digital adoption throughvernacular and voice-based interactions.
As India's regulatory and consumer landscape increasinglydemands traceability and sustainability, ITCMAARS islaying the foundation for 'Trust Systems at Scale', enablingthe farming community to meet evolving standardssuch as the EU Deforestation Regulation (EUDR) andsustainably produced certification requirements. With avision to empower millions of farmers and unlock newvalue pools across the agri-inputs, outputs, and servicesdomains, your Company remains deeply committed toleveraging ITCMAARS to deliver enhanced productivity,improved market access, and resilient incomes for India'sfarming communities.
Over the years, your Company has invested significantlyin building competitively superior agri-commoditysourcing expertise comprising multiple business models,wide geographical spread and customised infrastructure.Your company is rapidly building expertise in data-scienceled decision support systems to deepen its sourcingcapability. AI/ML models dynamically respond to evolvingconditions across multiple sourcing dimensions andsupport the sourcing experts in making optimal decisionsaround temporal and spatial vectors. These capabilitiesand infrastructure have created structural advantages byfacilitating competitive sourcing of agri raw materials foryour Company’s Branded Packaged Foods Businesses.
- The Business continued to play a pivotal role insecuring benchmark-quality wheat to support thegrowing requirements of the 'Aashirvaad' atta portfolio.Leveraging a wide sourcing network, robust cropdevelopment initiatives, and digital tools, the Businessensured timely and cost-efficient procurement ofcritical grades of wheat. During the year, procurementwas scaled through direct farm linkages and FPOs,with a significant share of wheat sourced via digitallyenabled platforms. Crop development efforts wereintensified to improve climate resilience, enhanceyields, and secure premium varieties to provideconsumers with best-in-class product quality andexperience.
- During the year, farmer-driven milk procurementnetwork in Bihar, West Bengal, and Jharkhandwas strengthened to meet the growing demandsof your Company's Fresh Dairy portfolio under the'Aashirvaad Svasti’ brand and the 'Sunfeast'Dairy Beverages in Punjab. The Business expandedthe use of digital tools, including automated collectionsystems, GPS-enabled logistics, and direct farmerpayments, to bring greater transparency across thevalue chain. Tailored dairy extension services coveringanimal nutrition, health, and productivity enhancementwere scaled up, improving yields and reinforcingfarmer loyalty. These efforts have enhanced farmerprofitability while ensuring sustained delivery ofsuperior-quality milk aligned with brand requirements.The capability to source superior attribute-specificmilk has enabled your Company to expand itsFresh Dairy portfolio with several innovative offerings.
- The Business continues to scale-up sourcingof spices to meet the growing requirements ofSunrise and Aashirvaad brands.
- Going forward, the organic sourcing capabilities, farmlinkages and traceability would also become a sourceof competitive advantage for the organic portfolio ofyour Company's FMCG Businesses.
The Business strengthened its collaborations withleading research institutions across India to buildcost-effective, high-yielding, and resilient Agri-valuechains. By mapping climate hotspots and focusing onregenerative agriculture, your Company introducedlocation-specific seed varieties and tailored agriculturalpractices in key states. This approach is aimed atenhancing crop intelligence, reducing GHG emissions,and improving soil health. Additionally, efforts to increasefarm income were supported through the developmentof customised Agri-inputs, laying the foundation forsustainable, future-ready food products. Your Companycontinued developing the millets value chain, promotingclimate-resilient, nutrient-dense crops through public-private
partnerships in Maharashtra and Andhra Pradesh withIndian Institute of Millets Research (IIMR).
Driving the transformation towards NextGen Agriculture,your Company has significantly accelerated digitaladoption across the Agri landscape, empowering farmerswith advanced, tech-enabled solutions. At the forefront isyour Company's 'phygital' innovation ITCMAARS whichdelivers hyperlocal, personalised recommendations atscale through predictive advisory models powered byIoT and data analytics. This integrated ecosystem has thepotential to unlock several evolving opportunities that canhelp reimagine the future of the agri sector and propel theBusiness to create new and scalable revenue streams,whilst also benefitting farmers.
To further enhance rural livelihoods, your Company'sfocus on Value-Added Agri Products (VAAP) and cropdiversification is catalysing a shift from conventionalproduction-centric models to demand-driven, value-richagri-value chains. Strategic investments in state-of-the-artexport infrastructure are linking Indian farmers to globalmarkets, driving growth and inclusivity.
Through a wide spectrum of initiatives includingclimate-resilient farming, natural resource management,competitive value chain development, cutting-edgedigital interventions and robust market linkages,your Company is enabling Indian agriculture to scale newhorizons while advancing national priorities and deliveringsustainable impact.
The following may be read in conjunction with theConsolidated Financial Statements of your Companyprepared in accordance with Indian Accounting Standard 110.Shareholders desirous of obtaining the Report andAccounts of your Company's subsidiaries may obtain thesame upon request. Further, the Report and Accountsof the subsidiary companies is also available under the'Investor Relations' section of your Company's website,www.itcportal.com, in a downloadable format. YourCompany's Policy for determination of a material subsidiary,as adopted by your Board, in conformity with Regulation 16of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015,can be accessed on your Company's corporate website at
https://www.itcportal.com/material-subsidiary-policy.
Presently, your Company does not have any materialsubsidiary.
Nepal's GDP grew by 3.7% during the fiscal year endedJuly 2024, on a low base of 2% in the previous year, ledmainly by uptick in agriculture, hydro power and tourismsectors. However, growth in the Nepalese economycontinues to be challenging amidst subdued economicactivities resulting from weak consumer demand andsluggish private and public sector investments.
The economy saw a modest recovery this fiscal year withan accommodative monetary policy and consumer priceinflation moderating to 4.6% for the first 9 months of thefiscal year as compared to 5.9% in the previous year.Inward remittances, which significantly contribute toeconomic growth, stand at appx. 25% of the national GDP,grew by 10.0% in the first 9 months, albeit at a slowerpace than the previous year. Strong inward remittances,low interest rates and moderate inflation are expectedto lead to gradual recovery in private consumption andconsumer demand.
The Government of Nepal has recently introduced severalreforms to enhance investments, strengthen governance,public service delivery, ease of doing business etc.,which are steps in the right direction. Further measuresaimed at encouraging domestic and foreign investments,incentivising the manufacturing sector to enable importsubstitution and job creation, supporting the hospitalitysector with its large economic multiplier effect, on-groundimplementation of reforms and promulgation ofindustry-friendly policies remain key imperatives forachieving sustained economic growth.
The legal cigarette industry provides livelihoods to overfive lakh individuals involved in tobacco cultivation,manufacturing & trade and makes a significant contributionto the revenue collection of the Government of Nepal.Despite its far-reaching economic impact, the legalcigarette industry continues to face significant challengesfrom an increasingly punitive and discriminatory taxationand regulatory regime. The company continues toengage with policy makers for equitable, pragmatic,evidence-based regulations and taxation policies thatbalance the economic imperatives of the country andtobacco control objectives.
The company demonstrated resilient performanceduring the year despite subdued consumer demand.The Cigarettes business reinforced its market standing byleveraging its robust portfolio, superior product quality andwide distribution network. A differentiated and innovativeoffering under 'Surya Fusion' brand was launchedduring the year, which further fortified the company'sproduct portfolio.
The company's manufacturing systems continued toset new benchmarks in responsiveness, quality andproductivity. Various initiatives, such as the manufactureof new product formats, and process automation wereimplemented during the year. Relentless focus ondeveloping world-class products anchored on innovationand benchmarked to international quality standardsremain the key sources of sustainable competitiveadvantage for the company.
During the year, the company leveraged its distributionreach to scale up availability of 'Sunfeast Dark FantasyChoco Fills' biscuits, which had been launched in theprevious year. Focused investments towards brandbuilding supplemented the distribution scale up andenabled the brand to achieve premium positioning in themarket. 'Sunfeast Dark Fantasy Mocha Fills', launchedduring the year, also elicited positive consumer response.
In the Confectionery business, the company augmentedits product range through new launches such as'Sunfeast Dark Fantasy Choco Rolls', Toffichoo Coffee Delite'and 'Minto Honey Lemon Ginger'. Focused investmentscontinue to be made towards enhancing marketstanding. Capacity utilisation at the company'sstate-of-the-art manufacturing facility in Biratnagar is alsobeing progressively ramped up.
The company's wholly owned subsidiary,Surya Nepal Ventures Private Limited, engaged inmanufacturing and sales of agarbattis, continued tostrengthen its market standing leveraging its differentiatedproduct portfolio, sharply focused marketing investmentsand best-in-class product availability across targetmarkets. The company entered the dhoop segment underthe 'Mangaldeep' brand during the year. The productrange has received encouraging consumer response.
The company continues to make multi-dimensionalcontributions towards building the societal and economiccapital of Nepal. In line with applicable regulations and
CSR policy, the company carried out initiatives underfour distinct CSR Platforms, namely, Surya Nepal Asha,Surya Nepal Prakriti, Surya Nepal Adharshila andSurya Nepal Gatha during the year. Key interventionsinclude:
- providing assistance to farmers in areas proximal tothe company's operations,
- creation of agri-infrastructure such as vermicompostpits, harvesting sheds etc.,
- providing training to improve productivity andenhance income generation for farmers throughanimal husbandry,
- improvement in the quality of education in publicschools in the vicinity of the company's operatinglocations,
- development of public infrastructure in the catchmentareas of operating locations,
- assistance in various environment preservationmeasures like urban plantation and preservation ofbiodiversity,
- support in organising the largest Nepali literaturefestival and assistance in promotion and revival ofthe local Nepali folk musical instrument - 'Sarangi'through various training programs and workshops.
During the year, the company recorded Revenuefrom Operations of NRs. 5293 crores (previous yearNRs. 4979 crores) and Net Profit of NRs. 1172 crores(previous year NRs. 1118 crores) on a consolidated basis.
The company declared a dividend of NRs. 273 per equityshare of NRs. 50 9 each for the year ended 15th July, 2024(31st Asadh, 2081), amounting to NRs. 1101 crores(previous year NRs. 563 per equity share of NRs. 100 eachamounting to NRs. 1135 crores).
The company continues to be one of the largest contributorsto the exchequer in Nepal and is well-positionedto consolidate its leadership position by leveraging itsrobust portfolio of products, deep & wide distributionnetwork, best-in-class manufacturing facilities and
execution excellence. The company continues to exploreopportunities to rapidly scale-up the newer FMCGbusinesses and evaluate emerging opportunities inthis space.
The global IT industry continued to be impactedby heightened uncertainty and volatility in themacro-economic environment, exacerbated bygeo-political dynamics. As per NASSCOM estimates, theIndian IT Services industry grew by 4.3% in FY 2024-25led by A I, cloud-native technologies and cybersecurityservices.
Against the backdrop of subdued industry growth,the company delivered robust performance withconsolidated revenues growing by 13.8% over theprevious year. The company remained aligned with thechanging business priorities of its customers and achievedstrong growth in key customer accounts by collaboratingin their development and transformation initiatives.Clients are increasingly seeking strategic partners tostreamline their portfolio of services and enhance costefficiencies. The company continues to effectively addresssuch requirements by leveraging its integrated globalservice delivery structure and strengthening operationalefficiencies through a structured delivery excellenceframework, employing a metrics-driven approach.
The company continues to invest in institutionalisingdelivery excellence and building future-ready capabilitiesin key focus areas. During the year, the company formeda Technology Center of Excellence (CoE) in Bengaluru toserve as an incubation centre to build capabilities in nextgeneration technologies, and a state-of-the-art Global AICentre of Excellence in Kolkata to develop cutting-edgesolutions. The company has also invested in building itsAI capabilities and created GenAI powered platforms &accelerators, offering unique proposition to clients.
In recent years the company has focused on buildingofferings and creating assets around capabilities like'CIO 360 - Run the Business' platform, Hotels-in-a-Boxand Digital Manufacturing, S4/HANA, Digital Workplace,Hyper Automation, Adobe D2C, ServiceNow andCybersecurity.
Towards enhancing its Cloud service capabilities,the company acquired Blazeclan Technologies PrivateLimited (Blazeclan), a leading Cloud consulting firm,during the year. Blazeclan has well-establishedcapabilities in Cloud transformation, with expertisein Cloud Migration, Digital Services, Digital CloudConsulting and Data Analytics & Insights across AWS,Azure and GCP platforms. The company has created anew 'Cloud services' line combining cloud professionalsfrom both companies to provide high quality, scalable andsecure cloud solutions and assist clients in their digitalmodernisation and transformation journeys.
The company's investments in building technology-ledsolutions and offerings in future-focused areas wereacknowledged in global benchmarking reports by leadinganalyst firms. During the year, the company was recognisedas 'Disruptor' across several Avasant RadarView™service provider benchmarking reports, including'Digital CX Services', 'Data Management and AdvancedAnalytics', 'End-user Computing', 'Digital Workplace','Intelligent Automation' and 'Travel, Transportation &Hospitality Digital Services'. The company wasrecognised as 'Rising Star' in the 'Data ModernisationServices-Midsize' and 'Advanced BI & ReportingModernisation-Midsize' quadrant in ISG provider lens™research report on Advanced Analytics and AI services.
Attracting, training and retaining high-quality talent,particularly in niche and future-focused technologiesremain a key priority for the company to succeed in theglobal IT Services industry. The company continues tofoster an employee-centric and high-performance workculture driving holistic well-being and growth as part of itscomprehensive employee value proposition. Leadershipstrength continues to be built through curated leadershipdevelopment programs and strengthen employeecompetencies through domain & technology-led trainingand career development programs. The company hasinitiated an extensive AI training programme covering over9,000 employees to create an AI-proficient workforce.
During the year, the company's consolidated Revenuefrom Operations stood at ' 4244.83 crores (previousyear ' 3730.23 crores). Net Profit for the year was' 449.82 crores (previous year ' 463.13 crores) afterconsidering costs related to the Blazeclan acquisition,and investments towards business growth andcapability building.
For the year under review:
a. ITC Infotech India Limited recorded Revenue fromOperations of ' 3204.32 crores (previous year' 2869.29 crores) and Net Profit of ' 466.62 crores(previous year ' 382.21 crores). The companypaid a total dividend of ' 53.75 per Equity Share of' 10/- each aggregating ' 488.32 crores (previous year' 55.50 per Equity Share of ' 10/- each aggregating' 488.40 crores).
b. ITC Infotech Limited, UK, a wholly-owned subsidiary ofthe company, recorded Revenue of GBP 28.80 million(previous year GBP 34.11 million) and Net Profit ofGBP 1.33 million (previous year GBP 1.49 million).
c. ITC Infotech (USA), Inc., a wholly-owned subsidiaryof the company, together with its wholly-ownedsubsidiary Indivate Inc., recorded Revenue ofUS$ 160.71 million (previous year US$ 158.58 million)and Net Profit of US$ 6.53 million (previous yearUS$ 6.69 million).
d. In the recent past, ITC Infotech India Limited hasalso set up subsidiary companies in Brazil, Mexico,France, Germany, Italy, Malaysia and Saudi Arabia.Please refer to Form AOC-1 (Statement containingsalient features of the financial statements ofSubsidiaries / Associate companies / Joint Ventures),forming part of the Report and Accounts, for detailson financial performance of these companies.
e. The consolidated results of the company includeRevenue of ' 98.43 crores and Net Loss of' 3.38 crores recorded by Blazeclan TechnologiesPrivate Limited and its wholly owned subsidiariespost 1st October, 2024, i.e. the date of acquisition.Consequent to the acquisition, 10 wholly ownedsubsidiaries of Blazeclan across several countriesincluding Singapore, Australia, Malaysia, Belgium,New Zealand, USA, Canada and Philippines havebecome step down subsidiaries of the company.
Going forward, ITC Infotech seeks to augment its portfolioof technology offerings across select industry verticals,develop new platforms & accelerators and strengthen itsalliance ecosystem through partnerships with hyperscalersand platform providers in identified capability areas suchas GenAI, Digital, Data & Analytics, Cloud, InfrastructureServices and ERP Systems. Strategic interventions
are planned towards building a robust talent supplychain with focus on employee-centricity and fostering ahigh-performance culture.
The company is well poised to craft the next horizon ofgrowth in the years ahead driven by focused strategiesto identify go to market opportunities, building capabilitiesthrough platforms and offerings and capacity building todrive scale.
During the year under review, potato production in Indiastood at 57 million MT, representing a decline of 5% overthe previous year. Lower potato production resulted in asignificant rise in potato prices during the year.
Leveraging its institutional strengths and strong brandvalue, the company continued to enhance its marketstanding by entering new potato growing markets andexpanding presence in existing ones. The company'ssecond greenhouse facility, located at Panchkula, wascommissioned during the year to augment capacity andservice the growing demand from institutional customers.
The company's leadership in production of early generationseed potatoes and strength in agronomy continueto support the 'Bingo!' range of potato chips of yourCompany and in servicing the seed potato requirementsof the farmer base of your Company's Agri Business.
The company's Revenue from Operations stood at' 383.68 crores (previous year ' 323.95 crores) withNet Profit of ' 83.76 crores (previous year ' 37.81 crores).Total Comprehensive Income for the year stood at' 83.71 crores (previous year ' 37.82 crores).
The company continues to leverage its deep domainexpertise, strengthen relationships with global seedbreeders and farmers to introduce high yield and climateresilient seed varieties to fortify its leadership position inthe seed potato industry.
The company continues to focus on upgradationand commercialisation of its TECHNITUBER® SeedTechnology and customising the agronomy practicesfor deployment across various geographies. Further,the company is also engaged in the marketing ofTECHNITUBER® seed produced at the facilities of its
subsidiary in China and Technico Agri Sciences Limited,India, a wholly-owned subsidiary of your Company, toglobal customers. For the year under review:
a. Technico Pty Limited, Australia registered a turnoverof Australian Dollars (A$) 2.86 million (previous yearA$ 1.69 million) and a Net Profit of A$ 1.51 million(previous year A$ 0.81 million).
b. Technico Technologies Inc., Canada has wounddown its seed business operations and is exploringother business opportunities in Canada.
c. Technico Asia Holdings Pty Limited, Australia, andTechnico Horticultural (Kunming) Co. Limited, China -there were no significant events to report with respectto the above companies.
The company's business activities comprise fabricationand assembly of machinery for tube filling, cartoning,wrapping, material handling including conveyorsolutions and engineering services for the FMCG andPharmaceutical industries.
During the year, the company monetised the valueof certain identified assets relating to the engineeringbusiness thereby strengthening its Balance Sheet.
The company's Revenue from Operations for the yearstood at ' 2.60 crores (previous year: ' 3.47 crores)with a Net Profit of ' 1.45 crores (previous year loss of' 1.88 crores). Total Comprehensive Income for the yearstood at ' 1.45 crores (previous year (-) '1.93 crores).
Your Company holds 76% equity stake in North EastNutrients Private Limited, which has set up a foodprocessing facility in Mangaldoi, Assam, to cater to thebiscuits market in Assam and other north-eastern states.
The company continues to focus on consistently improvingoperational efficiency and productivity. In recognition ofits high standards of quality, the company received threeGold Awards at the Convention on Quality Concepts 2024,organised by the Quality Circle Forum of India,Durgapur Chapter. The company also received oneGold and one Silver Award at the National POKA-YOKEcompetition and a Silver Award in the FACE Food Safety& Quality Kaizen Competition, 2024 organised by CII.
The company's Revenue from Operations for the yearstood at ' 158.87 crores (previous year ' 154.07 crores),while Net Profit for the year was ' 13.63 crores (previousyear ' 14.90 crores). Total Comprehensive Incomefor the year stood at ' 13.60 crores (previous year' 14.89 crores).
For FY 2024-25, the Board of Directors of the companyhas recommended a final dividend of ' 2.00 perequity share of ' 10 each, aggregating ' 14.60 crores(previous year final dividend of ' 2.00 per equity share of' 10 each, aggregating ' 14.60 crores).
The company is engaged in manufacture and exportof nicotine and nicotine derivative products. Thecompany's manufacturing facility, situated near Mysuruhas the capability to produce purest nicotine derivativesconforming to US and EU pharmacopoeia standards.The company undertook extensive product developmentinitiatives, customer trials and business developmentefforts and is well poised to rapidly scale up businessgoing forward.
During the year, the company recorded Total Income of' 10.51 crores (previous year ' 1.19 crores) and Net Lossof ' 55.56 crores (previous year loss of ' 31.12 crores),primarily on account of gestation costs and depreciation.
The company manufactures Moulded Fibre Productsmade from renewable natural fibres such as wood andoffers sustainable solutions across industries includingfood service & delivery, FMCG and electronics.
Commercial production at the company's state-of-the-artmanufacturing facility at Badiyakhedi, Madhya Pradeshcommenced in March 2024.
During the year, the company obtained multiplecertifications affirming that its products are food contactsafe and environment friendly and conform with therequirements under US Food and Drug Administration,German Federal Institute for Risk Assessment and IndianFSSAI regulations. These certifications enable IFILto differentiate its offerings with both domestic andinternational customers. The commercial sales werescaled up during the year post extensive product
development efforts and customer trials. Going forward,IFIL will leverage the expertise of the Business in fibrevalue chain, manufacturing excellence and strongsustainability credentials to rapidly scale-up businesswith continued focus on developing innovative plasticsubstitution solutions. During the year ended31st March 2025, the company recorded Total Incomeof ' 4.61 crores (previous year ' 1.26 crores) withNet Loss of ' 21.41 crores (previous year loss of' 3.56 crores), primarily on account of gestation costsand depreciation.
The company recorded Total Income of ' 71.91 crores(previous year ' 60.91 crores) and Net Profit of' 47.49 crores (previous year ' 39.39 crores). Growth inTotal Income was driven by higher surplus liquidity andincrease in yield of the funds deployed on account ofhigher market interest rates.
During the year, the company transferred its investmentsin EIH Limited and HLV Limited to your Company at theirrespective cost of acquisition which led to reversal ofthe mark-to-market gain on the said investments. As aresult, Total Comprehensive Income for the year stood at(-) ' 484.29 crores (previous year ' 442.67 crores).
Temporary surplus liquidity of the company is mainlydeployed in bonds, debt mutual funds, bank fixeddeposits, certificate of deposits, etc. The companycontinues to closely monitor its investments in line withmarket interest rate movements and explore opportunitiesto make strategic investments for the ITC Group.
For FY 2024-25, the company declared final dividendof ' 0.36 per Equity Share of ' 10 each, aggregating' 23.27 crores (previous year final dividend of' 0.30 per Equity Share of ' 10 each, aggregating' 19.39 crores).
The company holds 50% equity stake in ITC Filtrona Limited.
During the year, the company recorded Total Income of' 25.11 crores (previous year ' 24.82 crores) and Net Profit of' 23.80 crores (previous year ' 23.12 crores). The companydeclared interim dividend of ' 14.10 per Equity Share of
' 10 each, aggregating ' 22.56 crores (previous year' 14.10 per Equity Share of ' 10 each, aggregating' 22.56 crores).
The company provides maintenance services forcommercial office buildings, EPC (engineering,procurement, construction) management services as wellas project management consultancy services.
During the year, the company recorded Total Income of' 13.46 crores (previous year ' 11.61 crores) andNet Profit of ' 7.23 crores (previous year ' 2.82 crores).
The company is in the business of providing support to theBusiness Shared Services operations of your Companyand its related entities.
During the year, the company recorded Total Incomeof ' 21.50 crores (previous year ' 12.78 crores) andNet Profit of ' 1.41 crores (previous year ' 0.60 crore).
The company, a wholly-owned subsidiary ofITC Integrated Business Services Limited, holdstenancy rights in a commercial building located inMumbai and also provides estate maintenance services.During the year, the company recorded Total Income of' 7.58 lakh (previous year ' 7.38 lakh) and Net Profit of' 0.41 lakh (previous year ' 0.66 lakh).
The operations of the company continue to be adverselyimpacted pursuant to the Order of the Honourable High Courtof Uttarakhand at Nainital in February 2014 dismissingthe Writ Petition filed by the company against theOrder of the District Magistrate authorising theState authorities to take possession of the land leased tothe company. The company had filed an appeal againstthe aforementioned order of the Honourable High Courtin 2014, which has been pending adjudication.
Considering the time and resources involved, the companyhas since withdrawn the said appeal with the approval of theHonourable High Court on 7th March 2025. During the year,the company recorded Total Income of ' 0.18 crore
(previous year ' 0.14 crore) and Net loss of ' 0.03 crore(previous year loss of ' 0.03 crore).
The operations of the company continue to be adverselyimpacted pursuant to the Order of the HonourableHigh Court of Uttarakhand at Nainital in February 2014dismissing the writ petition filed by the company againstthe Order of the District Magistrate authorising theState authorities to take possession of the land leased tothe company. The company had filed an appeal againstthe aforementioned order of the Honourable High Courtin 2014, which has been pending adjudication.
Considering the time and resources involved, the companyhas since withdrawn the said appeal with the approval ofthe Honourable High Court on 7th March 2025. During theyear, the company recorded Total Income of ' 0.10 crore(previous year ' 0.10 crore) and Net loss of ' 0.09 crore(previous year loss of ' 0.02 crore).
ITC Filtrona Limited (formerly known as ITC EssentraLimited) - a joint venture of Gold Flake CorporationLimited
The company delivered resilient performance during theyear amidst continued volatility in the supply chain forcertain input materials.
The company sustained its leadership position in theindustry consolidating its status as the preferred supplychain partner for several well-known national brands.The company continues to leverage its core strengthsof focused innovation, best-in-class quality, consistentdelivery and strong customer relationships.
The company continues to partner with its customers andinvest in technology upgradation and capability buildingtowards sustaining its position as the 'innovation andquality benchmark' in the Indian cigarette filter industry.
During the year ended 31st March, 2025, the company'sRevenue from Operations stood at ' 761.34 crores(previous year ' 743.45 crores). Net Profit during the yearstood at ' 83.85 crores (previous year ' 80.80 crores).
The Board of Directors of the company has recommendeda dividend of ' 125 per equity share of ' 10 eachfor the year ended 31st March, 2025 (previous year' 100 per equity share).
Logix Developers Private Limited is a joint venturebetween your Company and Logix Estates Private Limitedfor developing a luxury hotel-cum-service apartmentcomplex at the company's leasehold site located atSector 105 in New Okhla Industrial Development Authority(NOIDA).
Your Company presently holds 27.9% equity stake inLDPL. As reported in prior years, your Company reiteratedits position with the JV partner that it was committedto developing a luxury hotel-cum-service apartmentcomplex as envisaged under the JV Agreement and thatit was not interested in progressing with any alternativeproject plans proposed by the JV partner. However, theJV partner refused to progress the project and insteadexpressed its intent to exit from the JV by selling itsstake to your Company. Subsequently, the JV partnerproposed that both parties should find a third party tosell the entire shareholding in LDPL. In view of thesedevelopments, your Company had filed a petition beforethe erstwhile Company Law Board submitting that theaffairs of the JV entity were being conducted in a mannerthat was prejudicial to the interest of your Company andthe JV entity. The matter is currently before the NationalCompany Law Tribunal (NCLT). The JV partner had alsofiled a petition before the Honourable Delhi High Court forwinding up the JV company, which was transferred to theNCLT by the Honourable Delhi High Court. The matterwas heard before the NCLT on several occasions in thepast but could not be concluded. On 21st January, 2020,the matter was assigned to a new bench, post whichhearings on the matter are being held.
In July 2022, LDPL received a communication from NOIDAauthorities intimating cancellation of the sub-lease for theland on which the project was to be constructed on accountof non-payment of lease instalments and non-fulfilmentof the conditions of the sub-lease, including forfeitureof the amount deposited. The company is evaluating alloptions to pursue its rights in the matter. Consequently,as a matter of prudence, the company had derecognisedthe leasehold land/assets as well as adjusted/reversedthe lease liabilities towards NOIDA in accordance with theterms of the sub-lease deed, in its financial statements forthe year ended 31st March 2022.
During the year ended 31st March, 2025, the companyrecorded a Net Profit of ' 0.25 crore (previous year' 0.22 crore). The Net Worth of the company stood at' 5.57 crores as at 31st March, 2025 (previous year' 5.32 crores).
Your Company's total investment in LDPL was' 41.95 crores. Your Company had made provision of theentire investment amount as diminution in the carryingvalue of investment in the previous years and consequentlythe carrying value of your Company's investment in LDPLas at 31st March, 2025, is Nil.
The financial statements of LDPL for the year ended31st March, 2025, are yet to be approved by itsBoard of Directors. In the absence of audited financialstatements of LDPL, the Consolidated FinancialStatements of your Company for the year ended31st March, 2025, have been prepared based on thefinancial statements prepared by the managementof LDPL.
ITC Hotels Ltd. (ITCHL) was incorporated as awholly-owned subsidiary of your Company in July,2023. The Board of Directors of your Company andITC Hotels Limited, had on 14th August, 2023approved, subject to necessary statutory and regulatoryapprovals, the Scheme of Arrangement amongst yourCompany and ITC Hotels Limited and their respectiveshareholders and creditors ('Scheme') for demergerof the Hotels Business (as defined in the Scheme)of your Company on a going concern basis.The Scheme was approved by the Honourable NationalCompany Law Tribunal, Kolkata Bench vide itsorder dated 4th October, 2024.
Pursuant to the Scheme, the Hotels Business ofyour Company (along with all assets and liabilitiesthereof, excluding ITC Grand Central, Mumbai)
and the investments held in hospitality entities i.e.Fortune Park Hotels Limited, Bay Islands Hotels Limited,Landbase India Limited, WelcomHotels Lanka
(Private) Limited, Srinivasa Resorts Limited,
International Travel House Limited, Gujarat Hotels Limited
and Maharaja Heritage Resorts Limited have beentransferred to ITCHL on a going concern basis from theEffective Date i.e., 1st January 2025. ITCHL issued andallotted equity shares to the shareholders of your Companyas per the share entitlement ratio provided in the Schemeand consequently your Company holds 39.88% stake inITCHL as at 31st March 2025. Consequently, ITCHL hasbecome an Associate of your Company.
ITCHL is amongst the fastest growing hospitalitychains in the country with over 140 properties and13,300 rooms under multiple brands catering to differentmarket segments. ITCHL is recognised for its portfolio ofworld-class properties, iconic bouquet of brands, cuisineexpertise and service excellence. Anchored on the ethosof 'Responsible Luxury', ITCHL is a global exemplar insustainable hospitality.
The company delivered robust performance duringthe year clocking record high revenue and profits.Room revenues recorded strong growth driven bybroad-based performance across segments. Occupancyand Average Daily rate (ADR) witnessed robust growthon the back of sustained demand across key markets andsmart revenue management.
ITCHL continues to pursue an 'asset-right' growth strategyto drive growth while reducing capital intensity of operationsby focusing on strong partnerships with asset owners,leveraging brand credentials and providing operationalexpertise. A substantial part of incremental roomadditions is expected to accrue through management andfranchising contracts going forward. The company is alsoprogressing investments towards scaling up its portfolioof owned hotel rooms. A greenfield project is underwayat Puri, Odisha and a new block is under construction atthe existing Welcomhotel in Bhubaneshwar. ITCHL alsoseeks to leverage its strategic land bank to enhance theportfolio of owned hotels.
The hospitality sector in India is poised to grow rapidlyin the years ahead driven by growing per capita income,rapid urbanisation, increasing societal aspirations andlow room supply penetration. ITCHL is well placed tocraft its next horizon of growth as a pure-play hospitalityentity leveraging your Company's institutional strengths,strong brand equity and goodwill.
Delectable Technologies Private Limited (Delectable)is, inter alia, engaged in the sale of FMCG productsleveraging app-based technology through vendingmachines, primarily installed across office locations.
The total investment of the Company in Delectable stands at' 11 crores for a 39.3% stake, on a fully diluted basis.
Delectable has significantly scaled down its operationsduring the year. Your Company has divested its holding inDelectable in May 2025.
Sproutlife Foods Private Limited (Sproutlife) operatesin the fast growing, nutrition-led health food space witha diversified product portfolio across multiple categoriesincluding protein bars, breakfast cereals, nutraceuticalsetc. under the 'Yogabar' brand.
During the year, your Company invested ' 30 crores inSproutlife, consequent to which your Company's stakenow stands at 47.50% (previous year 44.74%) on a fullydiluted basis. Cumulative investment in Sproutlife standsat ' 255 crores as at 31st March, 2025.
Sproutlife continues to register robust growth across itstarget markets in its core categories of Bars, Muesli andOats; product portfolio was augmented during the yearwith the launch of protein drinks and whey protein.
Mother Sparsh Baby Care Private Limited (Mother Sparsh)is a premium ayurvedic and natural baby care brand,which is focused on baby personal care, health & hygieneand expert baby care. With high quality products, MotherSparsh aims to serve the needs of informed new-agemothers who are making conscious decisions to switch tosuperior products for their babies.
The company recorded robust growth during the yearon the back of increasing consumer franchise for itsdifferentiated product range and entry into the quickcommerce channel.
As at 31st March 2025, your Company held 26.5% stakein Mother Sparsh on a fully diluted basis at a cumulativeinvestment value of ' 45 crores.
In April 2025, your Company executed DefinitiveAgreements to acquire the balance 73.5% stake in oneor more tranches over a time period of about two tothree years subject to fulfilment of prescribed terms andconditions.
The company is a contract manufacturer of cigarettes.The company continues to deliver superior qualityproducts to its customers while maintaining high levels offlexibility and agility in its manufacturing operations.
During the year, the company received the 'NationalAward for Outstanding Industrial Relations 2023-24' fromAll India Organisation of Employers in the MSME categoryand the 'Silver Prize in Manufacturing Small Sector'at the Federation of Indian Chambers of Commerceand Industry (FICCI) Awards for Excellence in QualitySystems 2024. The company was also recognised as an'Energy Efficient Unit' by Confederation of IndianIndustry (CII) and accredited with Social AccountabilityManagement System Standard SA 8000:2014 by DNV.
Russell Investments Limited, Divya ManagementLimited and Antrang Finance Limited
The above companies are associates of Russell CreditLimited. These companies are NBFCs registered withthe Reserve Bank of India and continue to exploreopportunities for strategic investments.
For further details on performance of the above-mentionedassociate companies, please refer to Form AOC-1(Statement containing salient features of the financialstatements of Subsidiaries / Associate companies /Joint Ventures), forming part of the Report and Accounts.
The Corporate Governance Policy guides the conductof affairs of your Company and clearly delineates theroles, responsibilities and authorities at each level of itsthree-tiered governance structure and key functionariesinvolved in governance. The ITC Code of Conduct commitsmanagement to financial and accounting policies, systemsand processes. The Corporate Governance Policy and theITC Code of Conduct stand widely communicated across
the enterprise at all times and together with the Strategyof Organisation, Planning & Review Processes and theRisk Management Framework provide the foundationfor Internal Financial Controls with reference to yourCompany's Financial Statements.
Such Financial Statements are prepared on the basisof the Material Accounting Policies that are carefullyselected by management and approved by theAudit Committee and the Board. These Policies aresupported by the Corporate Accounting and SystemsPolicies that apply to the entity as a whole to implementthe tenets of Corporate Governance and MaterialAccounting Policies uniformly across your Company.The Accounting Policies are reviewed and updated fromtime to time. These, in turn, are supported by a set ofDivisional policies and Standard Operating Procedures(SOPs) that have been established for individualBusinesses.
Your Company uses Enterprise Resource Planning(ERP) systems as a business enabler and also tomaintain its books of accounts. The SOPs, in tandemwith transactional controls built into the ERP systems,ensure appropriate segregation of duties, tiered approvalmechanisms and maintenance of supporting records.The Information Management Policy reinforces thecontrol environment. The systems, SOPs and controlsare reviewed by Divisional management and audited byInternal Audit, whose findings and recommendations arereviewed by the Audit Committee and tracked through tillimplementation.
Your Company has in place adequate internal financialcontrols with reference to the Financial Statements.These have been designed to provide reasonableassurance with regard to recording and providing reliablefinancial information; complying with applicable statutes;safeguarding assets from unauthorised use; ensuring thattransactions are carried out with adequate authorisationand complying with Corporate Policies and Processes.Such controls have been assessed during the year, aftertaking into consideration the essential components ofinternal controls stated in the Guidance Note on Auditof Internal Financial Controls over Financial Reportingissued by The Institute of Chartered Accountants ofIndia. Based on the results of such assessment carriedout by management, no reportable material weakness orsignificant deficiency in the design or operation of internal
financial controls was observed. Nonetheless, yourCompany recognises that any internal control framework,no matter how well designed, has inherent limitations andaccordingly, regular audit and review processes ensurethat such systems are reinforced on an ongoing basis.
As a diversified enterprise, your Company continuesto focus on a system-based approach to business riskmanagement. The management of risk is embeddedin the corporate strategies of developing a portfolio ofworld-class businesses that best match organisationalcapability with opportunities in domestic and internationalmarkets, developing capabilities and competencies forthe future in order to enhance competitiveness and winin the markets of tomorrow. Accordingly, management ofrisk has always been an integral part of your Company's'Strategy of Organisation' and straddles its planning,execution and reporting systems & processes.Backed by strong internal control systems, the currentRisk Management Framework consists of the followingkey elements:
- The Corporate Governance Policy, approvedby the Board, clearly lays down the roles andresponsibilities of the various entities in relation torisk management covering a range of responsibilities,from the strategic to the operational. These roledefinitions, inter alia, provide the foundation forappropriate risk management procedures, theireffective implementation across your Companyand independent monitoring and reporting byInternal Audit.
- The Risk Management Committee, constitutedby the Board, monitors and reviews the strategicrisk management plans of your Company as a wholeand provides necessary directions on the same.
- The Corporate Risk Management Cell, throughfocused interactions with Businesses, facilitatesthe identification and prioritisation of strategic andoperational risks, development of appropriatemitigation strategies and conducts periodic reviews ofthe progress on the management of identified risks.
- A combination of centrally issued policies andBusiness-specific procedures bring robustness to theprocess of ensuring that business risks are effectivelyaddressed.
- Appropriate structures are in place to proactivelymonitor and manage the inherent risks in businesseswith unique or relatively high risk profiles.
- Foreign currency exposures continue to be managedwithin the framework of the Forex Manual.
- A strong and independent Internal Audit function atthe Corporate level carries out risk focused auditsacross all Businesses, enabling identification of areaswhere risk management processes may need to bestrengthened. The Audit Committee of the Boardreviews Internal Audit findings and provides strategicguidance on internal controls. The Audit ComplianceReview Committee closely monitors the internalcontrol environment within your Company includingimplementation of the action plans emerging out ofinternal audit findings.
- At the Business level, Divisional Auditors continuouslyverify compliance with laid down policies andprocedures and help plug control gaps by assistingoperating management in the formulation of controlprocedures.
- A robust and comprehensive framework of strategicplanning and performance management ensuresrealisation of business objectives based on effectivestrategy implementation. The annual planningexercise requires all Businesses to clearly identifytheir top risks and set out a mitigation plan withagreed timelines and accountabilities. Businessesare required to confirm periodically that all relevantrisks have been identified, assessed, evaluated andthat appropriate mitigation measures have beenimplemented.
Your Company endeavours to continuously sharpenits Risk Management systems and processes inline with a rapidly changing business environment.All Businesses of your Company have adopted theISO 31000 Risk Management Standard; risk managementsystems and processes prevalent in the Businesses havebeen independently assessed to be compliant with thesame. The centrally anchored initiative of conductingindependent external reviews of key business processeswith high 'value at risk' continued during the year.These interventions continue to provide further assuranceon the robustness of risk management practices prevalentin your Company.
Recognising Digital as a megatrend shaping the future,your Company remains focused on building a dynamic'Future-Tech' enterprise powered by advanced digitaltechnologies and infrastructure across the value chain.Your Company's digital transformation journey is alsoresulting in changes in its risk profile marked by aheightened cyber threat environment. The cybersecuritylandscape is constantly evolving, characterised bya diverse array of threats that target individuals,organisations, and critical infrastructure. Cybercriminalsare employing increasingly sophisticated tactics, such asransomware, phishing and advanced persistent threats,to exploit vulnerabilities and gain unauthorised access tosensitive data.
Your Company has a multi-tiered cybersecurity defencestrategy that includes firewalls, antivirus and anti-malwaresystems to prevent, detect and respond to cyber incidents.These defence mechanisms are implemented at variousaccess and data processing points, including endpoints,data centres, network perimeters and cloud instances.To further enhance user awareness, your Company hasestablished a comprehensive digital cybersecurity trainingprogram for all employees.
The Cyber Security Committee of your Company, chairedby the Chief Digital and Information Officer (CDIO),establishes best practices, monitors the cybersecurityposture, and defines strategic priorities to ensure secureand reliable services in a rapidly evolving digital landscape.Your Company's cybersecurity practices are guided byseveral international frameworks and standards, such asNIST and ISO 27001.
During the year, your Company operationalised theAdvanced Cyber Security Operations Centre (SOC)equipped with state-of-the-art capabilities includingAI-driven threat intelligence from multiple sources.Tabletop exercises have been conducted to improveincident response capabilities for the Cyber SecurityIncident Response team, under the leadership of the ChiefInformation Security Officer (CISO). Further, the SOCis being augmented with behavioural anomaly detectioncapabilities to enhance threat detection.
In response to the progressive migration of workloadsto the Cloud, your Company has adopted a zero trustarchitecture and has established a digital-ready, cloud-secure wide area network - ITC Digibahn. This network
ensures that all authorised users can access fast, reliable,and secure connections from any location, on any device,at any time. Your Company is also upgrading both endpointand email security by adopting best-in-class technologiesto enhance protection against external threats.
The growing integration and convergence of InformationTechnology (IT) and Operational Technology (OT) withinIndustrial Control Systems significantly increases the risk ofcyber-attacks. Accordingly, a comprehensive OT Securitypolicy has been established across all Businesses and anassessment of IT and OT security maturity is conducted atleast once in two years.
The use of Artificial Intelligence (AI) is becomingincreasingly prevalent in various business domains. In thisregard, your Company has adopted a range of securitybest practices, including an approved list of generativeAI tools and platforms, a data management framework,mandatory proof of concept (POC) requirements, dataprivacy controls, ethical AI usage guidelines, and userawareness training.
India ranks among the most vulnerable countries in theworld in terms of climate change impact. As part of itsSustainability 2.0 vision, your Company is pursuing am ulti -pronged cl i m ate strategy that entai l s extensi vedecarbonisation and building resilience against climaterisk across the value chain.
Your Company's low carbon growth approach focuseson increasing the share of renewable energy, improvingenergy productivity, construction of green buildings,greening logistics, optimising 'distance-to-market' andpromoting regenerative agriculture practices in agri-valuechains, thus enabling transition to a net zero economy.Simultaneously, your Company is actively workingtowards climate-proofing its operations and agriculturalvalue chains by using state-of-the-art climate riskmodelling techniques and developing site-specific riskmitigation strategies. Your Company's approach towardswater stewardship is aligned with the Alliance for WaterStewardship Standard, a globally recognised frameworkfor assessing the efficacy of water management acrosswater stressed sites. Further, your Company recognisesthat the preservation and nurturing of biodiversity is
crucial for long-term sustainability of its business and iscommitted to conducting its operations in a manner thatprotects, conserves and enriches biodiversity in line withthe Board-approved Policies on Biodiversity Conservationand Deforestation.
Your Company sources several commodities for use asinputs in its Businesses and engages in agri-commoditytrading as part of its Agri Business. In respect ofcommodities sourced for use as inputs in its Businesses,your Company has well laid out strategies to managerisks arising out of the inherent price volatility associatedwith such commodities. This includes robust mechanismsfor monitoring market dynamics towards making informedsourcing decisions, well defined inventory holding normsbased on considerations such as seasonality and thestrategic nature of the commodity concerned, long-termcontracts with suppliers and continuous diversificationof the supplier base to secure supply of critical itemsat competitive costs. Multiple sourcing models, widegeographical spread, extensive sourcing and supplychain network and associated infrastructure in keygrowing areas coupled with deep-rooted farmer linkagesand use of digital technologies ensure sourcing of highquality agri-commodities at competitive costs.
In respect of agri-commodity trading, your Company hasa well-defined policy to manage risks associated withsourcing of such commodities. This includes:
- segregation of duties and robust internal controlsthrough a system of checks and balances embeddedin the organisation and governance structure
- clearly defined limits for trading positions (long andshort) and net cash loss for specific commodities/commodity groups
- mitigation of price, liquidity and counter party risksthrough hedging on commodity exchanges (mainlyNCDEX) for certain commodities, as applicable.Correlation between prices prevailing in the physicalmarket and those on the commodity exchange isanalysed regularly to ensure effectiveness of hedging
- robust monitoring and review mechanisms of netopen positions and 'value at risk'
- ECGC cover for exports (covering commercial &political risks) and credit insurance for large domesticcustomers.
The combination of policies and processes as outlinedabove adequately addresses the various risks associatedwith sourcing of commodities for your Company'sBusinesses.
Your Company's strategy of backward integration insourcing of agri-commodities such as wheat, potato,fruit pulp, spices, milk and leaf tobacco; in-housemanufacturing of paperboards, paper and packaging(including pulp production and print cylinder makingfacilities); wood procurement from the economic vicinityof the Bhadrachalam unit, facilitates access to criticalinputs at benchmark quality and competitive costbesides ensuring security of supplies. Further, each ofyour Company's Businesses continuously focuses onproduct mix enrichment and yield improvement towardsprotecting margins and insulating operations from spikesin input prices.
The Risk Management Committee met thrice during theyear and was updated on the status and effectiveness ofthe risk management plans. The Audit Committee wasalso updated on the effectiveness of your Company's RiskManagement systems and policies.
The risk management practices of your Company,as reviewed through the Risk Management Cell andInternal Audit processes, have been found to be relevantand commensurate with the size and complexity ofits operations.
Your Company believes that strong internal controlsystems that are commensurate with the scale, scopeand complexity of its operations are concomitant to theprinciple of governance that freedom of managementshould be exercised within a framework of appropriatechecks and balances.
Your Company remains committed to ensuring a matureand effective internal control environment that, inter alia,provides assurance on orderly and efficient conduct of
operations, security of assets, prevention and detection offrauds/errors, accuracy and completeness of accountingrecords and compliance with various regulatoryrequirements as applicable.
Your Company's independent and robust Internal Auditprocesses, both at the Business and Corporate levels,provide assurance on the adequacy and effectivenessof internal controls, compliance with business processesand procedures, internal policies and regulatoryrequirements. The role of Internal Audit is to enhanceand protect organisational value by providing risk-basedassurance, advice and insight, while enabling continuousimprovement of your Company's internal control systems.
The Internal Audit function, comprising professionallyqualified accountants, engineers, and InformationTechnology (IT) specialists, is well-equipped andresourced to provide audit assurances at the highestlevels. Targeted learning and development programmeson contemporary topics are periodically organised toenhance knowledge and skill set of the audit team.
The scope and coverage of Internal Audit remainscontemporary and cognises, inter alia, for the rapiddigitalisation of your Company's business operations.In recent years, Internal Audit has enhanced focus onsystems and controls pertaining to your Company's digitalassets including brand websites, social media handles,mobile and cloud applications, IT-OT integration, andprotection of sensitive personal data and information.
Information security and cybersecurity have assumedcritical significance with the accelerated adoption ofdigital technologies. In this context, periodical reviewsare conducted focusing on assessment of controlspertaining to confidentiality, integrity and availability ofbusiness information and systems covering general ITcontrols and security of your Company's IT Infrastructure.All systems and policies relating to InformationManagement are regularly reviewed and benchmarked toensure they remain contemporary. Furthermore, all criticalIT systems undergo pre-implementation audit before beingdeployed in the operating environment, thereby providingassurance regarding the rigour of implementation andoperational readiness.
Aligned with your Company's 'Digital First' strategy,the Internal Audit function has evolved into an agile,multi-skilled and technology-enabled function. Processeswithin Internal Audit function are continuously enhancedfor greater effectiveness and productivity by utilisingbest-in-class tools for audit analytics, intelligentautomation, adoption of new open-source tools andAI-enabled BOTs. Utilisation of the recently implementedDigital Audit Management System, a tool for end-to-enddigitisation of audit life cycle, was scaled up during theyear; key enhancements such as 'Agile Audit' module wereintroduced to improve efficiency and monitoring acrossthe assurance process lifecycle. An integrated advanceddata analytics tool has been adopted to enhance auditors'capabilities with low-code/no-code scripting, automateddata extraction, and analysis of both structured andunstructured data. In addition, several off-the-shelf toolswere introduced for IT security checks, code reviews andvulnerability assessments of your Company's websites,apps, and social media handles.
Qualified engineers within the Internal Audit functionreview the design, planning and execution of all ongoingprojects that involve significant expenditure. Thisensures that project management controls are robustand yield 'value for money'. The Internal Audit functionalso leverages state-of-the-art industry-specific tools andtechnology to conduct comprehensive project audits.
Your Company's Internal Audit processes are certifiedas complying with ISO 9001:2015 Quality Standards.Further, systems and processes are in accordance withthe Standards on Internal Audit (SIA) issued by TheInstitute of Chartered Accountants of India.
The Audit Committee of your Board met twelve timesduring the year. The Terms of Reference of theAudit Committee, inter alia, include reviewing theeffectiveness of the internal control environment,evaluating your Company's internal financial controls &risk management systems, and monitoring theimplementation of action plans arising from significantInternal Audit findings. Material observations, as definedin the Terms of Reference, are reviewed at the highestlevel by the Audit Compliance and Review Committee(ACRC) and the Audit Committee.
Your Company's thought, strategy and action are inspiredby a larger purpose of being an exemplary Indian enterprisethat not only delivers superior competitive performance,but also embeds sustainability and inclusiveness at thecore of its Businesses. This approach enables yourCompany to delight consumers and customers with avibrant portfolio of industry leading products and serviceswhile generating enduring value for the Indian economyand the larger community of stakeholders. The talentmanagement strategy of your Company is designed toattract, retain and develop human capital that enablesyour Company to sustain its position as one of India'smost valuable corporations, whilst continuing with itsmission of building a responsible 'Future-Tech' enterprise.Your Company's employees relentlessly strive to deliverworld-class performance, collaborating with each otherand discharging their role as 'trustees' of all stakeholders.Your Company is committed to perpetuating vitality -its growth as a value generating engine and also as anexemplary institution - so that it continues to succeed inits relentless pursuit of creating enduring value.
Your Company's Human Resources developmentapproach spans four key organisational dimensions ofArchitecture, Alignment, Agility and Ability which aresupported through strategies crafted in areas such as talentacquisition, engagement, diversity & inclusion, capabilitybuilding, employee relations, performance & rewards andemployee well-being. Through its various talent initiativesand processes, your Company strives to deliver the valueproposition of 'Building Winning Businesses, BuildingBusiness Leaders and Creating Value for India'. The talentdevelopment practices help create, foster and strengthenthe capability of human capital to deliver critical outcomeson the vectors of strategic impact, operational efficiencyand capital productivity while reimagining consumerexperience, driving business model transformation andenhancing employee experience.
Your Company's 'Strategy of Organisation' is designedto promote agility through a culture and practice ofdistributed leadership enabled by a three-tier governancestructure. This is manifested in market and consumerfacing Businesses, which are driven by empowered,cluster-based teams and supported by shared assets
and capabilities, enabling strategic relevance, speed,responsiveness, and operational excellence. Thisapproach allows Businesses, through their ManagementCommittees, to focus, develop and execute BusinessPlans relevant to their product-market spaces whileleveraging the institutional strengths of your Companyand harvesting internal synergies.
The year under review witnessed some softening of theemployment market, reflected in lower attrition and a moremeasured approach to remuneration decisions in severalindustry sectors. While flexible work arrangementsare now prevalent across industry, there has been amoderation in application, reflecting a gradual shifttowards an equilibrium. Several global organisations,with presence in India, have also chosen to reviewtheir Diversity agenda. The adoption and integration ofdigitisation and automation tools to enhance productivitycontinues. Companies remain committed to prioritisingemployee well-being & mental health support.
Your Company's unique employer equity as an exemplaryIndian enterprise creating world-class brands, buildingbusiness leaders and generating economic, social andenvironmental capital for the Indian economy, continuesto play a pivotal role in the attraction and retention ofhigh-quality talent. The management trainee programme,augmented with recruitment of experienced talent fromthe market, is an integral part of building a deep pipeline.Your Company continues to draw the finest management,technical and commercial talent from premier institutionsin the country and is ranked amongst the leadingcompanies in these institutions. Intensive engagementwith the country's premier academic institutions over theyears to communicate your Company's talent propositionthrough case-study competitions, knowledge-sharingprogrammes by senior managers, on-ground exposureand factory visits for students and the annual internshipprogrammes have all contributed to creating a compellingproposition for the best candidates to aspire for acareer with your Company. Your Company continues toenthuse talent with high-impact roles, competitive andperformance driven remuneration with an emphasis onlong-term incentives, a wealth of learning opportunities,a commitment to enhancing diversity, equity & inclusion,an employee-centric climate, well-being focusedinfrastructure and support that promotes fellowship andcommitment amongst employees.
Your Company's talent development approach isfounded on the belief that learning initiatives must remainsynergistic and aligned to business outcomes. YourCompany provides managers with contemporary andrelevant learning and development support through acombination of self-paced e-learning modules, classroomprogrammes and application projects with emphasison experiential learning, on-the-job assignments andexposure to nationally and globally renowned faculty.Deep functional expertise is fostered at early stages ofan employee's career through immersion in complexproblem-solving assignments requiring the applicationof domain expertise. These interventions havehelped your Company build and sustain a culture ofapplication-focused continuous learning, innovation andcollaboration. Managers are assessed on your Company'sbehavioural competency framework and provided withlearning and development support to address areasidentified for improvement. Key talent is provided criticalexperiences in high-impact roles and mentored by seniormanagers, promoting the development of a steady pool ofhigh-quality talent.
Your Company has identified three capability vectorsfor making Businesses future-ready - LeadershipDevelopment, Business Critical Functional Competencies,and Organisation Identity & Pride. As a part of leadershipdevelopment initiatives, the Reflections 360 programmeprovides leaders with feedback from team members,peers and managers, enabling self-driven personaldevelopment. This is supplemented by immersiveworkshops and personalised one-on-one coaching beingmade available for senior managers.
This approach ensures relevance and impact, therebyenhancing the capability index of your Company's humancapital. Globally benchmarked curriculum are tailoredto your Company's context, especially in the domainsof Digital Fluency, Data Science, Industrial Analytics,Brand Marketing and Manufacturing strategy. All theseinterventions are delivered through subject matter experts,domestic and international, and supplemented withbusiness-critical application projects. Periodic inductionprogrammes, anchored by senior leaders, enable newentrants to appreciate your Company's Vision, Mission,Culture, Values and Strategies while fostering pride inaffiliation with your Company.
Your Company continues to strengthen its performancemanagement system and its culture of accountabilitythrough widespread adoption of the system ofManagement-by-Objectives. Performance planningthrough clearly defined goals, outcome-based assessment,and alignment of rewards for achievement of resultshave all contributed to a robust culture of ownership andaccountability. 'Career Conversations' and successionplanning processes have contributed to helping employeesrealise their potential, craft their careers while recognisingtheir strengths and areas of development and ensuring asound workforce planning system.
In the spirit of continuous improvement, your Companymaintains a practice of periodically assessing employeeengagement through an entity-wide survey. The recentsurvey results of 2024 continue to indicate an improvingtrend, on a strong base, with scores increasing in therange of 10 to 16 percentage points on key dimensions.96% of employees reported a deep sense of pride andassociation with your Company, 94% reported a beliefin your Company's overarching goals & leadership and94% are optimistic of the future. These engagementlevels reflect in your Company's superior standingon employee turnover. During the year, a range ofengagement programmes were sustained includinginitiatives such as leadership outreach through extensivecommunication, recognition programmes acknowledgingexceptional contributions of employees and teams, careerconversations and investments in employee wellbeing.
The year witnessed the Cigarettes Business receiving thePlatinum Award for 'Best Practices in Digitisation in HR'among Large Manufacturing Sector Companies at the8th CII National HR Competition 2024. The PersonalCare Business and Foods Business were conferredFICCI's Women Empowerment Award 2024, under thecategory - 'Impactful Care Ecosystem for Employees'.The Life Sciences and Technology Centre (LSTC) wonthe CII Award on 'Excellence for Women in STEM 2024'.LSTC was the only organisation in the Life SciencesSector to be recognised in top 25 companies by CII inthis category.
Your Company's efforts to enhance Diversity, Equity andInclusion are founded on the conviction that a diverseworkforce contributes to rich discourse, promotes holistic
perspectives, fosters creative solutions and is integralto serving customers better while creating value forall stakeholders. Your Company's policy on Diversity,Equity and Inclusion articulates and institutionalisesthis conviction through concerted actions spanningthree vectors, i.e., Representation, Inclusion & Enablementand Commitment & Assurance. Your Company iscommitted to enhancing gender diversity and participationof the differently abled in the workforce.
Measures to enhance diversity include ensuringsufficient representation of women in selection poolsand deployment of the differently abled across suitableopportunities in the value chain. Through progressivepolicies offering flexible work arrangements, extendedchild-care leave, travel support for infants and care-givers,secure transport, paternity leave, same gender partnermedical benefits, infrastructure support coupled withvarious sensitisation programmes, Employee ResourceGroups, development interventions tailored for womentalent, and the commitment and sponsorship of leaders;your Company provides an enabling environment tofurther its Diversity, Equity and Inclusion goals. To ensurea safe and progressive work environment, InternalCommittees have been institutionalised as per provisionsof the Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act, 2013.The focused efforts across these dimensions haveresulted in a 72% increase in women managers in yourCompany since FY 2021-22.
Your Company continued its practice of active leadershipoutreach to employees. Periodic communication withthe ITC community through 'StudioOne Townhalls' ledby the Chairman, provided employees avenues to hearfrom and engage with leaders about your Company'svision, strategy and milestones. This was supplementedby a more personalised engagement through the'StudioOne Xchange' initiative. The Chairman and othermembers of the Corporate Management Committeeinteracted with managers across Businesses in smallgroups, sharing your Company's vision and strategieswhile also inviting suggestions and feedback. YourCompany believes that alignment of all employees toa shared vision and purpose is vital for winning in themarketplace. It also recognises the mutuality of interests
with key stakeholders and is committed to continuebuilding harmonious employee relations. Your Companyremains dedicated to an Employee Relations climateof partnership and mutuality while ensuring operationsare competitive, flexible and responsive. The EmployeeRelations philosophy of your Company, anchored in thetenets of Scientific Management, Industrial Democracy,Human Relations and Employee well-being, hascontributed towards building a robust platform which hasaided the conclusion of collective bargaining agreementsat several of its manufacturing units, ensuring smoothcommencement of operations at greenfield locations andthe execution of productivity improvement practices.
In its relentless pursuit of excellence and value creation,your Company offers an abundance of opportunities foremployees to grow and thrive in an environment of trust,empowerment and continuous learning. The access tobest-in-class resources, technology and infrastructure, theprospect of building businesses rooted in value chains inIndia, the deployment of deep consumer insights to createand shape Indian brands are the defining hallmarks of'The ITC Way'. This unique blend of a high-performanceculture coupled with care and respect for people remainvital to realising your Company's vision of sustaining itsposition as one of India's most valuable and admiredcorporations.
Your Company's Whistleblower Policy, approved bythe Board, encourages Directors and employees topromptly bring to the Company's attention, instances ofillegal or unethical conduct, actual or suspected incidentsof fraud, actions that affect the financial integrity ofthe Company, or actual or suspected instances of leakof unpublished price sensitive information, that couldadversely impact the Company's operations, businessperformance and/or reputation. The Policy requiresthe Company to investigate such incidents, when reported,in an impartial manner and take appropriate actionto ensure that the requisite standards of professionaland ethical conduct are always upheld. Anonymouscomplaints are also entertained if the same is backed byspecific allegations & verifiable facts, and is accompaniedwith supporting evidence. It is your Company's Policy to
ensure that no complainant is victimised or harassed forbringing such incidents to the attention of the Company,and to keep the information disclosed during thecourse of the investigation as confidential. Thepractice of the Whistleblower Policy is overseen by theAudit Committee and no employee was denied access tothe Committee during the year. The Whistleblower Policyis available on the Company's corporate website athttps://www.itcportal.com/whistleblower-policy .
During the year, your Company received 24 complaints interms of the Whistleblower Policy, of which investigationin respect of 15 complaints was completed; in most of thecases, no evidence was found in support of the allegationsmade. Appropriate action, where necessary, was taken.
Your Company believes that when enterprises makesocietal value creation an integral part of their corporatestrategy, powerful drivers of innovation emerge that makegrowth more enduring for all stakeholders. This paradigmis called ‘Responsible Competitiveness’ - an abidingstrategy that focuses on extreme competitiveness but ina manner that replenishes the environment and supportssustainable livelihoods.
Your Company's innovative business models synergisethe building of economic, environmental and social capital,thus embedding sustainability at the core of its corporatestrategy. Today, this strategy has not only contributedto building strong businesses of the future as well as aportfolio of winning world-class brands, but also in makingyour Company a global exemplar in 'Triple Bottom Line'performance. Your Company is the only enterprise in theworld of comparable dimensions to have achieved andsustained the three key global indices of environmentalsustainability of being 'water positive' (for 23 years),'carbon positive' (for 20 years), and 'solid waste recyclingpositive' (for 18 years).
Your Company is actively working towards Sustainability 2.0,an agenda which reimagines sustainability under thepressing challenges of climate change and social inequity.Sustainability 2.0 calls for inclusive strategies that cansupport sustainable livelihoods, pursue newer waysto fight climate change, enable the transition to a netzero economy, work towards ensuring water securityfor all and create an effective circular economy forpost-consumer packaging waste. It also entails protectingand restoring biodiversity and ecosystem services throughadoption of nature-based solutions. Your Companybelieves that agility in thought and action, meaningfulpublic-private-people partnerships and ResponsibleCompetitiveness will act as core enablers of this newagenda. Your Company has the potential to make alarge-scale impact not only from an economic standpoint,but also from the perspective of supporting livelihoodsand social enablement because of its presence acrossseveral critical sectors of the economy. With its boldSustainability 2.0 agenda, your Company is setting thebar higher and remains committed to making meaningfulcontribution to the Nation's future while retaining its statusas a sustainability exemplar. The 2030 Sustainability 2.0ambitions include:
- Enhancing the share of renewable energy usage to50% of total energy consumption by 2030.
- Meeting 100% of purchased grid electricityrequirements from renewable sources by 2030.
- Reducing specific energy consumption by 30% andspecific Greenhouse Gases (GHG) emissions by 50%by 2030 as compared to the FY 2018-19 baseline.
- Sustain and enhance carbon sequestration byexpanding forestry projects through your Company'sSocial and Farm Forestry programme and other suchinitiatives covering over 1.5 million acres by 2030.
- Achieving 40% reduction in specific water consumptionby 2030 as compared to the FY 2018-19 baseline.
- Creation of rainwater harvesting potential equivalentto over five times the net water consumption by 2030.
- Certification of all sites in high water stressed areasas per the international water stewardship standardby Alliance for Water Stewardship (AWS) by 2035and eight sites by 2024.
- Improve crop water-use efficiency in agri-value chainsthrough demand side management interventions andenable savings of 2,000 million kl of water by 2030.
- 100% of your Company's Packaging to be Reusable,Recyclable or Compostable/Biodegradable by 2028.
- Sustain plastic neutrality (attained in FY 2021-22) byenabling sustainable management of waste in excessof the amount of packaging utilised.
- Promote climate smart agriculture approach in coreAgri Business catchments across four million acresby 2030.
Biodiversity Conservation
- Revive & sustain ecosystem services and productsprovided by nature, through adoption of nature-basedsolutions and biodiversity conservation covering overone million acres by 2030.
- Supporting sustainable livelihoods for 10 millionpeople by 2030.
Your Company's Businesses are actively working towardsachieving your Company's Sustainability 2.0 vision.During FY 2024-25, your Company enhanced the shareof its renewable energy to nearly 52%. Commendableprogress has been made in line with 2030 targets relatingto specific energy, specific GHG emissions and specificwater consumption across Businesses as well. In linewith its commitment, your Company continued to remainplastic neutral during FY 2024-25 by sustainably managingmore plastic packaging waste than the amount of plasticpackaging utilised. During the year, your Company'slarge-scale programmes on Sustainable Agriculture wereaugmented to cover 3.17 million acres. Through its deepengagement in agriculture, manufacturing and services,as well as its extensive distribution infrastructure andlarge-scale programmes under ITC Mission SunehraKal, your Company supports nearly nine millionsustainable livelihoods across its operations andvalue chains. A detailed performance dashboard against2030 commitments is included in your Company'sannual Sustainability Report, 2025 and will be availablein due course.
In addition to the 2030 targets, your Company is enhancingits long-term climate-related goals by committing toachieve 'Net Zero Operations' by 2050 which will entail
decarbonisation of its scope 1 and scope 2 emissionsi.e., electrical and thermal energy-related emissions inown operations. Additionally, your Company will continueto collaborate with its extended ecosystem for facilitatingdecarbonisation of emissions across the value chain(scope 3 emissions) as well as setting up systems formonitoring scope 3 emissions in line with emergingstandards.
To achieve its Sustainability 2.0 vision, your Companycontinues to strengthen its management approach whichis guided by a comprehensive set of sustainability policiesand is being implemented across the organisation.Your Company has put in place robust mechanisms forengaging with key stakeholders, identification of materialsustainability issues and progressively monitoring andmitigating the impacts along the value chain of eachBusiness. Your Company will continue to update thesesystems and processes in line with evolving disclosurestandards and Environmental, Social and Governance(ESG) requirements.
Your Company's 21st Sustainability Report publishedduring the year detailed the progress made across alldimensions of the 'Triple Bottom Line' for FY 2023-24.This report was prepared in conformance with'In Accordance - Comprehensive' criteria of theGlobal Reporting Initiative (GRI) standards and isthird-party assured to 'Reasonable Level' as perInternational Standard on Assurance Engagements(ISAE) 3000. The report continues to be aligned to therequirements of the Integrated Reporting Frameworkas well. In addition to the Sustainability Report, yourCompany published its first Nature Report in line withthe recommendations of Taskforce on Nature-relatedFinancial Disclosures (TNFD).
Your Company's Sustainability Report for FY 2024-25is being prepared and will be made available on yourCompany's corporate website in due course. In addition, theBusiness Responsibility & Sustainability Report (BRSR),as mandated by the Securities and Exchange Board ofIndia (SEBI) for the year under review is annexed to theReport and Accounts. The BRSR maps the sustainabilityperformance of your Company against the nine principlesforming part of the National Guidelines on Responsible
Business Conduct (NGRBC) issued by the Ministry ofCorporate Affairs, Government of India.
During the year, your Company sustained its 'AA' ratingby MSCI-ESG for the seventh consecutive year, thehighest rating among global tobacco majors. Based onits ESG score as assessed by S&P Global CorporateSustainability Assessment (CSA), your Company has alsobeen included in the Dow Jones Sustainability EmergingMarkets Index for the fifth year in a row. In FY 2023-24,your Company entered the prestigious A List' forCDP Water with a Leadership Level' score of A', whichis higher than the Asia and Global average of 'C'. For CDPClimate, your Company had achieved 'Leadership Level'score of 'A -' in FY 2023-24, which is higher than theAsia and Global average of 'C'. Your Company's CDPscores for FY 2024-25 are still awaited.
Your Company's Sustainability strategies and SocialInvestment Programmes & interventions, in additionto their alignment with national priorities, are also wellpositioned to contribute to the achievement of India'scommitment under the UN SDGs. For instance, yourCompany's programme on Climate Smart Agricultureis aligned to the Government's National Mission forSustainable Agriculture, and also contributes to theachievement of multiple SDGs, including SDG 13(Climate Action), SDG 15 (Life on Land), SDG 1(No Poverty), SDG 2 (Zero Hunger) and SDG12 (Responsible Consumption and Production).Your Company's multi-dimensional environmental andsocial interventions which have been scaled up overthe years contribute favourably to all 17 UN SDGs.A comprehensive statement linking your Company'sinterventions to the SDGs including corresponding targetswill be available in your Company's Sustainability Reportfor FY 2024-25.
Your Company recognises the urgent need to combatclimate change for building a more secure future andthe role it can play in enabling a net-zero economy.To address the risks of climate change, your Company's
climate strategy places equal emphasis on transitioning toa low carbon economy and adapting to the worst impactsof climate change.
Your Company is pursuing a low carbon growth strategythrough extensive decarbonisation programmes acrossits value chain. These include increasing the share ofrenewable energy, continuous reduction of specificenergy, construction of green buildings, greeninglogistics & optimising distance-to-market, and promotingregenerative agriculture practices in agri-value chains.Your Company is also conducting Life-Cycle Analysis (LCA)studies for developing a portfolio of innovative andsustainable products in line with growing consumerpreference for climate friendly products.
Additionally, in order to address short-medium term aswell as long-term physical risks of climate change, yourCompany is working with climate experts to conductcomprehensive climate risk and vulnerability assessmentsusing climate models across its key agri value chains andoperating locations (factories and warehouses). Theseassessments utilise latest AI-enabled climate modellingtools for projecting the extent of risk from climate hazardsrelated to changes in temperature, precipitation, sealevel rise, flooding and other extreme weather eventsover decadal time frames covering the period till 2100under various Shared Socioeconomic Pathways (SSPs)scenarios (SSP1-2.6, SSP2-4.5 and SSP5-8.5). Detailedfarm-level studies have been conducted to understandthe potential adverse impacts of climate change on yourCompany's key agri-value chains. These risk assessmentshelp further calibrate the climate resilience measures thatare being implemented across your Company's valuechains. For major crops like wheat, pulpwood and leaftobacco among others, there is significant and sustainedwork being done by your Company on the developmentof climate-tolerant varieties as well as dissemination ofclimate-resilient and regenerative agronomic practicesin the growing areas. Around 140 locations across yourCompany's own operations and the extended value chainhave been assessed for climate risk. Based on thefindings of these assessments, detailed site-specificstudies are being undertaken for developing contextuallocation-specific adaptation plans and strategies.
As a responsible corporate citizen, your Company hasmade a commitment to reduce dependence on energyfrom fossil fuels. Accordingly, appropriate green featuresare being incorporated in all factories, warehouses andoffice complexes with many of them certified at the highestlevel by either the US Green Building Council (USGBC)or Indian Green Building Council (IGBC). During theyear, despite significant increase in scale of operations,your Company sourced nearly 52% of its total energyrequirements from renewable sources such as biomass,wind and solar. Your Company has been investing inexpanding renewable footprint across both thermaland electrical energy. The recently commissionedstate-of-the-art and future-ready High PressureRecovery Boiler at the Bhadrachalam mill of yourCompany's Paperboards & Specialty Papers Businessreplaced conventional soda recovery boilers therebyreducing carbon footprint through lower coal
consumption. In addition to this, your Companyinstalled capacity of over 174 MW 10 of solar andwind power across the country to meet its electricalenergy requirements.
Your Company continues its efforts towards meeting 100%of purchased grid electricity requirements from renewablesources by 2030 and sustaining 50% renewable energyshare in its total energy consumption based on amix of energy conservation and renewable energyinvestments, despite significant enhancement in its scaleof operations going forward.
The GHG inventory of your Company for FY 2024-25compiled according to the ISO 14064 Standard has beenassured by an independent third party. The GHG inventorycovers emissions from your Company's operations andGHG removals from your Company's large-scale forestryprogrammes. Your Company's Social and Farm Forestryinitiatives, besides sequestering carbon from theatmosphere, help towards utilisation of degradedwasteland, prevent soil erosion, enhance organic mattercontent in soil and increase ground water recharge.
With water scarcity increasingly becoming an area ofglobal and national concern, your Company continuesto focus on an integrated water management approachthat includes water conservation and harvesting initiativesat its units - while at the same time working towardsmeeting the water security needs of all stakeholders atthe local watershed level. Several interventions havebeen rolled out to improve water-use efficiencies suchas adopting latest technologies and increasing reuse andrecycling practices within the fence while also workingwith farmers and other community members towardsimproving water-use efficiencies.
Demand side management is a critical componentof your Company's Water Stewardship programme.Recognising the critical imperative of reducing wateruse, especially in agriculture, your Company continuesto work with farmers to achieve 'more crop per drop' andimprove farmer incomes. Over 18 lakh acres have beencovered during the year across 12 states through microirrigation technologies and crop-specific agronomicalpractices. Basis parameters established earlier, therehas been potential water savings of over 1,400 million klduring the year. These interventions are spread across15 crops including four key agri value chains - wheat,tobacco, pulpwood and spices, and result in water savingsup to 50% as compared to conventional practices.The water-use efficient practices promoted also help inreducing GHG emissions as compared to the conventionalpractices followed.
The demand side measures are implemented along withaugmenting supply at the sub-catchment level throughvarious interventions of rainwater harvesting based on therecommendations of hydro-geological studies. The supplyside interventions include enhancing capture and storageof rainwater (within soil surface and storage structures)and recharging aquifers. In the process, traditionalwater bodies are restored and wetland eco-systems areconserved. To have a long-lasting impact and balanceout the competing demands on water resources, yourCompany has also extended work to river basin levelin water stressed catchments. Based on the work doneby your Company in four river basins viz. Maharashtra(Ghod basin), Madhya Pradesh (Kolans basin),
Tamil Nadu (Upper Bhawani basin) and Telangana(Murreru basin), water positive status was achieved in allthe basins by end of the year as against water deficitestimated in the baseline studies. In South Pennar riverbasin of Karnataka, work has been initiated in the field,basis the recommendations from the river basin studydone by Indian Institute of Science (IlSc), Bengaluru.This is being pursued through a Public Private Partnershipwith Karnataka Government and Vyakti Vikas Kendra forrestoring the water bodies in the river basin.
Considering the increasing water stress in urbancatchments, your Company is implementing water securityprogrammes in Bengaluru and Chennai catchments.These programmes focus on restoring urban waterbodies as well as tanks and their connectors, groundwaterrecharge and promotion of roof water harvesting andusage of water efficient taps. These measures are aimedat addressing challenges of groundwater depletionand also mitigating risks arising out of flooding duringheavy rains.
Your Company also conducts efficacy studies to assessthe impact of the watershed work carried out, and toensure that maximum benefits accrue in the long-term.As on 31st March, 2025, your Company's integratedwatershed development projects covering over 1.8 millionacres of land have created a total rainwater harvestingpotential of over 59.90 million kl. In total, over60 million kl of rainwater has been harvested, includingwithin the fence, which is over five times the netwater consumed by your Company's operations inFY 2024-25. With this, your Company has achievedits 2030 Sustainability 2.0 target of creating rainwaterharvesting potential equivalent to over five times the netwater consumption.
In addition, your Company is spearheading theimplementation of Alliance for Water Stewardship (AWS)Standard which is a credible, globally applicable andrecognised framework for ensuring sustainable watermanagement within the wider water catchment context.
During the year, two units of your Company i.e., Paperunit at Bhadrachalam and Branded Packaged Foodsunit at Kapurthala, received the AWS Platinum levelcertification, the highest recognition for water stewardship
awarded by AWS. Till date, nine units of your Companyhave achieved Platinum level certification under theAWS Standard, thereby exceeding the commitment ofgetting eight sites certified by 2024.
In order to continuously reduce your Company's energyfootprint, green features are being integrated in all newand old constructions including manufacturing units,warehouses and office complexes. Your Company is apioneer in the green building movement, with 17 buildingshaving received Platinum certification by USGBC(US Green Building Council)/IGBC (Indian GreenBuilding Council).
Several of your Company's factories and office complexeshave received the Green Building certification from IGBCand the Leadership in Energy & Environmental Design(LEED®) certification from USGBC. The data centre atBengaluru, ITC Sankhya, is the first data centre in theworld to receive the LEED Platinum® certification byUSGBC. Large infrastructure investments such as theITC Green Centre at Guntur and the ITC Green Centreat Bengaluru (both LEED Platinum® certified) continueto demonstrate your Company's commitment to greenbuildings. Virginia House, Kolkata and ITC Centre,Kolkata - the headquarters of your Company, arealso certified at the highest 'LEED Platinum®' ratedGreen Building by USGBC.
Your Company continues to make significant progress inimproving the circularity of waste generated in operations.The focus is on reducing waste through constant monitoring,improvement of efficiencies in material utilisation andadequate waste segregation thereby improving recyclingrates. During the year, your Company achieved over 99%recycling of waste generated in course of its operations.This has prevented waste from reaching landfills, with theassociated problems of soil & groundwater contaminationand GHG emissions, all of which can adversely impactpublic health. In addition, your Company's Paperboards &Specialty Papers Business recycled nearly 85,000 tonnesof externally sourced post-consumer waste paper, therebycreating yet another positive environmental footprint.
Your Company aims to go beyond the requirements ofPlastic Waste Management Rules, 2022 to ensure thatover the next decade, 100% of packaging is reusable,recyclable or compostable/biodegradable. Your Companyis working towards optimising packaging in a waythat reduces the environmental impact arising out ofpost-consumer packaging waste without affecting productintegrity. This is being addressed in a comprehensivemanner by optimising packaging design, introducingrecycled content in packaging, identifying alternativepackaging material with lower environmental impact andsupporting development of suitable end-of-life solutionsfor packaging waste.
Your Company has successfully implemented multiplelarge-scale models of solid waste management acrossthe country. These models, based on principles of circulareconomy, are scalable, replicable and sustainable, andhave enabled your Company to sustain its plastic neutralstatus since FY 2021-22. The approach is centred aroundtreating waste as a resource and ensuring that minimalwaste goes to landfill, which can be achieved only whenwaste is segregated at source. The initiatives focus oneducating citizens on segregating waste at source intodry & wet streams and ensuring that value is derived fromthese resources and in the process, support sustainablelivelihood for waste collectors. These models operate on apublic-private partnership basis, with active involvement ofUrban Local Bodies (ULBs), civil society and the informalsector of waste collectors.
Your Company has exceeded its commitment on plasticneutrality for the third consecutive year by collectingand sustainably managing 76,000 tonnes of plasticwaste, which is more than the plastic packaging utilisedby your Company. Your Company has been obtainingindependent third-party assurance of its plastic neutralitystatus since FY 2022-23.
Your Company's waste recycling programme,‘WOW - Well-Being Out of Waste', enables the creationof a clean & green environment and promotes sustainablelivelihoods for waste collectors. During the year, theprogramme continued to be executed in Bengaluru,Mysuru, Hyderabad, Coimbatore, Chennai, Delhi,
Dindigul, major towns of Telangana and several districts ofAndhra Pradesh. The quantum of dry waste collected duringthe year was about 67,100 MT from over 1,760 wards.The programme has covered over 2.9 crore citizens in over72 lakh households, 71 lakh school children and around2,240 corporates since its inception. It has promotedsustainable livelihood for over 17,900 waste collectors byfacilitating an effective collection system in collaborationwith Municipal Corporations. The intervention hasalso created over 150 social entrepreneurs who areinvolved in optimising value capture from the collecteddry waste.
Your Company, in partnership with Kashtakari Panchayatand SWaCH Pune, runs an inclusive and decentralisedwaste management model in Pune to specifically focus oncollection and recycling of low value Multi-Layered Plastic(MLP) packaging. Through a mobile collection systemoperating across 12 city wards and the Pune CantonmentBoard, over 750 waste pickers collect MLP waste daily,receiving direct payments. The initiative processesover 130 MT of flexible plastics monthly, and hascumulatively recycled nearly 4,100 MT since 2019.The program not only boosts incomes for informal workers(contributing to ~12—15% of their earnings) but alsoprovides formal employment to 43 individuals, showcasinga replicable model that combines environmentalstewardship with social equity.
Further, a separate community-driven programme ondecentralised Solid Waste Management (SWM), includingclosed loop Green Temple programme in collaborationwith Swachh Bharat Mission, is operational in 34 districtsacross 12 states covering about 24.62 lakh additionalhouseholds during the year, taking the cumulativecoverage to nearly 75.21 lakh households. This programmedeals with both wet and dry waste and focuses onminimising waste to landfill by managing waste at source.Under the programme, more than 6.7 lakh MT of wastewas collected during FY 2024-25, out of which around4.2 lakh MT of wet waste was composted, and1.8 lakh MT of dry waste recycled, and thus 87% of thetotal waste was avoided from being sent to landfills.Further, home composting was practiced by over1.93 lakh households (8.3 lakh households till date).
As liquid waste is emerging as a growing challengeespecially in rural areas, during the year, your Companyhas also initiated pilots of different decentralised solutionslike soak pits, in line treatment, waste stabilisation pondsand vertical filters in nine States.
Your Company's partnership with Uttar PradeshUrban Development Department (UDD) is enablingimplementation of SWM programme in 85 ULBsacross 75 districts of the State, reaching out to over49 lakh households till date. Your Company'spartnership with Lohiya Swachh Bihar Abhiyan (LSBA),Rural Development Department, Government of Biharcontinued to promote decentralised SWM in 456 villagesof Ganga region ('Ganga Gram') across 12 districts ofBihar. During the year, refresher training and handholdingsupport was provided to 3,100 Panchayat officials of these456 Ganga Gram villages through a cascade approach,who then initiated focused waste management activitiesin their villages and covered over 4.6 lakh households.
Your Company had also collaborated with Departmentof Drinking Water and Sanitation (DDWS), Governmentof India, and India Sanitation Coalition (ISC), FICCI, todevelop 36 Gram Panchayats (GPs) across 10 states asLighthouses, demonstrating best practices in sanitationand waste management, which will be adopted by otherGPs gradually. The partnership is part of the DDWS's planof creating 75 Lighthouse Gram Panchayats across India.Till March 2025, of the 36 GPs, 28 GPs were declaredModel by Government, with the balance 8 GPs on track tobecome Model in the coming months.
Your Company's approach of involving Self Help Groups(SHGs) as service providers for Gram Panchayats inSWM and the use of Swachhata Mitra App for monitoringwaste management in partnership with Bihar Governmenthas got high appreciation as best practices.
Your Company's 'YiPPee! Better World programme' isaimed at creating awareness about plastic waste andways to reduce, recycle and reuse it among students.During the year, the intervention reached out to 14 lakhchildren across 4,175 schools. This programme alongwith Company's Social Investments Programme hasprovided schools with over 1,850 benches and tables and350 sports kits made from recycled plastic.
Given the linkages between agriculture and the essentialecosystem services that nature provides, your Companyrecognises that the preservation and nurturing ofbiodiversity is crucial for long-term sustainability of itsbusinesses. It is therefore committed to conducting itsoperations in a manner that protects, conserves andenriches biodiversity in line with the Board-approvedPolicies on Biodiversity Conservation and Deforestation.
For both greenfield and brownfield operations, processesare in place for assessing any actual or potential biodiversityrelated risk or impact including conducting environmentalimpact assessments wherever required by environmentalregulations. Moreover, location-specific exposureincluding proximity to Key Biodiversity Areas is assessedperiodically. Basis these assessments, key nature-relatedrisks that are material to your Company's businesses/locations are identified, and mitigation plans are developedand implemented. Location specific risks covered in theseassessments include water stress, climate risks includingextreme weather events like droughts and floods,land-use changes, soil quality and productivity, amongothers. Your Company also recognises the potentialof nature-based solutions for carbon sequestrationand building climate resilience, and prioritises actionsto minimise impacts across ecosystems and managedependencies in a sustainable manner. Your Companyalso has large scale programmes in place for ensuringdeforestation-free leaf tobacco and wood value chains.For more information, refer to the Corporate SocialResponsibility section.
Your Company, with its diverse and expanding portfolio ofbusinesses, is working towards scaling up its sustainablesupply chain initiatives as part of its Sustainability 2.0Vision. Your Company has a Board-approved Policy on'Sustainable Supply Chain and Responsible Sourcing' anda 'Code of Conduct for Suppliers and Service Providers'that together lay down the foundation for your Company'sengagement with its suppliers. In line with this policy,your Company engages with its supply chain membersfor building their capacity, assessing sustainability risks,and supporting them in building resilience against such
risks. The policy also encourages suppliers to worktowards resource-use efficiency, including sustainablenatural resource management, GHG emission reductionand sustainable waste management. For focusedengagement with key suppliers, your Company hascreated a framework for identifying its critical suppliers.Till FY 2024-25, more than 800 Tier-1 suppliers have beentrained on ESG including 100% critical Tier-1 suppliers.Additionally, appx. 70% critical Tier-1 suppliers have beenassessed on ESG aspects by a third party.
For key agri value chains, your Company has implementedlarge scale sustainable and Climate Smart Agricultureprogrammes. Till date, 31.7 lakh acres and over 12 lakhfarmers including 1.87 lakh women farmers have beencovered under your Company's Climate Smart Agricultureprogramme. Your Company also supports farmers withadoption of sustainable farm certifications like Rainforestalliance (RFA), Forest Stewardship Council® (FSC®),Global Agricultural Practices (G.A.P) for identifying andaddressing environmental risks and human rights relatedissues. For more information, refer to the Corporate SocialResponsibility section.
In the context of India's Triple burden of malnutrition, thereis an urgent need to pivot towards healthier lifestyles whichrequires access to safe, sustainable and nutritious food.
Your Company's Branded Packaged Foods Businesseshave developed a 4-pillar model that uniquely combinesthe strategic commitments to deliver on its nutritionstrategy - 'Help India Eat Better'. The strategy hasbeen developed to create an ecosystem and guide theorganisation towards supporting the dream of a healthiernation via value-added products, sustainable food systeminitiatives, empowered people and healthy communities.This also includes focus on diet diversity, food fortification,leveraging traditional systems of knowledge and useof millets. The strategy is also in line with Governmentof India initiatives such as Mission Poshan 2.0,Anemia Mukt Bharat, Kuposhan Mukt Bharat, SurakshitMatritva Abhiyan and the Aspirational Districts
Programme. Robust science-based nutrition targetshave also been developed and are continuously trackedand communicated to your Company's stakeholders.
The meticulous implementation of evolving scientificprinciples and technological advancements by yourCompany's research and development teams enablesdevelopment of 'better for you' portfolio. Your Companyalso achieved the first rank in ATNI India Index 2023amongst 20 of the largest Indian food & beveragemanufacturers as assessed by the globally recognisedAccess to Nutrition Initiative (ATNI). The index is publishedevery 2-3 years and evaluates companies on theirgovernance and management, production and distributionof healthy products, influence on consumer choices,and policies and actions targeting priority populations athigh risk of malnutrition.
To ensure wider adoption of the 'Triple Bottom Line'philosophy across the Industry, your Company establishedthe 'CII - ITC Centre of Excellence for SustainableDevelopment' (CESD) in 2006 in collaboration with theConfederation of Indian Industry (CII). With a vision todrive transformation towards sustainable development,the Centre plays a focal role in Government Industrydialogues on national regulations, articulate stakeholderdiscourses on global policies, put forth Indian industry'sstand on macro-economic issues and accentuate theneed for sustainable and inclusive transformation. Majorhighlights from the year include:
• The CII Climate Action Charter (CCAC) provides aplatform for Indian businesses to map Climate Changeas a material risk across value chains and developlong-term actions to build resilience. The Charterhas been designed to provide impetus for collectiveaction by Indian businesses to drive solutionsfor a just, equitable and resilient transition, andcurrently, has close to 500 signatories acrossindustry sectors.
• CII-led delegation participated in the 29th Conferenceof the Parties (COP29), held in Baku, Azerbaijan, fromNovember 11-22, 2024. The report, 'CII at COP29Negotiations: Indian Industry Expectations', launchedat the Conference, emphasises a balanced approachthat incorporates both mitigation and adaptation,acknowledging the need for a more equitable and
effective climate finance framework to close theclimate finance gap and facilitate climate-resilientgrowth.
• The Centre in collaboration with CEEW (Council forEnergy, Environment and Water) launched the reporton 'Building Climate Resilience for Indian Industry'at the 19th Sustainability Summit. The report hasdeveloped a Physical Climate Risk AssessmentFramework (PCRAF) to assess and quantify climaterisks for Indian businesses and their value chains.
• In collaboration with Ministry of Environment, Forestand Climate Change (MoEFCC), the Centre isactively contributing to the formulation of the NationalInventory of Greenhouse Gases related to theIndustrial Processes and Product Use (IPPU) sectoras part of India's fourth National Communications(NATCOM) to the United Nations FrameworkConvention on Climate Change (UNFCCC) and the1st Biennial Transparency Report under the NATCOMproject, guided by the Ministry of Environment, Forestand Climate Change.
Advancing Creation of a Circular Economy
• The India Plastics Pact (IPP), launched in September2021, is uniting businesses, NGOs, and citizensbehind four ambitious time-bound targets tohelp realise a vision of a world where plastic is valuedand doesn't pollute the environment. The Pact is thefirst in Asia and joins a global network of 13 PlasticsPacts. 53 organisations are signatories to the Pactand have committed to the Pact's 2030 Targets fora circular plastics economy. Some of the key reportslaunched by IPP during the year include:
- Roadmap for managing films and flexiblepackaging in India
- Design for recycling guidance for films andflexible packaging and Landscape assessment:Reuse models in India.
• The Centre partnered with the Ministry of Environment,Forest and Climate Change (MoEFCC) for streamliningimplementation of environmental reforms, therebyfostering circular economy, transparency andenhancing natural resource management. During the
year the Centre partnered with Bureau of IndianStandards (BIS) to develop standards related towaste management, sustainability, environmentalmanagement and ecological priorities. The Centrealso worked with the Central Pollution Control Boardto resolve challenges related to Extended ProducerResponsibility (EPR) obligations under the rulesfor plastics, e-waste, battery and hazardous wastemanagement.
• During the year, CII signed an MoU with the All-IndiaPlastics Manufacturing Association to encourageaction, knowledge sharing, and awareness betweenlarger businesses and MSMEs.
• Since 2020, CII has been working across varioussectors and has successfully supported over260 sites in achieving SuP-free (single-useplastic-free) certification.
• During the year, the Centre hosted the first edition ofthe CII Circular Economy Conference and launchedthe CII Sustainable Plastic Packaging Awards forrecognising upstream innovations and changesin design of plastic packaging by businesses,driving the transition towards a circular plasticseconomy in India.
• The India Business and Biodiversity Initiative(IBBI) participated in consultation meetings forupdating the National Biodiversity Strategy andAction Plan (NBSAP), and for adoption of NationalBiodiversity Targets (NBTs) in alignment with theGlobal Biodiversity Framework (GBF). At COP16to the Convention on Biological Diversity (CBD) inCali, Colombia, India launched its updated NationalBiodiversity Strategy and Action Plan (NBSAP).
• IBBI was designated by the MoEFCC as theresponsible agency for Target 15 of India's updatedNBSAP. Target 15 focuses on sustainable production,supply chains, and disclosure of risks, aiming to ensurebusinesses manage biodiversity risks effectively.
• 'India CEO Forum for Clean Air' is a dedicatedplatform aiming to galvanise Indian businesses totake forward clean air agenda in India and promotefocused actions through collective leadership ofIndustry sub-sectors. The Forum led by 123 businessleaders, contribute towards making the air quality inIndia better through the Crop Residue Management(CRM) and through city-level awareness activities. Inthe last six years the programme has led to saving of12 million kg fine Particulate Matter (PM2.5).
• To enhance the ecosystem for Electric Vehicle (EV),CII facilitated industry inputs for 3 key Working Groupsunder the newly formed National EV Task Force ofthe Ministry of Heavy Industries (MHI).
• As part of SEBI's Industry Standards Forum (ISF),CII formed a Core Group and held consultationsto develop Standards for Reporting on BusinessResponsibility and Sustainability Reporting (BRSR)Core. The recommendations made by CII on theSEBI Consultation Paper - 'Recommendations ofthe Expert Committee for Facilitating Ease of DoingBusiness with respect to BRSR' were accepted by theregulatory body.
• To help Indian organisations navigate ESGcompliances and go beyond compliance, CESDlaunched SaaS based ESG Subscription Service atthe 19th Sustainability Summit.
• The Eco Edge initiative of the Centre aims at integratingsustainability in the value chains of companies.The focus areas include Decarbonisation, Circularity,Health & Safety, and Human Rights. The programmeevaluates the performance of sourcing companies andtheir value chain partners. During the year, more than200 suppliers' sustainability performance was assessedthrough the Eco Edge programme for the automotiveand energy sectors. For further adoption the Eco EdgeOnline Assessment Tool was also launched.
• The 19th Sustainability Summit, Centre's flagshipannual event, was organised with the theme ofDriving Change for a Sustainability Conscious World.The Summit deliberated on tangible actions indriving sustainable change and highlighted inspiring
actions that exemplify the power of innovation,development, and cooperation in shaping a prosperousfuture for all.
• Through the CII-ITC Sustainability Awards,35 organisations were recognised for excellencein sustainable business practices. The Awardsare a part of the continued efforts of the Centre tocreate awareness on sustainability practices and tocreate capacities in business.
• To help industry manage climate risk, leveragemarket opportunities and become climate resilient,CII instituted a CAP 2.0° (Climate Action Programme)to build capacity of industry and recognise bestpractices and innovation on climate action.The CAP 2.0° awards are the first one in Indiato recognise industry's efforts on climate changemitigation and adaptation. The awards in its 3rd editionrecognised 21 organisations for their pioneering workin managing climate change.
• The Centre trained nearly 400 professionals from300+ organisations on sustainable business practicesthrough 25 sessions conducted during the year.
Your Company's overarching commitment towardscreating significant and sustainable societal value ismanifest in its CSR initiatives that embrace the mostdisadvantaged sections of society, especially in ruralIndia, through economic and social empowerment basedon grassroots capacity building. Your Company has acomprehensive CSR Policy outlining programmes, projectsand activities that your Company undertakes to create asignificant positive impact on identified stakeholders. Allthese programmes fall within the purview of Section 135read with Schedule VII of the Companies Act, 2013 andthe Companies (Corporate Social Responsibility Policy)Rules, 2014.
The key tenets of your Company's CSR interventions are:
- deep engagement in identified core operationalgeographies to promote holistic development andinterventions designed in order to respond to themost significant development challenges of yourCompany's stakeholder groups.
- strengthening capabilities of ImplementationPartners / Community Based Organisations (CBOs)in all project catchments for participatory planning,ownership and sustenance of interventions.
- facilitating the development agenda in a manner thatis inclusive and empowers women, the poor andmarginalised communities including persons withdisability in the vicinity of your Company's factoriesand agri-catchments, thereby significantly improvingHuman Development Indices (HDI).
- ensuring behavioural change through focus on
demand generation for all interventions, thereby
enabling participation, contribution and asset creationfor the community.
- pursuing the Prototype-Pilot-Scale-Amplification
approach to incorporate innovative and differentiateddesign elements in a structured manner, whilst alsostriving for amplification of successful interventions bypartnering with Government and Collaboratives.
Your Company's stakeholders are confronted withmulti-dimensional and inter-related concerns, at thecore of which is the challenge of securing sustainablelivelihoods. Your Company undertakes periodicstakeholder engagements in the form of communityneed assessments, impact assessments and otherevaluations. During the year, your Company undertook48 such community engagements across 14 stateswhere your Company's Social Investments Programmeis being implemented, for the purpose of understandinggrievances if any, of the community members. Further,over 3,000 household surveys were also conductedduring the year. Accordingly, interventions underyour Company's Social Investments Programme havebeen appropriately designed to build capacities andpromote sustainable livelihoods.
Your Company's Social Investments Programme followsthe Two Horizon approach that focuses on inclusivegrowth and holistic development of households; withwomen and poor & vulnerable communities at the core.In addition to being beneficiaries of several programmes,women are also influencers and active participants ingrassroot institutions. Several such women also act aschange makers in the society.
The Two Horizon approach provides an integrated andaffirmative response to development by transforminglives and landscapes. Whilst Horizon-I focuses onstrengthening and sustaining livelihoods of communities(primarily agriculture and allied sector livelihoods);Horizon-II focuses on building capabilities and capacitiesto empower communities for a better life for the future.
The footprint of your Company's CSR projects isspread across 24 states/Union Territories covering over300 districts.
Your Company's CSR interventions were conferredwith three prestigious awards and recognitions duringFY 2024-25:
- First Prize in FICCI Sustainable Agriculture Awards2024 in the 'Natural Resource Management andClimate Resilient Agriculture' category for the ClimateSmart Village Programme
- I IT Madras CSR Awards 2024 under the theme'Technology-Driven Inclusive Social Impact' fordeployment of technology in Climate Smart Agriculture
- 'Gold' Prize in Financial Express Green Sarathi Award2024, in the Water Stewardship category
The Water Stewardship programme aims to facilitate watersecurity for all dependents in the factory catchments andto drought-proof the agri-catchments to minimise risks toagricultural livelihoods arising from drought and moisturestress. The programme is aligned to Jal Shakti Abhiyan,the flagship initiative of Government of India for waterconservation. The programme promotes the developmentand management of local water resources inmoisture-stressed areas by facilitating communityparticipation in planning and implementing suchmeasures, as well as building, reviving and maintainingwater-harvesting structures and thus conserving thewetland ecosystems. In addition to rural and agrifocus, two urban water programmes are also beingimplemented in Bengaluru and Chennai aimed ataddressing the challenges associated with urban water.These programmes facilitate revival of urban water bodies,targeted recharge of shallow aquifers and promotionof practices like roof water harvesting and waterefficient taps.
To address the magnitude of water stress, your Companyhas also extended water stewardship work to river basinlevel interventions so that the competing demands fromneighbouring areas of our catchments are addressedand a more holistic and sustainable impact created.Work done in four river basins till date in Maharashtra(Ghod basin), Madhya Pradesh (Kolans basin), Tamil Nadu(Upper Bhawani basin) and Telangana (Murreru basin)have resulted in the basins achieving water positive status,as against the water deficit estimated in baselinestudies. Work has started in the fifth basin in Karnataka(South Pennar basin), based on the recommendationsfrom the river basin study done through Indian Institute ofScience (IISc).
The coverage of water stewardship programme currentlyextends to 59 districts of 17 states. During the year,the area under watershed increased by over 1.78 lakhacres, taking the cumulative coverage area to 18.16 lakhacres. Over 3,500 water-harvesting structures includingground water recharge structures were built during theyear, creating 5.83 million kl of rainwater harvestingpotential. The total number of water-harvesting structuresreached to over 35,900 and the net water storage potentialto over 59.90 million kl. In addition, as part of demandmanagement intervention, your Company continuesto work with farmers to achieve 'more crop per drop'by promoting agronomic practices and micro irrigationtechniques targeted towards saving water in cultivationand improving farmer incomes. Over 18 lakh acres acrossmore than 1 5 crops in 1 2 states have been coveredduring the year as part of demand management. Studieshave been conducted by ICAR's Agricultural TechnologyApplication Research Institute, Kanpur, Indian Institute ofRice Research, Tamil Nadu Agricultural University andVasantdada Sugar Institute to estimate water savingsin rice, wheat, sugarcane, coconut and banana inyour Company's programme locations. Basis thesestudies and other research documents, it is estimatedthat the demand management practices promotedby your Company have led to potential water savingsto the tune of over 1,400 million kl during the year.To improve water use efficiency, prototypes and pilotsalso have been initiated to test efficacy of technologieslike organic hydrogel, mobile drip system and smartirrigation switches.
Additionally, your Company is continuing existingpartnerships and forging new ones with multiple stateGovernment departments for Water Stewardship.Your Company has signed three new partnershipsduring the year with:
• Water Resource Department, Government ofMaharashtra for Securing Godavari, Krishna andTapi river basins flowing in Maharashtra by promotingWater Literacy among the Water User Associationsin 60 irrigation projects across 20 districts in thesebasins which will improve water resources.
• Department of Rural Development & PanchayatRaj (RDPR), Government of Karnataka andVyakti Vikas Kendra India, for Water ResourcesDevelopment in South Pennar river basin to workon water stewardship programme in 12 Taluks and238 Gram Panchayats in Bengaluru Urban,Bengaluru Rural, Kolar & Chikkaballapur districtsof Karnataka.
• Watershed Development and Soil ConservationDepartment, Government of Rajasthan, to promotesustainable livelihoods based on a watersheddevelopment project in 22 Gram Panchayats ofBundi and Jhalawar districts covering an area of
44,000 acres.
Driven by your Company's Water Stewardshipprogramme, three Cigarette units at Pune, Bengaluru &Saharanpur, three Branded Packaged Foods units atMysuru, Pune & Kapurthala, two Paperboards units atKovai & Bhadrachalam and GLT unit at Mysuru havereceived AWS certifications in Platinum category till date.
The focus of the programme is on reviving ecosystemservices provided to agriculture such as natural regulationof pests, pollination, nutrient cycling, soil health retentionand genetic diversity, which have witnessed considerableerosion over the past few decades. The said programmeis also aligned to Government of India's flagship initiativessuch as National Mission for Sustainable Habitat andMangrove Initiative for Shoreline Habitats & TangibleIncomes (MISHTI). Biodiversity conservation is donethrough restoration of degraded village commons and
native species tree planting in the catchments. During theyear, your Company's biodiversity conservation initiativecovered over 1.76 lakh acres in 40 districts across10 states, taking the cumulative area under biodiversityconservation to over 6.47 lakh acres. While theconservation work is being carried out in village commons,this intervention significantly benefits the agriculturalactivity in the vicinity of these plots through soil moistureretention, carbon sequestration and by acting as host toinsects and birds beneficial to agriculture. Two technicalstudies done earlier by 'The Energy and ResourcesInstitute' (TERI) & 'IORA Ecological Solutions' haverecorded improvement in carbon stocks, i.e., carbonsequestered by trees, as well as floral and faunalbiodiversity compared to control areas. The project onmangroves conservation, which are important biodiversityreservoirs in coastal areas has been further strengthened.Initiated in Andhra Pradesh in FY 2023-24, another
1,000 acres was conserved during the year, thus takingthe cumulative area to 1,500 acres. Alongside mangrovesconservation, olive ridley turtle conservation was alsotaken up, wherein the eggs laid by turtles are protectedfrom natural predators by moving them to hatcheriesestablished along the coast and then releasing thehatchlings into sea. During the year, 9,200 turtle eggswere successfully hatched and released into the sea.
To increase the coverage for pastureland developmentand biodiversity conservation, your Company has apartnership with AP Panchayat Raj and Rural DevelopmentDepartment to improve livelihoods and conserve villagecommons in nine districts. Your Company also has apartnership with Wasteland & Pastureland DevelopmentBoard (WPDB), Rajasthan targeting coverage of2.5 lakh acres across eight districts. Till date,1.75 lakh acres have been covered across 6,200 villagesleveraging Government resources. In the partnership withForest Department of Maharashtra, efforts towards soiland moisture conservation in the forest and fringe areasof Pune district was progressed with Department stafftrained by your Company in planning and implementingthe watershed work. Post training, Forest Departmenttook up soil and moisture conservation works andtree plantation covering over 11,000 acres.
The Climate Smart Agriculture programme attempts tode-risk farmers from erratic weather events through thepromotion and adaptation of a climate resilient approachpremised on dissemination of relevant package ofpractices, adoption of appropriate mechanisation andprovision of institutional services. The said programmeis also aligned to Government of India's flagshipinitiative of The National Innovations in Climate ResilientAgriculture (NICRA) and other schemes for the welfareof farmers including Pradhan Mantri Kisan Samman Nidhi(PM-KISAN) Yojana. Currently, 31.70 lakh acres spreadover 100 districts across 19 states and 12 lakh farmersincluding over 1.87 lakh women farmers are coveredunder the programme. As per the studies done by reputedICAR - Agricultural Technology Application ResearchInstitute, Kanpur, the CSA practices promoted in riceand wheat crops together has demonstrated reduction ofupto 21% in costs and upto 8% and 23% improvementin yields and incomes respectively as compared toconventional practices followed.
In pursuit of your Company's long-term sustainabilityobjective of increasing Soil Organic Carbon (SOC), morethan 6,300 compost units were constructed during theyear, taking the total number till date to over 67,300 units.In addition to promotion of Climate Smart Agri practices atscale, in core agricultural catchments, your Company alsohas a Climate Smart Village (CSV) programme, whereinsupport is provided to majority of the village populationto enable adaptation to climate risks, and mitigating thesame through knowledge dissemination, natural resourcesmanagement, livelihood diversification and institutionalsupport. 7,000 CSVs covering major crop value chainsare currently part of the programme. To provide additionalsupport to farmers in dealing with climate risks, during theyear, 17.65 lakh linkages were facilitated for farmers withsix major Government schemes, taking the cumulative toover 42 lakhs.
Details of Climate Smart Agriculture interventions are alsoprovided in the section on 'Socio-Economic Environment'.
Your Company continued work on two partnerships, onewith Rajiv Gandhi Mission for Watershed Managementcovering 35 districts of Madhya Pradesh for Climate
Smart Watersheds, and the other with Farmer Welfareand Agriculture Development, Department of
Madhya Pradesh covering 6 districts. During the year,training was conducted by ITC for the officials, post whichthey have initiated work in 8,200 villages.
During the year, knowledge was disseminatedthrough 13,500 Farmer Field Schools and over17,600 Choupal Pradarshan Khets (CPKs).
1,850 Agri Business Centres (ABC) including
620 exclusive women ABCs delivered extension services,arranged agri-credit linkages, established collectiveinput procurement and provided agricultural equipmentfor hire.
Your Company, with its presence across multiplecommodities and geographies including the e-Choupalnetwork and agri extension programmes network,undertook an initiative to facilitate formation of new FarmerProducer Organisations (FPOs) and/or strengtheningexisting FPOs, thus enhancing farm incomes, rurallivelihood and partnering in other relevant ruraldevelopment initiatives. During the year, your Companysupported additional 390 FPOs taking the cumulativenumber to 2,050 FPOs.
The 'Adarsh Gram Programme' pioneered by yourCompany's Agri Business presently covers 484 modelvillages in the states of Andhra Pradesh and Karnataka.Under this initiative, your Company supports villagesto become economically, ecologically and sociallysustainable. Your Company is also addressing the humanrights and farm safety challenges in these villages byeducating the farmers, labour & community, providingaccess to Personal Protective Equipment (PPE) kits andadopting smart technologies like drones for sprayingactivities on the farms.
The purpose of the programme is to improve income andde-risk livelihoods of rural households by strengtheninganimal dependant livelihood options. Capability buildingon improved package of practices, breed improvement,provision of extension services and creation of ruralentrepreneurs to provide doorstep services are the key
components. Programme is aligned to Government ofIndia's National Livestock Mission (NLM). The programmecovered l ivel i hoods l i n ked to l arge rum i nants (cow & buffalo),small ruminants (goat & sheep), piggery, fishery, poultryand apiary in 16 states and 42 districts. During theyear, about 1.34 lakh artificial inseminations (Als) werecarried out which led to the birth of over 0.47 lakh highyielding progeny and indigenous breeds. Cumulatively,the figures for AIs and calving stand at over 30.90 lakhsand 10.90 lakhs respectively. Under the programme,1,870 women trained as 'Pashu Sakhis' have providedextension services to animal owners of the villages.
Your Company is also working with dairy farmers in Bihar,Jharkhand and West Bengal to improve productivity ofanimals through several extension services and to facilitatehigher milk production. Qualified teams comprisingveterinarians and para-veterinarians have been deployedto facilitate animal nutrition, animal health services, trainingand capacity building towards improving productivity,clean milk production and promoting commercialdairy farming among farmers. During the year, about
38,000 animals of over 19,000 dairy farmers across416 villages in nine districts of Bihar, three districts ofWest Bengal and two districts in Jharkhand were supportedthrough cattle feed distribution, training programmes onclean milk production, mastitis control and animal husbandryservices like deworming, ectoparasite control, etc.
Your Company's pioneering initiative through theSocial Forestry programme covered over 37,300 acresduring the year. The said programme is also alignedto Government of India's National Afforestation
Programme objectives. It is currently spread across16 districts in six states cumulatively covering5.28 lakh acres in over 7,400 villages and 1.90 lakh poorhouseholds. Integral to the Social Forestry programmeare the Agro-Forestry and Bund plantation modelsthat help small and marginal farmers to cultivate fieldcrops and trees together in the same field and realisebenefits of both annual income from crops and lumpsumincome from trees once in four years. These two modelscumulatively extended to over 2.68 lakh acres (part oftotal Social Forestry area) and enabled food, fodder and
wood security. To create an additional income sourceand improve resilience towards climate change, fruitand other commercial species tree plantations have alsobeen initiated with farmers, which have covered over
40,000 acres till date.
Together with your Company's Farm Forestry programme,this initiative has covered around 13.2 lakh acres till dateand generated over 240 million-person days of livelihoodfor rural households, including women, poor tribal andmarginal farmers. Further, fast growing, high yieldingand disease resistant hybrid clones and saplings ofeucalyptus pulpwood developed by your Companydeliver significantly higher productivity vis-a-vis earlierclones. The clones have been developed to grow undervarying ecological conditions, thereby building resilienceand contributing towards increasing income for thefarming community.
Besides enhancing farm level employment, generatingincomes and increasing green cover, these large-scaleinitiatives also contribute meaningfully to the nation'sendeavour to create additional carbon sinks for tacklingclimate change.
In addition to the above, the Social and Farm Forestryinitiative of your Company, through a multiplier effect, hasled to improvement in pulpwood and fuelwood availabilityin Andhra Pradesh, Telangana, Karnataka and Odisha.
During the year, this initiative in catchment geographiesprovided a range of gainful livelihood opportunities toover 2.67 lakh poor women, taking the cumulative coverageto over 4.51 lakhs through livelihood interventions forSelf Help Groups (SHGs), women in agriculture and alliedservices, cadre of service providers in the communityand ultra-poor women. This initiative is also aligned toNational Rural Livelihoods Mission's objective ofempowering and creating Lakhpati Didis.
Targeting Hardcore Poor programme focusing onempowering ultra-poor women through mentoring,skilling to run enterprises and asset support for the samehas covered about 40,680 women in your Company'score catchments through a two-year graduationintervention. Studies have shown that the income of these
ultra-poor women has increased by more than five-fold.Aided by the programme, there is also a substantialimprovement in Human Development Indicators.Currently, the programme is operational in 10 districts ineight states.
As an amplification strategy, the financial literacy andinclusion project, in partnership with Madhya PradeshState Rural Livelihood Mission (MPSRLM) andCRISIL Foundation continued in its second phase ofpartnership covering all 52 districts of Madhya Pradesh.Basis the learnings in MP, the programme continuedto expand to other states also, now covering over98,900 existing SHGs with 10 lakh members.The Financial Literacy programme has cumulatively coveredover 3.9 lakh SHGs benefiting over 38.50 lakh womenspread across 80 districts in 15 states. Over 31 lakh schemelinkages for trained women have also been facilitated withaccess to bank accounts and Government social securityschemes till date with the support of self-sustaining cadre ofYojana Sakhis, who also earn by charging fees from womenfor creating these linkages.
Your Company's 'Aashirvaad Raho 4 Kadam Aage'programme is encouraging women empowerment byproviding skills related to food processing sector aswell as on other livelihood opportunities. Spread acrossfour states, the programme has covered over30,700 women beneficiaries.
The Primary Education programme aligned with NationalEducation Policy 2020, aims to provide children fromweaker sections of society access to education withfocus on learning outcomes and retention. Operationalin 50 districts of 15 states, the programme coveredover 6.57 lakh children during the year, taking thecumulative coverage to over 21.80 lakh children. Further,125 Supplementary Learning Centres (SLCs) hasremained operational during the year, mainstreamingmore than 4,000 out-of-school children into the formaleducation system, taking the cumulative number toover 16,800.
Considering importance of Early Childhood Care andEducation (ECCE) as per National Education Policy 2020,
building capabilities of Anganwadi Sevikas on ECCE hasalso been one of the focus areas. Your Company haspartnered with Women Development and Child WelfareDepartment in Andhra Pradesh to strengthen capacity ofover 55,600 Anganwadi Sevikas across all the 26 districts.Through a cascade approach, the Sevikas have reachedout to 4.16 lakh children during the year. Your Companyis also having a similar partnership in Saharanpur,Uttar Pradesh, for improving ECCE (Poshan Bhi,Padhai Bhi) of children by combining nutrition andeducation interventions and has covered 50,000 childrenin the district.
Over 640 Government primary schools and Anganwadiswere provided infrastructure support comprisingboundary walls, additional classrooms includingoperationalising smart classrooms, solarisation,sanitation units and furniture, taking the total numberof Government primary schools and Anganwadiscovered till date to over 4,100. Infrastructure support toGovernment schools has helped in increasing enrolment,particularly of girls, in schools. To ensure sustainableoperations and maintenance of infrastructure provided,more than 1,480 School Management Committees and1,370 Child Cabinets & Water and Sanitation (WATSAN)Committees were operational in various schoolsduring the year with active involvement of studentsand teachers.
To address the issue of drop out, especially of girls insecondary and senior secondary level, a pilot interventioncontinued in Pudukkottai, Munger and Kolkata covering2,500 girl students. Mentoring for career intentionality,building 21st century skilling and mainstreaming out ofschool girls through National Open Schooling Systemare the major aspects of this intervention.
Your Company's 'Bounce of Joy' programme is aimed tofoster holistic development and create a positive impact onchildren's lives through physical fitness including sports.Execution of the programme is done by collaborating withschools for training of Physical Education (PE) teachers tohelp them foster holistic development amongst studentsthrough sports like football. Through the trained teachers,the programme has reached out to 43,450 students across140 schools in two states.
Your Company's 'Sunfeast Bigger Fantasies' programmehas covered 55,970 children from 60 schools across twostates encouraging and nurturing their innate curiosityand ability to think laterally. 1,500 Young instructorswere trained, who in turn engaged with these childrento encourage creative thinking & expression, and peerlearning & collaboration. 60 creativity fairs were alsoconducted with active participation from students.
This programme, aligned to Pradhan Mantri KaushalVikas Yojana provides training in market linked skills toyouth from marginalised sections including differentlyabled, to enable them to engage in decent livelihoods.15,600 youth across 34 districts in 16 states were trainedunder different courses during the year, of which nearly52% were female. Cumulatively, around 1.27 lakh youthhave been trained under the skilling programme. To scaleup the skilling programme, your Company has also initiatedpilots for potential pathways of skilling in the communityitself (1,700 trained in the year) and leveraging other skilltraining partners in the ecosystem (893 in the year).
Further, the programme for skilling differently abled youthrunning in Karnataka and West Bengal last year, wasexpanded to Maharashtra, Uttar Pradesh and Odisha byestablishing new centres and also leveraging the existingcentres of implementing partners. During the year,850 youth (cumulatively over 1,000) were trained and over530 have already been placed. Further, your Company'sSixth Sense programme, focused on making an impacton the lives of visually challenged, covered 150 suchindividuals across five cities.
Your Company continues to adopt a multi-prongedapproach towards improving public health and hygieneacross 30 districts and 13 states. The programme focuseson ensuring sustainability of Open Defecation Free (ODF)habitations and then making them ODF+ through improvedhygiene, sanitation and waste management practiceswhich is aligned with Swachh Bharat Mission 2.0.
Water, Sanitation and Hygiene (WASH) programmewas implemented in schools that included constructionof sanitation units in schools, separate for girls and
boys, and also focused on driving behaviour changeamong over 1.13 lakh school students through2,300 WASH campaigns.
Your Company's 'Savlon Swasth India Mission'programme has been a front runner in driving behaviouralchange in hand hygiene through innovative experientialtraining in primary schools. The Mission rooted in thebelief of 'Swasth Bacche, Mazboot Desh' drove a range ofinitiatives to aid and enable the country in its fight againstpreventable infections that create huge economic burdenon the country.
The programme, focused on spreading awareness forhabit building of hand hygiene through interactive sessionsacross India, covered 16,770 schools and reached out toabout 32 lakh children during the year.
Your Company's initiatives focus on creating replicable,scalable and sustainable models of municipal and ruralwaste management that can be implemented across thecountry to ensure that minimal waste goes to landfills.Details of these models are provided in the sectionon 'Building a Circular Economy for Post-ConsumerPackaging' above.
Your Company is adopting a holistic approach towardsCommunity Healthcare, focusing on two major components- preventive health care and curative services. Communityhealthcare is initiated to address the challenges ofawareness, availability, accessibility and affordability. Theobjective of the initiative is to improve health and nutritionby strengthening institutional capacity, supplementingexisting infrastructure, promoting greater convergencewith existing Government schemes like National HealthMission, leveraging technology and increasing access tobasic primary and secondary healthcare services.
A two-pronged approach aligned to Government'sPOSHAN Abhiyan was adopted under Maternal and ChildHealth and Nutrition (MCHN) programme:
• Focusing on first '1,000 days of life' in high malnutritioncatchments covering mothers and children, and
• Addressing anaemia at scale among all age groupsthrough screening under Anaemia Mukt Bharat(AMB), Rashtriya Bal Suraksha Karyakaram (RBSK)and thereafter, loop closure through awarenesscreation and linkages with Government schemes.
Capacity building of frontline resources like AnganwadiSevikas and ASHA workers is an integral part of theintervention and 16,000 were trained during the yearon engagement with community, making effective'six home visits' and localised nutrition promotion.
Screening of over two lakh women and children for anaemiawas done in partnership with Government for baseliningand identifying priority areas for interventions. A 4Eapproach of identifying hotspots (Exploration); awarenesson dietary diversity and hygiene (Education); promotingnutrition gardens and consumption of locally grown'5 Food Groups' through nutri-groups (Encouraging); andbuilding capabilities of ASHA and Anganwadi Sevikas onidentification and management of anaemia (Empower)was adopted to address the issue.
Around 15.24 lakh people spread across 21 districtsin nine states were covered during the year, underyour Company's MCHN initiative aimed at improving thehealth-nutrition status of women, adolescents and children.This included the partnerships with the Directorate ofWomen and Child Development, Assam for eight districtsincluding seven aspirational districts, and another withthe Child Development Services and Nutrition DepartmentSaharanpur, Uttar Pradesh.
Project Samposhan was undertaken during the year tosensitise the community on nutritional value of fruits andvegetables, leveraging their existing agriculture expertise tocultivate sustainable and healthy food. 40 youth trained asPoshan Sathis engaged with over 1,000 rural householdsand trained them on farming system for nutrition and settingup nutrition gardens. SHGs and farmer collectives werealso strengthened to create local ecosystem for nutritionproducts. Iodine deficiency is considered as one of themost common causes of preventable mental impairmentand constitutes a significant public health problem.Under the 'Aashirvaad Smart India' intervention, overseven lakh people were reached out through awarenesson iodine deficiency disorders and healthy eating.
As part of the community healthcare programme'ITC Swaasth Kiran' initiative was launched duringFY 2021-22 in Saharanpur and Munger districts. Underthe initiative, during the year, thirteen Mobile MedicalUnits (MMU) were functional (seven in Saharanpur &six in Munger). These MMUs have provided free medicalconsultation and medicines to the rural community at theirdoorstep. During the year, nearly 2.22 lakh individualengagements were done with community membersacross 796 villages, 58% of which were with women.Further, 43,400 diagnostic tests were conducted and1,130 referrals made during the year. With theinvolvement of the Rogi Kalyan Samitis, upgradation of23 Primary Health Centres (PHCs) based on Indian PublicHealth Standard was also done, taking the cumulative to37 in five states. This has helped in increased footfall ofpatients, including higher number of institutional deliveries.
Understanding the need for high-quality doorstepeye care for the community, your Company alsocontinued its innovative layered eyecare interventionin Saharanpur in Uttar Pradesh, as part of whichfour Mobile Vision Units (MVU) were operational inservices in rural Saharanpur. These MVUs equipped withhigh end ophthalmic equipment can screen and diagnoseeye ailments such as Cataract, Diabetic Retinopathy,Glaucoma and other diseases. During the year, morethan 1.76 lakh community members have been screened,of which 16,589 cases were referred to the MVUs,and thereafter 1,082 cataract surgeries done atDr. Shroff's Charity Eye Hospital in Saharanpur, who arethe partner for this intervention.
Your Company continued to enhance awareness onvarious health related issues like menstrual & personalhygiene, reproductive health and diarrhoea through anetwork of 366 women Village Health Champions (VHCs).These VHCs engaged with the community for promotingbehaviour change and selling relevant health productsto the community, thereby also earning a livelihood. Theprogramme was operational in two districts of MadhyaPradesh and six districts of Uttar Pradesh, covering nearly1.45 lakh women during the year.
To make potable water available to local communities inAndhra Pradesh and Karnataka, Reverse Osmosis (RO)water purification plants were set up in villages where
the water quality was poor. With the establishment of36 new RO plants during the year, a total of 205 RO plantsare operational providing safe drinking water to over2.5 lakh rural population.
The ITC Sangeet Research Academy (ITC SRA),established in 1977, is an embodiment of your Company'ssustained commitment to a priceless national heritage.Your Company's pledge towards ensuring enduringexcellence in Classical music education continues todrive ITC SRA in furthering its objective of preservingand propagating Hindustani Classical Music based on theage-old principle of 'Guru Shishya Parampara'.
The Academy is modelled as a professionally run institutionthat epitomises the teaching of Hindustani Raga Music.Through its eminent Gurus, it imparts intensive trainingand quality education in Hindustani Classical musicto its scholars. The present Gurus of the Academy arePadma Bhushan Pandit Ajoy Chakrabarty,Padmashri Pandit Ulhas Kashalkar,
Pandit Partha Chatterjee, Vidushi Subhra Guha,Pandit Uday Bhawalkar, Shri Omkar Dadarkar,Shri Abir Hossain and Shri Brajeswar Mukherjee.Pandit Uday Bhawalkar was conferred theRashtriya Kalidas Samman by Government ofMadhya Pradesh in November 2024 for the year 2022-23.
The Academy's focus continues to be on nurturingexceptionally gifted students selected from acrossthe country through a system of multi-level auditions.Several scholars of the Academy have performed atvarious music festivals and have also been recipientof prestigious awards and accolades. Additionally,the Academy has presented its scholars and youngmusicians in ITC Mini Sangeet Sammelans, concertsand Baithaks in locations such as Jabalpur, Hubli,Dharwad, Sirsi, Lucknow, Jodhpur, Dehradun, Goa, Puneand Bangalore enabling the Academy to fulfil itsavowed objective of preserving and propagatingHindustani Classical Music.
On the occasion of India's 78th Independence Day,ITC SRA composed a special piece of music as a tributeto the nation, which was presented on 15th August.
The video 'Desh Ek Raag' was based on Raag Deshand featured scholars of the Academy. The year alsomarked its first Thumb Festival in March 2025 featuringrenowned artists of the genre as well as scholars of theAcademy. Creation of the next generation of masters ofHindustani Classical music for the propagation of aprecious legacy continues to be the Academy's objective.
Your Company's Social Investments Programme layscontinuous emphasis on building partnerships of valuefor driving innovation & gaining contemporary knowledgewhile effectively amplifying and executing programmes.
Your Company has over the years formed KnowledgePartnerships with several national & internationalorganisations/agencies to maintain contemporarinessand leverage latest knowledge/technical know-how tocontinuously improve the quality of programmes.
Public-Private Partnerships (PPP), aimed at poolingresources, and partnership with Governments areeffectively leveraged to scale-up and amplify programmesimplemented in your Company's catchment areas.During the year, three new PPPs were signed.
The meaningful contribution made by your Company'sSocial Investments Programme to address some ofthe country's key development challenges, has beenpossible in significant measure, due to your Company'spartnerships with implementation partners such asAFPRO, Anudip Foundation, Bandhan Konnagar,Cheshire Disability Trust, DHAN Foundation,Don Bosco Tech Society, DSC, Dr. Reddy's Foundation,Educate Girls, FES, FINISH, IGD, KHPT, MYKAPS,MYRADA, Makkala Jagriti, Manav Vikas Sansthan,NCHSE, Pratham, SEWA Bharat, SMGVS, Umang,WASH Institute, Water for People, Youth4Jobs andYouth Invest amongst others. These partnerships, whichbring together the best-in-class management practicesof your Company and the development experienceand mobilisation skills of implementation partners, willcontinue to provide innovative grassroot solutions to someof India's most challenging problems of developmentin the years to come.
The annual report on Corporate Social Responsibilityactivities, as required under Sections 134 and 135 of theCompanies Act, 2013 read with Rule 8 of the Companies(Corporate Social Responsibility Policy) Rules, 2014and Rule 9 of the Companies (Accounts) Rules, 2014, isprovided in the Annexure forming part of this Report.
Your Company's Environment, Health & Safety (EHS)strategies are directed towards achieving the greenestand safest operations across all your Company's unitsby optimising natural resource usage and providing asafe and healthy workplace. Systemic efforts continueto be made towards natural resource conservation bycontinuously improving resource-use efficiencies.
Your Company believes that a safe and healthy workenvironment is a pre-requisite for ensuring employeewell-being and adopting best practices in occupationalhealth & safety bears a direct impact on overallperformance. With an aim to percolate safety deeperinto your Company's operational practices and achievethe 'Zero Accident' goal, your Company has adopted acomprehensive EHS strategy founded on two pillars:'Safety by Design' and 'Safety by Culture'.
Your Company sustained focus on 'Safety by Design'by continuously striving to improve safety performanceand incorporating best-in-class engineering standardsfor all investments in the built environment. Designs forall new greenfield & brownfield project investments arescrutinised to ensure compliance with relevant standardsand codes on safety. Periodic Environment, Health &Safety audits continue to be carried out in operationalunits to verify compliance with relevant standards.
To drive a culture of safety, your Company, in additionto comprehensive focus on training, continues to holdstructured conversations with workers on 'Safe andUnsafe' Acts. These are supplemented by adoption ofkeystone behaviours that inculcates individual ownershipfor safe behaviour. Your Company has also made useof Design Thinking principles for seamless integration
of safety in business operations. These initiatives arebringing in positive behavioural changes.
Several national awards and certifications received byvarious units reaffirm your Company's commitment toprovide safe and healthy workplace to all.
Your Company's state-of-the-art Life Sciences andTechnology Centre (LSTC) in Bengaluru is at the coreof driving science-led product innovation to build andsupport your Company's portfolio of world-class productsand brands. Over the years, LSTC has emerged asa robust innovation engine that is a key enabler of the'ITC Next' growth strategy. Reinforced with world-classinfrastructure, resourced with a diverse team of over400 highly qualified scientists, LSTC continues to drivevarious initiatives to provide differentiation and competitiveedge to your Company's brands and products.
Driving purposeful innovations that fulfil the needs of theIndian consumer through superior offerings remains thekey objective of LSTC. Centres of Excellence acrossdomains viz. Biosciences, Agri-sciences & Materialssciences enabled building capabilities over the yearsto cater to the constantly evolving needs of consumers.Focused research across identified domains viz. Health& Wellness, Formulation Design, Sustainable Materials &Packaging, Agro-forestry and Crop Science has enabledthe teams to harness contemporary advances in relevantcore areas to translate 'proofs of concept' to novel productopportunities. Bearing testimony to LSTC's innovationcapabilities while building the intellectual assets for yourCompany, over 800 patent applications have been filedtill date. Robust risk management practices are in placeto ensure that your Company's intellectual propertiesremain adequately protected and to ensure mitigation ofinformation and infrastructure risk.
Research programmes and projects are structuredthrough close alignment with the various Businesses ofyour Company resulting in a robust innovation pipeline.Additionally, in line with your Company's relentless focuson operational excellence and quality, each Businessis mandated to continuously innovate on materials,processes and systems to enhance their competitiveness.
Your Company has been a forerunner in introducingfirst-to-market innovative products for Indian consumers.In today's operating scenario of geopolitical tensionsand inflationary pressures, LSTC scientists andproduct development teams continue to enable variousITC businesses to deliver a range of differentiated,superior quality products at competitive costs. Innovativescience-based Platform projects have been developedto solve a range of consumer and technical productchallenges. Novel technologies are continuously beingleveraged to drive creation of healthier foods throughsystematic reduction in salt, sugar and fat withoutcompromising on sensory attributes. Leading edgetechnology platforms in Personal Health & Hygiene,Health & Wellness continue to power innovation anddevelop next generation product offerings to serveemerging consumer needs. LSTC's unique competenciesin Sustainable Materials and Packaging have enableddevelopment of packaging options with high degreeof recycled plastics content and novel barrier coatingsolutions to create next generation environmentallyfriendly packaging solutions.
In Agro-Forestry and Crop Science, your Company'sscientists have established different cutting-edge tools &technology platforms for improving tree & crop species ofyour Company's interests (like yield, quality, abiotic & bioticstress) for securing the raw material. Ongoing researchhas major emphasis on developing climate resilient cropsand pulp wood species in order to address the securityof raw material supplies across your Company's valuechains and also ensuring enhanced farmer profitability.Research on wheat and potato varietal securitisation areat advanced stages of deployment to achieve flexibilityin sourcing of raw material, create region-specific blendsand ensure robust agro-climatic adaptability for growingand sourcing raw materials closer to the factories atcompetitive costs, in addition to reducing the carbonfootprint. Future-ready, alternate value chains thatmitigate risks arising out of disruptions to existing sourcingmodels continue to be explored. LSTC has deployedvarious digital transformation tools at farm level tobring in predictive capability with agility. LSTC, incollaboration with the Agri and Branded Packaged FoodsBusinesses, endeavours to ensure that science-based
ideas are fully integrated across the value chain fromfarm to fork.
Infrastructure and capabilities are strengthenedcontinuously keeping in pace with the global developmentsin science and technology. Expanding capabilities includespreading the acreage of new tree clones with superiorproperties, developing modern instrumentation for testingvery low levels of actives or contaminants, measuringbarrier properties (air and water permeability) of coatedpaper substrate, etc.
Rigorous systems, processes and industry best practicesare continuously upgraded to secure quality certificationsof the highest levels - a key enabler in delivering productsthat follow the highest standards in quality, safety andefficacy to the Indian consumer. All branded packagedfoods manufacturing units of your Company not onlyhave ISO quality certification but also follow the higheststandards under the integrated food quality managementsystem-FSSC 22000; these systems ensure adherenceto internationally accepted quality standards in producingsafe and high-quality food. All manufacturing units ofthe Branded Packaged Foods Businesses (includingcontract manufacturing units) operate in compliancewith stringent food safety and quality standards.Your Company's food quality assurance laboratoriesare accredited by the National Accreditation Board forTesting and Calibration Laboratories (NABL) under ISO17025, a global standard for testing and calibrating labs,which guarantees quality. Additionally, the quality of allFMCG products of your Company is monitored throughbest-in-class customer-centric 'Quality Control andQuality Assurance Processes' and 'Product QualityRatings Systems' (PQRS) enhancing competitivesuperiority of your Company's product offerings.
In its quest to continuously enhance efficiency andbe future-ready, LSTC is developing and deployingcutting-edge digital tools for quality performance analytics,benchmarking and strengthen quality managementsystems. Going forward, LSTC will continue to identifygrowth opportunities leveraging your Company'sdiverse core competencies and R&D insights emergingfrom close consumer interactions and contemporaryscience & technology.
In the proceedings initiated by the Enforcement Directoratein 1997, the appropriate authority after hearing argumentson behalf of your Company has passed several ordersin favour of your Company and dropped some of theshow cause notices issued by the Directorate. In respectof some of the remaining notices, your Company filedwrit petitions challenging their validity. The HonourableCalcutta High Court heard some of these writ petitionsto completion, and the proceedings in respect of thesenotices were quashed. The remaining writ petitions andnotices are pending adjudication/hearing.
Meanwhile, some of the prosecutions launched by theEnforcement Directorate have been quashed by theHonourable Calcutta High Court; while the remaining havebeen challenged before the High Court and are pending.
Your Company's treasury operations continued to focuson deployment of surplus liquidity and management offoreign exchange exposures within a well-defined riskmanagement framework.
During the year market interest rates declined sharplyacross both short and long term maturities. The ReserveBank of India (RBI) adopted an accommodative monetarypolicy stance, cutting the repo rate by a cumulative50 basis points since April 2024 on the back of easinginflation and to boost economic activity. In addition,the RBI deployed several liquidity management tools,which pushed the banking system liquidity from a deficitposition between November 2024 and February 2025 toa surplus by the end of the financial year. The decline ininterest rates for longer maturities was further aided byrobust demand from Foreign Portfolio Investors followingthe inclusion of Indian Government Securities in theJP Morgan Emerging Markets Bond Index and animproving fiscal position.
Investment decisions relating to deployment of surplusliquidity continued to be guided by the tenets of Safety,Liquidity and Return. Treasury operations focused onproactive rebalancing of portfolio duration and mix, inline with the evolving interest rate environment. Further,continuous review and monitoring of credit worthiness,
including engagement with market participants, ensuredthat the investment portfolio was not exposed to unduecredit risks.
In the currency market, the Indian Rupee (INR) witnessedsignificant volatility during the year. While the INRremained relatively stable during the first half of theyear supported by strong domestic fundamentals andhealthy capital inflows, the second half saw considerabletwo-way movements. The weakness in the INR wasprimarily attributed to the strengthening of the USDrelative to all major currencies, driven by concerns overpotential tariff hikes by the US Government. Additionally,higher capital outflows during this period weighed on theINR. However, the INR witnessed a rebound towards theend of the year on the back of a narrowing trade deficitand a weakening USD amidst heightened global tradeuncertainties. Robust foreign exchange reserves andstrategic interventions in the currency markets by the RBIalso provided support to the INR.
As in earlier years, commensurate with the size of thetemporary surplus liquidity under management, treasuryoperations continue to be supported by appropriateinternal control systems, and independent check of100% of transactions by your Company's InternalAudit Department.
Your Company adopted proactive risk managementapproach and actively managed foreign currencyexposures through appropriate hedging strategies andmarket instruments to protect business margins.
Your Company's erstwhile Public Deposit Scheme closedin the year 2000. As at 31st March, 2025, there wereno deposits due for repayment except in respect of twodeposit holders aggregating ' 20000 which have beenwithheld on the basis of directives received from thegovernment agencies.
There was no failure to make repayments of FixedDeposits on maturity and the interest due thereon in termsof the conditions of your Company's erstwhile Schemes.
Your Company has not accepted any deposit from thepublic/members under Section 73 of the Companies Act,2013 read with the Companies (Acceptance of Deposits)Rules, 2014 during the year.
During the year, Ms. Pushpa Subrahmanyam andMr. Chandra Kishore Mishra were appointed, with yourapproval, as Independent Directors of the Company fora period of five years with effect from 2nd April, 2024 and14th September, 2024, respectively. In the opinion ofthe Board, Ms. Subrahmanyam and Mr. Mishra possessthe required integrity, expertise and experience forappointment as Independent Directors of your Company.
Mr. Atul Singh representing Tobacco Manufacturers (India)Limited ('TMI'), a subsidiary of British America Tobaccop.l.c., Dr. Alok Pande representing the SpecifiedUndertaking of the Unit Trust of India ('SUUTI') andMr. Siddhartha Mohanty representing the Life InsuranceCorporation of India ('LIC') were appointed, with yourapproval, as Non-Executive Directors of your Companyfor a period of three years with effect from 2nd April, 2024,27th July, 2024 and 1st January, 2025, respectively.
Mr. Sunil Panray, who is representing TMI, wasre-appointed, with your approval, as a Non-ExecutiveDirector for a period of five years with effect from20th December, 2024. Further, Messrs. SumantBhargavan and Supratim Dutta were re-appointed, withyour approval, as Wholetime Directors of the Companyfor a period of two years from 12th July, 2025 andthree years from 22nd July, 2025, respectively.
Mr. Shyamal Mukherjee will complete his presentterm as an Independent Director of your Company on10th August, 2026. The Board of Directors of your Company('the Board'), on the recommendation of the Nomination& Compensation Committee, has recommended forthe approval of the Members, the re-appointment ofMr. Mukherjee as an Independent Director of yourCompany for a period of five years with effect from11th August, 2026. Appropriate resolution seekingyour approval to the above is appearing in the Noticeconvening the 114th Annual General Meeting ('AGM')of your Company.
Mr. Shilabhadra Banerjee completed his term as anIndependent Director of your Company with effect fromclose of work on 29th July, 2024, and Mr. Arun Duggaland Ms. Meera Shankar completed their respective termsas Independent Directors with effect from close of work
on 14th September, 2024. Mr. Rahul Jain, representingSUUTI, and Mr. Mukesh Gupta, representing LIC, steppeddown from the Board with effect from 31st May, 2024 and27th October, 2024, respectively. Your Directors placeon record their appreciation for the contribution made byMessrs. Banerjee, Duggal, Jain, Gupta and Ms. Shankarduring their respective tenure with your Company.
In accordance with the provisions of Section 152 ofthe Companies Act, 2013 ('the Act') read with Articles 94and 95 of the Articles of Association of your Company,Messrs. Hemant Malik and Atul Singh will retire byrotation at the ensuing AGM and being eligible, offerthemselves for re-election. Your Board has recommendedtheir re-election.
Six meetings of the Board were held during the yearended 31st March, 2025.
The Corporate Governance Policy of your Companyrequires that the Non-Executive Directors be drawnfrom amongst eminent professionals, with experiencein business / finance / law / public administration andenterprises. The Nomination & Compensation Committeehas laid down the criteria for determining qualifications,positive attributes and independence of Directors(including Independent Directors). In case of appointmentof Independent Directors, the Nomination & CompensationCommittee evaluates the balance of skills, knowledge andexperience on the Board, and also the role and capabilitiesof an Independent Director of the Company.
Further, in terms of the Policy on Board Diversity, theBoard is required to have balance of skills, competencies,experience and diversity of perspectives appropriate tothe Company. Diversity for this purpose is consideredfrom a number of aspects including, but not limited to,educational & cultural background, nature of professional,administrative & industry experience, skills, knowledgeand gender representation. The skills, expertise andcompetencies of the Directors as identified by theBoard, along with those available in the present mix of
the Directors of the Company, are provided in the'Report on Corporate Governance' forming part of theReport and Accounts.
In terms of the applicable regulatory requirementsread with the Articles of Association of your Company,the strength of the Board shall not be fewer than six normore than eighteen. Directors are appointed / re-appointedwith the approval of the Members for a period of three tofive years or a shorter duration, in accordance withretirement guidelines and as may be determined bythe Board from time to time. All Directors, other thanIndependent Directors, are liable to retire by rotation, unlessotherwise approved by the Members. One-third of theDirectors who are liable to retire by rotation, retire everyyear and are eligible for re-election.
The Independent Directors of your Company haveconfirmed that (a) they meet the criteria of independenceprescribed under Section 149 of the Act and Regulation16 of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements)Regulations, 2015 ('Listing Regulations'), (b) they areindependent of the management of the Company,and (c) they are not aware of any circumstance orsituation which could impair or impact their ability todischarge duties with an objective independent judgementand without any external influence. In the opinion of theBoard, the Independent Directors fulfil the conditionsprescribed under the Act and the Listing Regulations, andare independent of the management of the Company.
Details of the Company's Policy on remuneration ofDirectors, Key Managerial Personnel and other employeesare provided in the 'Report on Corporate Governance'forming part of the Report and Accounts.
Your Company has a structured process for performanceevaluation of the Board, Board Committees and individualDirectors. The Nomination & Compensation Committee,as reported in earlier years, has formulated the Policyon Board evaluation, evaluation of Board Committees'functioning and individual Director evaluation,
and also specified that such evaluation will be doneby the Board.
In keeping with ITC's belief that it is the collectiveeffectiveness of the Board that impacts Company'sperformance, the primary evaluation platform is that ofcollective performance of the Board as a whole. Boardperformance is assessed, inter alia, against the roles andresponsibilities of the Board as provided under the Act,the Listing Regulations and the Company's GovernancePolicy. The parameters for Board performance evaluationhave been derived from the Board's core role oftrusteeship to protect and enhance shareholder value aswell as to fulfil expectations of other stakeholders throughstrategic supervision of the Company; such parametersinclude securing alignment of the Company's goals withthe nation's economic, ecological and social priorities,ensuring that the Company has a clearly defined strategicdirection for realisation of its vision, and supporting theCompany's management to meet challenges arisingfrom the operating & policy environment in the country.Evaluation of functioning of Board Committees is basedon discussions amongst Committee members and sharedby the respective Committee Chairmen with the Board.Individual Directors are evaluated in the context of therole played by each Director as a member of the Boardat its meetings, in assisting the Board in realising its roleof strategic supervision of the functioning of the Companyin pursuit of its purpose and goals. The peer group ratingsof the individual Directors are collated by the Chairmanof the Nomination & Compensation Committee and madeavailable to the Chairman of the Company.
While the Board evaluated its performance againstthe parameters laid down by the Nomination &Compensation Committee, the evaluation of individualDirectors was carried out against the laid downparameters in order to ensure objectivity. The parametersfor performance evaluation of individual Directors, interalia, include ability to provide thought leadership acrossthe role spectrum and contribution to Board cohesion,governance & organisational processes. Reports onthe functioning and performance of Board Committeesduring the year were placed before the Board.The Independent Directors Committee of the Board
also reviewed the performance of the Chairman, othernon-Independent Directors and the Board, pursuantto Schedule IV to the Act and Regulation 25 of theListing Regulations.
During the year, there were no changes in theKey Managerial Personnel of your Company.
The composition of the Audit Committee is provided underthe section 'Board of Directors and Committees' in theReport and Accounts.
Messrs. S R B C & CO LLP, Chartered Accountants('SRBC'), were re-appointed with your approval asthe Auditors of your Company for a period of fiveyears till the conclusion of the 118th AGM. The Board,on the recommendation of the Audit Committee,has recommended for the approval of the Members,the remuneration of SRBC for the financial year2025-26. Appropriate resolution seeking your approvalto the remuneration of SRBC is appearing in theNotice convening the 114th AGM of your Company.
Your Board, as recommended by the Audit Committee,appointed the following Cost Auditors for thefinancial year 2025-26:
(i) Messrs. ABK & Associates, Cost Accountants, foraudit of Cost Records maintained by your Companyin respect of 'Wood Pulp' and 'Paper and Paperboard'products.
(ii) Messrs. S. Mahadevan & Co., Cost Accountants,for audit of Cost Records maintained in respect ofall applicable products of your Company, other than'Wood Pulp' and 'Paper and Paperboard' products.
Pursuant to Section 148 of the Act read with theCompanies (Audit and Auditors) Rules, 2014, appropriateresolutions seeking your ratification to the remunerationof the aforesaid Cost Auditors are appearing in theNotice convening the 114th AGM of your Company.
The Company maintains necessary cost recordsas specified by the Central Government underSection 148(1) of the Act read with the Companies(Cost Records and Audit) Rules, 2014.
Messrs. S. N. Ananthasubramanian & Co., CompanySecretaries ('SNA'), were appointed by the Boardas the Secretarial Auditors of your Company toconduct secretarial audit for the financial year ended31st March, 2025.
The Report of the Secretarial Auditors, pursuant toSection 204 of the Act, is provided in the Annexureforming part of this Report. The Secretarial Auditorshave confirmed that the Company has complied with theapplicable laws and that there are adequate systems andprocesses in the Company commensurate with its sizeand scale of operations to monitor and ensure compliancewith the applicable laws.
The Board has approved, on the recommendation ofthe Audit Committee and subject to the approval of theMembers, appointment of SNA as the Secretarial Auditorsof your Company to conduct secretarial audit for a periodof five financial years commencing from the financial year2025-26. Appropriate resolution seeking your approvalto the appointment of SNA is appearing in the Noticeconvening the 114th AGM of your Company.
During the year, 2,93,98,310 Ordinary Shares of ' 1/-each, fully paid-up, were issued and allotted upon exerciseof 29,39,831 Options under the Company's EmployeeStock Option Schemes. Consequently, the Issued andSubscribed Share Capital of your Company, as on31st March, 2025, stands increased to ' 1251,41,19,781/-divided into 1251,41,19,781 Ordinary Shares of' 1/- each. The Ordinary Shares issued during theyear rank pari passu with the existing Ordinary Sharesof the Company.
Disclosures with respect to Stock Options, as requiredunder Regulation 14 of the Securities and ExchangeBoard of India (Share Based Employee Benefits and
Sweat Equity) Regulations, 2021 ('the Regulations'),are available in the Notes to the Financial Statementsof the Company. The said disclosures forming part ofthe Financial Statements can also be accessed on theCompany's corporate website http://www.itcportal.comunder the section 'Investor Relations'. During the year,there has been no change in the Company's EmployeeStock Option Schemes.
The Secretarial Auditors have certified that the EmployeeStock Option Schemes of the Company have beenimplemented in accordance with the Regulations and theresolutions passed by the Members in this regard.
The Investor Service Centre of the Company ('ISC')provides in-house share registration and related servicesto the shareholders and investors. By consistentlyadapting to emerging trends and leveraging digitaltechnologies, ISC remains steadfast in its commitmentto delivering best-in-class services to the shareholdersand investors, while ensuring compliance with theapplicable statutory requirements. ISC is accredited withISO 9001:2015 certification and is also registered with theSecurities and Exchange Board of India as a Category IIShare Transfer Agent.
The 'Investor Relations' section on the Company'scorporate website http://www.itcportal.com servesas a user-friendly online resource for shareholdersand investors, offering comprehensive guidance onshare-related matters. Additionally, shareholdersat their convenience can access a range of share-related services through the dedicated service portal athttps://eform.itcportal.com .
All contracts or arrangements entered into by yourCompany with its related parties during the financial yearwere in accordance with the provisions of the CompaniesAct, 2013 and the Listing Regulations. All such contractsor arrangements were approved by the Audit Committee.No material contracts or arrangements with relatedparties within the purview of Section 188(1) of the Actwere entered into during the year under review. Further,the prescribed details of related party transactions of yourCompany in Form No. AOC - 2, in terms of Section 134of the Act read with Rule 8 of the Companies (Accounts)Rules, 2014 are given in the Annexure to this Report.
As required under Section 134 of the Companies Act,2013, your Directors confirm having:
a) followed in the preparation of the Annual Accounts,the applicable accounting standards with properexplanation relating to material departures, if any;
b) selected such accounting policies and applied themconsistently and made judgements and estimatesthat are reasonable and prudent so as to give a trueand fair view of the state of affairs of your Companyat the end of the financial year and of the profit ofyour Company for that period;
c) taken proper and sufficient care for the maintenanceof adequate accounting records in accordancewith the provisions of the Companies Act, 2013for safeguarding the assets of your Companyand for preventing and detecting fraud and otherirregularities;
d) prepared the Annual Accounts on a going concernbasis;
e) laid down internal financial controls to be followedby your Company and that such internal financialcontrols were adequate and were operatingeffectively; and
f) devised proper systems to ensure compliance withthe provisions of all applicable laws and that suchsystems were adequate and operating effectively.
Your Company's Board of Directors is responsible for thepreparation of the consolidated financial statements of yourCompany and its Subsidiaries ('the Group'), Associatesand Joint Venture entities, in terms of the requirementsof the Companies Act, 2013 (the Act) and in accordancewith the accounting principles generally accepted in India,including the Indian Accounting Standards specified underSection 133 of the Act.
The respective Boards of Directors of the companiesincluded in the Group and of its associates and joint ventureentities are responsible for maintenance of adequateaccounting records in accordance with the provisions ofthe Act for safeguarding the assets of each company andfor preventing and detecting frauds and other irregularities;the selection and application of appropriate accountingpolicies; making judgements and estimates that arereasonable and prudent; and the design, implementationand maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracyand completeness of the accounting records, relevantto the preparation and presentation of the financialstatements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.Such financial statements have been used for the purposeof preparation of the consolidated financial statements bythe Board of Directors of your Company, as aforestated.
The certificate from the Company's Statutory Auditors,Messrs. S R B C & CO LLP, confirming compliance withthe conditions of Corporate Governance as stipulatedunder the Listing Regulations, is annexed.
There was no significant or material order passed duringthe year by any regulator, court or tribunal impactingthe going concern status of your Company or its futureoperations.
The Annual Return of your Company is available on its corporatewebsite at https://www.itcportal.com/investor/disclosures-under-SEBI.aspx .
Details of loans and investments covered under theprovisions of Section 186 of the Companies Act, 2013 areprovided in Notes 4, 5, and 9 to the Financial Statements.No guarantees were outstanding as at the year end.
Particulars as required under Section 134 of theCompanies Act, 2013 relating to Conservation of Energyand Technology Absorption are also provided in theAnnexure to this Report.
The Company is in compliance with the applicableSecretarial Standards issued by the Institute of CompanySecretaries of India and approved by the CentralGovernment under Section 118(10) of the Act.
The total number of employees as on 31st March, 2025stood at 22,041.
The information required under Section 197(12) of theCompanies Act, 2013 read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel)Rules, 2014 is provided in the Annexure formingpart of this Report.
The statement containing particulars of employeesas required under Section 197(12) of the CompaniesAct, 2013 read with Rule 5(2) of the Companies(Appointment and Remuneration of ManagerialPersonnel) Rules, 2014, forming part of this Report,is available on the Company's corporate websitewww.itcportal.com .
The Dividend Distribution Policy of your Companymay be accessed on its corporate website athttps://www.itcportal.com/about-itc/policies/dividend-distribution-policy.pdf .
Key Financial Ratios for the financial year ended31st March, 2025, are provided in the Annexure formingpart of this Report.
This Report contains forward-looking statements thatinvolve risks and uncertainties. When used in thisReport, the words 'anticipate', 'believe', 'estimate','expect', 'intend', 'will' and other similar expressions
as they relate to your Company and/or its Businessesare intended to identify such forward-looking
statements. Your Company undertakes no obligation topublicly update or revise any forward-looking statements,whether as a result of new information, future events,or otherwise. Actual results, performances or
achievements could differ materially from those expressedor implied in such forward-looking statements. Readersare cautioned not to place undue reliance on theseforward-looking statements that speak only as oftheir dates. This Report should be read in conjunctionwith the financial statements included herein andthe notes thereto.
Your Company's 'Triple Bottom Line' philosophy hasover the years spurred the creation of innovativebusiness models that synergise the building of economic,environmental and social capital. It is now universallyevident that enterprises of the future will not only haveto be agile, consumer-centric, innovative and digital-firstbut also purpose-driven and responsibly competitive.In line with its superordinate goal of serving larger nationalpriorities and creating value for all stakeholders, yourCompany's paradigm of 'Responsible Competitiveness'focuses on building extreme competitiveness in amanner that replenishes the environment and supportssustainable livelihoods.
The strategic Vision of creating multiple drivers of growththrough the pursuit of market opportunities that best matchinstitutional strengths, has resulted in the development ofstrong Businesses of the future anchored on a portfolioof purpose-led brands, future-ready products andworld-class quality. Today, your Company is the leadingFMCG marketer in India, a pioneering trailblazer in farmerand rural empowerment through its Agri Business, theclear market leader in the Indian Paperboards andPackaging industry, and a global exemplar in sustainability.ITC Hotels Ltd.-a group entity—is a pre-eminent hotel chainand a globally acclaimed icon in green hoteliering. Sincethe turn of the millennium, your Company's non-cigarettesbusinesses11 have grown nearly 40-fold and presently
constitute about two-thirds of Net Segment Revenue.At the heart of this transformation lies the power ofsynergy, with seamless access for your Company's newerBusinesses/initiatives to the deep and varied capabilitiesresident across different parts of the enterprise, and itsworld-class talent pool.
An extensive strategy reset has been undertaken in recentyears to architect the structural drivers that will powerthe ITC Next strategy of building a Future-Ready,Consumer-Centric, Climate Positive and Inclusiveorganisation to drive the next horizon of growth &competitiveness.
The FMCG Businesses have delivered strong performancein recent years and are well poised to be rapidly scaled upacross the three growth platforms i.e., fortifying the core,addressing value-added adjacent opportunities leveragingmother brands and nurturing new vectors of growth.Multi-dimensional interventions, including strategic
acquisitions in high-growth and future-facing
categories, have been made to accelerate growth,enhance competitiveness and market standing of theFMCG Businesses.
Focused interventions made in the recent past have alsoaugmented your Company's multi-channel go-to-marketcapability, resulting in manifold expansion in the reachand availability of its products. Over the last five years,market coverage has grown by more than 2x, facilitatingavailability of products in nearly seven million retailoutlets of which more than one-third are serviced directly.Sharp-focused investments have augmented capability innew gen channels such as e-Commerce, Quick Commerceand Modern Trade, resulting in strong growth in salesand enhanced market standing. In addition, investmentstowards accelerating agile and purposeful innovation,optimising supply chain efficiencies, accelerated digitaladoption, and strategic partnerships have significantlyenhanced competitiveness. The impact of thesemulti-dimensional interventions is evident in thesubstantial margin expansion of 560 bps in SegmentEBITDA witnessed between FY 2018-19 and FY 2023-24even in the face of heightened competitive intensity andinflationary pressures.
The FMCG Businesses will continue to leverage yourCompany's institutional strengths as a key source ofsustainable competitive advantage viz. strong backwardlinkages with the Agri Business, a deep & widemulti-channel distribution network, cuisine knowledgeresident in ITC Hotels Limited (a group entity), packagingknowhow and the robust R&D platforms nurtured byLSTC. Structural advantages arising out of distributedmanufacturing footprint, anchored on state-of-the-art ICMLsstrategically located proximal to large demand centres, willbe increasingly leveraged to drive rapid growth of the FMCGBusinesses. With enhanced scale and margin expansion,the FMCG Businesses are expected to make increasinglyhigher contributions to your Company's profit pool,thereby setting the stage for further value enhancementopportunities.
The Agri Business has been a strong backbone and akey source of competitive advantage for your Company'sFMCG and Cigarettes Businesses. The scope andscale of operations have grown manifold over the yearsand currently encompass nearly 3.5 million tonnesof annual volume throughput in 22 states and over20 agri-value chains. In recent years, the Business haspivoted its strategic focus towards rapidly scaling up itsValue-Added Agri Products portfolio to accelerate growthand margins. With policy enablers in place, your Companyis scaling up NextGen agriculture value chains that aredigitally enabled and climate smart, and re-structuringthe back end into a robust network of FPOs. This willfurther strengthen the sourcing network and facilitate thedevelopment of customised supply chains for traceableand identity-preserved sourcing of agri-commoditiesand in augmenting the product portfolio with theaddition of value-added products such as staples for theFood Service segment, medicinal and aromatic plantextracts etc. Towards enhancing the competitivenessof domestic agri-value chains, fostering newbusiness models and augmenting value creationopportunities, your Company has successfully scaled upITCMAARS - a crop-agnostic 'phygital' full stackAgriTech platform integrating NextGen agri-technologiesand solutions - to seamlessly deliver hyperlocal andpersonalised solutions to the farming communitywhilst creating new and scalable revenue streams andstrengthening sourcing efficiencies.
The Paperboards, Paper and Packaging Businesseshave made significant progress in recent years interms of enhanced scale and profitability improvement.While the current year performance was impacted bylow priced Chinese & Indonesian supplies in globalmarkets including India, soft domestic demand conditionsand unprecedented surge in wood prices, strategicinterventions continue to be made in areas spanningplantations, sharpening the product portfolio and thruston structural cost management. Representationscontinue to be made at appropriate forums throughIndustry associations for suitable measures to safeguarddomestic industry and development of economicallyviable alternatives for plantations on degraded forestland. Strategic investments have been stepped upin areas such as pulp import substitution, proactivecapacity augmentation in Value-Added Paperboardssegment, decarbonisation of operations, deployment ofIndustry 4.0 technologies and towards nurturing robustinnovation platforms. Your Company has also recentlyentered into a Business Transfer Agreement to acquire thePulp and Paper Undertaking of Aditya Birla Real EstateLimited (Century Pulp and Paper), which is expected toadd significant scale and economies to existing operationswith potential for further capacity expansion, providelocational advantage for efficient customer servicing andproximity to key raw material sources, mitigate operationalrisks through multi-site operations and enhance resilienceacross industry cycles through portfolio diversification.The focus going forward is to fortify market leadershipin the fast-growing Value-Added Paperboards segmentby augmenting scale, driving cutting-edge innovation torapidly scale-up single use plastic substitutes as a newvector of growth, building structural advantage throughproduct mix enrichment and scaling up the use ofemergent technologies such as Industry 4.0 to enhanceoperational efficiency, reduce wastage and costs.
Your Company continues to build a dynamic'Future-Tech' enterprise powered by state-of-the-artdigital technologies and infrastructure ('Mission DigiArc')across the value chain adding significant impetus to digitalmarketing, digital commerce, digital products and digitaloperations. Your Company today, is a pioneer in adoptionof cutting-edge digital technologies across strategic
impact areas spanning Consumer Experience, BusinessModel Transformation, Smart Operations and EmployeeExperience.
Sustainability continues to be a critical focus area. YourCompany is actively pursuing its bold Sustainability 2.0agenda comprising multi-dimensional interventions indecarbonisation, building green infrastructure, scalingup carbon sequestration, promoting climate-smart andregenerative agriculture, restoring biodiversity throughnature-based solutions, enhancing water stewardship,creating an effective circular economy and sustainablepackaging solutions, building climate resilience & adaptivecapacity of value chains and developing inclusive valuechains that can support 10 million livelihoods by 2030.
Disruptive business models and value propositionsanchored at the intersection of future frontiers ofDigitalisation and Sustainability form an integral partof your Company's strategic roadmap going forward.NextGen business models such as ITCMAARS in theagri-ecosystem, tech-enabled cloud kitchens in the foodservice space, sustainable paperboards and packagingsolutions customised for end-use with focus on singleuse plastic substitutes, are being progressed to actualisethese opportunities. Value-accretive acquisitions, jointventure and collaborations continue to be proactivelypursued towards accelerating growth and value creation.
The resilience, agility and adaptive capacity demonstratedby your Company is a testament to the talent, determinationand untiring efforts of its pool of dedicated professionals,associates and partners. Your Company's diverse talentpool of professional entrepreneurs, 'proneurs', have theunique opportunity to nurture categories, products andbrands from ideation to execution. This talent pool isbeing harnessed not only to create winning products andservices for today, but also to seize larger opportunitiesas they emerge from the expanding horizons of yourCompany's Businesses.
Your Company's Board and employees are inspiredby the Vision of sustaining your Company's position asone of India's most admired and valuable companies,creating enduring value for all stakeholders, includingthe shareholders and the Indian society. The vision ofenlarging your Company's contribution to the Indianeconomy is driven by its 'Nation First: Sab Saath Badhein'credo anchored on the core values of Trusteeship,Transparency, Empowerment, Accountability and EthicalCitizenship, which are the cornerstones of your Company'sCorporate Governance philosophy.
Inspired by this Vision, driven by Values and poweredby internal Vitality, your Directors and employees lookforward to the future with confidence and stand committedto creating an even brighter future for all stakeholders.
On behalf of the Board
S. PURI Chairman & Managing Director
(DIN :00280529)
Kolkata S. DUTTA Director & Chief Financial Officer
22nd May, 2025 (DIN : 01804345)
1MF WEO April ’25
2
Average Global Real GDP growth from 2010 to 2019
3
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