ITC Limited

Report and Accounts 2012   

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Supporting Inclusive Growth

ITC’s Businesses and value chains support over
5 million livelihoods

ITC’s aspiration to create meaningful societal value is manifest in its strategy to enhance the competitiveness of value chains. It is therefore, a conscious strategy to deliver social development in the context of its businesses and by inclusive value chains that encompass the most disadvantaged sections of society, especially those residing in rural India. This approach has led to an enduring engagement with rural communities with the creation of sustainable livelihoods at the heart of its strategy.

Value Chain Integration and Community Development Projects at ITC

Farm to Food Products Value Chain

ITC’s business synergies enable integration of efficient agri-sourcing and provide market drivers to build competitive agri value chains that ensure that a larger part of consumer spends reaches the farmer. For example, ITC’s atta brand, Aashirvaad provides opportunities for identity preserved procurement creating a wheat agri value chain. Farmers gain from the growing market share of Aashirvaad due to ITC’s business synergies. ITC has also gained from an efficient supply chain and identity preserved procurement, which not only adds value to its business but in the process has also created an inclusive model of business that empowers small and marginal farmers through the e-Choupal network.

Tree to Textbook Value Chain

A wood-fibre value chain implemented by ITC’s Paperboards and Paper Business has provided 56.2 million person days of employment todate to poor tribals and marginal farmers. A conscious strategy to promote clonal propagation of fast growing and hardy species through intensive R&D, has today led to significant wasteland development and greening of over 125,000 hectares todate through the Social and Farm Forestry Programmes. These renewable plantations, cultivated by tribals and small farmers provide a competitive source of wood pulp to ITC’s Paperboards and Paper Business. Such plantations enable ITC to offer the greenest products in the country such as Classmate notebooks and Paperkraft business and copier paper. This provides synergy and value to farmers through a tree-to-textbook agri value chain. In addition, the introduction of an innovative agro-forestry model has led to synergising tree growing with crop production, addressing issues of food and wood security simultaneously as well as the conservation of precious natural resources.

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