PADMASHRI DR. S. P. BALASUBRAHMANYAM UNVEILS MANGAL DEEP AGARBATTIS

Hyderabad, December 15, 2003: ITC Ltd has launched 'Mangal Deep', a new brand of incense sticks (agarbattis), in an innovative 'fragrance - locked' pack. Mangal Deep was unveiled by the noted singer Padmashri Dr. S. P. Balasubrahmanyam. This 'fragrance-locked' packaging ensures the sanctity of the agarbatties aroma.

Mangal Deep agarbatties will be backed by an aggressive mass media campaign that directly addresses a key consumer concern gained from extensive research conducted across the country - "In worship you offer fresh flowers and prasad to God. But about agarbattis..." Mangal Deep is designed to address this aspect of pure worship.

Mr. R. Srinivasan, Member, Corporate Management Committee, ITC Limited, said, "The launch of 'Mangal Deep' is yet another manifestation of ITC's continued commitment to enhance the business competitiveness of India's small and medium enterprises from which it sources its FMCG products. ITC will lend the benefits of its proven competences in brand building, national marketing and distribution to the cottage units that manufacture agarbattis. ITC greets agarbatti consumers with the Mangal Deep offering and a traditional NAMASTE signifying that I salute the God in you"

Mr. V. M. Rajasekharan, CEO, ITC's Agarbatti Business, added, "Mangal Deep has been carefully developed and positioned after extensive consumer research in relevant markets. For the first time in the Indian market, an agarbatti brand will offer top of the line 'fragrance-locked' packaging, consistent quality and a choice of pack sizes and fragrances at a price of as little as 20 paise per stick. We are confident that Mangal Deep will create a new paradigm in India's agarbatti industry".

Mangal Deep offers a choice of three pack sizes - the extremely economically priced Rs.2/- for ten sticks, Rs.10/- for twenty sticks and Rs.30-/- for 100 sticks. Initially, Mangal Deep will be available in "3-in-1" (Sandal, Bouquet and Rose), along with individual packs of Bouquet and sandal fragrances.

The 'fragrance-lock' is a unique concept for which packaging was developed by ITC. As a trial offer customers will be offered sample packs of Mangal Deep in different fragrances, which they can experience and then chose the fragrance of their choice.

ITC is initially launching Mangal Deep in Andhra Pradesh. The product will be available in 80,000 outlets across the state. It will be launched in phases across the country over the next six months.

Small-scale units, such as Ananth Agarbathi Co and Sankranti Agarbathi Co. based in Bangalore, are manufacturing Mangal Deep in accordance with the strict quality parameters evolved by ITC.

ITC's new FMCG initiatives are modeled on outsourcing the production from small medium and cottage sector. The Company aims to enhance the competitiveness of the small and medium scale enterprises through its complementary R&D - based product development and marketing strengths. It is part of the Company's stated philosophy of "Commitment beyond the Market" to consciously contribute to enhancing the competitiveness of the larger value chain of which it is a part. ITC sees it as part of its super-ordinate goal to create "Enduring Value for the Nation."