Pension Obligations

The Company administers various funds in respect of Employees' Retirement Benefit Schemes through duly constituted and approved independent trusts.

Provident Fund and Family Pension contributions in respect of unionised staff, in accordance with statutes, are deposited with the Government.

The pension plan obligations covers all permanent employees of the Company, both in management and unionised levels.

The Company carries out actuarial valuation annually and based on such valuation, if required, the defined benefit plans are funded fully. The funds are sustained at all times, at a level necessary, to meet any commitment for superannuation. The contribution is made entirely by the Company.

Financial Assistance from Government

The Central as well as State Governments support initiatives in a number of priority sectors. ITC benefits from some of the applicable government schemes. The Paperboards and Specialty Papers business, under the liberalised state incentive scheme of the Governments of Andhra Pradesh and Tamil Nadu, enjoys incentives such as deferment of sales tax for setting up a new unit or modernisation/ expansion/ diversification of existing units in the State.

Locally Based Suppliers

The considerable size and wide geographic dispersion of ITC's operations necessitates working with an array of suppliers. To ensure sustainable competitiveness, all the businesses have state-of-the-art facilities and use the most contemporary technologies to ensure that the customer gets the best quality and value. Specialised production machinery is sourced globally, including from reputed Indian manufacturers. Top class machinery for utilities like boilers, gensets, air-conditioners, refrigerators, electrical and electronic systems are sourced from Indian or India-based suppliers. Competent Indian contractors carry out the construction of new factories, hotels and implementation of large-scale technology upgrades.

A very significant proportion (around 84%) of raw materials used by ITC businesses are indigenous and most of it is agriculture based. Apart from value of raw materials, stores and spares are consumed in the normal course of manufacture. Indigenous stores and spares comprise nearly 70% of total consumption in terms of value.

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