ITC's paperboards mill at Bhadrachalam is one of the most modern and contemporary plants of its kind in the world. The mill manufactured over 300,000 tonnes of paperboards in 2005-06 (more than 7 times its first gross production in 1980-81). The raw material requirement for this level of production was 269,516 tonnes of wood, apart from waste paper and some special pulp.

ITC has effectively leveraged its need for wood fibre to provide significant opportunities to the economically backward by helping them raise plantations. ITC's forestry project aims at building grassroots capacities to initiate a virtuous cycle of sustainable development. At the heart of this comprehensive greening project is ITC's state-of-the-art Research & Development Centre, consistently striving to improve the productivity of several tree species in order to give attractive land-use alternatives to traditional farmers and wasteland owners.

ITC's Research & Development Centre has evolved high-yielding, site-specific, disease-resistant clones and a comprehensive package of plantation management practices. This knowledge of best practices is continuously transferred to the growers right from the delivery of clonal saplings to completion of harvest. ITC distributed 49 million high quality clonal saplings to farmers during the year.

Apart from the obvious benefits of increasing the green cover, this effort also directly contributes to in situ moisture conservation, groundwater recharge and significant reduction in top-soil losses due to wind and water erosion. As a result of the leaf-litter from multi-species plantations and the promotion of leguminous inter-crops, depleted soils are constantly enriched.

Over 91% of the Bhadrachalam mill's total wood requirement came from plantations under its forestry project. Only 1,301 tonnes (0.5%) was sourced from private farmlands. The mill also utilised 74,662 tonnes of waste paper. Its bamboo requirement of 22,881 tonnes was met from government authorised/approved open market sale.

ITC does not buy wood-based raw materials from unidentified sources. The Bhadrachalam mill, the only unit in ITC with pulping facilities, is ISO 9001 certified. It ensures traceability of all the wood used in its manufacturing process.

ITC is committed to greening 100,000 hectares in a decade under its forestry programme. This would far exceed the wood fibre requirement for its paperboards business. This will create livelihood opportunities for 1.2 million people in tribal areas and sustain ITC's position as a 'carbon positive' corporation.