Economic Impact
India’s remarkable growth story, over the past few years, has brought to the fore new opportunities for business. Corporates have created significant value for the nation, a dimension of which is visible in the enhanced market capitalisation and increasing tax revenues to the Government. However, this growth has not been equitable and inclusive. Despite the country’s GDP in PPP terms ranking amongst the top 5 in the world, India’s Human Development Index has been hovering at the bottom of the scale for many years now.

It is abundantly clear today that the security of future generations depends on economic growth being sustainable and inclusive. Rapid progress with callous depletion of natural resources and disparities in wealth will have consequences that will impact the sustainability of business, the economy and the nation.

ITC’s abiding vision to be an exemplar in Triple Bottom Line performance provides the driving force to sustain growing shareholder value with the superordinate goal of creating value for the society. We practice this philosophy of a ‘commitment beyond the market’ by not only driving each of our businesses towards international competitiveness, but also by building the competitiveness of the larger value chain of which we are a part.

• Over the past decade, value-added by ITC has grown at a compound annual rate of more than 10% to overRs. 76,000 crores, representing nearly 1.2% of the value-added by the nation’s Industry sector.

• Nearly 77% of such value-added accrued to the Exchequer, providing the much-needed resources for deployment in developmental priorities.

• Foreign exchange earnings during this period amounted to nearly US $ 2.8 billion. Agri exports constituted nearly 65% of these earnings, comprising well over 2% of the country’s agri exports, effectively linking the Indian farmer to world markets.

• Total Shareholder Returns, measured in terms of increase in market capitalisation and dividends, grew at a compound rate of over 25% per annum, over the last 12 years.

• The Company has consistently achieved a Return on Capital Employed (ROCE) well in excess of its costof capital.

• It is a measure of the continued trust reposed in the Company by consumers that our brands today account for three of the top five FMCG brands in the country.

• ITC’s investments of over Rs. 6,000 crores in the last decade to enhance the competitiveness of its businesses support direct employment to the tune of 21,000 and indirect employment across the value chains of nearly 5 million people, whose livelihoods are substantially linked to their association with ITC.

• Investment plans of over Rs.15,000 crores over the next few years would further enlarge ITC’s economic contribution.

ITC’s engagement across diverse value chains spans the farming community, small enterprises and shopowners in the small, medium and cottage sectors. The Company’s new FMCG businesses alone support the competitiveness of over 150 vendors in the SME sector thereby enabling them to adopt best practices, induct superior capabilities, and eliminate reprehensible practices like child labour.