Paperboards, Specialty Papers & Packaging The superior quality of ITC’s Elemental Chlorine Free pulp has enabled expansion of the market for value added paperboards.

The Paperboards, Specialty Papers and Packaging segment recorded strong growth during the year both in terms of sales and operating profits. Segment revenue grew by 11%.

Production during the year touched 390,458 MT as compared to 365,819 MT in 2005-06. The Company’s state-of-the-art ECF (Elemental Chlorine Free) pulp mill, the only one of its kind in the country, is a source of sustainable competitive advantage to the business. The superior quality of the ECF pulp has enabled expansion of the market for value added paperboards.

The business also made good progress in respect of the 2 major capacity augmentation projects comprising (a) a 90,000 TPA paperboard machine and (b) a 100,000 TPA paper machine for manufacturing uncoated paper including branded copier grades.

The Company’s Packaging & Printing business is the leading provider of value added paperboard packaging in the country. The business supports the competitiveness of the Company’s Cigarette and other FMCG businesses through discerningly superior and innovative packaging solutions. The new facility at Haridwar was completed during the year, adding manufacturing capacity both in the paperboard cartons and flexibles segments.

Agri Business The e-Choupal initiative found special mention in Government of India’s Economic Survey 2006/07.

Overall Agribusiness revenues during the year grew by an impressive 38% driven by exports of soya, rice and leaf tobacco.

The e-Choupal network was further scaled up during the year while simultaneously focusing on enhancing its reach and productivity. It is a matter of pride and deep satisfaction that the pioneering e-Choupal initiative found special mention in Government of India’s Economic Survey 2006/07 for its transformational impact on rural lives - a rare honour and perhaps the first for any private company in the country.

The rural distribution initiative made good progress, nearly doubling the channel throughput. On the rural retail front, 18 ‘Choupal Saagar’ stores are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

Leaf tobacco exports during the year grew by an impressive 21% by value to touch an all-time high. This sterling performance was achieved through a combination of focused business development efforts and customised product and service offerings to both existing and new customers.