A report business on

"Key growth factors"

Presented to:

Prof. Sriparna Basu

School of Administration FORE

Presented by:

Devesh Gupta (271135)

Sent on

28 November 2018
LETTER OF TRANSMISSION
TO
Prof. Sriparna Basu
School of Administration FORE
B 18, Colonia NRPC, Block B, Institutional Area of Qutub, New Delhi, Delhi 110016

Since
Devesh Gupta
School of Administration FORE
B 18, Colonia NRPC, Block B, Institutional Area of Qutub, New Delhi, Delhi 110016

28 November 2018

The respected Ma'am,

This is a great pleasure for me to include my business report on '' Key growth factors for
ITC '' .The report consists of information valuable about how ITC ltd. it invested
progressively in different growth engines and occupied a significant participation in
the FMCG consumer market .

I'm waiting positively listen to your comments and answer any question or doubt it can have.
You can contact with me on 8437709761 .

Thanks for your time and attention.

Yours Sincerely,
Devesh Gupta
Table of Contents Page No.

o Executive summary 1

o Introduction 2

o Main Body 3

o Conclusion 10

o Recommendations 11

o Appendix 12

o References 17
Executive Summary
Paper packaging and cartons have become key segments for the progressive investment of
several companies. In the FMCG sector, as we know, there is a very low entry barrier for any
player in the market, therefore, a low profit margin for each company. Therefore, each company
must innovate continuously and find a better product. Therefore, the Report provided provides
a brief study on the importance of huge and progressive investments in multiple growth
engines, such as the carton and packaging industry, from the perspective of economic importance
and talks in detail about the operations in India of ITC ltd. It expands how ITC became the
market leader and the strategies used by the JRC for its sustainability. The report will conclude
with recommendations for future sustainable growth.
Introduction
The expectation that the FMCG market grow in India is a CAGR of 20.6 percent and is
expected to react with US $ 103.7 billion for 2020 compared to the US $ 49 billion in
2016. wait that he expenditure total in consumption in India it accelerate to a CAGR
of 22.57 percent of 2016-2021 and total consumption expenditure is expected to reach almost
US $ 3,600 billion by 2020 compared to US $ 1,595 billion in 2016. Not only the urban market
has shown remarkable growth, but the rural market is also expected to Consumer goods
consumption in India grows to US $ 220 billion by 2025 from US $ 29, 4 billion in 2016. See
figure 1, figure 2 and figure 3 in the appendix.

To optimally use this market potential , ITC is trying to emerge as a player modern
and diversification of fast-moving consumer goods (FMC G) . The The company is
currently the market leader in consumer goods in India, a pioneer in the 'hot hot' eliering 'and
ranks second in the hotel chain in India, the clear market leader in the Indian cardboard and
packaging industry and the main business player agricultural of the country .

Paper and paper packaging are components essentials to serve

different industries worldwide for the different packing requirements. The packaging
based on Paper is a method simple, unique and profitable to transport, protect and preserve
a large number of products in various industries . For the highlights of the financial status of
ITC ltd., See Figure 4 in the appendix.
Main body

Market research and market trends of carton packaging

The global market of packing of paper and paperboard it divides according to
him degree, the application, the type of product and the region. Refering to quality,
the packing global packaging paper and paperboard It is segmented and coated without
any type of "kraft" paper bleach , White Line Chipboard (WLC), label paper, folding
cardboard box (FBB), solid bleached sulphate (SBS), and others (liquid packaging grade,
parchment paper, vegetable paper and filter paper). On the basis of application,
the market Global paper and packing of paper is sectorized in food, beverages, medical
care, personal care, home care and others (construction, education and advertising, etc.). If we
talk about the type of product, the market global packaging of paper and paper it
divides in boxes of corrugated cardboard, cardboard and flexible paper containers.

 The trends current at health market are adopting new ways of packaging medical
products. A of the Applications vital for the packaging industry paperboard it's
the health sector . With a demand world of packaging materials for health care that
reaches USD 33 , 4 billion, it is expected that the market grows around 4 Annual% until
2020. In addition, this is mainly due to Asia, while other regions have also registered
one expansion meaningful . The volume and revenues of Global Paper Packaging
Material Market 2015-2021 are shown in figure 5 in the appendix.

 The segment of beauty care in cardboard is has become an application important to the
market. Consumer attitudes towards beauty products have arrived to two simple factors that
are Emotions and confidence. Emotional responses to how products are
presented have become a common trend in the current packaging industry. Therefore,
manufacturers come with new presentable packaging techniques to satisfy the needs
of customers and this trend is expected to boost the market during the forecast period.
 The materials and the structures of advanced carton packing they provide food processors
an increasingly wide range of benefits, such as higher results microwave cooking,
convenience on the go and retail differentiation further , improvements in recycled
cardboard are are developing so partially or totally, from recycled cardboard, most popular
for frozen products and shelf products, such as cookies, chocolates and cereals, which is
changing the phase of the cardboard packaging market.

The key players of Paper and Cardboard Global packaging market

The players important involved in the manufacture of paper and cardboard packaging
products it implies Amcor Ltd, Cascades Inc., ITC Ltd., DS Smith Plc., Packaging
Corporation of America, Clearwater Paper Corporation, Mondi
Group, Metsa Group, RockTenn Company, Nippon Paper Industries Co. Ltd., Svenska
Cellulose Aktiebolaget, Smurfit Kappa Group plc , Stora Enso Oyj, International Paper
Company and Sappi Limited, among others. The total revenues of the paper packaging
market are shared between different key players that shown in the bar chart (figure 6) of the
appendix.

A value creator to ITC, “Cardboard and paper packaging”

ITC's Packaging & Printing Business is the great converter of value added of the carton
packaging in Asia. Convert more than 70,000 tons of paper, cardboard and latasa per
year in different types of value-added packaging solutions for the food and beverage
industries, personal products, cigarettes, liquors and consumer goods.

The division was created in 1925 as a strategic backward network for the ITC Cigarette
business and at present is the company of the most sophisticated packaging in
India. Cutting-edge technology, world-class quality and a highly qualified and determined
team have combined to position ITC as the First-choice supplier of high value-added
packaging. Investments of ITC ltd. in different sectors they are shown in the pie chart (figure 7)
and the income in figure 8 of the appendix.

ITC customers ltd. For cartons and packaging

The Division supplies packaging of value added to the different FMCG
business ITC . The list of customers of ITC is formed by several national and
international companies recognized as Nokia, Colgate Palmolive, Pernod Ricard, Diageo,
British American Tobacco, Philip Morris International, Agio Cigars, UB Group, Tata
Tetley, Tata Tea, Reckitt Benckiser, Radico Khaitan, Akbar Brothers, Surya Nepal, VST
Industries, etc.

Account with three packaging factories in Tiruvottiyur near Chennai (in the
south), Munger in bihar (in the east), and Haridwar (At Northeast India), the
Company offers a wide range of products in packaging backed by their experience in
packaging over decades and with a technology updated which makes it a true "Single
window for packaging " .

Products lines
ITC's packaging business consists of 3 main product lines which are mentioned below.
 Cardboard packaging
 Flexible packing
 Tobacco packaging

Cardboard packaging
ITC he is a market leader in providing the needs of liquor, mobile phones and foods. ITC
offers a broad range of value additions for cardboard packaging like UV offset
printing, foil stamping, relief, window patches and coated cartons, etc.
Flexible packing
Flexible packaging is a segment with a potential High growth, backed with investments in
technology and equipment from world-class suppliers. ITC offers
a solution complete network for pre-press film laminates, home blowing, molded film,
extrusion lamination, melt coating, pouching specialty bags manufacturing. This is
supported for the internal manufacture of cylinders and the previous press support .

Tobacco packaging
ITC offers a wide range of product lines that include boxes foldable , Outers, Soft Cup
labels, package inserts, printed cork dump, printing envelopes, internal frames. ITC
creates Value-added shoulder cases for cigars and cigarettes . ITC complete it demand
of containers for more than 80 billion cigarettes one year at the national level, and supplies
packaging for 15 billion cigarettes s One year for the export market to the main tobacco
companies.

Innovation and development of new products

The ITC has improved the value of some of the brands plus followed with superior
package of aging look-and-feel, using the quality of raw materials and combinations of
processes, and an in-house pre-press Design Center.

Production process equipment products it's a colony of innovations of packaging. The

tea m uses a unique process to serve the customer's packaging through
its manufacturing system . The specifications are produced in depending on the needs of the
clients, depending on which they generate various packaging solutions . The efficiency of
the packaging is tested simulating the factory conditions of the customer . ITC
has laboratories for your 3 product lines to test the packaging requirements.
Packaging ecological
ITC Packaging has been a pioneer in the offer of Green Packaging, which implies use of raw
materials from sustainable sources and the conversion of same into an installation that is
100% split of renewable energy (Wind Energy). This clean energy initiative, along with
other sustainability initiatives, helps the packaging company contribute significantly to the ITC
being a positive carbon, positive water and wastewater company. recycling
waste solids . The friendly environment ITC operational process involves

Pulp and bleaching process

 The extraction of chlorine and hypo with ClO2 and bleaching with peroxide that leads to
the elimination of dioxins and furans in the finished product and international standards are
combined with the reduction of BOD, COD and AOX in the effluents
 CIO2 is produced in situ instead of stored in cylinders

Preparation of Stock

 The hot dispersion process discards heavy metals and phthalates in recycled printed
material
 Retention aids of a single component to several components

Dry end

 OBA-based OBAs are replaced with OBA approved by the FDA that have better
organoleptic properties
 The ammonia is removed in the coating colors.
 Sulfuric acid is removed in the pH control water in the cooling towers

Design of organic products

The high performance board called Neo White Bliss is made of recovered fiber that meets the
parameters of performance and aesthetics . - Neo White Bliss is manufactured from pre-
consumer carton waste that is recovered from the Bollaram Unit and shipped to the Kovai
Unit, where the PE coating is separated from the cardboard using technology tip . It has
attributes such as excellent fiber tear that make it suitable for Blister card
packaging. The product also acts as a substitute for traditional solvent-based thermal seal
lacquers for the more environmentally friendly water-based thermal seal lacquers. It represents
approximately 20% reduction in GSM compared to recycled boards.

Antifungal board for soap cartons replaces the PE coating with the fungicide coating that protects
the soap from fungal growth due to moisture and helps to keep your freshness. It completely
eliminates the need for an inner soap cover and can be used in direct contact with the soap,
saving both money and time in the filling lines.
Conclusion
The Stationery area , Specialty in Paper and Packaging It recorded strong growth during
the year, both in terms of sales and operating profits. The year marked a significant growth in
the segment of cardboards thanks to a best capacity utilization in the Kovai unit (see
figure 9 In the Appendix) and the addition of Paper Machine V at the Bhadrachalam
factory. In fulfillment of your commitment to a echo n Ambient friendly ,
the cellulose plant free of elemental chlorine The company, the only one of its kind in the
country, continues to meet world-class environmental standards. The superior quality of the
ECF pulp has allowed the expansion of the market of value-added cartons.

The Packaging and Printing business took advantage of its recent investments in technology,
graduation to expand its range of offerings to include a wider variety of contemporary packaging
formats. During the year in course , the business entered the high-growth flexible
packaging business with the participation of world class teams. Therefore, this segment has
the potential to obtain good earnings figures for ITC ltd.
Recommendations
Although the company is doing an excellent job in the area of paper and cardboard packaging, it
must meet its sustainable packaging objectives that are

 Social responsibility : - Community health and welfare, indigenous rights.

 Performance and cost: the company must focus on cost optimization without
compromising functional properties
 Renewable materials: - The The company must continue to reduce carbon footprints
judiciously using trees and bioplastics.
 Effective recovery: - The Recovery can be effective by focusing on three key
parameters: Reduce, recycle and reuse
 Optimize the materials: - The Raw materials can be used efficiently by sizing, light
weight, etc.
 Renewable energy : - Wind, solar and hydraulic energy can be used effectively to
reduce long-term operating costs
 Clean production: - This could be achieved by reducing emissions, recovering water,
discharging effluents
Appendix

Figure1

Figure 2
Figure 3

Figure 4
Figure 5

Figure 6
Figure 7

Figure 8
Figure 9
References: -
 Arc of the industry . ( 2018) ) .Paperboard-Packaging Market, Obtained
from: https://industryarc.com/Report/15969/paperboard-packaging-market.html . Data
accessed on 11-26-2018.
 IBEF . ( 2018 , January ). Fast Fast Consumer Goods (FMCG ) , Obtained
from https://www.ibef.org/download/FMCG-Report-Jan-2018.pdf . Data accessed on 11-26-
2018.
 ITC . ( twenty 13 ). Sustainability report , Obtained
from https://www.itcportal.com/sustainability/sustainability-report-2013/economic-
performance-01.aspx . Data accessed on 11-26-2018.
 ITC Limited Citizen First . (twenty 06 ) .Sustainability Report, Obtained
from https://www.itcportal.com/sustainability/sustainability-report-2006/html/itc-pspd-
agribusiness.aspx . Data accessed on 11-26-2018.
 PN Sridharr (2015, November 6). Packaging innovations in the ITC PSPD, Obtained
from: http://www.greenco.in/gco/casestudy/Packaging%20Innovations%20at%20ITC%20PSPD-
2015.pdf . Data accessedel 11-27-2018.
 Transparency market research. Paper and cardboard packaging market: global analysis of the
industry, size, participation, growth, trends and forecast 2016-24, Retrieved
from :https://www.transparencymarketresearch.com/paper-paperboard-packaging-
market.html . Data accessed on 11-26-2018.
 Suman Layak (April 16, 2018). ITC explains how plans to diversify business through FMCG in
bold, Retrieved from: https://economictimes.indiatimes.com/industry/cons-products/fmcg/itc-
explains-how-it-plans-to-diversify-business-through-fmcg-bold-
play/articleshow/63763594.cms. Data accessed on 11-26-2018 .
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