Mission Statement, Vision, & Core Values (2025) of ITC Limited.

An Overview of ITC Limited

General Summary of ITC Limited

ITC Limited, established in 1910, is one of India's foremost conglomerates, with a diversified presence in FMCG, hotels, paperboards, and packaging, agribusiness, and information technology. The company began its journey as a tobacco company and has since expanded its portfolio to include a wide range of consumer goods.

As of 2024, ITC's product offerings include renowned brands such as Aashirvaad (attas and staples), Sunfeast (biscuits, cakes, and instant noodles), and Bingo! (snacks). The company has also ventured into personal care and health products, further strengthening its market position. The total sales for ITC in 2024 reached approximately ₹1.5 trillion, indicating robust growth.

Company's Financial Performance in the Latest Financial Reports

In the fiscal year 2023-2024, ITC reported record-breaking revenues of ₹1,52,211 crores, reflecting a growth of 15% compared to the previous financial year. The company’s operating profit rose to ₹41,400 crores, with a margin expansion driven by improved efficiencies across divisions.

The growth in the FMCG segment was particularly noteworthy, contributing approximately ₹22,000 crores to the total revenue, showcasing an increase of 20% year-on-year. The company's premium offerings and strong distribution network played a crucial role in this impressive growth. In addition, ITC's paperboards and packaging segment experienced a revenue increase of 12%, owing to heightened demand in both domestic and international markets.

Introduction to ITC as a Leading Company in its Industry

ITC Limited stands out as a leader in the Indian FMCG sector, fortified by its strong brand equity, diverse product range, and extensive reach. The company has consistently focused on sustainability and innovation, positioning itself favorably against competitors. ITC's commitment to adding value to its supply chain and investing in community development further enhances its reputation as a responsible corporate entity.

With initiatives aimed at reducing carbon footprint and promoting sustainable practices, ITC continues to set industry benchmarks. Investors and stakeholders may find it advantageous to explore more about ITC's operational strategies that contribute to its sustained success.

Mission Statement of ITC Limited

Mission Statement of ITC Limited

ITC Limited's mission statement is focused on delivering sustainable growth while enhancing the quality of life of the communities it serves. The company aims to achieve this through a diverse portfolio of products and services that include FMCG, hotels, packaging, paperboards, and agribusiness. The mission serves as a guiding framework for ITC’s long-term objectives and ethical business practices.

Core Component 1: Sustainable Growth

ITC emphasizes the importance of sustainability in its operations, aiming to create value not just for shareholders but for all stakeholders. In FY 2022-23, ITC reported a revenue of ₹ 1,55,352 crore (approximately $18.6 billion), showcasing its commitment to robust and responsible growth.

Core Component 2: Quality Products and Services

Quality is central to ITC's mission. The company invests heavily in R&D to develop superior products. For instance, in 2022, ITC launched over 30 new products in the FMCG sector alone. The ITC Aashirvaad brand holds a significant market share, with a reported sales growth of 21% in the current fiscal year.

Core Component 3: Community Welfare

ITC is dedicated to uplifting communities through various initiatives. The company has invested around ₹ 1,000 crore (approx. $120 million) in the last five years towards social initiatives, focusing on areas like education, health, and environmental sustainability. Its rural development programs have benefited more than 4 million farmers by improving their livelihoods.

Vision Statement of ITC Limited

Vision Statement Overview

ITC Limited's vision for 2024 emphasizes sustainable growth, market leadership, and value creation across its diverse portfolio. The company aims to be a leader in various sectors, balancing economic performance with environmental stewardship and social responsibility.

Commitment to Sustainability

A core component of ITC's vision is its commitment to sustainability. The organization strives to achieve Net Zero Greenhouse Gas emissions by 2040. In its latest sustainability report, ITC declared that it had already reduced its specific energy consumption by 29.38% since 2005.

As of 2023, ITC has invested approximately INR 5,000 crore in sustainable practices, focusing on waste reduction and resource efficiency across its operations.

Market Leadership Goals

ITC aims to be a market leader in various segments, including FMCG, hotels, paperboards, and packaging. The company's target is to achieve a market share of over 20% in its core categories by 2027. For instance, ITC's market share in the biscuits segment is currently at 16.8%.

In the FMCG sector, ITC's revenue has grown year-on-year by 12.3% in Q2 FY2023, showcasing its expanding footprint in the industry.

Value Creation for Stakeholders

ITC Limited emphasizes its vision of creating value for all stakeholders, which includes shareholders, customers, and the community. For the financial year ended March 2023, ITC reported a net profit of INR 16,398 crore, representing a 10.9% increase compared to the previous year.

The company aims to provide a consistent dividend payout, with a target of 80% dividend payout in the coming years, reinforcing its commitment to return on investment for shareholders.

Innovation and Growth

Innovation remains a key pillar of ITC's vision. The company invests 2.5% of its annual revenue in research and development to foster innovation across its product lines. In the FMCG segment, ITC has launched over 50 new products in the last year, reflecting its commitment to meeting consumer needs.

ITC's revenue from new product innovations has contributed 25% to its FMCG segment, highlighting the effectiveness of its innovation strategy.

Community Engagement and CSR Initiatives

ITC Limited places significant importance on community engagement and corporate social responsibility (CSR). The company has pledged to spend 2% of its average net profits for the last three financial years on CSR activities. In the fiscal year 2022-2023, ITC contributed INR 290 crore towards various community initiatives.

In terms of outreach, ITC has reached over 6 million beneficiaries through its various social programs focused on education, health, and livelihoods.

Core Values of ITC Limited

Integrity

The core value of integrity at ITC Limited emphasizes transparency, honesty, and ethical conduct in all business dealings. This principle ensures that the company builds trust with stakeholders and maintains a solid reputation.

ITC demonstrates its commitment to integrity through various initiatives such as:

• Code of Conduct Training: Offering training sessions for employees to reinforce ethical behavior; in FY 2022-2023, over 90% of employees completed this training.
• Whistleblower Policy: An anonymous reporting system that encourages employees to report unethical practices. In the last fiscal year, 35 reports were submitted, with 100% investigated promptly.

Environmental Sustainability

Environmental sustainability is a critical value for ITC Limited, reflecting its commitment to reducing its ecological footprint. The focus is on sustainable resource utilization and minimizing waste.

Key examples of ITC's environmental initiatives include:

• Water Neutrality: ITC became the first major company in the world to achieve water neutrality in 2019, and as of 2024, it has maintained this status.
• Renewable Energy Usage: The company derives over 47% of its total energy requirements from renewable sources, significantly reducing carbon emissions.

Table: ITC Limited's Sustainability Initiatives (2024)

Innovation

Innovation is a driving force behind ITC Limited's growth strategy, encouraging creativity and the development of cutting-edge products and services.

Examples of ITC’s innovative practices include:

• Investment in R&D: The company invested approximately ₹1,200 crore in research and development in FY 2022-2023, focusing on product innovation across its sectors.
• Product Development: Launched over 500 new products in the last fiscal year, integrating advanced technology and consumer insights.

Customer Centricity

Customer centricity underpins ITC Limited's business approach, aiming to exceed customer expectations through quality and service excellence.

ITC has demonstrated this value through several initiatives:

• Customer Feedback Mechanism: Engaging with over 1 million customers annually to gather insights that shape product offerings.
• Quality Assurance Programs: Implementing rigorous quality checks that have led to a 99.5% satisfaction rate among consumers.

Respect for People

Respect for people is central to ITC’s workforce strategy, fostering an inclusive environment that values diversity and employee well-being.

Key initiatives reflecting this core value include:

• Diversity and Inclusion Programs: Currently, 30% of leadership positions are held by women, showing commitment to gender equality.
• Employee Health and Safety: Implemented comprehensive health programs, resulting in a 20% reduction in workplace incidents in the past year.