CSR project of ITC. RMCET Raj shetye

MUMBAI UNIVERSITY, MUMBAI
R.M.C.E.T. Ambav Page 1 M.M.S PROJECT
A
SOCIAL RELEVANCE PROJECT
ON
“A STUDY OF THE CORPORATE SOCIAL RESPONSIBILITY OF ITC WITH
SPECIAL REFERENCE TO E-CHOUPAL SYSTEM.”
SUBMITTED TO
MUMBAI UNIVERSITY, MUMBAI.
IN PARTIAL FULFILMENT OF THE AWARD OF THE DEGREE OF
MASTER OF MANAGEMENT STUDIES
SUBMITTED BY
“Mr. RAJ SUHAS SHETYE.”
UNDER THE GUIDANCE OF
“MRS. RASHMI GHATE PODE”
THROUGH
THE PRINCIPAL,
RAJENDRA MANE COLLEGE OF ENGINEERING AND TECHNOLOGY,
AMBAV, DEVRUKH.
MASTER OF MANAGEMENT STUDIES.
ACADEMIC YEAR 2017-2018

GUIDE CERTIFICATE
This is to certify that project titled “A STUDY OF THE CORPORATE SOCIAL
RESPONSIBILITY OF ITC WITH SPECIAL REFERENCE TO E-CHOUPAL
SYSTEM.” is successfully completed by Mr. RAJ SUHAS SHETYE. During the
SEMESTER IV, in partial fulfilment of the Master of management Studies recognized by
the University of Mumbai for the academic year 2017-2018 through THE PRINCIPAL OF
RAJENDRA MANE COLLEGE OF ENGINEERING AND TECHNOLOGY,AMBAV,
DEVRUKH.
This project work is original & not submitted earlier for the award of any degree, diploma
or associate ship of any other university/ Institution.
Name:
Date:
(Signature of the Guide)

DECLARATION
I, the undersigned MR. RAJ SUHAS SHETYE, hereby declare that this project written and
submitted by me under the guidance MRS.RASHMI GHATE PODE. It is my original
work. The empirical findings and data collected by me are to the best of my knowledge. I
have not copied it from any report submitted to any of the university / institutions.
I understand that any coping is liable to be punishable by the authorities.
Place:
Date:
MR. RAJ SUHAS SHETYE.
(MBA/MMS 2017-2018)

ACKNOWLEDGEMENT
A social relevance project is the phase of the activity during my study in which I am expected
to expand my creative thinking ability and to get the study. It is a matter of great satisfaction
and pleasure to present this report on A STUDY OF THE CORPORATE SOCIAL
SYSTEM. I take this opportunity to owe my thanks to all those involved in my project work
I put on record my sincere thanks to my college, Rajendra Mane College of Engineering And
Technology, Ambav, Devrukh for giving me such an opportunity. I am extremely grateful to
MRS. RASHMI GHATE PODE for the encouragement, discussions and critical assessment
of the project.
It was a good experience for me to make project on ITC Company. I am greatly obliged to
MRS.RASHMI GHATE PODE, other teachers, who have shared his expertise and
knowledge with me without which the completion of project would not have been possible.

EXECUTIVE SUMMARY
During the social relevance project on “A STUDY OF THE CORPORATE SOCIAL
SYSTEM.”
I have tried to cover the aspects of overall information of the CSR.
 This report talks about the company first, and then further it talks about the CSR
aspects of the company.
 Afterward it proceeds towards the theoretical aspects of the project report and about
various research methods used for the data collection.
 Further it talks about various data analysis and interpretation of graphs.

Index
Sr. No Particulars Page. No
1 Chapter I - Introduction of the Study 01
1.1 Introduction
1.2 Statement of Research Problem
1.3 Objectives of the Study
1.4 Importance of the study
1.5 Scope of the Study
1.6 Research Methodology
1.6.1 Data Sources
1.6.2 Research instruments and method
1.7 Literature review
01 – 05
2 Chapter II - Organizational Profile 06
2.1 Name of the Company.
2.2 History of the Company
2.4 Product lines of the company
2.5 Achievements & Awards.
2.6 Recent trends in company.
2.7 Future Plans 06 – 11
3 Chapter III – CSR activities of ITC Company 12
3.1 Introduction
3.2 Meaning of E-Choupal
3.3 Traditional model
3.4 E-Choupal and traditional model
3.5 E-Choupal plan of action
3.6 E-Choupal advantages.
3.7 Other CSR activities of ITC
3.8 Some Other CSR Initiatives By Other Companies
12 – 26
4 Chapter IV - Data Analysis & Interpretation 27
4.1 Introduction
4.2 Data Analysis & Interpretation
4.3 SWOT analysis of company
4.4 Reasons for success of high profit of ITC
27 – 37
5 Chapter V - Findings, Suggestions & Conclusion 38
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion
38 – 40
6 Appendices 41
7 Bibliography 41

List of tables
Table.
No.
Particulars
Page
No.
3.5.1 Comaparison of E-Choupal and Conventional System 15
3.7.1 E-Choupal at a glance 17
4.2.1 ITC‘S performance since inception of E-Choupal. 28
4.2.2 Profit before tax of ITC 29
4.2.3 Profit after tax of ITC 30
4.2.4 Dividend per share of ITC 31
4.2.5 Sales of ITC 32

List of Graphs
Graph
No.
Particulars Page No.
4.2.1 ITC‘S performance since inception of E-Choupal. 28
4.2.2 Profit before tax of ITC 29
4.2.3 Profit after tax of ITC 30
4.2.4 Dividend per share of ITC 31
4.2.5 Sales of ITC 32

List of Images
Image No. Particulars Page No.
2.1.1 company logo 06
2.3.1 Cigarettes of ITC's 08
2.3.2 Hotels 08
2.3.3 Paperboards & Specialty Papers 08
2.3.4 Packaging & Printing Business 08
2.3.5 Agricultural Industry 09
2.3.6 Packaged foods & confectionery 09
2.3.7 Branded Apparel 09
2.3.8 Toiletries 09
2.3.9 Education & Stationery Products 09
2.3.10 Information Technology 10
2.3.11 Safety Matches 10
2.3.12 Incense Sticks 10
4.3.1 SWOT analysis of ITC 35

Chapter I
Introduction to the study
1.1 Introduction
1.2 statement of Research Problem
1.3 Objectives of the Study
1.4 Importance of the study
1.5 Scope of the Study
1.6 Research Methodology
1.6.1 Data Sources
1.6.2 Research instruments and method
1.7 Literature review

Chapter 1
Introduction of study
1.1 Introduction to study:
In today's world, facing rapid shifts and staged economic, social and environmental
challenges, issues related to societal accountability, sustainability and business ethics are
gaining more importance, especially in the business sector. Business goals are indissoluble
from the societies and environments within which they work. Whereas short-term economic
gain can be pursued, the failure to account for longer-term social and environmental impact
makes that business practice untenable.
This course is designed to begin participants to the concept of Corporate Social
Accountability (CSA), operationalzing the term and ensuring a cohesive definition of CSR
and its application for corporate sustainability. CSR is on hand as a management concept and
a course that integrate social and environmental concerns in business operation, and a
company‘s communications with the full choice of its stakeholders.
Social responsibility is significant for every business. Economic criterion alone cannot justify
the existence of business organisations. Social, moral and ethical aspects of business
decisions are as important as economic aspects to judge the success of a business. A socially
in charge firm not only meets the needs of the society but also creates long-term and
sustainable bazaar for its products. For long time in the past profit maximisation was the sole
business idea but this view no more hold good. If companies want to survive and maintain
swelling in the market, if they want to become market leaders, they have to sacrifice part of
the profits in favour of groups other than owners. This outlook of business recognises the
concept of social responsibility. It entails business organisation‘s obligation to look after the
interests of society beyond their economic interests. Traditionally, if goods and services to
society, maximising corporate profits and creating job opportunities were view as social
responsibilities of industry.
1.2 Statement of research problem:
―CSR‖, and constantly contested concept since its start, has attracted global notice in a
progressively included world economy. Although it is not a contemporary concept, (CSR) is
developing into a global norm. Today, multinational removal corporations (MNMCs) are

expected to uphold and practice CSR for the socio-economic penalty of their operations in
host country However, the inability to institute a comprehensive definition and accepting of
CSR has led to either incoherent application of it or complete discount for it.
This study is inspired by the partial debate among proponents and opponent of CSR on a shift
in the taking on of CSR by MNCs. On the one offer, there is an increasing social order for us
to take a leading role in meeting society‘s needs since these needs have go above the
government‘s capability to complete them. The government is conventionally view as the
sole agent for expansion but proponents of CSR clash that businesses should share this
accountability allowing for that MNCs depend on civilization for labour, land or resources,
there are mounting outlook for them to promote sustainable development. On the other hand,
it is argue that companies state their intention to donate to the development of local
community but translate that aim to action remainder unseen.
1.3 Objectives of study:
1. To study the Corporate Social Responsibility of ITC with special reference to E-Choupal
system.
2. To find out how Corporate Social Responsibility is serving as a determinant of corporate
success.
3. To gain more knowledge about how to conduct CSR activities.
4. To study how CSR activities are beneficial for the growth of company.
1.4 Importance of the study:
The term corporate social responsibility gives a probability to all the workers of an
organization to give towards the culture, environment, and state and so on. We all live for
ourselves but hope me income for others and doing rather for them is a different reaction
overall. Bringing a smile to people‘s living just because your society has pledge to educate
the poor kids of a scrupulous village not only gives a sense of inner pleasure but also pride
and happiness. One should never recall the importance of culture and environment in our life.
It is indeed high time when we also start idea about people around us who are less lucky and
happy than us. Corporate social responsibility gives an occasion to organizations to move
towards the betterment of the humanity and makes it a healthier place to live.
Corporate social responsibility goes a long way in creating a helpful word of mouth for the
organization on the sum total. Doing something for your culture stake holder customers

would not only take your trade to a higher level but also guarantee long term growth and
accomplishment corporate social responsibility theatre a critical role in making your brand
trendy not only among your competitor but also media, other organization and most
significantly people who are your direct clients. People develop a helpful feeling for a brand
which takes the idea of educating poor kids planting more trees for a greener environment,
bringing electricity to a village, providing service to people and so on. You really do not have
to devote much in corporate social responsibility actions. Do not undertake CSR activities
only to gain hype but because you believe in the cause. There are many organization which
tap isolated villages, some of which are even to no avail as a proposal of corporate social
duty.
Corporate social responsibility also gives employees a emotion of matchless happiness.
Believe me, employees take conceit in taming poor people or kids who cannot afford to go to
regular schools and receive formal education. CSR activities reinforce the bond among
workforce People develop a practice of working jointly as a single thing to help others.
1.5 Scope of the study :
Corporate Social Responsibility or CSR makes for renowned business brains as well when
one consider the knock-on effect that social and ecological responsibility bring to the
businesses. For example corporations exist in a symbiotic connection with their environments
(the term environment refers to all the machinery of the external environment and not to
natural environment on your own) where their exchange with the larger environment
determine to a large point how well they do in their profit in search of events
The growth of CSR as a concept dates back to the 1950‘s when the first stirrings of social
scruples among supervision practitioners and theorists were felt. The writings of Keith Davis
initial in the 1950‘s and rolling into the 1970‘s speak of the need for business to engage in
socially in charge behaviour and to ensure that culture as a whole does not mislay out in the
process of revenue making behaviour by business CSR as a concept was opening to be taken
acutely by the time the 1970‘s dawned and during the tumultuous decade when large business
and their minion were accused of several misbehaviour pertaining to unbridled disregard for
the setting and society as a complete

1.6 Research methodology :
1.6.1 Data sources:
The data is purely secondary in natural world and the data has been obtained only all the way
through a choice of articles existing on various websites.
There is no scope to gather primary data in any form as the topic is hypothetical in nature and
does not contain any kind of survey to be full.
1.6.2 Research method:
The research commence by searching for the articles associated to the topic CSR (Corporate
Social Responsibility).Then have a detailed data of the same.
Then, study the steps taken and pains made in this field by different Indian companies.
Taking some example of Indian company and amplification the efforts made by roll their
contributions. After identify them, there is study of the grades it had on the trade and what
helpful results came not in.
Then illumination by example of various study that how it has lead to boost in profits and is
one the reason of commercial success. Also there is extraordinary importance on an Indian
company which can elucidate the topic healthier and help to realize the objectives.
1.6.3 Literature review
1. George Pohle and Jeff Hittner in their study on ―ATTAINING SUSTAINABLE GROWTH
THROUGH CORPORATE SOCIAL RESPONSIBILITY‖ have dyed that CEO‘s have been
long responsible to a varied group of stakeholders-workforce and community as well as
investor. The life of these affairs is now changing in customs that notably affect corporate act
in part due to the coming out of the internet and progressing globalization company are
becoming responsible for labour issue and working setting in their partner as well as their
own.
2. Paul Hohnen in their paper on ―CORPORATE SOCIAL RESPONSIBILITY: An execution
guide for business‖ have said that there is no ―one –size-fits –all ―method for pursue a
corporate social accountability (CSR) approach. Each fixed has unique character that will
shape how it views its effective context and its major social errands. Each will vary in its
awareness of CSR issues and how much it has already done to implementing a CSR
approach.

There are six steps to implement CSR-
1. Manner a CSR assessment
2. Enlarge a CSR strategy
3. Develop CSR commitment
4. Apply CSR commitments
5. Statement and verify progress
6. Assess and improve

Chapter II
Organizational Profile
2.1 Name of the Company.
2.2 History of the Company
2.4 Product lines of the company
2.5 Achievements & Awards.
2.6 Recent trends in company.
2.7 Future Plans

Chapter 2
Company Profile
2.1 Name of the company:
Image No.2.1.1
2.2 Company history:
ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India
Limited, and the company went communal on 27 October 1954. The former decades of the
company's activities centred mainly around tobacco products. In the 1970s, it diversified into
non-tobacco businesses. In 1975, the company acquire a hotel in Chennai, which was
renamed the ITC-Welcome group Hotel Chola' (now renamed to Welcome Hotel Chennai).In
1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British joint venture,
with the share divided between ITC, British American Tobacco and various independent
domestic shareholders in Nepal. In 2002, Surya Tobacco became a subsidiary of ITC and its
name was changed to Surya Nepal Private Limited.
In 2000, ITC launched the Expressions range of greeting cards, the Wills Sport range of
casual wear, and a wholly owned information technology subsidiary, ITC InfoTech India
Limited.
In 2001, ITC introduced the Kitchens of India brand of ready-to-eat Indian recipes, which are
produced and sold internationally, at first in cans and later in retort packages, and more
recently online and at festivals. In 2002, ITC entered the confectionery and staples segments
and acquired the Bhadrachalam Paperboards Division and the safety matches company
WIMCO Limited.ITC diversified into body care products in 2005. ITC Ltd (ITC) was
incorporated on August 24, 1910, under the name Imperial Tobacco Company of India Ltd.

to make cigarettes and tobacco. In 1975, the company entered the hospitality business with
the acquisition of ITC–Welcome group Hotel Chola. The name of the Company was changed
to I.T.C. Limited in 1974. In recognition of the Company's multi–business portfolio
encompassing a wide range of businesses – Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri–Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery – the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
ITC is one of India's foremost private sector companies with a market capitalisation of nearly
US $ 14 billion and a turnover of over $ 5 billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,
among India's Most Respected Companies by Business World and among India's Most
Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable
(Company) Brands', in a study conducted by Brand Finance and published by the Economic
Times. ITC also ranks among Asia's 50 best performing companies compiled by Business
Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri–Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri–Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery. As one of India's most valuable and respected corporations, ITC is widely
perceived to be dedicatedly nation–oriented.
ITC's Agri–Business is one of India's largest exporters of agricultural products. ITC is one of
the country's biggest foreign exchange earners ($ 3.2 billion in the last decade). The
Company's 'e–Choupal' initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT
services and solutions to leading global customers. ITC Infotech has carved a niche for itself
by addressing customer challenges through innovative IT solutions.

Its beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata, was the centre
of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926,
by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)
Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways
than one. It was to mark the beginning of a long and eventful journey into India's future. The
Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks. The
Company's ownership progressively indianised, and the name of the Company was changed
to I.T.C. Limited in 1974.
2.3 Product lines of company:
Image No.2.3.1
Image No.2.3.2
Image No.2.3.3
Image No.2.3.4
Hotels: ITC Welcome group Hotels, Palaces and Resorts is
India'nsecond largest hotel chain with over 80 hotels. Based out of
Hotels Division Headquarters at the ITC Green Centre in Gurgaon,
ITC Welcomgroup is also the exclusive franchisee of The Luxury
Collection brand of Starwood Hotels and Resorts in India
Cigarettes: W. D. & H. O. Wills, Gold Flake, Navy Cut,
Insignia, India Kings, Classic Verve , Classic, Silk Cut,
Scissors, Capstan, Berkeley, Bristol and Flake
Paperboards & Specialty Papers:ITC Bhadrachalam Paperboards
Limited&ITC Tribeni Tissues Division is now under one roof -->
Paper Boards and Specialty Papers Division. There are 4 Units
under one umbrella - Bhadrachalam, Tribeni, Bollarum and
Kovai.ITC PSPD
Packaging & Printing Business: India's Largest Packaging Solution
provider with In-house film manufacturing capability. Multi-location
manufacturing facilities to cater to domestic and export requirements.
Product Range includes Cartons (Folding & Fluted), Flexibles (Reels &
Pouches), Shoulder Box, HL's & CBO, Printed Cork Tipping, Gay wraps.
ITC PPB

Image No.2.3.5
Image No.2.3.6
Image No.2.3.7
Image No.2.3.8
Image No. 2.3.9
Agricultural Industry: Agri-Business, Leaf Tobacco,
Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay,
Aqua Feast and Peninsular
Packaged Foods&Confectionery: Kitchens of India,
Aashirvaad, Sunfeast, Mint-O, Candyman, Bingo
Snacks.
Branded Apparel :Wills Lifestyle, John Players,
Miss Players
Toiletries: Essenza Di Wills, Fiama Di Wills,
Superia, Vivel Di Wills, Vivel.
Education & Stationery Products :
Expressions, Classmate, Paperkraft

Image No. 2.3.10
Image No. 2.3.11
Image No.2.3.12
While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is gaining market share in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel and Greeting Cards.
2.4 Recent trends in company:
1. India's ITC Ltd Dec-Qtr Profit up About 17 Pct
jan 19 (reuters) - india's itc ltd ::dec quarter profit 30.90 billion rupees versus profit of 26.47
billion rupees last year. accord forecast for dec sector profit was 28.32 billion rupees.dec
quarter revenue from operations 99.52 billion rupees versus 135.70 billion rupees last
year.dec section special gain 4.13 billion rupees.
2. ITC Ltd says hotels performance hurt by highway liquor ban in qtr
Information Technology: ITC Infotech
Safety Matches: iKno, Mangaldeep, VaxLit,
Delite(Discontinued) and AimBrands acquired
from Wimco (Western India Match Company):
Ship , Homelite (Swedish Matches)
Incense Sticks: Mangaldeep, Spriha, Yantraani

Oct 27 (Reuters) - ITC Ltd :Says hotels performance hurt by highway liquor ban in quarter
.Says legal cigarette industry volume under cruel pressure due to jagged increase in tax
incidence under GST.Says on FMCG, off take in retail channel has normalised more and
more through the section, wholesale waterway is yet to fully recover.
3. India's ITC Sept-qtr profit up about 6 pct
Oct 27 (Reuters) - ITC Ltd ::Sept sector profit 26.40 billion rupees - TV. accord forecast for
Sept district profit was 26.44 billion rupees .Sept section total returns 103.14 billion rupees.
Profit in Sept area last year was 25 billion rupees; profits from operation were 136.17 billion
rupees. The profit and profits alert were first source from TV and later inveterate from a
company squash release at the National Stock Exchange. The proceeds from operation
number were later established as total takings.
4. ITC Ltd says filed suit against Britannia
ITC Ltd: Filed suit adjacent to Britannia as Britannia copied deal dress and colour grouping
of ITC's 'Sun feast Farmwife Digestive All Good' biscuit. Suit alongside Britannia is not
expected impact operation of company.
5. India's ITC Ltd June-qtr profit up 10 pct
ITC Ltd: India's ITC Ltd - June-quarter net profit 23.85 billion rupees . India's ITC Ltd -
June-quarter revenue from operation 131.57 billion rupees . accord forecast for June-quarter
net profit was 24.66 billion rupees . India's ITC Ltd - net profit in June-quarter last year was
21.66 billion rupees as per IND-AS; revenue from operation was 121.50 billion rupees.
6. ITC Ltd gets members' nod for issue of bonus shares
ITC Ltd: Gets members' nod for topic of extra shares.
2.5 Future plans of company:
1. ITC‘s savings in Agri back-end will take care of scale up in the breathing category, while
newer category will also boost the company‘s border with the agri back-end.
2. ITC‘s potatoes will have two exclusive gifts, one is going to be low sugar potato and other is
leaving to be anti-oxidant wealthy potato.

Chapter III
CSR activities of ITC Company
3.1 Introduction
3.2 Meaning of E-Choupal
3.3 Traditional model
3.4 E-Choupal and traditional model
3.5 E-Choupal plan of action
3.6 E-Choupal advantages.
3.7 Other CSR activities of ITC
3.8 Some Other CSR Initiatives By Other Companies

Chapter 3
CSR activities of ITC Company
3.1Introduction:
Farming is the spine of Indian economy deliver 23 percent of GDP, and utilize 66 percent of
work compel. In light of the green uprising, India's horticultural yield has enhance to the
point that it is as one independent and a net exporter of an assorted variety of sustenance
grains, yet most Indian agriculturists have stay poor. The causes take in leftovers of shortage
period rule and a rural plan in view of little, inefficient land prosperity. The other imperative
are frail correspondences, various go betweens, inordinate conviction on the storm deviation
between posts separated agro-atmosphere zones, and numerous others. The untoward
outcome is clashing quality and uncompetitive costs, making it difficult for the agriculturists
to offer his make on the planet showcase. ITC's trail-blasting react to these inconvenience is
the - e-Choupal plot; the single biggest thusly innovation based association by a corporate
article in provincial India that is change the Indian rancher into dynamic learning looking for
residents. Improving the information of agriculturists and hoisting them to another request of
strengthening. ITC expects to give the administrator of master gain on even the littlest
identity agriculturist alluring its intensity in the aggregate offer.
3.2E-Choupal:
E-Choupal is a Hindi word which implies – "Town meeting place". E-Choupal is a virtual
commercial centre where ranchers can execute straightforwardly with a processor and can
understand better cost for their create. E-Choupal makes utilization of the; physical
transmission capacities of current go-between and total, coordination‘s, counter-party hazard
and scaffold financing. In June 2000, ITC Limited propelled e-Choupal in India and now e-
Choupal has turned into the biggest Internet based intercession in rustic India. e-Choupal
intends to give agriculturists prepared access to trim particular constant data to enhance the
rancher's basic leadership capacity in this manner helping them to better adjust their
homestead yield to the anticipated request in Indian market.
E-Choupal, the Web-based activity of ITC's IBD, offers the rancher all data about items and
administrations they have to upgrade cultivate profitability enhance cultivate entryway value
acknowledgment and cut exchange costs. Agriculturists can get to the most recent
neighbourhood and worldwide data on climate, logical cultivating practices and market costs

at the town itself through the web-based interface in Indian dialects – Hindi, Marathi,
Kannada and Telegu. E-Choupal likewise encourages the supply of top notch cultivate
contributions and also buys of create at the agriculturist's doorstep.
3.3The Traditional Model:
Indian ranchers depend on Department of Agriculture, govt. colleges, insurance agencies and
so forth for different sources of info, for example, climate, current and logical cultivating
practices and protection cover. Agriculturists approach input retailers who source them from
wholesalers who are in coordinate contact with makers. After collect, agriculturists bring
these create to mandis; in little numerous parts consistently, where beans are sold to the
dealers and specialists of the handling organizations in an open clamor strategy. The
legislature encourages reasonable value disclosure and empower conglomeration of
merchandise, control these market yards. Fruitful bidders at that point bed the beans, measure
them, pay part money to the agriculturists, and transport the freight to the preparing units. In
any case, with each delegate the cost of create increments to the processor as mediator adds
his overall revenue to the cost in spite of the fact that the agriculturists get the most minimal
cost and edge in the entire chain.
3.4E-Choupal and the traditional model:
The principle fascination of e-Choupal is that it associates huge and little maker and clients
and dispenses with the need of mediators (who are basic in conventional market).E-Choupal
is a virtual market that unites merchants and clients. Geological separation never again limits
support of agriculturists. The primary obstacle of customary market is that data asymmetry is
natural in the market where as e-Choupal accommodates straightforward exchange. The
exchange time at the ITC center is not exactly at the Mandi i.e. 2 or 3 hours where as 1-2
days in Mandi. Some more focuses are:-
• Customer driven and not subject to delegates.
• Capable of being utilized for various exchanges.
• Easily versatile once it is confirmed.
• Uses neighborhood ability and nearby individuals to create neighborhood pioneers.
• Uses all the current foundations and lawful systems.
• Scientific method for examination, testing and weighing.

3.5 The e-Choupal plan of action:
The model is fixated on a system of e-Choupal, data focuses furnished with PC associated
with the Internet, situating in provincial cultivating towns. e-Choupal fills in as Choupal
(gathering place) and an online business center point. A nearby agriculturist going about as a
Sanchalak (organizer) runs the e-Choupal and the PC more often than not is situated in the
Sanchalak home. ITC likewise consolidated a nearby commission specialist known as the
Samyojak (colleague), into the framework as the supplier of calculated help. The basic
component of the e-Choupal framework and the way to dealing with the land and social
breath of ITC's system by enlisting a neighborhood agriculturist is the Sanchalak. Sanchalak
make confide in the public arena and all framework set up is made in his home. Sanchalak
gets commission for each exchange handled through the e-Choupal and furthermore profit by
expanded economic wellbeing that goes with the position – a huge preferred standpoint in
country Indian life. Sanchalak go about as open officer in ITC venture. Sanchalak total
rancher‘s contribution and additionally buy orders. Sanchalak experiences preparing of
essential PC utilization, fundamental business aptitudes, quality investigation of yield item
preparing and so forth. The Samyojak or participating commission specialists likewise
assume imperative part. He gain pay by giving calculated administrations that substitute to
the absence of provincial framework by giving data and market motions on exchanging
exchange. Samyojak is associated with continuous activity of e-Choupal framework,
permitting them income streams through giving administrations, for example, administration
of money, packing and work at acquisition center points, treatment of mandi printed material
as authorized principals for the retail exchange of the e-Choupal.

Comaparison of E-Choupal and Conventional System:
Conventional system vs. e-Choupal
Cost Conventional
market
e-Choupal
Trolly freight 100 Nil
Filling and weighing 70 Nil
Labor khadi karai 50 Nil
Handling loss 50 Nil
Sub total 270 Nil
Commission agent 100 50
cost of bag 75 Nil
Labor (stitching and loading) 35 Nil
Labor at factory (unloading) 35 35
Freight to factory 250 100
Transit losses 10 Nil
Sub total 505 185
Grand total 775 185
As percent of produce value 8 percent 2 percent
Table no.3.5.1
The E-Choupal System:
The earlier day's mandi shutting cost is utilized to decide the benchmark Fair Average
Quality (FAQ) cost at the e-Choupal, which is static for a given day. The data of mandi cost
is conveyed through e-Choupal entrance. In the event that and when association comes up
short, Sanchalak calls an ITC field agent. To start a deal the agriculturist conveys an example
of his deliver to the e-Choupal. The Sanchalak plays out the quality test in the rancher's
essence and must legitimize any finding to the agriculturist. These basic governing rules
guarantee straightforwardness in a procedure where quality testing and valuing occurs at

various levels. On the off chance that the agriculturist pitches his deliver to ITC, the
Sanchalak gives him a note catching his name, his town, quality test report, approx. amount
and contingent cost. The agriculturist takes the note from Sanchalak and continues with his
yield to the closest ITC acquirement center point. Some obtainment centers are essentially
ITC's plants that likewise go about as accumulation focuses.
ITC will probably have a handling focus with a 30 to 40 k.m. span of every rancher. At the
ITC center point, an example of the agriculturist‘s creating is taken and put aside for lab test.
Research center testing of the example for oil content is performed after the deal and does not
change the cost. The explanation behind this is ranchers having truly being abused are not
instantly ready to believe a research facility test. After such examination, the rancher's trunk
is weighed on an electronic weighbridge, first with the deliver and afterward without creates.
The distinction is utilized to decide the weights of his deliver. Subsequent to measuring, the
rancher gathers his installment in full at the installment counter. The rancher is additionally
repaid for transporting his product to the obtainment center point.
Each phase of the procedure is joined by proper documentation. The rancher is given
duplicate of lab reports, concurred rates and receipts for his record. Samyojak, who are
skilled at dealing with vast measure of money, are depended with the duty of installment
aside from at acquirement focuses. Samyojak additionally handle a great part of the center
coordination‘s, including work administration at center point, sacking, stockpiling mgmt.,
transportation from center point to elements and dealing with Mandi printed material for the
yields secured at the center point and for this he is paid a 0.5 percent commission.
Benefits of E-Choupal
―A quiet digital revolution is reshaping the lives of farmers in remote Indian villages.‖
E-Choupal delivers real-time information and customized knowledge to farmer‘s decision
making ability, securing better quality & price. The e-Choupal initiative also creates a direct
marketing channel, eliminating wasteful intermediation and multiple handling, thus reducing
transaction cost and making logistics efficient.
1. Digital transformation - ITC began e-Choupal with Soya grower in the villages of M.P. e-
Choupal tried to change the stereotype image of farmers of bullock cart. Farmers now log on
to the site through internet kiosks to order high quality input, get information on best farming
practices, prevailing market prices for their crops at home and abroad for the weather forecast
all in the local language. The e-Choupal site is also helping the farmers discover the best

price of their quality at the village itself. The site also provides farmers with specialized
knowledge for customizing their produce to the right consumer segments. The new storage
and handling system preserves the identity of different varieties right through the ‗farm gate
to dinner plate‘ supply chain. Thus, encouraging the farmers to raise their quality standards
and attract higher price.
2. Credit and Insurance - Farmers‘ low income and difficulty in accessing credit limits the
capacity to pursue opportunities within and outside the agriculture sector. ITC e-Choupal
proposes the solution of this problem by making partnership with financial institutions. e-
Choupal provide various types of loans like non-cash loans for farm inputs, loans to
sanchalak (sanchalak can better manage credit risk & have better access to farmers), direct
loans to farmers based on sanchalak recommendation, Insurance & risk management services
etc.
3. Leadership development - ITC uses involvement of farmers in content creation helps to
easily customize the information as per the local requirements. Participation of local farmers
ensures provision of adequate and decipherable information to e-Choupal, which can be
employed into the farming, or pricing of the produce. The increased participation in e-
Choupal develops local leadership quality in farmers. The farmers get attracted towards e-
Choupal due to increased profits, added services that he could get, saving in time and the
ability to use e-Choupal for many transactions.
E-Choupal delivers relevant technologies in the hands of the farmers, which can improve the
economic condition of the entire village. E-Choupal is one of the very few ICT projects in
India that has effectively utilized e-commerce transactions for poverty alleviation. ICT also
reduced the number of middlemen between producers and consumers. Now, simple
technology solutions are available to create networks in rural areas, which can function as
virtual marketplaces.
e-Choupal at a glance
States covered 9 States [M.P., Haryana, Uttaranchal,
Karnataka, A.P., U.P., Maharashtra,
Rajasthan and Kerala]
Villages covered 36,000
e-Choupal info kiosks 6,400
Empowered e-farmers 3.5 million
Table No.3.7.1

4. Other benefits to farmers are reimbursed for transport to the procurement hub of e-
Choupal.
1. The transaction time at the ITC hub is also much faster than mandi.
2. ITC has given recognition to integral partner in the supply process & not mere as agricultural
producer and thus elevating the level of respect of farmers. Similarly providing shaded
seating area while waiting for their paperwork shows ITC really care for farmers.
Cost and Revenue Stream
E-Choupal has been fruitful. It has decreased the cost of acquisition and the cost of travel and
the material taking care of cost. Acquirement exchange costs are lessened from the business
standard of 8 percent (ranchers brings about 3 percent and the processor causes 5 percent) to
2 percent (with agriculturist sparing all his 3 percent, and the processor ITC – sparing 3
percent). The aggregate cost caused on the activities so far has been Rs.50 million (Rs.35
million as capital cost towards PCs and other equipment at the booths and in addition focal
servers and Rs.15 million income consumption acquired towards entrance advancement,
individuals overhead and so forth.). Be that as it may, ITC has pick up advantage Rs. 20
million, which is what might as well be called full venture on 40 percent of the Choupals
(Kiosks). As far as future income, the surge is 52.1 million out of 2001-02 which lessens to
3.90 million of every 2005-2006 and for 2006-07 is evaluated as 2.70 million. Whereas
inflow in 2001-02 is 15.3 million where as 65.0 million out of 2005-2006 and evaluated as
85.0 million of every 2006-2007. The inward rate of return (IRR) on the venture works out to
be 21.55 percent.
In the mandi framework, there was an increase of 7-8 percent on the cost of soybean from the
ranch entryway to the processing plant door of this increase 2.5 percent was conceived by the
rancher while 5 percent was borne by ITC with e-Choupal, ITC cost are down to 2.5 percent.
In supreme terms, both the agriculturists and ITC spare about $ 6 for each metric ton.
Weakness of E-Choupal
In spite of the fact that e-Choupal takes out the broker and along these lines enables ranchers
to improve cost for what they develop, it does nothing to take care of the more principal issue
of the natural wasteful aspects made by such huge numbers of modest homesteads.
Moreover, it depends on foundation, which is frequently ailing in provincial groups. Power
and media transmission administrations can now and then be under 100 percent solid in a
portion of the spots where e-Choupal has been executed. At long last, despite the fact that

there is never again a mediator, e-Choupal can be not any more compelling than the
Sanchalak (organizer) in every group.
3.5Challenges:
As the power is usually available for only a few hours a day at on a sporadic schedule, the e-
Choupal computer cannot always be accessed when information is needed. Phase imbalances
leads to damage of equipments. Telecommunication infrastructure in villages is poor.
Telephone exchange also have limited battery backup. In addition, there is no local support
staff to maintain or troubleshoot telephone exchanges. The support team is also short-staffed.
Other challenges are: -
1. Illiteracy about computer in rural areas as well as rural population has low trust on electronic
system.
2. Selection of an educated, intelligent, reliable and matured person as a Sanchalak.
3. Improper knowledge about rural market.
4. Vicious circle of intermediaries (Adatiya & Brokers).
5. Improper and complex user interface on e-Choupal.
6. Lack of rules and regulation related to electronic Choupal.
7. Mistrust about inspection, testing and weighing of produce on centres.
ITC‘s example show the key role of IT in providing and maintaining by a corporation, but
used by local farmers – to bring transparency, to increase access to information, and to
catalyze rural transformation, while enabling efficiencies and low cost distribution that make
the system profitable and sustainable . Critical factors in the apparent success of the venture
are ITC‘s extensive knowledge of agriculture, the effort ITC has made to retain many aspects
to the existing production system, including retaining the integral importance of local
partners. ITC e-Choupal is committed to transparency and respect and fairness towards
farmers as well as local partners.
There are several issues which the company has addressed. Firstly, it is not just tweaking
around but a greater efficiency in the supply chain. One of the problems in redesigning
supply chains is how to use different tools, thus making the various players still own the
chain. Here, the farmer and the team are involved in painting the big picture, so there is
enthusiasm and a feeling of ownership.

Further, how do you avoid a channel conflict by finding space for the middle-men? Upton
also points out that the 'roll out, fix it, scale up' model is a new approach to strategic
management. The philosophy here is that the terrain has so many uncertainties that gaps will
exist. So, unlike in the past, where focus was on well-laid strategic plans, here you give
experimentation-based strategies more weight age.
3.6 The E-Choupal Advantage:
ITC's e-Choupal project is a winner—for farmers who get better remuneration and for the
company that's assured quality inputs for its business
1. IT for the Masses
The e-Choupal project covers over 35,000 villages in Madhya Pradesh, Uttar Pradesh,
Maharashtra, Karnataka, Andhra Pradesh, Rajasthan, Haryana and Uttaranchal providing
millions of farmers with critical information on farming. The Choupal services are being
delivered by over 6,000 Sanchalaks and over 17,000 Upa Sanchalaks to these remotest areas.
2. Multiple Benefits
Farmers can look at weather forecasts, order fertilizer and herbicide, and consult an
agronomist by e-mail when their crops turn yellow. At some e-Choupals they can even buy
life insurance, apply for loans and also check their children‘s exam results.
While much has been written about the social benefits of ITC‘s e-Choupal, the matter of the
fact is that the project was conceptualized with a pure business focus to create farmer
communities in villages to facilitate sourcing of high-quality farm produce for the company‘s
fast growing agribusiness.
3. Better Payment
In IT parlance, e-Choupal is an intelligent blend of applications like CRM and supply chain
management. For instance, by helping the farmer identify and control his inputs and farming
practices, and by paying more for better quality, ITC has been able to preserve the source and
improve the quality of produce.
The project was built using .NET. The first implementation of a Soya Choupal took eight
months but later extensions like the Aqua Choupal for aquamarine farmers took between six
and eight weeks.

Today e-Choupal is a flexible, easy to deploy solution. ITC Infotech provided an in-house
team of 25 to 30 people in the initial stage and this gradually came down to around 20 people,
and finally a five-member team to maintain the project.
The portfolio of commodities sourced has been vastly expanded to include maize, barley,
sorghum, and pulses, and the sourcing cycle is extended almost around the year. In the
commodities market, these two factors are helping ITC create a definite competitive
advantage.
The E-Choupal Roadmap
ITC now plans to leverage its e-Choupal infrastructure to sell third-party products, provide
rural market research services, and in the social sector, to provide services like health
advisories and enable e-governance.
ITC e-Choupal has embarked in on providing best of the class retailing and shopping
experiences to the rural consumers by building retail shopping complexes that provide
integrated facilities under one roof. Under the brand ‗Choupal Sagar,‘ these shopping
complexes house—a procurement centre, retail store, food court, farmer facility centre and
healthcare clinic.
In healthcare services, a pilot project has been launched along with leading corporate
healthcare service providers, to extend reliable and quality healthcare services to the remotest
villages. Several health camps conducted during the pilots are encouraging and the project is
in the midst of scaling up to other locations.
ITC e-Choupal is currently piloting delivery of quality education services to the rural areas
leveraging the physical and digital infrastructure developed for commodities sourcing and
consumer retail services.
3.7 Other CSR activities of ITC:
ITC: One of India‘s most valuable companies continuously strives to be a ‗Citizen First‘
entity. ITC has always attached critical importance to its responsibility to contribute to
preserving and enriching the environment.
ITC‘s contribution to sustainable development extends beyond Environment, Health and
Safety considerations. Through its philosophy of ‗Transforming Lives and Landscapes‘, ITC
is empowering farmers, greening wastelands, irrigating dry lands, creating women
entrepreneurs and educating rural children. Through these initiatives ITC has touched the
lives of over 2 million villagers across the country.

1. Ensuring Occupational Health & Safety
In keeping with ITC‘s commitment to provide a safe and healthy workplace for its
employees, the Company‘s Occupational Health and Safety norms go beyond the
requirements of the Factories Act, 1948
ITC also strives to go further than merely complying with International Labor Organization
(ILO) requirements on worker safety and health
2. Conserving Energy
ITC strives to conserve energy in all its operations by reducing specific energy consumption.
It also endeavors to increase the use of waste material for energy generation.
ITC Units continuously explore the potential for renewable energy. Different ITC Units have
undertaken initiatives to use renewable energy sources such as biomass, wind and solar
power.
3. Reducing Greenhouse Gases
As part of ITC‘s concern for global warming, the Company began efforts to become a
carbon-positive corporation.
India is a signatory to the Montreal Protocol of 1987. The Government of India has
consequently formulated a policy to phase out various Ozone Depleting Substances (ODS) on
a priority basis. All ITC Units have detailed plans in place to conform to this policy.
4. Restoring the Ecological Balance
ITC has effectively leveraged its need for wood fiber to provide significant livelihood
opportunities to economically backward wasteland owners.
The Company has undertaken extensive tree plantation, at all its Units, and major a
forestation and watershed development programmes across the country. So far some 35
million saplings have been planted over 16,000 hectares, generating employment for about
160,000 people.
Apart from the obvious benefits of increasing the forest cover this effort also directly
contributes to moisture conservation, groundwater recharge and a significant reduction in
topsoil loss due to wind and water erosion.
Leaf-litter continuously enriches depleted soils. This further reduces the consumption of
fertilizers and pesticides, thus preventing the chemical pollution of groundwater sources

5. Conserving Water
ITC has always endeavored to be a water-positive corporation by returning to the
environment more water that it uses. ITC‘s guidelines on water management require that all
Units minimize the use of water through conservation and recycling.
Treated effluent is reused or recycled wherever appropriate. ITC strives to restore to the
environment as much as possible of the precious water it uses. ITC Units have efficient
wastewater treatment plants that treat wastewater to standards of purity that are significantly
better than prescribed standards. ITC business units evaluate the potential for rainwater
harvesting and implement them wherever feasible. Rainwater harvesting initiatives have been
increasing over the years. The total rainwater harvested across all ITC units was around
250,000 KL in 2002-2003.
6. Enhancing Eco-Efficiency
The ITC Environment Health and Safety Policy and Codes of Practice require all Units to
take EHS issues into consideration in identifying and using resources. The Company
continually strives to:
1. Maximize the efficient use of resources
2. Eliminate unnecessary toxic and hazardous resources
3. Give preference to renewable, recycled, recyclable, reused and reusable resources
All ITC Units consistently endeavour to reduce generation of waste and maximize its
recycling. Wastes are systematically segregated as hazardous, bio-medical, nuclear, non-
hazardous, and biodegradable and non-biodegradable, to be appropriately treated, recycled or
disposed.
Nearly 44% of solid waste from ITC‘s paper business is currently recycled while solid waste
production has reduced by 12%.
3.8 Some Other CSR Initiatives By Other Companies Globally:
1. Aarti Drugs Ltd.
CSR Activities conducted As Contribution towards community development to fulfill
company‘s obligations towards the society, company organizes many activities on regular
basis including Blood donation, Eye Checkups, Health Check up Camps, Career guidance
workshops for young students. The company has also donations to hospitals. As a step
towards our objective of up gradation of primary education in the surrounding areas,
infrastructure, development of school was initiated and supported. Contributions was made to

primary schools of surrounding villages for painting of school buildings , purchase of
benches & furniture , sports equipments , records storage , facilities etc.
The efforts have been appreciated by employees and community at large. The company has
been providing maintenance services to the Palghar –Dhanu Taluka Sport association ground
located at Boisar.ADL donated Rs 4.27 Lacs for the construction of Shri Mahavir Jain
Charitra Kalyan Ratnashram.
2. Cadbury
Cadbury is a global confectionery and beverage manufacturer having its presence in more
than 200 countries worldwide. The company started its operations in India in 1948 and is the
leading manufacturer with 70% volume share of the chocolate market. The company is also a
key player in malted food drinks and sugar confectionery. The company after becoming a
founder member of BCF embarked upon social and community development initiatives and
attaches a lot of importance to social development initiatives.
Close to its factory at Malanpur near Gwalior, the company is working on a project targeting
women's empowerment and female infanticide. The initiative known as the ' Gurikha Project'
was launched in line with Cadbury India's philosophy to serve communities around its factory
locations in partnership with NGOs on a planned and sustainable basis. The projects key
focus is on various aspects of women's inequality, female infanticide and rights of the girl
child.
As per a recent survey, the project has succeeded in giving a sense of direction and
confidence to a large number of women of the area and a marked improvement has been
noticed in the general well being of the girl child. Apart from this, the company is also
working on issues like primary education, health & veterinary care, women's income
generation activities and strengthening of the village council. Under the income generation
programme, more than 10 self help groups with monthly savings ranging from 20,000-
50,000 rupees are functional in the area. Besides this, Cadbury has also helped build a pre-
school section to the village school building for girl children and a set of classrooms in
another village under the same Panchayat.
3. Cavinkare
Cavin Kare takes an active interest in supporting organizations working on social issues. C.K
Ranganathan is one of the founder-members of the Ability Foundation – an NGO working
towards the rehabilitation of the disabled. His belief took a firm shape when CavinKare
teamed up with Ability Foundation, led by Mrs. Jayashree Raveendran, an NGO that is

primarily working to integrate persons with disabilities into mainstream society;
instituted CavinKare ABILITY Awards to celebrate the exemplary spirit of rare breed of
individuals who have risen above their physical limitations to display that attitude is
everything. The annual awards which has been organized for 5 years in succession till date
has gained enormous recognition. Many celebrities, social workers, civil servants, and people
from all walks of life contribute to the cause by witnessing the awards and also contributing
in the manner they desire towards the just cause.
The CavinKare ABILITY Awards, a total of three awards, are given annually to salute
personal triumphs, the extraordinary spirit of achievement and a looking beyond one's own
self and physical limitations. The awards are
The CavinKare ABILITY Award for Eminence (1Award).
The CavinKare ABILITY Mastery Awards (2 Awards)
4. Fedex:
FedEx, which has set itself the objective of being the express carrier of choice, believes that
to achieve this end it has to be first seen as an employer and a neighbor of choice. And while
it has been voted among the best workplaces in the country, it is keen to prove that it is a
conscientious corporate as well.
"As an organization, we aim to be the preferred express carrier. For this, we also have to be
preferred neighbors," says Mr. Jacques Creeten, Managing Director, Indian Subcontinent, and
FedEx.
According to him, commitment to corporate social responsibility or CSR, at FedEx, goes
beyond the annual donation to a charitable organization.
Employees meet every six months to decide among themselves in what way the company can
touch the lives of people in their immediate environment.
A good example of such an engagement is FedEx's tie up with CRY in the field of education,
which not only aims at providing basic education to underprivileged children, but also at
supporting their overall development. It has donated Rs 15 lakh towards four CRY-supported
projects that is expected to impact the lives of 15,000 children.
As part of its involvement in a project called Arambh, the organization has been addressing
issues of women and children in the slums of Navi Mumbai.
5. LG Electronics
LG Electronics has hiked its budget for community development activities from Rs 2.5 crore
to Rs three crore. Of this, Rs 1.5 crore will be allocated to LG‘s 38 branch offices for use in

local activities. The remaining Rs 1.5 crore will be spent by the head office in the Greater
Noida area. As part of its initiatives in corporate social responsibility, LGE has also launched
a new initiative with New-Delhi based NGO Prayas that works for the upliftment of
underpriveleged children. Under ‗LG Prayas‘, LG will contribute a sum of Rs 25 lakh to
sponsor Prayas‘ social activities
In keeping with its plan of supporting organizations committed to social causes, LG will also
be tying up with Helpage India, an NGO that looks after the aged. It already has a tie-up with
another NGO Jan Shikhan Sansthan for generating self-employment opportunities for
unemployed in the form of tailoring, knitting etc.
Its community development initiatives include a focused plan for providing health services to
underprivileged children, animal healthcare and enhancing professional skills of unemployed
youth. It has also adopted 24 villages in the vicinity of its factory in Noida.
Prayas, which began as an emergency relief and rehabilitation initiative for destitute children
in Delhi in 1988, has expanded its area of operation to include institutional care, alternative
education and vocational training to neglected street and working children. It caters to the
needs of 50,000 slum kids in Delhi, Gujarat and Bihar, through 65 centers under 13 projects
and three shelter homes.
6. Nokia
Nokia with its mission to 'connect people' is the world leader in mobile communications. The
company is deeply concerned about ethical business practices and believes that personal and
organizational integrity is essential to long term relationships- whether with customers,
employees or stakeholders. The organization is committed to development initiatives and is
supporting numerous projects in partnership with several community and charitable
organizations worldwide. The focus of its community initiatives are centered on education,
corporate giving and disaster relief.
Keeping in line with their international programme of employee volunteering called 'Helping
Hands', Nokia India is involved with an NGO working with children with disabilities in
Delhi. Nokia's employees provide support to the NGO in terms of help and training in
accounts, human resources, IT, working with children and other activities. Environment is
another issue that is high on the agenda of the company. The packaging of all their phones is
made from recycled paper. Clear instructions are also provided for correct disposal of used
batteries with every handset.

Chapter IV
Data Analysis & Interpretation
4.1 Introduction
4.2 Data Analysis & Interpretation
4.3 SWOT analysis of company
4.4 Reasons for success of high profit of ITC

Chapter 4
Data analysis & Interpretation
4.1 Introduction:
In Chapter Four, analyst had talked about the examination plan and system, starting point of
the exploration, outline of the examination, variable of the examination, populace and test of
the exploration, apparatuses for information accumulation, advancement phase of the CAI
bundle, technique for information gathering, measurable investigation done in look into work.
Information investigation is thought to be imperative advance and heart of the examination in
inquire about work. After gathering of information with the assistance of significant devices
and systems, the following sensible advance, is to examine and translate information with a
view to touching base at exact answer for the issue. The information examination for the
present research was done quantitatively with the assistance of both graphic measurements
and inferential insights. The distinct factual strategies like mean, standard deviation and for
the inferential measurements Analysis of Co Variance were utilized amid information
examination.
4.2 Data analysis & Interpretation:
Data collection is not an end in itself. Data are not collected just so they can be filed away.
After data are collected they need to be analysed and interpreted, and then made available to
fellow managers or researchers in the form of reports or publications. Unless you complete
all these stages you will have wasted your time. Data analysis is the process of taking the
numbers collected in the field and summarising them into a numerical or graphic form that is
easy to interpret. This analysis or summary is called the ‗results'. Results alone do not have
biological meaning until they are put in a biological context. Data interpretation is the process
of giving biological meaning to the results. This is done by evaluating the results in light of
past research, and in the context of your own knowledge of the biological system you are
studying. The process of determining, what do the data tell me? and just as importantly, what
do the data not tell me?, makes data analysis and interpretation interesting and challenging.

1. ITC’s PERFORMANCE SINCE INCEPTION OF e-CHOUPAL
Table No.4.2.1
1. GROSS INCOME OF ITC : 2006-15 (Rs in crores)
Graph No. 4.2.1
Interpretation-The above graph of Gross Income Of Itc 2006-15 clearly depicts that the
gross income of company is rising since 2006 (e-choupal initaition).It fhas risen from
8069.37 in 2006 to 23678.46 in 2015.The figures for gross income has risen by 193.68% in
the span of 10 years.
1 2 3 4 5 6 7 8 9 10
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
gross income 8069 8827 9982 1119 1204 1358 1651 1963 2196 2367
0
5000
10000
15000
20000
25000
Gross income of ITC
Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
gross
income
8069.37 8827.11 9982.46 11194.47 12039.92 13585.39 16510.51 19636.53 21966.84 23678.46

2.PROFIT BEFORE TAX OF ITC:2006-15(Rs in crores)
Table NO. 4.2.2
Graph No. 4.2.2
Interpretation-In the above graph of PROFIT BEFORE TAX OF ITC it can be clearly seen
that the profit before tax of company is rising continously from 2006 onwards (i.e since the
e-choupal inititaive) with no deflection from the ordinary trend.It was 1228.95 in 2006 and
4825.74 in 2015.
1 2 3 4 5 6 7 8 9 10
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PBT 1229 1600. 1780. 2056. 2319. 2673. 3269. 3926. 4571. 4825.
0
1000
2000
3000
4000
5000
6000
Profit Before tax of ITC.
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PBT 1228.95 1600.3 1780.26 2056.19 2319.06 2673.07 3269.19 3926.7 4571.77 4825.74

3.Profit After Tax Of Itc: 2006-15(Rs In Crores)
Table No. 4.2.3
Graph No. 4.2.3
Interpretation-Theabove graph of PROFIT AFTER TAX OF ITC highlights the fact that
profit after tax (PAT) of the company is rising from 2006-15.The figures are comtinously
rising except in the year 2010-11 where it is somewhat constant because the difference in
figures of the two years is very small comapred to all the years.The diffrence is is only 43.95
crores.
1 2 3 4 5 6 7 8 9 10
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PAT 792. 1006 1190 1371 1593 2191 2235 2700 3120 3264
0
500
1000
1500
2000
2500
3000
3500
Profit after tax of ITC
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PAT 792.44 1006.26 1189.72 1371.35 1592.85 2191.4 2235.35 2699.97 3120.1 3263.59

4.Dividend Per Share (Actual) Of Itc:2006-15(Rs In Crores)
Table No. 4.2.4
Graph No. 4.2.4
Interpretation-The graph of dividend per share of itc shows the increasing trend of dividend
per share since 2006,the year in which e-choupal was started.The trend is noticeble from
2011-07 as in 2011 DPS(3.1) was at its peak from 2006 onwards but in 2012 ,it suddenly
dropped to 2.65 but soon the company recoverd in the following year 2013 with the same
figure of 3.1 in 2011.so the graph shows a falling and rising trend from 2011-13.
0.75
1
1.35 1.5
2
3.1
2.65
3.1
3.5
3.7
0
0.5
1
1.5
2
2.5
3
3.5
4
1 2 3 4 5 6 7 8 9 10
Divident per share of ITC
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DPS
(actual) 0.75 1 1.35 1.5 2 3.1 2.65 3.1 3.5 3.7

6. Sales Of Itc :2006-15 (Rs In Crores)
Table No.4.2.6
Graph No. 4.2.6
Interpretation- The graph of sales of ITC 2006-15,clearly depicts that the sales trend is also
increasing from 2006-15.But in the year 2006-07 the trend is nearly constant as the rise is
very small because of small increase in sales figure .The increase in sales figure from 2009-
10 is only of 40.99 crores.
1 2 3 4 5 6 7 8 9 10
year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales 2475 2516 3156 3712 4110 4847 6463 8208 9544 1053
0
2000
4000
6000
8000
10000
12000
Sales of ITC
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales 2475.
45
2516.44 3155.
90
3712.0
0
4109.8
5
4846.89 6463.1
5
8207.8
8
9543.
59
1052
9.60

2.3 Swot analysis of ITC Company:
A) Strengths in the SWOT Analysis of ITC:
1. Portfolio of Business: ITC has 6 strong and diverse businesses under its name which boasts
its total revenue and allows ITC to innovate and explore other business opportunities.
2. Strong Brands in various businesses: ITC is a strong house of brands with most of
its products leading the segments in which they operate. ITC owns some of the most popular
cigarette brands like gold flake and Classic. It also owns Sun feast, which is amongst the top
selling biscuits in India. Similarly, Aashirvaad, Yippee!, Engage, John Players and Bingo are
also amongst the market leaderin their respective categories. ITC‘s hotel and property
businesses are also doing well. With a portfolio like this, ITC has become one of the most
powerful conglomerates in India and is admired all over the world.
3. Effective Social Business Initiatives: ITC has developed a triple-bottom-
line strategy through which concentrates on developing the nation‘s economic, social and
environmental capital. ITC has brought in initiatives like E-Choupal, Choupal Pradarshan
Khet (CPK) which benefits the people at the grass root level, i.e. farmers. These initiatives
have also helped ITC to improve its corporate image from a traditional tobacco manufacturer.
4. Inter and Intra-divisional Synergy: ITC has successfully utilised the strengths of existing
business to foray into a newer products or categories. ITC leveraged the strong distribution
system of cigarette brands to create a channel for its FMCG products. Furthermore, ITC
leveraged the knowledge of food and bakery items from its hotel business to enter into
Packaged Food category.
B) Weaknesses in the SWOT Analysis of ITC:
1. High Proportion of revenues from Tobacco products: ITC has been continuously making
efforts to divert the FMCG business from over dependence on tobacco products and have
been successful in doing so to an extent. But, tobacco products remain to be the major source
of the revenue contributing more than 60% of the total revenue from FMCG businesses.
2. Association with Tobacco Products affects the image: ITC has made a lot of efforts to
improve its corporate image but the fact that ITC has many tobacco products in its portfolio
impacts its corporate image.
3. An increase in Tax on Tobacco affects revenue: Due to the increase in taxation on tobacco
products, the prices and hence revenues get affected.

C) Opportunities in the SWOT analysis of ITC
1. Strategic Acquisitions: ITC should continue making the strategic acquisition like they have
done in the past by acquiring Savlon from Johnson & Johnson and B Natural from Balan
natural Foods. Keeping in mind that the product fits into the existing distribution network,
ITC can look to increase its portfolio of products and expand its Non-Tobacco FMCG
business and thereby strengthening the base of revenue.
2. Growth in Purchasing power and improving lifestyle: ITC should tap on the increasing
purchasing power and improving the lifestyle of customers in India. This could help in
increasing revenue for all its businesses.
3. Growing Personal Hygiene as well as Food processing Industry in India: ITC should utilise
its distribution channel in Personal Hygiene and Food Processing Industry to capitalise on the
growth in the categories and hence increase revenue.
4. Tap opportunities created in the Rural Market: The growing rural market in India and other
emerging nations create huge opportunities to improve the bottom-line of the company.
D) Threats in the SWOT Analysis of ITC:
1. Intensifying Competition in FMCG businesses: ITC faces intense competition in its FMCG
business from large MNCs like HUL and P&G and Indian FMCGs like Patanjali and Dabur.
This limits the market share for ITC.
2. Strict Regulations and Increasing Taxation in Cigarette Business: The Tobacco and
Cigarette Industry in India continue to be targeted by strict government regulations and
taxation system. This possesses a threat to the highly profitable Cigarette business of ITC.
3. Increasing awareness on health: There has been an increase in the health consciousness
which has resulted in the decrease in demand for tobacco products in India. Also, anti-
smoking campaigns throughout the country affect the sales of cigarettes.

Image No. 4.3.1
4.3 Reasons for Success or high profit of ITC:
1. Competitive Nature
They have been three years into the Indian foods market and ITC Foods are challenging for
heavyweights like PepsiCo, HLL and Britannia in three different segments simultaneously.
The launch of Bingo snacks was ITC Foods‘ fifth line of foods business after staples,
biscuits, ready-to-eat and confectionery businesses.
They have a good consumer response and this response to the offerings show a better success
ratio. They have a clear connect with consumers in an otherwise tough market. To get the
fundamentals right, ITC foods segmented consumer needs and identified gaps in the market.
Product development answers the gaps thrown up by consumer research.
2. Robust Supply Chain
Their food business plan is backed by a robust supply chain and effective distribution to
ensure consistency in supply and quality. And their communication and brand cut through the
advertising clutter and define clearly the values associated with the product. Celebrity
advertising with Sunfeast biscuits, for instance, helped quick recall in a segment where it
competed with old established brands. Success in foods requires a keen understanding of the
supply chain for farm produce. A robust distribution network across India is also a big plus.
3. Consistency In Quality

The challenge in the FOOD market is to offer consistency in quality.
That‘s where Aashirvaad scores over competitors who could not offer that quality
consistency.
The biggest certificate for Aashirvaad atta is that sales picked up substantially purely on word
of mouth from satisfied consumers. The consumers are biggest ambassadors and advertisers.
The pricing too has been competitive. Consumers‘ track on conversion levels from
traditional atta market (where consumer purchases wheat and grinds it) shows a 35% shift to
our packaged brand.
4. High Market Share
ITC holds close to 70 per cent of the domestic market for cigarettes with the segment‘s
contribution to the top line averaging 65 per cent and profits 85 per cent for the four years
ended March 2009. With strong pricing power to pass on excise duty hikes, operating
margins have averaged a healthy 25 per cent, much higher than rivals such as Godfrey
Philips.
ITC may remain the market leader in the cigarette business, growing in high single-digits in
terms of volumes. ITC‘s ‗mindshare‘ among consumers, is going to be hard to dent by rivals
such as Philip Morris and Godfrey Philips. The business is likely to remain the major cash
cow, continuing to fund efforts to diversify into other businesses.
5. In House Production
In-house production of cartons filters and paper, coupled with efficient raw tobacco
procurement, have made ITC a highly integrated player. In house production helps them to
save time and cost. There is no delay and dependability that can hamper the smooth supply of
materials.
6. Diversified Portfolio
To diversify its revenues and profits, ITC has charted several forays into consumer products
such as garments, confectionery, consumer staples, bakery products, snacks and stationery
products.
In the FMCG business, ITC has over the past couple of years moved from segments such as
matches, snacks and consumer staples ITC does enjoy a competitive edge in bakery products
or consumer staples by virtue of its well established agri-product supply chain such as atta
into the more highly competed soaps and personal products.
7. Contribution of E-Choupal

The agribusiness segment, procures rice, soya, coffee, wheat, tobacco, potatoes for trading
and internal consumption.
ITC‘s much-admired e-Choupal, which is part of this segment, essentially provides
information to farmers procures directly from them and also doubles up as a mechanism for
distribution of FMCG products and other services. For now, operating margin in this segment
tends to swing quite sharply with the commodity prices and is likely to remain on the lower
single-digit figures.
Foods business needs a strong, quality-oriented and dedicated supply chain. Buying wheat
from the open market would mean different quality at different times.
That‘s where we had immense support from ITC‘s e-Choupal that ensured consistency in
wheat quality.
‗These are some of the reasons of ITC‘s success or high profits of which one is corporate
social responsibility.‘

Chapter V
Findings, Suggestions & Conclusion
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion

Chapter 5
Findings, Suggestions & Conclusion
5.1 Introduction:
This final chapter deals with the findings, suggestions and conclusion. In every project the
researcher gives findings, suggestions and conclusion. This is the back bone of every project.
This finding provides what the researcher had found out as the problems and analysis in the
study area, the researcher‘s suggestions for the findings, and the conclusion of the thesis.
Research process is scientific and objective based. Different steps have to be followed for
doing any research, but the last aim of whole research process is to get findings. In this
chapter findings are presented by analysis of collected data from different view point. This
section includes a brief re-state of the problem, a description of the procedure used, and
discussion of findings and conclusion of the study.
The previous chapter dealt with the analysis and interpretation of the collected data. The
present chapter deals with the findings of the study based on the results given in chapter four.
This chapter is divided into three sections. The first section presents the findings of the study.
The second section deals with the suggestions for further research and the third section gives
the implications of the study followed by conclusion.
This chapter is completely dedicated to summaries the entire research work and to present the
important findings obtain through this innovative research work. The need to find new
sources of revenue is a fundamental requirement for business growth. Developing close, co-
operative relationship with customers is more important in the current era of intense
competition and demanding customers than it has ever been before.
On the basis of the analysis of the empirical data and inferences made thereon, the detailed
findings are presented in the various sections of this chapter in the order of data analysis
followed earlier. This chapter contains findings based on the different tools used followed by
suggestions for the implementation of Islamic banking in the sample area and concludes with
the scope for further research. In this chapter, a summary of findings is presented and
discussed with reference to the objectives of the study.
5.2 Findings:
1. It is found that E-Choupal facilitates the supply of high quality farm inputs as well as
purchases of produce at the farmer‘s doorstep.

2. It is found that in this CSR activity they include 9 States such as M.P., Haryana, Uttaranchal,
Karnataka, A.P., U.P., Maharashtra, Rajasthan and Kerala.
3. From the SWOT analysis of the ITC company it is found that the company has 6 strong
diversified business and also they have strong brands.
4. It is found that the company have low revenue from Tobacco products.
5. It is found that company have Growing in Personal Hygiene as well as Food processing
Industry in India.
6. It is found that company is growing rapidly because of its CSR activities for the society.
7. It is found that the performance of ITC is also growing since the Inception of E-Choupal.
8. It is found that the profit of ITC is increased because of various CSR activities so the share
holders gets extra dividend on their shares of ITC.
5.3Suggestions:
1. The companies practicing CSR should provide information about the after effects of
their CSR initiative. This would help the stakeholders to understand the initiative better.
2. Companies should focus more on CSR initiatives as it leads to the growing profits for the
company.
3. Company also focused on the Tobacco products advertising for building a good image of the
company in the minds of customers.
4. The company should also take steps regarding customer attraction towards the CSR.
5.4 Conclusion:
CSR will become the key to sustainability in business. Building a large Corporation is easy
but building one of the most respected corporation in the world and sustaining it over many
years is a big challenge. Only those companies that were built on a platform of strong CSR
will earn respect from its stakeholders and enjoy a more sustainable growth. Hence, ITC has
chosen the following area:-
 E-Choupal
 Ensuring Occupational Health & Safety
 Reducing Greenhouse Gases
 Conserving Water
 Enhancing Eco-Efficiency

After the study of company and its CSR activities, I conclude that the over all image of
company regarding the CSR activities is excellent in market. The company should come up
with such a CSR activity which you make involve their customer also.

Bibliography
1. Books
2. Websites :
https://m.indiamart.com
http://www.managementstudyguide.com
https://www.unido.org
https://www.investopedia.com
Sr.
No.
Title of book Name of author Edition
Name of
publications
1
Corporate social
responsibility in
India
Sanjay K Agarwal April 2008
Vikas
publications
2
Corporate social
responsibility
Dr. Harish Kumar. Edition 2010
Tata McGraw-
Hill
3
Corporate Social
Responsibility and
International
Development
Michael Hopkins.
Edition 2012-
13
Tata McGraw-
Hill

CSR project of ITC. RMCET Raj shetye

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