After assuming the role of Sanjiv Puri and examine the various

options available to him to peruse triple bottom line as desired by the

chairman, I will be providing my perception on following possible
outcomes in order to achieve Triple bottom line for the company.
1.) Given the overwhelming evidence of health problems caused by tobacco, including
cigarettes, should he work toward progressively winding down the cigarette operations? What
are the implications for the shareholders and other stakeholders, including employees,
suppliers and farmers, associated with the business?
Being a tobacco-based company by origin and working as employer for lots of tobacco farmer,
it wouldn’t be easy to wind down the cigarette operation. He should convince the farmer to
practice other crops apart from tobacco which can be used in different product. Tobacco and
cigarette division of the company has provided a huge amount of profit due to which lots of
shareholders have invested their capital in the company.

As tobacco leads to cause health issue, government placed lot of taxes and marketing policy for
the tobacco and cigarette product, however, in order to get a sustainable growth, Sanjiv Puri
can invest both the shareholders along with employees and other major role playing people in
other division of the company so that along with company growth, farmers, employees get
income and shareholders can get the profit from the investment that they have done in the
company. In a survey, in year 2014 the total revenue generated was about $4.77 billon just for
the cigarettes only.

2.) Should he work on strategies to continue to grow the cigarette operations, and maybe invest
afresh in the Industry, but also invest significantly into research on the health problems caused
by the consumption of Tobacco, particularly cigarette smoking? Should he invest in research to
make cigarette smoking less harmful?
As being superior product, cigarette business wouldn’t be wind down as if ITC had stopped that
business, some other company had done that. As being a health hazardous product, cigarette is
also a high revenue earning product. In India, consumption of cigarette is about 14%
approximately. Being a capital provider to the company, cigarette operations should be carried
out with more production rate which can help in getting more revenue and more promising
shareholder as high revenue leads to high profit.
As there are many health problems associated with smoking of cigarettes, company can use
some amount of funds to make there product less harmful through R&D over the nicotine
content in the cigarette as it will help the company to maintain the production of the cigarettes
and can attract the consumer to go for cigarettes that will not harm them in comparison of the
other companies.
Sanjiv Puri would have also planed the quality management of the product according to the
health care guidelines. This would help the company to get more profits and those profits can
be used to grow FMNG division on the company in the starting phase. For the safety and health
concern, ITC can perform CSR which will help with taxes also as there is a high tax on the
tobacco and cigarette industry.

3.) Should he increase efforts to counter the negative publicity for the tobacco industry as it
might result in further taxes and restrictions that might make the cigarette industry unviable?
Should he lobby the government and educate the general public on the needs for a fairer tax
regime across all tobacco Products? Should he highlight all the positives that ITC Ltd. generates,
despite the negatives that are associated with the industry, to shore up support?

As to grow in the business and acquire large number of customers, a company must have a
positive image in the market. As being a leading tobacco and cigarette company, people might
had thought ITC Limited as death sellers. To overcome, ITC Limited jumped in FMNG sector and
hotel industry. They have become one of leading group in hotels, FMNG and stationery
products. ITC have also started E-Choupal for the farmer from which they get their raw material
so that farmer can get the right price for their crops. They have provided basic education in
many rural areas. As a result, “Aashirvaad Atta” became the leading revenue generating
product. All this work changed the image of the company. ITC also placed their feet in IT sector.
From death sellers to customer first choice, ITC have managed to grow in all aspects with
included the growth of the organization, people those are connected to it and the environment.

 ITC believe that with their immense managerial and innovative capacity, business can
contribute significantly towards making a transformational change in society. Inspired by this
opportunity to serve larger societal purposes, we articulated a Vision two decades ago to make
the Company a National Champion by adopting the credo of 'Putting India First'- keeping
Country before Corporation and the Institution before Individual. This resolve to build an
exemplary Indian enterprise led to the creation of innovative business models that synergized
the creation of economic wealth with the formation of ecological and social capital as a unified
strategy.

4.) Should he try to focus entirely on export of tobacco products in the long run? This would allow the
positives to accrue to the stakeholders in the country with the potential negatives being “exported” to
other countries in which the cigarettes might be consumed.

In overseas markets, ITC's cigarette business continues to maintain high standards of

international quality and competitiveness. West Asia is a key export region for ITC
and we offer a wide portfolio of high quality cigarettes in this region. With a Portfolio
of brands under the Classic, Wills and Scissors Umbrella, ITC has cemented its
international standing being the 3rd largest player in the countries of Bahrain & Qatar.
ITC was also the first company to introduce a flavor on demand for product in the
economy industry segment in West Asia region.

Some of the ITC premium product such has “Armenteros” the hand rolled Cigar,
which available at premium stores or 5 Star hotels. This signature blend is sourced
from one of the premier cigar manufacturers in the world - The La Aurora, run by the
much-celebrated Leon Jimenes family. There's a quality, a workmanship, a passion
that goes into the making of each Armenteros cigar. Be it the full-bodied aromatic
wrapper leaf, the immaculate binder, or the skillful blend of carefully matured
tobaccos, everything comes from the best growing regions of the world and is rolled
by the Master Rollers. Borrowing the strong earthiness from Nicaraguan & Brazilian
tobaccos, and the mild yet rich taste of tobaccos from the Dominican Republic &
Peru, it is truly the most satisfying blend offering a rich wisp of spicy and sweet
flavor. ITC have maintained the leadership in India as well as plays an important role
in international cigarette business.

With a constant sustainable growth in all sectors and maintain the trust of the
shareholder as well as the employees, farmer along with taking care of the
environment ITC have fulfilled all the aspects of “TRIPLE BOTTOM LINE”.
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