Internship Report on

Operations in finance and management at ITC

PVT limited

Submitted in Partial Fulfilment of the Requirements of

Bachelor of Commerce Degree of Bangalore North University
BY
Mrs ZUHA AFREEN
REG NO - U19PN22C0042
UNDER THE GUIDENCE OF
Ms. Mujeebunnissa
Associated Professor of Commerce Department

HUDA NATIONAL ARTS, COMMERCE & SCIENCE DEGREE COLLEGE

2024-2025

1
 CERTIFICATE FROM THE COMPANY
PROJECT COMPLETION CERTIFICATE

This is to certify that Ms. ZUHA AFREEN student of Bachelor of commerce (Bcom)
HUDA NATIONAL ARTS, COMMERCE & SCIENCE DEGREE COLLEGE BANGALORE , has done
the project work entitled “ ACCOUNTS RECEIVABLE OF KEY ACCOUNTS IN ITC LIMITED “
has successfully completed an internship program from 18/01/2025 TO 18/02/2025

SAHIL BHADRAN

ASSISTANT MANAGER FINANCE

2
 STUDENT DECLARATION

I Zuha Afreen ., Reg. No. U19PN22COO42, hereby declare that this report entitled “A Study
on The Role of operations in finance and management ITC PVT Bangalore” during the
summer vacation between the period from 18/01/2025 to 18/02/2025 at ITC PVT, Bangalore”
under the supervision and guidance of Mrs Mujeebunnissa at Huda National Arts, Commerce
& Science Degree College, Bangalore.

Date: 18/01/2025
Place: Bangalore Signature
Zuha Afreen

Reg No: U19PN22C0042

3
 ACKNOWLEDGEMENT

The successful completion of this internship report required significant guidance and
assistance from many individuals, and I am truly grateful for their support throughout this
journey.
Firstly, I would like to express my sincere appreciation to our Dean Dr.Sugant R
ITC PRIVATE LIMITED, Bangalore, for providing me with the opportunity to intern at their
esteemed organization.
I am deeply grateful to our faculty coordinator, Ms Mujeebunnissa, and our principal,Ms
Nazneen Ahamed, for their unwavering support and for granting me the valuable
opportunity to intern, which has been instrumental in my learning and exposure to the field
of Digital Marketing.
I would like to extend my heartfelt thanks to my parents for their permission and constant
encouragement throughout this internship. Additionally, I am thankful to my friends for their
support whenever I needed their assistance during this project.
Lastly, I would like to express my profound gratitude to all individuals who directly or
indirectly contributed to the completion of this report.

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CHAPTER PARTICULARS PAGE NO.
NO.

Certificate issued by company

College Certificate

Student Declaration

Acknowledgement

Executive Summary

1. INTRODUCTION

2. DESCRIPTION OF THE ORGANIZATION

3. EXPERIENTIAL LEARNING
4. INTERSHIP OUTCOMES AND
CONCLUSIONS

Bibliography

Annexures

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 EXECUTIVE SUMMARY
This report presents a comprehensive overview of my internship experience at [Company Name],
where I served as a Financial and Management Intern from [Start Date] to [End Date]. The internship
aimed to bridge academic knowledge with real-world financial and managerial practices, offering
practical exposure to corporate operations and strategic decision-making.

During the internship, I was assigned to the Finance and Management departments, where I actively
participated in tasks such as financial statement analysis, budget preparation, variance reporting, and
internal audit processes. I also contributed to management support activities, including data analysis
for strategic planning, assisting in project management, and contributing to performance evaluation
reports.

Key learnings from this internship include enhanced proficiency in financial modeling, budgeting
techniques, use of accounting software such as [Software Name], and improved analytical and
communication skills. Additionally, the internship deepened my understanding of organizational
structures, inter-departmental coordination, and leadership dynamics.

Overall, the internship provided a valuable platform for professional development, equipping me
with practical insights and skills that will contribute to my future career in finance and management

CHAPTER 01

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 INTRODUCTION
1.INTRODUCTION
Operations in finance and management refer to the day-to-day activities, strategies, and
systems that support the effective functioning of a business or organization. In finance,
operations involve managing cash flow, budgeting, investment decisions, risk management,
and financial reporting to ensure the organization’s financial health. In management,
operations focus on optimizing resources, improving efficiency, ensuring quality, and
meeting customer demands through planning, organizing, and controlling business
processes.
Finance is the study of how investors allocate their assets over time under conditions pf
certainty and uncertainty. A key point in finance , which affects decisions, is the time value of
money , which states that a unit of currency today is worth more than the same unit of
currency tomorrow . Finance aims to price assets based on their risk level, and expected rate
of return. In a financial assets are bought, sold, or trade as instruments .such as currency ,
loans , bonds , shares , stocks , options , future and etc…..
Assets can also be banked , invested and insured to maximum value and mimimize lose in
practice, risks are always present in any financial action and entitles. Finance can be broken
into three different sub categories: public finance , corporate finance and personal finance.
A broad range of sub fields within finance exists due to its wide scope .Assets , money , risk
and investment management aim to maximize value and minimize volatility. Financial
analysis is viability. Stability , and profitability assessment of an action or entity .
In some cases , theories finance can be tested using the scientific method. Covered by
experimental finance .Some field are multi-disciplinary , such as mathematical , financial law,
financial economics , financial engineering and financial technology.
Together, operations in finance and management aim to align financial stability with
strategic objectives, enabling businesses to grow sustainably and remain competitive in
dynamic markets. Operations in finance and management are fundamental to the successful
functioning of any organization. These operations encompass a wide range of activities that
ensure both financial stability and organizational efficiency. In the realm of finance,
operations involve planning and managing financial resources, including budgeting,
forecasting, investment analysis, financial reporting, and risk management. These functions
are crucial for maintaining liquidity, ensuring regulatory compliance, and supporting long-
term strategic goals.
On the management side, operations focus on the effective coordination and control of
business processes. This includes planning, organizing, staffing, directing, and controlling
organizational resources to achieve efficiency and productivity. Key areas often include
supply chain management, quality control, production planning, and performance
monitoring. By streamlining these processes, management operations help enhance
customer satisfaction, reduce costs, and improve overall business performance.

7
When integrated, operations in finance and management create a robust framework for
decision-making, resource optimization, and strategic execution. This integration ensures
that financial decisions are aligned with operational capabilities, enabling organizations to
respond effectively to market changes, innovate, and maintain a competitive edge.

2. The Evolution of Finance & MANAGEMENT

The Evolution of Operations in Finance and Management
The evolution of operations in finance and management has been shaped by technological
advancements, globalization, regulatory changes, and the growing complexity of business
environments. Historically, operational roles in both finance and management were focused
on basic administrative and transactional tasks. Finance departments concentrated on
bookkeeping, payroll, and simple budgeting, while management focused on supervision and
workforce coordination.

8
During the Industrial Revolution, operations management became more structured, with the
introduction of scientific management principles by pioneers like Frederick Taylor. This era
emphasized efficiency, standardization, and productivity in manufacturing and organizational
processes. Financial operations also matured, with the emergence of formal accounting
systems and capital budgeting practices to support growing industrial enterprises.
The 20th century saw further advancement with the rise of corporate finance, strategic
management, and operations research. Companies began adopting long-term planning,
performance measurement tools, and complex financial models. The integration of computers
in the 1960s and 70s allowed for more accurate and timely financial reporting and operational
analysis.
The 1980s and 90s marked a shift toward globalization and lean management practices. Just-
in-time inventory systems, total quality management (TQM), and enterprise resource
planning (ERP) systems transformed how companies managed resources. Financial
operations became more focused on shareholder value, risk management, and capital market
interactions.
In the 21st century, the digital revolution has fundamentally changed both finance and
management operations. Automation, artificial intelligence (AI), data analytics, and cloud
computing have enabled real-time decision-making and enhanced strategic agility. Finance
has become more predictive and data-driven, while operations management emphasizes
agility, sustainability, and continuous improvement.
Today, the integration of finance and management operations is critical for organizational
success. Modern businesses rely on cross-functional collaboration, digital tools, and strategic
alignment to optimize performance in an increasingly competitive and dynamic global
environment

9
 CHAPTER - 02
DESCRIPTION OF THE ORGANIZATION
1. History:
ITC Private Limited, originally established as the Imperial Tobacco Company of India Limited
in 1910, began as a cigarette manufacturing company. Over the decades, ITC underwent
significant transformation, diversifying into various sectors including FMCG (Fast-Moving
Consumer Goods), Hotels, Paperboards & Packaging, Agri-Business, and Information
Technology. The company changed its name to India Tobacco Company Limited in 1970 and
then to ITC Limited in 1974 to reflect its diversified business portfolio. ITC Private Limited
continues this legacy, operating with a focus on innovation, sustainability, and value creation
across sectors.

2. Vision:
“To sustain ITC's position as one of India’s most valuable and admired companies through
world-class performance, creating growing value for the Indian economy and the company’s
stakeholders.”

3. Mission:

To enhance the wealth-generating capability of the enterprise in a globalizing environment.

To deliver superior and sustainable stakeholder value.
To promote a culture of excellence, innovation, and ethical business practices.
To create economic, environmental, and social value through responsible business
operations.

4. Organizational Structure:
ITC Private Limited follows a divisional organizational structure characterized by strategic
business units (SBUs), each responsible for a specific segment. The main divisions include:
FMCG Division: Covers branded packaged foods, personal care, education, and stationery
products.
Hotels Division: Operates luxury, business, and heritage hotels across India.
Paperboards & Packaging Division: Manufactures paperboards, specialty papers, and
packaging solutions.

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Agri-Business Division: Involved in the export of agricultural commodities and ITC's e-
Choupal initiative.
Information Technology Division (ITC Infotech): Provides global IT services and solutions.
The company is led by a Board of Directors, including an Executive Chairman and Managing
Director, supported by a team of functional heads and divisional CEOs, ensuring a
decentralized yet coordinated approach to management

ITC Limited uses a multidivisional structure, with its Board of Directors overseeing strategic
direction and a Corporate Management Committee (CMC) managing strategy. Each division,
like Foods or Hotels, operates as a profit center with its own management. This structure
allows for both strategic focus and executive freedom within each division.

Significance of the study

1.The study helps the stakeholders and the directors to understand the financial position
and the financial performance of the company.
2.The study helps the management to understand the drawbacks of the company so that the
management can rectify the problems and improve the financial position in the upcoming
years.
3.Economies of scale applied to a variety of the organisation and business situations and at
various levels. such as production, plant or and entire enterprise. when average costs start
falling as output increases , then economies of scale occur. some economy of scale ,such as
cost of manufacturing facilities and friction loss of transportation and industrial equipment.

11
4.A common part towards diversification is produced risk and volatility by investing in variety
of assets.
5. Higher market share can help improve sales when existing , brand -loyal customers by
more of companies the products.
PRODUCTS AND SERVICES ITC LIMITED OFFERS

OBJECTIVES OF THE STUDY

The financial management is generally concerned with procurement, allocation and control of
financial resources of a concern. The objects can be;
1.To ensure regular and adequate supply of funds to the concern.
2.To ensure adequate returns to the shareholders this will depend upon the earning capacity.
Market price of the share ,expectations of the shareholders.
3.To ensure optimum fund utilisation once the funds are procured they should be utilise in
maximum possible way at least cost.
4. To ensure safety on investment that is funds should be invested in safe ventures that
adequate rate of return can be achieved.
5.To plan a sound capital structure there should be sound and fair competition of capital so
that a balance is maintained between debt and equity capital.

Scope of financial management

Scope of financial management is bar and important to business. it is involving in all level of
management and all fields of human activities.

12
We can prove that without good financial management, no organisation can be alive.
Organisation duplicate name of selfish group of people is helpful for people and wants
welfare of public. But, it need fund money and cash and for getting it. it uses techniques of
financial management. So financial management makes his place everywhere. Never
understand it as the name of book but it is practical science to support business to live
respectful life. Both primary and secondary data has been used for the study. Primary data
was collected through direct interaction with the companies finance and accounts department.
Data was collected from secondary sources compromising annual reports of the, other
journals and periodicals. Apart from the conducting this research works on the basis of this
informations various techniques of financial management example comparative
statement ,trend analysis and ratio analysis etc where used in the present study.
We can divide financial management scope into three major parts:
* New companies
* Old companies
* NGO's
Secondary data :Data collected for some other investigation not for the current project was
also employed to conduct research. The authenticity of the source was verified before
employee in secondary data. After the above Data collection process for the data is collected
from: 1. Financial management in new companies:
A new companies spends large amount on production and marketing but it should ignore
proper use of its fund . Financial managements gateway is new company and if new company
ignores financial management study .It means it is ignoring cash inventory the debtors and
fixed assets management.
2. Financial management in old companies:
Old company can survive in long run, if it is capable to buy debt timely, to pay salary on time
and pay other daily expenses. Because old company has good reputation in financial market,
so financial managements some part like working capital .Management is very significant .
Old company should company should try to increase growth rate by using new techniques of
financial management.
3. Financial management in NGO:
In this material age, every work is becoming business. only NGO are working not for profit
aims . It's aim is not to earn money but here is also question of its existence. Like survive of
company NGO can live only and only after proper management of it's cost and management
of cost can be taught only in financial management so NGO are also under the scope of
financial management

Methodology of the study

Methodology is one of the goals of science is description.

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Descriptive research methods are pretty much as they sound they describe situations. They do
not make accurate predictions and they do not determine cause and effect. There are three
main types of descriptive methods: observational methods ,case study method , and survey
methods

Source of information
Primary data :
Data has been collected directly from the respondents. Data is drawn directly by observing
the working conditions at WD points and taking down original time for calculating turn
around time. For this, I have collected the sample of 10 WD points and their respective 10
wsp vehicles and not at the observations and calculated for assumptions and draw on the
specific suggestion.
∆ Reference Books
∆ Website
∆ Annual Report

Limitations of the study

1.The time available for the study is limited so in depth study could not be undertaken
2.The information provided in the financial statement may not be presize.
3. The result of the study cannot be generalized.
4.Only a fuse scripts chosen at random are examined.
5.The reliability of information may not be ensured.

Chapter – 03
EXPERIENTIAL LEARNING

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It was a world wind of experience where we have inculcated varius skills needed in the
corporate world. It was oursnost pleasure to work with the key accounts of the IIC Trade
Marketing and Distribution division at ITC Green Centre. We are grateful to our guide for
giving us valuable inputs and knowledge to carry out the given tasks. We were able to
experience the corporate culture and the professional approach to deal with the environment
there.
Professional communication
Professional attitude, approach and communication is very essential for an individual to be in
the organisation and for strengthening their professional career. Being an undergraduate, it is
very necessary to inculcate these soft-skills within themselves. Al ITC, we were put in
different situations where we got to perform and adapt to those skills.
Networking is important
This internship helped us in understanding that coordination and cooperation is one of the key
element one should have to work efficiently and effectively towards fulfilling their individual
along with organisational goals. Here we got a clear picture about the concept of synergy,
wherein we understood that a lot more can be achieved with a team rather than working
individually. Also, we got this opportunity to come across some personalities in the
organization which helped us enabling us to built a good network with them.
Taking constructive criticism well
"Criticism is the information that will help you grow" Аnonymous
At the beginning of the internship, we had a little problem in understanding the nature of
work given to us as we had no experience about it. But with the invaluable guidance of our
mentor, we were able to easily adapt 10 1.
Technical Exposure
Along with soft skills it is very important for an individual to possess the technical skills as
well to carry out the different tasks. We are very grateful to get this technical exposure during
this period. We got our hands on various applications used by many organisatons to handle
their day to day operation like Microsft Excel and SAP ERP.

15
MARKET SEGMENTATION

Fig 2.1 Marketing Segmentation under ITC LTD

What are FMCG goods?

FMCG goods are popularly known as consumer-packaged goods. Items in this category
include all consumables (other than groceries/pulses) people buy at regular intervals. The
most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products,
shoe polish, packaged foodstuff, and household accessories and extends to certain electronic
goods. These items are meant for daily or frequent consumption and have a high return.
Rural - set to rise
Rural areas expected to be the major driver for FMCG, as growth continues to be high in
these regions. Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas.
Most companies rushed to capitalize on this, as they quickly went about increasing direct
distribution and providing better infrastructure. Companies are also working towards creating
specific products specially targeted for the rural market. The Government of India has also
been supporting the runad population with higher minimum support prices (MSPs), loan
waivers, and disbursements through the Nationaй Rural Employment Guarantee Act
(NREGA) programmer. These measures have helped in reducing poverty in rural India and
given a boost to rural purchasing power. Hence rural demand is set to rise with rising incomes
and greater awareness of brands.

16
Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban areas have
shifted their purchasing trend from essential to premium products, In response, firms have
started enhancing their premium products portfolio. Indian and multinational FMCG players
are leveraging India as a strategic sourcing hub for cost-competitive product development and
manufacturing to cater to international markets.

Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by
MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27
of these are owned by Hindustan Unilever.
Revenue in Rs bn

What the millenniums expect?

According to a study by TMW and Marketing Sciences that surveyed 2,000 people across
different age groups ranging, young consumers are the most 'rational and likely to spend
more time weighing up potential purchases. The survey also suggests that younger people are
using recommendations from their peers about products and services in order to make
rational purchase decisions. According to the study, shoppers aged 18 to 24 are 174 per cent
more likely to use recommendations on social media than shoppers aged 25 and over.
Another key factor today is - speed. Today's consumer wants packaged goods that work
better, faster, and smarter. The "need for speed" trend highlights the importance of speed as a
potentially decisive purchase factor for packaged goods products in a world where
distinctions between products are shrinking.
Younger consumers express the greatest need for speed, not a huge surprise for the
smartphone generation. Data monitor's 2013 Consumer Survey found that younger consumers
those in the 15-24-year-old age group were twice as likely to say that "results are achieved
quickly" has a "very high amount of influence" on their health and beauty product choices
than consumers in the oldest age group, those aged 65 or older. Speed matters, and 2014 will
almost certainly see the introduction of new game-changing timesavers.

17
Road Ahead
FMCG brands would need to focus on R&D and innovation as a means of growth.
Companies that continue to do well would be the ones that have a culture that promotes using
customer insights to create either the next generation of products or in some cases, new
product categories. One area that we see global and local FMCG brands investing more in is
health and wellness. Health and wellness is a mega trend shaping consumer preferences and
shopping habits and FMCG brands are listening. Leading global and Indian food and
beverage brands have embraced this trend and are focused on creating new emerging brands
in health and wellness. According to the PwC-FICCI report Winds of change, 2013: the
wellness consumer, nutrition foods, beverages and supplements comprise an INR 145 billion
to 150 billion market in India, is growing at a CAGR of 10 to 12%.

COMPANY PROFILE:
ITC Limited or ITC is an Indian public conglomerate company headquartered in Kolkata,
West Bengal, India, Its diversified business includes four segments: Fast Moving Consumer
Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business, ITC's annual
turnover stood at S7 billion and market capitalization of over $33 billion. The company has
its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares
ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and
was rechristened to India Tobacco Company in 1970 and then to LT.C. Limited in 1974.
The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000
people at more than 60 locations across India and is listed on Forbes 2000. ITC Limited
completed 100 years on 24 August 2010.ITC has a diversified presence in FMCG (Fast
Moving Consumer Goods), Hotels, Paperboards & Specialty Papers. Packaging. Agri-
Business and Information Technology. While ITC is an outstanding market leader in its
traditional businesses of Hotels, Paperboards, Packaging. Agri-Exports and Cigarettes, it is
rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.
Today ITC Ltd. is rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine and as India's Most Admired
Company' in a survey conducted by Fortune India magazine and Hay Group. ITC also
features as one of world's largest sustainable value creator in the consumer goods industry in
a study by the Boston Consulting Group. ITC has been listed among India's Most Valuable
Companies by Business Today magazine. The Company is among India's 10 Most Valuable
(Company) Brands', according to 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.

COMPANY HISTORY AND EVOLUTION

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianized. the name of the

18
Company was changed from Imperial Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to LT.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-
business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full
stops in the Company's name were removed effective September 18, 2001. The Company
now stands rechristened TTC Limited'.
The Company's beginnings were humble. A leased office on Radha Bazar 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.
1925: Packaging and Printing: Backward Integration
Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses. ITC Packaging &
Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes
business. It is today India's most sophisticated packaging house.

1975: Entry into the Hospitality Sector

The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC Welcom
group Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into
the hotels business was rooted in the concept of creating value for the nation. ITC chose the
Hotels business for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment. Since then, ITC's
Hotels business has grown to occupy a position of leadership, with over 100 owned and
managed properties spread across India under four brands namely, ITC Hotels
WelcomHotels, Fortune Hotels and Welcome Heritage. Luxury Collection.
ITC Hotels recently took its first step toward international expansion with an upcoming super
premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up
with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-
star 'WelcomHotel brand and the mid-market to upscale 'Fortune' brand.
1979: Paperboards & Specialty Papers -

Development of a Backward Arez

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13,

19
2002 and became a Division of the Company, Bhadrachalarm Paperboards Division. In
November 2002, this division merged with the Company's Tribeni Tissues Division to form
the Paperboards & Specialty Papers Division. ITC's paperboards technology. productivity,
quality and manufacturing processes are comparable to the best in the world. It has also made
an immense contribution to the development of Sarapaka, an economically backward area in
the state of Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing facility of
BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit
allows ITC to improve customer service with reduced lead time and a wider product range.

1985: Nepal Subsidiary -

First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments,
1990: Paperboards & Specialty Papers-
Consolidation and Expansion
In 1990. ITC d Tribeni Tses Latola Spiky paper manufactoreng company and a major supplier
of the paper to the cipette shtry. The merged entity was named the Tribent Tissues Divisan
(ITD) To harness strategie and operational synergies, TTD was merged with the Bhadrachalar
Paperbands Division to form the Paperboards & Specialty Papers Division in November 2002

1990: Agri Business

Strengthening Farmer Linkages
Also in 1990, leveraging its Agri-sourcing competency. ITC set up the Agri Business
Division for export of Agri-commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000
with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million
farmers. Also, through the Choupal Pradarshan Khet' initiative, the Agri services vertical has
been focusing on improving productivity of crops while deepening the relationship with the
farming community.

2002: Education & Stationery Products

Offering the Greenest products

ITC launched line of premium range of notebooks under brand Paper kraft in 2002.

20
To augment its offering and to reach a wider student population, the Classmate range of
notebooks was launched in 2003. Classmate over the years has grown to become India's
largest notebook brand and has also increased its portfolio to occupy a greater share of the
school bag. Years 2007-2009 saw the launch of Practical Books. Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. 'Paper kraft' offers a diverse portfolio in
the premium executive stationery and office consumables segment.

2000: Lifestyle Retailing-

Premium Offerings
ITC also entered the Lifestyle Retailing business with the Wills Sport range of isternational
quality relaxed wear for men and women in 2000. In 2006, Wills Lifestyle becanse title
partner of the country's most premier fashion event Wills Lifestyle India Fashion Week that
has gained recognition from buyers and retailers as the single Largest B-2-B platform for the
Fashion Design industry. To mark the occasion, ITC launched a special 'Wills Signature',
taking the event forward to consumers.

2000: Information Technology -

Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
ITC Infotech India Limited, to more aggressively pursue emerging opportunities…
the brands mint-o and Candyman confectionery and Aashirvaad Atta (wheat flour). 2003
witnessed the introduction of SunFest as the Company entered the biscuits segment. ITC
entered the fast-growing branded snacks category with Bingo! in 2017 In 2010. ITC launched
SunFest Yippeel to enter the Indian instant noodles market. In September 2014, ITC launched
Gum on Chewing Gum marking the entry into the category of gums. The Company entered
the Fruit-based juices and beverages market with the launch of B Natural Fruit beverages in
January 2015. ITCs forayed into the dairy segment with the launch of Aashirvaad Svasti
Ghee in November 2015. Launched in April 2016. Fabelle chocolates are ITC's premier
offering in the luxury chocolate space. ITC forayed into the brand…

2005: Personal Care Products -

Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', 'Vivel' 'Superia' brands which have received encouraging consumer
response and have been progressively extended nationally. In May 2013, the business
expanded its product portfolio with the launch of Engage deodorants. ITC marked its foray
into the health space with the acquisition of the brand Savlon and Shower to Shower in 2015.
In 2017, the business acquired the brand Charmis to enhance its skincare portfolio.

21
2010: Expanding the Tobacco Portfolio
In 2010, ITC launched its hand rolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at …

Shareholding and listings

ITC's equity shares are listed on Bombay Stock Exchange (BSE), National Stock Exchange
of India (NSE) and Calcutta Stock Exchange (CSE).
The company's Global Depository Receipts (GDRs) are listed on the Luxembourg Stock
Exchange
ITC is a constituent of two major stock market indices of India: BSE SENSEX and NIFTY
50 of NSE.

Shareholders (as on 31 March 2022) Shareholding

Financial Institutions 42.72%

Foreign Companies 29.37%

Public and others 13.73%

11.98%
FPI'S AND FII's

1.22%
Body Corporates

NRI's, OCIs, and Foreign Nationals 0.86%

0.12%
Share underlying Global Depository
Receipts

Total
100.0%

TABLE 2.1

Chapter – 04
INTERNSHIP OUTCOMES AND CONCLUSION

22
 SUMMARY OF FINDINGS

TYPES OF SECTORS IN THE ORAGANISATION

The company was converted into a Public Limited Company on 27 October 1954. The first
step towards Indianization was taken in the same year with 6% of the Indian shareholding of
the company, ITC also became the first Indian company to foray into consumer research
during this time. During the 1960s, technology was given more focus on setting up cigarette
machinery and filter-rod manufacturing facilities aimed at achieving self-sufficiency in
cigarette-making.
Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was crucial
in building up the Indian management for the company. As the company's ownership was
progressively Indianized, under Haskar's leadership, the name of the company was changed
from "Imperial Tobacco Company of India Limited" to "India Tobacco Company Limited" in
1970. ITC also became the first company in India to start from the 1971 Scissor's Cup.
Innovative market campaigns and electronic data processing were started in the 1970s.
In 1973, ITC set up its integrated research centre in Bangalore, aimed at diversification and
venturing into newer businesses with research and development. With the unfolding
diversification plans, the name of the company was changed to 1.T.C. Limited' in 1974. The
Indian shareholding grew further to 40% during this time. ITC entered into the hospitality
sector with hotel business in 1975 with the acquisition renaming of ITC Welcomgroup Hotel
Chola in Madras. ITC chose the hospitality sector for its potential to earn high levels of
foreign exchange, create tourism infrastructure and generate large-scale direct and indirect
employment.

The shareholding went over 60% in 1976 and more hotels were started by the company in the
following years. ITC Sangeet Research Academy was set up at Calcutta in 1977 In 1979, ITC
entered the paperboards business by promoting ITC Bladrachalam Paperboards Limited. I N
Sapru took over as the company's chairman in 1983 and the international expansion started
with the acquisition of Surya Nepal Private Limited in 1985. The year 1986 saw vigorous
moves from the company with the opening of an Indian restaurant in the city of New York,
acquisition and renaming of Vishvarama Hotels to ITC Hotels Limited, setting up of two new
ventures-the ITC Classic Finance Limited and ITC Agro Tech Limited under its umbrella.
ITC also entered into the edible oils industry with the launch of the Sundrop brand of cooking
oils in 1988.
Y.C. Deveshwar took over as the company's chairman in 1996 and the corporate governance
structure was re-crafted to support the effective management of multiple businesses. ITC
exited from edible oils business and financial services; sold the ITC Classic Finance Limited
to ICICI Limited and handled the Sundrop business to ConAgra Foods Limited in 1998. In

23
the year 2000, an innovative initiative for farmers called "e-Choupal" was started in Madhya
Pradesh 2000. The same year witnessed the launch of ITC's Wills Sport range of casual wear
with its first retail outlet in New Delhi and ITC's entry into stationery products and gifting
business introducing the Expressions' range of greeting cards and Classmate notebooks. A
wholly owned information technology subsidiary, ITC Infotech India Limited was also
started in 2000 and the ITC Bhadrachalam Paperboards Limited was merged into ITC
Limited. The name of the company was changed to "ITC Limited" omitting the dots and
adapting the strategy "No stops for ITC" in 2001. An employee stock option scheme was
introduced for the first time and a web portal for the company was launched. Subsidiaries for
ITC Infotech were set up in the United Kingdom and the USA.
MAIN OFFICE - CONTACT AND ADDRESS
ITC Limited is an Indian conglomerate company headquartered in Kolkata
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was
renamed as the India Tobacco Company Limited in 1970 and later to L.T.C. Limited in 1974.
Virginia House 37 Jawaharlal Nehru Road, Kolkata 700 071, India
Mail id ITC Corporate Website: www.itcportal.com
Statutory Auditors - SRBC & CO LLP Chartered Accountants, Mumbai
Telephone nos.: 1800-345-8152 (toll free) 033 2288 6426/0034
Facsimile no.: 033 2288 2358
Executive Vice President & Company Secretary - Rajendra Kumar Singhi
General Counsel - Angamuthu Shanmugam Sundaram

Chapter - 05
Departmental structure

DEPARTMENTAL STRUCTURE
Organizational structure is a system used to define a hierarchy within an organization It
identifies each job, its function and where is reports to within the organization. This structure
is developed to establish how an organization operates and assists an organization in
obtaining its goals to allow for future growth. The structure is illustrated using an
organizational chart.
ITC Limited is headquartered in Kolkata, West Bengal, which is the head office of the
company. Under the head office the company is divided into zonal district offices as:
Northern district office. Southern district office. Eastern district office and Western district

24
office. Under each district office there will be branch offices targeted to serve for each state.
Totally seven branches are under the contol of Southern district office.
SBLR
SKAR
SHYD
SRAL (Rayalaseema)
. SCHE (Chennai)
. SCOI (Coiambatore)
SERN (Ernakulam)

FUNCTIONAL DEPARTMENTS
1. Finance Department Finance Department is headed by an Assistant Finance Manager who
is in charge of the whole branch. He is assisted by two finance executives and five office
associates. Assistant Finance Manager has to report to both the Branch Manager as well as to
Finance Manager of the District. Finance Department includes the role that is responsible for
managing the financial performance of the company and keep a track of the financial
transactions, preparing financial reports, reviewing financial statements, preparing accounting
ledgers and performing various other financial tasks.
Roles and Responsibilities of a Finance Executive at ITC Limited-
i. Finance Executive is required to study the financial transactions made by the organization
and prepare financial reports based on the available data.
ii. Finance Executive needs to perform internal finance audits from time to time in order to
ensure that the company finances are being managed appropriately
Finance Executive is required to prepare the annual accounts for the company.
iv. Finance Executive is involved in providing inputs while the senior company officials plan
the budget.
V. Finance Executive is required to work on the finance software installed (SAP ERP) to
record the financial transactions.
IL Marketing Department -
The Marketing Department in ITC is working under four beads namely: Foods, Personal care
Products, Key accounts and Cigarettes. Each of these departments are headed by an Assistam
manager. Under these managers there are Area Managers who are in charge of a particular
region. Area Managers are assisted by Area Executives who in turn look after the sales
trainees. The basic function of Marketing Department is to ensure superior sales for the
products of the company. The Department on a day-to-day basis collect the orders for the
products from different distributors, ensures the speedy delivery, ensures the superior

25
visibility and availability of the products at stores, undertakes various promotional activities
etc. The number of Area Managers and Area Executives are variable according to the size and
sales of the market.
IIL HR Department -
The Human Resource Department of ITC generally has an HR office associate at the branch
level who takes care of the selection/appointment of the sales executives, the appraisal and
grievance redressal of different employees. The HR executive of each branch has to report to
the Branch Manager as well as to the HR executive at the district level. This department's role
in ITC to maintain organistion culture, ensure in providing safe work environment to staff
and its members, managing emplyoee benificiay activities and Training and development.

REGIONAL
BRANCH
MANAGER

BRANCH
SUPERVISOR
MANAGER

DISTRICT
MANAGER

AREA ASSISTANT
EXECUTIVE MANAGER

AREA
MANAGER

FIGURE 4.1

ITC Branch Structure II

Logistics Department - The Logistics Department of ITC consist of Branch Logistics
Executive and Godown Logistics Executives. Generally, in a branch, there is only one
Executive whereas in Godowns there will be two executives. They have to report to the
Regional Logistics Manager in the district office as well as to the Branch Manager. The
Regional Logistics Manager has to report to the District Manager as well as to the Divisional
Logistics Manager. The basic function of the logistics department is to arrange for the trucks,
transport vehicle optimization, working with the finance department for the conversion of
delivery order into shipment of goods and the shipping out of the goods..
Process of sale

26
 KEY ACCOUNTS
SALE OF & E-COMMERCE
PRODUCT IN ITC

CUSTOMER
WHOLESALE
DEALER
GENERAL
TRADE
RETAILER

Key accounts deals with ITC

Amazon Wholesale Pvt ltd
Aditya Biela Retailers
Aker Ego Enterprises d
Amway India Enterprises
Avenue Supermarket led
Bheemed Pharma Solutions
Emazing deals | LLP]
➤Flipkart India Pvt ltd
Future Retailers
Granary Wholesale Pvt ltd
Hands on Traders Pvt ltd
Innovative Retail Pvt Ltd
Inter Global Aviation Itd
Jumbotail Wholesale Pvt ltd
Lulu International Malls Pvt ltd
Max Hypermarket India Itd
Merto Cash and Carry India Pvt ltd
➤ More Retailer Pvt ltd
➤ Nature Basket
➤ New Prajwal Imports
➤ Nova Enterprises

27
Nykaa Enterprises
Peel Works Pvt ltd
Reliance Retail ltd
➤ Reliance Wholesale Itd
➤ Shreyash Retail Pvt ltd
Super Infotech Pvt ltd
➤ Supermart Groceries Supplies
Trent Hyper Bangalore
➤ Vishal Mart

Chapter -06
SWOT Analysis & interpretation

SWOT ANALYSIS
5.1.1 STRENGTHS
ITC leveraged its traditional businesses to develop new brands in for new segments. ITC used
its expertise in transporting and distributing tobacco products to remote & distant parts of
India to the advantage of its FMCG products. ITC's master chefs from its hotel chain are
always asked to develop new food concepts for its FMCG products. The greatest strength of
the company is its wide range of diversified products and services.

28
ii. Well established distribution network over 6 million retail outlets. The presence of around
6 million retail outlets over the country through which the ITC products are available. Over 2
million retail outlets of these are directly serviced by the ITC's distribution organization. It
uses own experienced transportation and distribution network of tobacco products for
reaching the FMCG products to remote and distant parts of India. Hawkers from distribution
points visit the outlets that are not operated by the company's competitors. The operation of
hawkers at these outlets brings up the opportunity to expand the product portfolio in the
company. ITC is the company which has one of the best distribution networks across the
world.
iii. World Class Research & Development: It has a well-established world class research and
development team at Bangalore with over 50 scientists. ITC recognizes that cutting edge
R&D can foster breakthrough innovation and create powerful sources of sustainable
competitive advantage.
iv. Corporate Social Responsibility: ITC 's initiatives to build social capital through extensive
community engagement have led to the creation of sustainable livelihood opportunities for
over 5 million people. ITC has helped create more than 20,000 rural women entrepreneurs.
ITC 's supplementary education initiative has reached out to over 200000 school children in
rural areas.
Awareness of the ITC brand name: ITC is one of the best-known brands in India. Markets the
product with the use of the brand name ITC. Whenever a new product is introduced in the
market, the brand name ITC is widely aved

5.1.2 WEAKNESSES
i ITC's original business is traded in tobacco. ITC stands for India Tobacco Company
Limited. It still uses its old name even though it has forayed into a variety of new businesses.
The negative connection of tobacco with poor health and premature death is always a weak
point for the company.
ii. Limited export of products and services: ITC is a local company. It does not have a large
portfolio of exports in either products or services. This makes the company comparatively
weak in terms of being able to leverage global opportunities, talent & financing.

5.1.3 OPPORTUNITIES
i. Untapped rural market: Indian rural market is the most potential market for branded FMCG
products the population and the area of rural market is higher than the cities. ITC 's wide
distribution network reaching every local rural market will help to untap the rural demand. In
the rural market penetration level of Shampoo is 56%.
ii. ITC's e-Choupal is a community of practise that links rural Indian Farmers using the
Internet. This project reaches more than 10 million farmers in more than 1, 00,000 villages.
ITC benefit from low cost of procurement of raw materials as well as use e-choupal as a
marketing root for its products.

29
5.1.4 THREATS

I .The main threat as is obvious is from competition both domestic as well as International.
The emerging consumer society will bring in new products and services from competitors.
ITC's opportunities are likely to be the opportunities of others as well. Therefore, dynamics of
competition might alter in the medium-term. Then ITC will need to decide upon whether
diversified the most competitive strategic formation for a secure future is.
ii.The heavy taxes and some laws against use on cigarettes and pictorial graphic warnings in
Cigarettes packets might also move away a small percentage of people from such products.

BIBLOGRAPHY
1. Brealey, R.A., Myers, S.C., & Allen, F. (2020). Principles of Corporate Finance (13th ed.).
McGraw-Hill Education.

2. Ross, S.A., Westerfield, R.W., & Jordan, B.D. (2022). Fundamentals of Corporate Finance
(14th ed.). McGraw-Hill Education.

3. Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the
Value of Any Asset (3rd ed.). Wiley.

4. Fabozzi, F.J. (2021). Bond Markets, Analysis, and Strategies (10th ed.). Pearson.
5. Brigham, E.F., & Ehrhardt, M.C. (2019). Financial Management: Theory & Practice (16th
ed.). Cengage Learning.

6. Robbins, S.P., & Coulter, M. (2023). Management (15th ed.). Pearson.

30
7. Daft, R.L. (2020). Management (13th ed.). Cengage Learning.

8. Mintzberg, H. (2009). Managing. Berrett-Koehler Publishers.

9. Drucker, P.F. (2006). The Effective Executive. HarperBusiness.

10. Griffin, R.W. (2022). Management (13th ed.). Cengage Lear

ANNEXURES
Annexure 1. What method does your organization use for budgeting?

a) Traditional budgeting

b) Zero-based budgeting

c) Activity-based budgeting

d) Others (please specify)

Annexure 2: How often are financial statements reviewed internally?

a) Monthly

b) Quarterly

c) Bi-annually

31
d) Annually

Annexure 3: Which financial performance indicators are most important in your

organization? (Select all that apply)

a) ROI

b) Profit margin

c) Liquidity ratios

d) Debt-equity ratio

Annexure 4: Are financial decisions centralized or decentralized in your company?

a) Centralized

b) Decentralized

Annexure 5: Does your organization use financial forecasting tools?

a) Yes

b) No

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