TABLE OF CONTENT

S.NO

TOPIC

PAGE NO.

1. 2. 3. 4.

PREFACE INTRODUCTION OF THE COMPANY ORGANAZITIONAL STRUCTURE PRODUCTS OF THE COMPANY

7 9 28 36

5. 6. 7.

PERFORMANCE OF THE COMPANY CHALLENGES FACED BY ITC RESEARCH PROBLEM

56 61 65

8. 9. 10. 11. 12.

SCOPE AND OBJECTIVE REVIEW OF LITERATURE HYPOTHESIS RESEARCH DESIGN COLLECTION OF DATA

68 70 73 75 79

13. 14. 15.

ANALYSIS OF DATA INTERPRETATION OF DATA

81 84

FINDI NG CONCLUSION SUGGESTION LIMITATION ANNEXURE BIBLIOGRAPHY

96 98 100 102 104 108

16. 17. 18.

19.

20.

PREFACE

To start a business the success depends upon the research done about the particular & consumer attitude the product. Marketing research plays a vital role in a business to make it successful. I tried to put my best effort to complete the task on the basis of skills. I am having this study done about the flour sales & distribution in the city of different companies. In order to know about the opportunities in the mareket.Inthe study, an attempt is made to cover every expect of these objectives to find out solutions for the company.

COMPANY OVERVIEW

ITC is one of the India`s foremost private sector companies with a market capitazation of nearly US $ 15 billion & a turnover of US $ 6 billion. Rated among the World`s Leading Companies by Forbes manazine, ITC ranks third in pre-tax profit among India`s private Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards & other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri-Export, it is rapidly gaining market share even in its nascent businesses of Branded Apparel, Greeting Cards & Packaged Foods & Confectionery. As one of India`s most valuable & respected corporations, ITC is widely perceived to be dedicatedly nation- oriented. Chairman Y C Deveshwar calls this source of inspiration (a commitment beyond the market).In his own words ;( ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part).

ITC`s diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management & acknowledged services skills in hoteliering. Over time, the strategic forays into new businesses are expected to grammar a significant share of these emerging high-growth markets in India.

ITC VISION

Sustain ITCs position as one of the Indias most Valuable corporations through world Class performance, creating growing value For the Indian & the companys Stake holders.

ITC MISSION
To enhance the wealth generating capability of Enterprise in a globalizing environment, delivering Superior & sustainable stake holder value.Over the years, ITC has evolved from a single Product Company to a multiple business corporation.Its business separated over a wide spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards & international.

Commodities trading.
ITC defined Corporate Governance as a systemic Process by which companies are directed & controlled to

Enhance their wealth generating capacity.

Since large corporation employ wast quantum of a societal Resources, we believe that the governance process should Ensure that these companies are managed in a manner that Meets stake holders aspirations & societal expectations.

CORE PRINCIPLES
ITC`s Corporate Governance initiative is based on two core principles. These are Management must have the executive freedom to drive the enterprise forward without undue restraints; and

This freedom of management should be exercised with in a framework of effective accountability

CONTROL
ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are preemptively and effectively managed.

Listen to our customers & supply the ideal product at reasonable price

10

11

HISTORY AND BACKGROUND

ITC was incorporated on August 24,1910 under the name of Imperial Tobacco Company of India Limited. Its beginnings were humble. A leased office on RADHA BAZAR Lane, Kolkata, was the centre of company`s existence. The Company celebrated its 16 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 in to India` future. The Company`s headquarter building,Virgina 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. In recognition of the Company`s multi-businesses portfolio encompassing a wide range of businesses-Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specailty Papers, Agri-Exports,Food, 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.

12

In 1925 as a strategic backward integration for ITC`s Cigarettes business. It is today India`s most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened ITC-Welcome group hotel Chola`.The objectives of ITC`S Entry into 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 Hotel`s business has grown to occupy a position of leadership, with 66 owned and managed properties spread across India. In 1979, entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13,2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company`s Tribeni Tissuses Division to from the Paperboards & specialty Papers Division. ITC`S paperboards` technology, productivity, quality and manufacturing processes are comparable to the best in the world. In 2004 ,ITC acquired the paperboard manufacturing facility of BILT Industrial PACKAGING Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit allows ITC to improve customer service with reduced lead time and a wider product range. On 1985, ITC SET up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).

13

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarettes industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies TTD was merged with the Bhadrachalam Paperboards Division to form Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business Division (IBD) for export of agri- commodities. The division is today one of Indias largest exporters. ITCs unique & now widely acknowledged e- Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 6 states covering over 3.1 million farmers. In 2000, ITCs Packaging business high quality greeting cards under the brand name Expressions. Launched a line of In 2002 , the product range was enlarged with the introduction of the Gift wrappers, Autograph books & Slam books. In the same year, ITC also launched Expressions Matrubhasha, a vernacular range of greeting cards in eight. Language & Expressions Paper raft, a range of premium stationery products. In 2003, the company rolled out Classmates, arrange of notebooks in the school stationery segment. ITC also entered the Lifestyle retailing business with the Wills Sport range of international quality relaxed. Wear for men & women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) & Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its mens wear brand , John players, in 2002. In 2000 . ITC pun off its information technology business into a wholly owned subsidiary , ITC InfoTech India Limited. To more aggressively pursue emerging opportunities in this area.
14

ITC made its entry into the braded &packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A mare broad- based entry has been made since June 2002 with brand launches in the Confectionery, Staples & Snacks Foods segments. In 2002, the mint-o trademark was acquired & relaunched in orange &mint flavors. In the same year Candy man was added to the confectionery range & Aashirvaad Atta was rolled out. The Aashirvaad brand now extends to ready-to-eat foods, ready-to-cook pastes & salt. In 2003 the Candy man range was expanded to include deposited candies & clairs. In 2003 Sun feast biscuits were launched & mint-o lemon mint flavor was introduced. In 2004 the Kitchens of India brands was extended to cooking pastes. In 2002, ITCs philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangle Deep , Vaxlit, Delite & Aim.

ITCs foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITCs popular agarbattis brands include Spriha & Mangle Deep across a range of fragrances like Rose, Jasmine, Sandalwood, Madhur, Sambrani & Nagchampa.

15

ITC Registered Office

ITC Limited Virgina House 37 J.L Nehru Road Kolkata Pin Code 700071 INDIA

16

An overview of ITC Saharanpur Factory

ITC Saharanpur Factory was established in the year 1926 and is the second oldest among all the cigarette factories after Merger. It manufactures processed cut tobacco and packed cigarettes. It has a built up area of 26334 s-m. The facilities include the production block consisting of primary manufacturing department (PMD) & secondary manufacturing department (SMD) ,leaf go down ,WMS go down , FG (shipping department) , utilities , service block , administrative block & gate house .

Tobacco leaves are purchased from farmers through auction by ILTD (leaf tobacco division) & are sending to different ITD factories depending on their requirement. Tobacco leave is divided in 2 parts, the lamina (leaf part) & the stem (the midrib separated from lamina by threshing). Tobaccos leaves are received in leaf go down & stored till the time they are issued to PMD for processing.

17

The PMD process in 2 separated lines the (the lamina & the stem line respectively) which result in processed cut tobacco which gets stored in Cut Tobacco Store (CTS). From CTS it is issued to SMD for production of packed cigarettes. The SMD is divided in 2 sections the maker & the packer sections. Wrapping materials stores (WMS) materials are supplied from WMS go down at this state both the maker & the packer for production. WMS materials are all other things cigarettes packet other than the tobacco the maker is responsible for producing cigarettes sticks & the packer section produces packed cigarettes These are then sent to the finished goods go down for temporary storage & eventual shipment from there.

18

CAREERS WITH ITC

ENTRY LEVEL RECRUITMENT

ITC visits premier Engineering and Management campuses every year to induct quality talent for its various Businesses.

Manufacturing

ITC inducts talent for the Technical function from the 5 IITs (Chennai, Delhi, Kanpur, Kharagpur, Powai) and some of the NITs. Engineers from disciplines such as Mechanical, Electrical and Electronics, Production Engineering, Chemical and Civil are considered for placement.

The process starts in August each year with a campus visit and a pre-placement presentation. This provides an opportunity for young aspirants to learn more about the Company, its history and achievements, its corporate strategy, details of its various businesses and the kind of careers they can look forward to.

The selection process is objective and robust. A range of selection tools are used. These include assessment centres, group tasks and indepth personal interviews.

19

Candidates found suitable for employment are immediately given offers to join ITC in July of the following year. After a comprehensive induction programme, they are assigned to various businesses of the Company.

Marketing and Human Resources

ITC sources talent from the premier Management Institutes of the country for the Marketing and HR functions. These campuses include the IIMs, ISB, XLRI, FMS, IIFT, TISS, JBIMS and Symbiosis.

The pre-placement presentation at campuses, normally in September/October each year, provides an opportunity for young aspirants to know more about the Company, its history and achievements, its corporate strategy, details of the various businesses and the kind of careers they can look forward to.

During these visits, ITC also selects first-year students for Summer Internships during April to July of the following year.

A team of ITC managers visits campuses once again between December and March for final placement. The process consists of group discussions and personal interviews preceded by psychometric tests and assessment centres. Employment offers are made to selected candidates immediately. On joining ITC in July, candidates undergo an induction programme before being assigned to one of the Company's businesses.

20

Trading, Sourcing and Logistics

ITC visits premier institutes such as IIMA, IIFT, IRMA and MANAGE to induct talent for its Agri Business Division.

Pre-placement presentations at campuses normally take place in September/October each year. These presentations provide an opportunity for young aspirants to know more about the Company, its history and achievements, its corporate strategy, details of its various businesses and the kind of careers they can look forward to.

During these visits, first-year students are selected for Summer Internships with ITC in April to July of the following year.A team of ITC managers visits these campuses once again between December and March for campus interviews. The process consists of group discussions and personal interviews preceded by psychometric tests and assessment centers.

Employment offers are made to selected candidates immediately. On joining ITC in July, candidates participate in an induction programme. Thereafter they are assigned to responsibilities in Trading, Sourcing and Logistics in the Agri Business Division.

21

Finance

ITC recruits entry-level talent for the Finance function from amongst qualified Chartered Accountants and MBAs specializing in Finance.

Candidates are short-listed for selection from a pool of applicants that apply to ITC on-line through the Company's portal at www.itcportal.com. Recruitment of entry level talent in the Finance Function takes place twice a year.

Preliminary interviews are held at selected locations. The short-listed candidates are called to Kolkata for the final selection process which extends over two days. The selection process comprises psychometric tests, assessment centers, group tasks and personal interviews. The interviewing panel looks for a strong conceptual base in finance and accounting. Effective inter-personal skills, integrity, intellectual rigour, a "will do" attitude, creativity, leadership and high energy are other essential attributes.

Candidates who receive offers of employment undergo a comprehensive induction programme before being assigned to the Internal Audit function. The tenure in the Internal Audit function normally extends over a period of 3 years. Following this, they are assigned operational responsibilities in one of the Company's businesses.

22

Manfred Boden (West-Germany) obtains 1980-81 unsolicited computer print-outs from "spirit" comunicators. Before that he received telephone calls. Until 1983 he has also unsolicited contacts with communicators of non-human evolution.

Hans Otto Koenig developed new spirit communication technologies from 1982 to 1988, employing extremely low frequency oscillators, as well as lights in the ultraviolet and infrared range. In 1983 he appeared on a popular radio program on Europes largest radio station, Radio Luxembourg. The host, Rainer Holbe, had Koenig set up his equipment under close supervision of the station engineers. One of the engineers asked if a voice could come through in direct reply to a question, and a voice quickly replied, We hear your voice. Otto Koenig makes wireless contact with the dead. Stunned, Rainer Holbe addressed the millions of listeners across Europe, I tell you, dear Listeners of Radio Luxembourg, and I swear by the life of my children, that nothing has been manipulated. There are no tricks. It is a voice, and we do not know from where it comes.

23

24

Formals 3 Tierd governance structure : Board of director:

Comprising executive (4) &non executive directors (11) strategic supervision

Corporate management committee:

Comprising executive directors & senior managers strategic management

Divisional Chief executive & divisional management committee:

Executive management

25

SHARE HOLDERS

BOD

CORPORATE MANAGEMENT COMMITTEE

(CMC)

DMV (HOTEL)

DMC (PAPER)

DMC (TOBACCO)

DMC (IT)

DMC (AGGI)

26

27

Board of Directors
Chairman Yogesh Chander Deveshwar

Corporate Management Committee

Directors
Y C Deveshwar Chairman A Singh Member K Vaidyanath Member K N Grant Member

Executives
N Anand Member A Nayak Member T V Ramaswamy Member S Sivakumar Member K S Suresh Member R Tandon Member
28

B B Chatterjee Member & Secretary

Executive Vice President & Company Secretary

Biswa Behari Chatterjee

General Counsel
Kannadiputhur Sundararaman Suresh

Investor Service Centre

37 Jawaharlal Nehru Road, Kolkata 700 071, India Phone: 033-2288 6426/2288 0034 Fax: 033-2288 2358 E-mail: isc@itc.in

Auditors
Deloitte Haskins & Sells Chartered Accountants, Kolkata

Board Committees Investor Services Committee

29

A V Girija Kumar Chairman P B Ramanujam Member B Sen Member K Vaidyanath Member B Vijayaraghavan Member B B Chatterjee Secretary

Compensation Committee
S H Khan Chairman A Baijal Member S B Mathur Member H G Powell Member B Sen Member

Nominations Committee
Y C Deveshwar Chairman A Baijal Member S Banerjee Member A V Girija Kumar Member S H Khan Member S B Mathur Member D K Mehrotra Member P B Ramanujam Member

Sustainability Committee
Y C Deveshwar Chairman
30

S Banerjee Member H G Powell Member A Ruys Member B Sen Member B Vijayaraghavan Member B B Chatterjee Secretary Anup Singh Krishnamoorthy Vaidyanath Kurush Noshir Grant

Executive Directors
Anil Baijal Angara Venkata Girija Kumar Serajul Haq Khan Sunil Behari Mathur Dinesh Kumar Mehrotra Hugo Geoffrey Powell Pillappakkam Bahukutumbi Ramanujam

31

AWARDS

32

ITC`s Cigarettes business has won numerous awards for its quality, environmental management systems and product excellence. The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 20032004 in the manufacturing sector. ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS 18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety Management systems(OHSMS). ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco Products for 2003, by the Tobacco Board of India. The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The Royal Society for the Prevention of Accidents (ROSPA). The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001 accreditation for their environmental management systems. The Saharanpur and Bangalore factories have also received the ISO 14001 certification. All cigarette factories have ISO 9002 Quality Certification. The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern Region) for 1998. The ITC has also received the prestigious Sword of Honors Award from the British Safety Council for highest standards of safety.

33

34

35

Mission Sunehra Kal, ITCs rural capacity building programme, now active in 11 States, empowers rural people communities to sustainable changes that make them

economically competitive and socially secure. In the rural communities where the mission has put down roots there is a new spirit of optimism and confidence. People have augmented and diversified their livelihoods. Education for children, employment for women, sanitation and family health have taken on a new urgency. Every family and every farm has resources to build a better future. Stagnation and deterioration have given way to change and improvement. To accomplish this change, ITC targets four problems, which it believes are the fundamental obstacles to productivity and growth in the farm sector : 1. Loss of productivity through soil erosion caused by intensification of land use and decline of water tables and forest resources. 2. Dependence on out-moded farm practices and inferior inputs. 3. Loss and disruption of farm incomes and non-availability of alternative livelihoods. Inadequate access to primary education and healthcare 4. Inadequate access to primary education and healthcare

36

ITC enables farmers to implement solutions that are sustainable because they are 1. mutually reinforcing, 2. based on knowledge transfer and co-operative application of technology, 3. dependent on mobilisation and optimisation of local resources. The delivery model mobilises a four-way partnership between village communities, specialist NGOs, the Government and ITC, bringing to every initiative the best relevant management and technical expertise. ITC has also worked with State Governments in pioneering public-private partnerships. In Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration with the State Governments rural poverty reduction project, Indira Kranthi Padham, and its Comprehensive Land Development programme. ITC has also signed a landmark agreement with the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the drought-prone Bhilwara district. By augmenting water resources and forest cover and fostering organic soil management, ITC has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm income and employment to reduce pressure on land.

37

38

39

RESEARCH PROBLEM

TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN DIFFERENTDIFFERENT PLACES OF SAHARANPUR CITY AND FIND OUT THE REASON FOR DECREASE IN IT SALES.AND ALSO FINDS OUT THE DIFFERSENCES BETWEEN ITS COMPETITORS PRODUCT.

40

41

42

OBJECTIVE OF RESEARCH
TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITY OF SAHARANPUR. TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD IN THE CITY OF SAHARANPUR.

43

44

REVIEW OF LITERATURE DEFINITION OF SALES:

It is a process by which

-one identifies the people, who have a need. [ PROSPECTING] -one determines the needs of the people.[ NEEDS ]

-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]

-one determines the way of communicating your product as a solution. [RECOMMENDING]

-one determines the value for the product for the prospect.[ ADVOCATING YOUR PRODUCT].

-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]

and then creating a transaction for exchanging the product for a value. [ CLOSING THE SALE ]

and thus creating a satisfaction to the buyer's needs/wants. [ CREATING CUSTOMER SATISFACTION] ================================================
45

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all-important end-user

DEFINITION OF DISTRIBUTION

THE ACT OF DISTRIBUTION MEANS ; apportionment. Something distributed; over -The geographic occurrence -The customers occurrence -The usage occurence -Others The process of distribution of goods/services could include -logistics -warehousing -transportation -order processing/ servicing etc etc

46

Traditionally, distribution has been seen as dealing with LOGISTICS: how to get the product or service to the customer. It must answer questions such as: The two-step channel of distribution is for the producers to give the retail small quantities. Should the product be sold through a retailer? Should the product be distributed through wholesale? Should multi-level channels be used? How long should the channel be (how many members)? etc etc

The distribution channel

Channels A number of alternative `channels' of distribution may be available: Selling direct Mail order (including Internet and telephone sales) Retailer Wholesaler Agent (who acts on behalf of the producer)

47

48

HYPOTHESIS

(a) NULL HYPOTHESIS-Sales &distribution is essential for any business. Retailers are
Satisfied regarding the sales & distribution of the company. They are satisfied with the quality of company product & also satisfied with packaging of the company.

(b) ALTERNATIVE HYPOTHESIS: Some retailers are unsatisfied with the sale of aashirvaad because they told us the rate of aashirvaad is more than other flour product. So they are unsatisfied.

49