COMPANY PROFILE

ITC is one of India's foremost private sector companies with a market

capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.65
billion. 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 third in pre-tax profit among India's
private sector corporations.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards &

Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Greeting Cards, 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 and Greeting Cards.

As one of India's most valuable and 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 practises
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
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capabilities, effective supply chain management and acknowledged service
skills in hoteliering. Over time, the strategic forays into new businesses are
expected to garner a significant share of these emerging high-growth markets
in India.

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 (US $
2.4 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 Limited, is aggressively pursuing emerging opportunities in providing
end-to-end IT solutions, including e-enabled services and business process
outsourcing.

ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek a
corporate governance rating.

ITC employs over 21,000 people at more than 60 locations across India.
The Company continuously endeavors to enhance its wealth generating
capabilities in a globalising environment to consistently reward more than 4,
80,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively captured

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in its corporate positioning statement: "Enduring Value. For the nation. For the
Shareholder."

As part of ITC's business strategy of creating multiple drivers of growth

in the FMCG sector, the Company has commenced marketing agarbattis
(incense sticks) sourced from small-scale and cottage units. This business
leverages the core strengths of ITC in nation-wide distribution and marketing,
brand building, supply chain management, manufacture of high quality
paperboards and the creation of innovative packaging solutions to offer Indian
consumers high quality agarbattis.

HISTORY OF ITC:

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 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. 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'.

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 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, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
Company.

ITC's Packaging & Printing Business Division, was set up 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-Welcomgroup Hotel
Chola'. 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 75
owned and managed properties spread across India.

In 1979, ITC 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 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.

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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.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and

British joint venture. Since inception, its shares have been held by ITC, British
American Tobacco and various independent shareholders in Nepal. In August
2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper

manufacturing company and a major supplier of tissue paper to the cigarette
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 the 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 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 9 states covering over 3.5 million farmers.
ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August
2004 at Sehore. The year 2006 witnessed the ramping up of the Company's
rural retailing network with 17 'Choupal Saagars' being operational in three
states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC's Packaging & Printing business launched a line of high

quality greeting cards under the brand name 'Expressions'. In 2002, the

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product range was enlarged with the introduction of Gift wrappers,
Autograph books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium stationery
products. In 2003, the company rolled out 'Classmate', a range 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 and women in 2000. The
Wills Lifestyle chain of exclusive stores later expanded its range to include
Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC
also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In December 2005, ITC introduced Essenza Di Wills, an
exclusive line of prestige fragrance products, to select 'Wills Lifestyle' stores.
In 2006, Wills Lifestyle became 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
'Celebration Series', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly
owned subsidiary, ITC Infotech India Limited, to more aggressively pursue
emerging opportunities in this area. In a short span of 5 years, ITC Infotech
has already crossed over US$ 60 million in revenues. It also has a joint venture
with ClientLogic, a top five global Business Process Outsourcing (BPO)
provider.

ITC's foray into the Foods business is an outstanding example of

successfully blending multiple internal competencies to create a new driver of
business growth. It began in August 2001 with the introduction of 'Kitchens of

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India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the
confectionery and staples segments with the launch of the brands Mint-O and
Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed
the introduction of Sunfeast as the Company entered the biscuits segment.
ITC's entered the fast growing branded snacks category with Bingo! in 2007.
In just six years, the Foods business has grown to a significant size with over
150 differentiated products under six distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the

competitiveness of the entire value chain found yet another expression in the
Safety Matches initiative. ITC now markets popular safety matches brands
like iKno, Mangaldeep, VaxLit, Delite and Aim.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003

marked the manifestation of its partnership with the cottage sector. ITC's
popular agarbattis brands include Spriha and Mangaldeep across a range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa.

PRODUCT PROFILE

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 ITC has launched Mangaldeep Agarbattis across a wide range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar,
Tarangini, Anushri, Ananth and Mogra. Recently, a new fragrance Yantra
has been launched which evokes the ambience of a temple. Mangaldeep is also
available in 3-in-1 and 5-in-1 packs giving the consumer a choice of fragrances
in a single pack. Mangaldeep is appropriately priced to appeal to a cross-
section of consumers at various price segments. These agarbattis are available
in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique
concept of packaging which retains the fragrance for a longer period and helps
in "Completing the Purity of Prayer".

The 'Mangaldeep' brand is fast emerging as the only national brand in

an industry dominated by multiple local brands. Mangaldeep is also being
exported to United States of America, United Arab Emirates, Bahrain, Nepal,
Singapore, Malaysia, Oman and South Africa.

With its participation in the business, ITC aims to enhance the

competitiveness of the small and medium scale sectors through its
complementary R&D based product development and strengths in trade
marketing and distribution.

Six of ITC's small scale manufacturers are the first in the country to
receive the ISO 9000-2001certification for agarbatti making.

ITC has also entered into an MOU with the Khadi & Village Industries
Commission (KVIC) to source agarbattis from KVIC approved units, and to
distribute agarbattis through the Khadi Bhavan / Khadi Bhandar outlets across
the country. This collaborative venture is expected to result in employment
generation, particularly in the semi-urban and rural areas.

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 ITC is also supporting an 'Agarbatti Community Participation
Programme' run by the Vyakti Vikas Kendra, a non-profit organisation founded
by the renowned spiritual guru Sri Sri Ravishankar and located near
Bengaluru. Over 100 village women are gaining from the training that this
organisation imparts in rolling agarbattis. ITC is also beginning to extend
similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu,
who are also setting up agarbatti units, training village women in rolling
agarbattis and employing these women in these units.

1.4 MISSION & VISION:

Vision
Sustain ITC’s position as India’s most valuable corporations through
world class performance, creating growing value for Indian economy and
company’s stake holders

Mission
To enhance the wealth generating capability of the enterprise in a
globalizing environment, delivering superior and sustainable stakeholder value.

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 SUGGESTONS

 Lack of awareness is a major problem which stops us to take a lead, so I

would suggest that intensive advertising promotion should be made i.e.
Attack the leader by increasing expenditures on advertising and
promotion It makes sense only when the add is far superior that the
competitors

 Advertising can be done in all mediums like TV, Radio, and

Magazines. .etc .On the whole effective advertising in the media is
necessary. The advertisement should develop a purchase intension in the
minds of the viewers

 To make the buyers more loyal towards the brand, give more discounts
and offers For e.g. :if u can give a coupon inside the pack of Agarbathi,
if ten coupons are collected ,one pack can be given free or any small
gifts can be given. Such offers may develop a brand loyalty towards
Mangaldeep

 Product proliferation : introduce the products with lots of variety, this

will give the buyer more choice
For e.g.: New Mangaldeep Tulips.

 Distribution innovation: a new channel of distribution should be selected

so that the product reaches them easily.

 Offer sample packs to all outlets so that the product gains awareness
 Sample packs can also be given with some local magazines which are
being sold.

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 QUESTIONNAIRE

1. Are you a regular user of Aggarbathi?

o Yes
o No

2. Are you aware about the brand Mangaldeep 5 in 1?

o Yes
o No

3. What brand of Aggarbathi do you use?

o Mangaldeep 5 in 1
o Cycle 3 in 1
o If others please specify:

4. How often do you buy Agarbathis?

o Monthly once
o Monthly twice
o Weekly once

5. How many Agarbathis do you light together?

o One at a time
o Two to five
o Five or more

6. How many times do you light Agarbathis in a day?

o Daily once
o Daily twice
o Two or more times

7. What is the best about the product Mangaldeep 5in 1

o Variety
o Quality
o Fragrance
o Pricing
8. Do you purchase Mangaldeep 5 in 1 because of its brand name ITC?

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 Yes No

9. Do you purchase Mangaldeep 5 in 1 only at special schemes, offers and

promotion packages?

Yes No

10. Have you shifted from cycle 3 in 1 to Mangaldeep 5 in 1? If so why?

o 5 in 1 has additional fragrance

o Quality is better
o Quantity is more
o Brand name

11. I purchase Mangaldeep 5 in 1 because of the,

o Brand name
o Quality
o Quantity
o Packaging
o Advertising

12. Have you shifted from Mangaldeep 5 in 1 to cycle 3 in 1? If so why?

o 3 in 1 has better fragrance

o Quality is better
o Quantity is more
o Brand name

13. I buy cycle 3 in 1 because,

o Brand name
o Quality
o Quantity
o Packaging
o Advertising

14. Are you aware about the special packages offered by Mangaldeep?

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  Parachute oil free with Mangaldeep
 Jar scheme
 Others

15. What is your most preferred fragrance type in Mangaldeep?

o Jasmine
o sandal
o Rose
o 5 in 1
o 3 in 1
o Yantra

16. What stops you from trying out Mangaldeep 5 in 1?

o Satisfied with the current brand

o Not aware about the brand
o Non-availability of the brand

17. Are you aware about the mangaldeep 5 in 1 advertisement, if yes?

What do you feel about the add?

o Simple and meaningful

o Gives a strong impression about the brand
o Does not create any impact on the brand
o Does not convey any meaning

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