— PHOTO: G. R. N. SOMASHEKAR

EMPOWERING MANAGERS: Y. C. Deveshwar, past-President, CII, and Chairman, ITC, addressing a CII Governance Series conference in Bangalore on Friday.

BANGALORE: It is all about matching long-term growth strategy of a company with stakeholder value and societal commitments. "Heads of divisions or companies within the company as in ITC, have to be empowered and consumer satisfaction assured.

The empowered managers have to work within a framework of accountability and transparency, going beyond the board and shareholders," Y. C. Deveshwar, Chairman, ITC, said.

He was speaking at the Confederation of Indian Industry's Governance Series here on Friday.

About the implications of VAT on tobacco, he said it had to be studied in detail from the point of tax burden on growers and manufacturers of tobacco products. "The anti-smoking view may even change but we have considerably diversified," Mr. Deveshwar said. The VAT impact had to be studied carefully before any changes in the tobacco business can be considered.

[The West Bengal Government last week proposed in the State budget a 12.5 per cent VAT on cigarettes, effective April 1. Besides, Maharashtra and Bihar have also proposed VAT on the product.] He said the group's hotel coming up on eight acres along Anna Salai in Chennai would be one of the largest in the country. It was likely to be bigger than its Bangalore property which had 140 rooms and suites.

"We may expand the hospitality business and may even consider other partners (Sheraton is ITC Welcom's current partner) in future, if found feasible. When it comes to hotels money is not the problem but finding land in prime locations is," he told reporters.

ITC's `e-chaupal' model had been successful and important in the supply chain for its foods division which could go into more products, he indicated. Direct procurement from farmers was helping them get better returns.

The ITC group could claim to have helped create a cleaner environment, recycling water and following good watershed management practices.

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