ITC adds 68 crorepati employees in FY24; 24.11% increase from last year

Sixty-eight executives joined the crorepati club in FY24 at THE cigarettes-to-hotels conglomerate ITC. This is an increase of 24.11 per cent over the previous financial year (FY23).

According to the company’s latest annual report, the number of executives drawing an annual remuneration of more than Rs 1 crore was 350 in FY24. 

The figure includes some employees who received remuneration aggregating Rs 8.5 lakh or more per month and employed for a part of the year ended March 31, 2024.

In FY23, the number of employees in the Rs 1 crore-plus bracket had stood at 282. The addition in FY23 over FY22 was 62, reflecting an increase of 28 per cent.

 

The addition in the eight-figure bracket reflects the scale of ITC’s operations and spread in newer categories. 

The remuneration policy of the company enunciated in the annual report says that it is “market-led and factors in the competitive context of each business.”

Performance against the sustainability goals of the company has also been included as a factor in assessing business performance, which, contributes to determining remuneration, the report mentioned.

The chairman and other executive directors are entitled to performance bonuses for each financial year up to a maximum of 300 per cent and 200 per cent of their basic/consolidated salary, respectively, as determined by the board on the recommendation of the Nomination and Compensation Committee.

ITC chairman and managing director Sanjiv Puri’s gross remuneration at Rs 28.62 crore saw an increase of 50 per cent.

The remuneration of key management personnel (KMP) increased 59 per cent. The company attributed it to the payment of long-term incentives during the year and also due to the increase in the number of executive directors for an interim period.

The average remuneration of employees excluding KMP increased 9 per cent. The median remuneration of employees increased by 5 per cent.

The number of permanent employees at ITC as of March 31, 2024, was 24,567.

 ITC, which straddles a wide range of businesses – cigarettes, FMCG, hotels, agri business, paperboards, paper, and packaging – clocked in consolidated revenue of Rs 76,840.49 crore in FY24. It was up by 0.42 per cent. Net profit at Rs 20,458.78 crore was up by 6.6 per cent.

The non-cigarettes FMCG business recorded an annual consumer spend of nearly Rs 32,500 crore in FY24 compared to Rs 29,000 crore in FY23.

 ITC, which has built most of its brands from scratch, has a portfolio of over 25 brands. The company launched over 100 new products during the year anchored on the vectors of health & nutrition, hygiene, protection and care, convenience and on-the-go, indulgence.

Digital sales and modern trade now stands at 31 per cent for the non-cigarettes FMCG portfolio. In 2019-20, it was at 17 per cent.

The FMCG-cigarettes segment witnessed consolidation on a high base after a period of sustained growth momentum, the company said.

The hotel business has been seeing a post-pandemic surge. 

The company said the business was witnessing growing interest amongst property owners to partner with its iconic brands resulting in healthy generation of leads and pipeline of management contracts.