ITC’s Crorepati Surge: Scaling New Heights in FY24

ITC, a well-known company that sells everything from cigarettes to hotels, saw a significant increase in executives joining the crorepati club in FY24—68 new members, up 24.11% from FY23. According to the company’s annual report, there are now 350 executives who make more than Rs 1 crore yearly, up from 282 in FY23 and 28% more than in FY22. This increase highlights ITC’s broad activities in a number of industries, such as packaging, agribusiness, hotels, and FMCG.

The market-led compensation policy of ITC takes into account the competitive environments in each business category. Compensation is heavily influenced by how well an employee performs in relation to sustainability targets. Due to long-term incentives and temporary additions to the executive team, key management personnel witnessed a 59% increase in gross compensation, while chairman and managing director Sanjiv Puri’s increased by 50% to Rs 28.62 crore.

With the exception of senior management, average employee compensation increased by 9% and the median by 5%, which reflects broader trends in the workforce dynamics of the organization. ITC employed 24,567 permanent staff members as of March 31, 2024.

In terms of finances, ITC had a minor gain of 0.42% in consolidated revenue to Rs 76,840.49 crore in FY24. Net profit increased by 6.6% to Rs 20,458.78 crore. Just the FMCG category that does not include cigarettes had significant growth, with yearly consumer spending of around Rs 32,500 crore, up from Rs 29,000 crore in FY23. The business ascribed this rise to innovations in digital sales, convenience, hygiene, and health and nutrition, which currently account for 31% of its FMCG portfolio that isn’t smokes, up from 17% in 2019–20.

In addition, ITC’s hotel division saw a post-pandemic rebound, drawing interest from landowners for joint ventures and management agreements. ITC’s strategic development into a variety of areas and its strong financial results in FY24, taken together, highlight the company’s standing as a major participant in the Indian business scene.

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