ITC Ltd noted a notable increase in the number of employees earning over Rs 1 crore per annum, marking an increase of 24.11% in FY24 over the previous year. The company’s annual report reveals that an additional 68 senior civil servants have fallen into this highest salary band, for a total of 350 for the 2023-24 financial year, up from 282 in 2022-23.
The increase in the number of highly paid employees at ITC reflects the growth and profitability of the company. In FY24, ITC allocated Rs 6,134.35 crore for employee benefits, of which Rs 5,352.94 crore is for salaries and wages. This represents an increase of 6.9% over the previous year’s expenditure of Rs 5,736.22 crore, of which Rs 4,885.49 crore was spent on salaries and wages.
According to a report by The Telegraph, the increase in the number of highly paid employees at ITC is linked to the expansion of the company’s portfolio. In recent years, ITC has opened eight new factories and two hotels in India, which has led to an increase in recruitment and deployment of human resources.
ITC’s profitability soared, with a 24.5 per cent rise in profit to Rs 18,753.31 crore in FY23. This growth led to an increase in employee salaries. As of March 31, 2024, ITC had 24,567 permanent employees. Median compensation increased by 5%, while average compensation increased by 10% in FY24. Excluding key management personnel (KMP), average compensation saw an increase of 9%.
ITC’s median salary for male employees, excluding key management personnel (KMPs) and board members, stood at Rs 7,14,281, while female employees earned a median salary of Rs 7,03,725. ITC has expanded its operations into several sectors including tobacco, packaged foods, paper and paperboard, hospitality, agri-products, and health and personal care (FMCG).
According to Business Standard, senior executives at ITC have received significant salary increases. Sanjiv Puri, Chairman and Managing Director, saw his gross remuneration increase by 49.6 per cent to Rs 28.62 crore in FY24 from Rs 19.12 crore in the previous year. Executive director B. Sumant received a 52.4 per cent hike, taking his salary to Rs 13.6 crore. Executive directors Supratim Dutta and Hemant Malik received salary increases of 59% and 30%, respectively.
It has been reported that ITC Ltd has overtaken Britannia Industries to become the second-largest Indian listed company in the packaged food sector by sales, behind Nestle. ITC’s food business reported consolidated sales of Rs 17,194.5 crore for the financial year ended March 31, 2024. Britannia, in comparison, reported sales of Rs 16,769.2 crore, while Nestle India reported total sales of Rs 24,275.5 crore for FY2024, covering 15 months due to a change in its financial year.