ITC Ltd has noted a notable surge in employees earning over Rs 1 crore annually, marking a 24.11% increase in FY24 compared to the previous year. The company's annual report reveals that 68 more senior officials entered this top salary bracket, totaling 350 for the financial year 2023-24, up from 282 in 2022-23.
The rise in highly paid employees at ITC reflects the company's growth and profitability. In FY24, ITC allocated Rs 6,134.35 crore for employee benefits, with Rs 5,352.94 crore going towards salaries and wages. This represents a 6.9% increase from the previous year's expenditure of Rs 5,736.22 crore, including Rs 4,885.49 crore spent on salaries and wages.
According to a report by The Telegraph, the rise in highly paid employees at ITC is linked to the company's expanding portfolio. In the last few years, ITC has opened eight new factories and two hotels in India, leading to increased hiring and deployment of human resources.
ITC's profitability has soared, with a 24.5% rise in profit to Rs 18,753.31 crore in FY23. This growth has prompted an increase in employee salaries. As of March 31, 2024, ITC had 24,567 permanent employees. The median remuneration increased by 5%, while the average remuneration rose by 10% in FY24. Excluding key managerial personnel (KMP), the average remuneration saw a 9% increase.
ITC's median salary for male employees, excluding key managerial 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 across multiple sectors, including tobacco, packaged foods, paper and paperboards, hospitality, agri commodities, and health and personal care (FMCG).
According to Business Standard, ITC's top executives received significant pay raises. Sanjiv Puri, chairman and managing director, saw his gross remuneration increase by 49.6% to Rs 28.62 crore in FY24 from Rs 19.12 crore the previous year. Executive Director B. Sumant received a 52.4% hike, bringing his pay to Rs 13.6 crore. Executive directors Supratim Dutta and Hemant Malik received pay increases of 59% and 30%, respectively.
It has been reported that ITC Ltd has surpassed Britannia Industries to become India's second-largest listed packaged foods company by sales, trailing only Nestle. ITC's foods business recorded consolidated sales of Rs 17,194.5 crore for the fiscal year ending March 31, 2024. Britannia, in comparison, reported sales of Rs 16,769.2 crore, while Nestle India registered total sales of Rs 24,275.5 crore for fiscal 2024, covering 15 months due to a change in its financial year.