Rs 1,00,00,000 Salary! FMCG Giant ITC Adds 68 Employees To Rs 1 Crore Salary Club; Big Update On Strategy

It's a sweet symphony to earn Rs 1 crore salary. And that has emerged as a reality for some 68 employees who joined the Rs 1 crore salary club at FMCG giant ITC in FY24. 350 employees now earn more than Rs 1 crore at ITC in the financial year, which is higher by 24% than the 280 employees listed in FY23. ITC in its annual report, highlighted key strategies going ahead for its diverse business. This FMCG stock will eventually be in focus.

In its annual report, ITC stated that its total headcount stood at 24,567 employees as of March 31, 2024.

Of the total, ITC said, 350 employees, who were employed throughout the year and were in receipt of remuneration aggregating Rs 102 lakh or Rs 1.02 crore or more or were employed for part of the year and were in receipt of remuneration aggregating 8.5 lahks per month or more during the financial year ended 31st March 2024.

This is higher by 24.11% from the total of 282 employees in FY23 in the Rs 1 crore club. Hence, ITC added 68 employees in the Rs 1 crore bracket during FY24.

Also, under the Employee Stock Option Schemes, in FY24, ITC granted eligible employees about 15,16,450 Stock
Options at 'market price'. Each Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the Company of Rs 1/- each upon payment of the exercise price during the exercise period. The exercise period commences from the date of vesting of the Options and expires at the end of five years from the date of such vesting.

In FY24, on a consolidated basis, ITC spent about Rs 6,134.35 crore on employee benefits, which rose by 6.9% from the expense of Rs 5,736.22 crore in FY23. Of these, ITC spent up to Rs 5,352.94 crore in FY24 on salaries and wages, up by 9.6% from Rs 4,885.49 crore in FY23. Further, ITC contributed up to Rs 334.15 crore on provident and other funds in FY24 versus Rs 291.46 crore. Also, the company paid Rs 328.21 crore on staff welfare expenses in FY24 as against Rs 302.60 crore in FY23.

In its annual report, ITC also highlighted its Next Strategy.

It said, "The ITC Next strategy focuses on exploring opportunities to craft disruptive business models anchored at the intersection of the megatrends of Digital and Sustainability while leveraging the Company's institutional strengths. At the core is also the sharp thrust of the ITC Next strategy on agility, consumer centricity and inspired talent."

ITC said, "Pivoting sharply to the new context, the ITC Next strategy is being rigorously pursued to shape the next
horizon of growth and profitability. The extensive strategy reset unleashes new drivers of structural competitiveness by strengthening the multiple drivers of growth, Innovation and R&D, building agile, resilient and efficient Supply Chains, mainstreaming Digital Adoption and sustainability, and ensuring Cost Optimisation."

On BSE, ITC's share price is at Rs 424.90 apiece with a market cap of Rs 5,30,475.82 crore, becoming the second largest FMCG firm in India.

ITC is set to demerge its hotel business. The demerger is in the split ratio of 10:1. Because as part of the merger process, for every (Ten) Ordinary Share of the face and paid-up value of Re. 1 each held in ITC, 1 (One) equity share of the face and paid-up value of Re. 1 in ITC Hotels.

After the completion, ITC's stake will be reduced. The shareholders of ITC will directly hold about 60% of ITC Hotels, proportionate to their shareholding in ITC. The balance stake of about 40% will be held by ITC.