ITC's Deveshwar finally decides to hang his boots
ITC Ltd Chairman Yogesh Chander Deveshwar, on Tuesday, decided to step aside from his executive role to a non-executive one at the end of his current tenure in February next year.
As per the regulatory filing, the company said that the Board and Nomination & Compensation Committee have strongly urged Deveshwar to continue for a longer period in his post.
In 2011, at the 100th AGM, he had indicated about his thoughts of stepping down. It was his desire to shed the executive role and put in place a youthful leadership.
The filing said, "At the request of the Nomination & Compensation Committee and the Board, recognising the need for orderly transition in a company of ITC’s size and complexity, Mr. Deveshwar has instead agreed to provide guidance and mentorship to the new executive management, that is planned to be put in place, as Non-Executive Chairman on expiry of his current term".
Thus, on May 20, 2016, the Board and Committee recommended for the approval of the members, for Deveshwar's appointment as Non-Executive Director of the company for a period of three years with effect from February 5, 2017.
Deveshwar (69), who joined ITC in 1968 had assumed office as Executive Chairman in January, 1996. His re-appointment as a Director and also as Wholetime Director and Chairman for a period of five years with effect from February 5, 2012 was approved in the company's AGM in July, 2011.
Hailing his leadership, in the regulatory filing mentioned that the company has witnessed transformation into one of India's most "admired and valuable corporations".
In monetary terms, when Deveshwar took over as Executive Chairman, the company's revenue was less than Rs 5200 crore and Profit Before Tax was Rs 452 crore. Presently, ITC's revenue tenfold to Rs 51,582 crore and PBT grew 33 times to Rs 14,958 crore, said the filing.
"Total Shareholder Returns grew at a compound annual rate of 23.3% during this period", the filing added.
Also, in 2011, Deveshwar was conferred the Padma Bhushan, one of the highest civilian awards in the country, by the Government of India in recognition of his distinguished service of a high order to the country.
He led the transformation of ITC known mostly as a cigarette maker to a diversified group with presence ranging from FMCG, hospitality, paperboard and packaging, IT and agri business.
Under his stewardship, the company also created several world-class Indian Brands in the FMCG space.