ITC has sought approval to re-appoint non-executive chairman YC Deveshwar from 2020 to 2022, given the increasing size and complexity of the conglomerate.
Cigarettes-to-hotels major ITC has sought shareholders’ approval to re-appoint its non-executive chairman YC Deveshwar for another two years, from 2020 to 2022, given the increasing size and complexity of the conglomerate.
The Kolkata-based diversified conglomerate has also sought shareholders’ nod during its upcoming 107th annual general meeting for re-appointment of Sanjiv Puri as the managing director of the company for a period of five years with effect from July 22, 2019, according to the notice to shareholders for the AGM, scheduled to be held on July 27.
Puri has been the MD of ITC effective from May 16, 2018. He was appointed as and chief executive officer from February 5, 2017, taking independent charge of the executive leadership of the company.
In a stock exchange filing on Monday, the company said, “…given the increasing size and complexity of the organisation, the Committee and the Board are of the view that it would be in the best interest of the company for Mr. Deveshwar to continue in his capacity as Chairman for some more time.”
Accordingly, the board, at the meeting held on May 16, 2018, on the recommendation of the committee, recommended for the approval of the members, the re-appointment of Deveshwar as chairman and non-executive director of the company for the period from February 5, 2020 to February 3, 2022, as set out in the resolution relating to his re-appointment.
ITC had said in June 2016 that after being at the helm of the company for more than two decades, Deveshwar would shed his executive role from February 5, 2017 and would become a non-executive chairman for three years.
In its latest annual report, ITC said, “Your company delivered a resilient performance during the year which was a particularly challenging one due to a sharp slowdown in the economy, steep escalation in tax incidence on cigarettes under the GST regime, subdued demand conditions in the FMCG industry and supply chain disruptions caused during the transition to GST.”
The country’s largest cigarette maker, in its annual report for FY18, said, “Contrary to indications from the Government that the transition to GST would be based on the principle of maintaining revenue neutrality, tax incidence on cigarettes rose sharply by 13% with an even steeper increase of 19% for the king-size filter segment under the GST regime. Coupled with the increase in Excise Duty rates announced in the Union Budget 2017, this resulted in an incremental tax burden of over 20% on your Company’s Cigarette Business post implementation of GST.”