Tobacco: ITC to sell Rs 1,990 crore of raw tobacco to parent company BAT

Kolkata: Ltd, which exports unmanufactured or raw tobacco to British American Tobacco (BAT), said it could deliver the vessel worth nearly ₹1990 crore in 2022-23, according to the company’s shareholder disclosure for its upcoming annual general meeting. meeting (annual meeting).

The conglomerate is also reviewing the salary of Chairman and CEO Sanjiv Puri and two executive directors, Nakul Anand and B Sumant, from October, to make the pay “market competitive, performance-oriented and long-term focused, while recognizing the lasting impact of leadership on business performance and the need to to reward talent,” the message reads.

The board of directors of ITC will vote shareholders in favor of these proposals at the AGM scheduled for July 20.

ITC is the country’s largest exporter of raw tobacco. In 2021-22, ITC sold unmanufactured tobacco totaling over ₹1,797 crore. The company said in the statement that the proposed transaction with BAT will foster the growth of the company’s business.

As this will be a related party transaction for ITC and will exceed ₹1,000 crore or 10% of the company’s annual consolidated sales, whichever is lower, shareholder approval is required. ITC said it is a partner of Tobacco Manufacturers (India) Ltd, a subsidiary of BAT Plc. By virtue of this, BAT Plc and its subsidiaries are related parties of the company, it said.

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As a result of the change in senior management remuneration, Puri’s base/consolidated salary per annum will increase from ₹2.64 crore in the last fiscal year to ₹3.12 crore. Last fiscal year, Puri’s total gross pay was ₹12.59 crore including performance bonus, incentives and perks. The board of directors of ITC will also seek to increase the base/consolidated salary of two executive directors Anand and Sumant to ₹1.8 crore per annum from ₹1.56 crore.

ITC is the largest cigarette manufacturer in the country, the third largest publicly traded packaged food company and the second largest hospitality company. In the packaged food industry, ITC gross sales amounted to Rs 13,195 crore in 2021-22 according to the annual report disclosure, which increased by 7.8% last fiscal year. ITC is lagging

which generated a turnover of Rs 13,371 crore last fiscal year.

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