Diversified fast-moving-consumer-goods (FMCG) company ITC has said its chairman YC Deveshwar would move into a non-executive role sometime in the next five years paving the way for a smooth handing over of the reins to a successor.
In a notice, the company has sought shareholders' approval for the reappointment of Deveshwar, 64, as its wholetime director and chairman with effect from February 5, 2012 for a five-year-term.
"As a process of succession planning, a part of this tenure may be served by Deveshwar as non-executive chairman, as board of directors of the company may determine," ITC said.
However, the company has not mentioned any specific timeline separating the tenure for the executive and non-executive roles for Deveshwar.
Deveshwar, an engineering graduate from the Indian Institute of Technology, Delhi joined ITC Ltd in 1968. He was appointed as a director on the company's board in 1984 and has served as the chairman since January 1, 1996.
Between 1991 and 1994, he led Air India as its chairman and managing director.
ITC, which completed 100 years last year, has come a long way from being a pure tobacco company to become a well-diversified FMCG and is eyeing major investment opportunities over the next decade to spur growth in these areas.
The company is eyeing investment prospects of R8,000 crore over the next seven to 10 years in the FMCG sector spanning across apparel, branded packaged food, education, stationery products, safety matches and incense sticks and more recently personal care products.
Under Deveshwar's leadership, ITC's sustainability efforts were given shape through unique business models.
ITC's agri-business, with the unique e-Choupal infrastructure - a web based information and procurement tool for farmers - is being progressively leveraged to widen the company's FMCG network. The Harvard Business School had taken up e-Choupal as a case study in 2004.
At present, its business spawns across 25 subsidiaries engaged in various business activities.