ITC’s longest serving chief, YC Deveshwar, passed away this morning. He was 72 and is survived by his wife and two children.

It was under his leadership that the company diversified from a cigarette major to other non-cigarette sectors that include FMCG, hotels, paperboards, agri and so on. His tenure saw over 50-fold rise in market capitalisation of the company to nearly ₹ 3,00,000 crore. (Presently, it is around Rs 3,50,000 crore.)

Hospitality was very close to his heart. During his two-decade-long stewardship, ITC’s hotel network grew from merely 12 to over 100 properties, operated under four major brands — ITC, Welcom, Fortune and Welcom Heritage.

He received the Padma Bhushan, India’s third highest civilian award, in 2011. Deveshwar, was born in February 1947 in Lahore. He studied at IIT Delhi and then went on to pursue management course at Harvard University. He joined ITC in 1968 and became its Executive Chairman in 1996.

The Fight with BAT

Deveshwar took charge at a time when ITC Ltd was going through one of its worst crisis. The company was facing tax demands and a probe for alleged foreign exchange violations.

Further worsening the situation was the fact that initial attempts at diversifying, before his tenure, had gone haywire and its key foreign shareholder British American Tobacco Plc (BAT) was pushing ahead for greater control.

Within two years of taking charge, Deveshwar cut losses and ITC got out of the edible oils and financial services businesses. He managed to keep BAT from taking control of ITC by harnessing the support of Indian institutional shareholders — Life Insurance Corporation of India and the erstwhile Unit Trust of India.

Subsequently, he re-drew plans for ITC to foray into the new business segments; thereby making it the diversified conglomerate that it is today.

Deveshwar will also be credited with developing “world-class Indian brands” that have created value for the country.  At least, 25 mother brands like 'Aashirvaad', 'Bingo!', 'Classmate' among others. His focus on sustainable and inclusive growth for all stakeholders has been acclaimed globally. His ‘e-choupal’ is one such noted model.

Non-executive role

Deveshwar wilfully relinquished his executive role as Chairman and CEO of the company after 21 years at the helm in February 2017.

Subsequently, Sanjiv Puri — who was handpicked by Deveshwar — was elevated as MD. Deveshwar, at the insistence of the Board, operated as the non-executive Chairman.

Recalling Deveshwar’s “legendary stewardship”, Sanjiv Puri, MD, ITC said: “We recall with respect and pride the legendary stewardship he provided to the company over two decades as its Chairman.”

According to Puri, Deveshwar’s leadership transformed ITC into a valuable and admired multi business conglomerate with a robust portfolio of front-ranking businesses in FMCG, Hotels, paperboards & paper, packaging and agri-business.

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