Sterlite Technologies Limited (STL), a homegrown optic fibre cable (OFC) manufacturer based in Pune, has taken drastic measures to address operational expenses. According to a report in Economic Times, in response to the absence of new orders and mounting business challenges, the company has resorted to salary cuts ranging from 15% to 25%. This move impacts nearly 50% of its employee base.
Executives at Band – 4 and above have reportedly been significantly affected, leading to widespread uncertainty within the organisation.The recent restructuring, which occurred in 2023, resulted in the departure of approximately 100 executives, including top roles.
STL’s vice chairman and whole-time director, Pravin Agarwal, drew a substantial remuneration of Rs 8.17 crore, while managing director Ankit Agarwal received Rs 3.94 crore in 2023, according to the company’s annual report.
Company terms it “salary restructuring”
Incidentally, the company has denied any salary cuts. While STL has officially refuted any pay cuts or reductions for its employees, the company claims that it has temporarily restructured the compensation structure for mid to senior-level employees, aiming to position itself for long-term success in the current market scenario.
STL’s managing director, Ankit Agarwal, told ET that the company’s commitment to cost competitiveness by scrutinising every internal cost element.
Additionally, as the optic fibre maker, STL is among the companies anticipating growth through upcoming mega connectivity initiatives.
Waiting for BSNL tender
During FY23, the company transferred its Digital Business Undertaking to STL Digital Limited, a wholly owned subsidiary of the company as a going concern on a slump sale basis, it said in its report earlier.
In 2022, STL Tech GmbH was shut down, and Sterlite Technologies Inc, USA merged with Sterlite Tech Holding Inc.
In addition, Sterlite Global Venture (Mauritius) Limited also divested its entire stake held in Impact Data Solutions Limited, UK to Sweden-based Hexatronic Group AB.
Executives at Band – 4 and above have reportedly been significantly affected, leading to widespread uncertainty within the organisation.The recent restructuring, which occurred in 2023, resulted in the departure of approximately 100 executives, including top roles.
STL’s vice chairman and whole-time director, Pravin Agarwal, drew a substantial remuneration of Rs 8.17 crore, while managing director Ankit Agarwal received Rs 3.94 crore in 2023, according to the company’s annual report.
Company terms it “salary restructuring”
Incidentally, the company has denied any salary cuts. While STL has officially refuted any pay cuts or reductions for its employees, the company claims that it has temporarily restructured the compensation structure for mid to senior-level employees, aiming to position itself for long-term success in the current market scenario.
STL’s managing director, Ankit Agarwal, told ET that the company’s commitment to cost competitiveness by scrutinising every internal cost element.
Additionally, as the optic fibre maker, STL is among the companies anticipating growth through upcoming mega connectivity initiatives.
Waiting for BSNL tender
During FY23, the company transferred its Digital Business Undertaking to STL Digital Limited, a wholly owned subsidiary of the company as a going concern on a slump sale basis, it said in its report earlier.
In 2022, STL Tech GmbH was shut down, and Sterlite Technologies Inc, USA merged with Sterlite Tech Holding Inc.
In addition, Sterlite Global Venture (Mauritius) Limited also divested its entire stake held in Impact Data Solutions Limited, UK to Sweden-based Hexatronic Group AB.