The term of ITC Ltd's chairman, YC Deveshwar, is being extended for five years with effect from February 5, 2007.

According to the notice of the annual general meeting (AGM) of the company, a special resolution will be placed at the AGM on July 21, 2006 for being ratified by ITC shareholders. The proposal initiated by the nominations committee of the company has already been approved by ITC board.

Besides Deveshwar, the respective terms of the company's EDs, Anup Singh and Sahibzada Syed Habib-ur-Rehman are also being extended for three years. Two separate special resolutions will be placed at the AGM for shareholders' approval.

Interestingly, 2005-06 completes a decade of Deveshwar's chairmanship in ITC. During his 10 year old tenure (1995-96 to 2005-06) Deveshwar transformed ITC from a shade above Rs 5,000 crore company to mammoth turnover of Rs 16,224 crore. The net turnover increased from Rs 2,536 crore to Rs 9,791 crore representing a 14.5% CAGR (compound annual growth rate).

In his address to shareholders incorporated in the company's balance sheet, Deveshwar said during the last decade, ITC created "multiple drivers of the growth by matching proven internal capabilities with emerging market opportunities....During this period, efficiency in terms of return on capital employed improved from 28.4% in 1995-96 to 34.5% in 2005-06"

The profit after tax (before exceptional items) during the period went up from Rs 261 crore to Rs 2,280 crore marking a 24.2% CAGR.

While the net worth of ITC touched Rs 9,061 crore in 2005-06 from Rs 1,121 crore in 1995-96, the market capitalisation went up from Rs 5,571 crore to a whopping Rs 73,207 crore during the period.

Meanwhile, ITC is ramping up its rural retail business and has migrated to the next phase of such business.