Balkrishna Industries addresses concerns raised by Institutional Investor Advisory Services (IIAS) regarding the re-appointment and remuneration of Mr. Arvind Poddar. The company clarifies the reimbursement policy for business travel expenses, emphasizing it’s limited to business trips and a standard practice. Furthermore, the company defends the commission structure, highlighting its link to company performance and variable nature.
Clarification on Director’s Re-Appointment
Balkrishna Industries has issued a response to the voting recommendations by Institutional Investor Advisory Services (IIAS) concerning the re-appointment of Mr. Arvind Poddar as Chairman and Managing Director. IIAS had recommended voting against Resolution No. 1 related to his re-appointment and remuneration.
Addressing Concerns on Reimbursement
The company addresses the concern regarding the uncapped reimbursement of traveling, boarding, and lodging expenses, including for spouse and attendant. Balkrishna Industries clarifies that the reimbursement is strictly for business trips and not for personal travel. It emphasizes that this is a standard perquisite for top executives. The company notes that Mr. Poddar’s spouse accompanies him only when her presence is necessary, such as for meeting foreign delegates or attending conferences.
The expenditure incurred on such trips in the last four financial years is as follows:
- FY 2026 (up to Dec 2025): ₹0.33 crore
- FY 2025: ₹0.82 crore
- FY 2024: ₹0.41 crore
- FY 2023: ₹0.96 crore
The company argues that this expenditure is insignificant compared to the size and operations of the company and that the Chairman and Managing Director has not and will not use this facility indiscreetly.
Commission Structure and Performance
Regarding the suggestion to set a performance threshold for commission payout, Balkrishna Industries explains that the commission is a percentage of the net profits. Therefore, the commission is inherently tied to the company’s performance. If net profits are lower in any year, the commission payout will also be lower.
The financial performance of the company and the commission drawn by Mr. Arvind Poddar are detailed below:
Financial Performance Snapshot
Key financial figures are:
- Total Revenue (FY 2025): ₹10,947.43 crore
- EBIDTA (FY 2025): ₹2,955.03 crore
- PBT (FY 2025): ₹2,156.29 crore
- Commission paid to Mr. Arvind Poddar (FY 2025): ₹42.00 crore
- % to PBT (FY 2025): 1.95%
The company concludes that the commission structure is linked to the financial performance of the company and the variable pay in the form of commission constitutes more than 85% of Mr. Arvind Poddar’s total remuneration.
Source: BSE
