Sterlite Technologies Limited (STL), a leading optic fibre cable (OFC) manufacturer based in Pune, is making headlines as it undertakes significant cost-cutting measures, including salary reductions ranging from 15% to 25%. This move comes in response to the absence of new orders and growing operational challenges, impacting nearly half of its employee base.
According to a report in the Economic Times, executives at Band – 4 and above are reportedly facing substantial salary cuts, leading to widespread uncertainty within the organization. The recent restructuring in 2023 saw the departure of approximately 100 executives, including top roles, reflecting the company’s efforts to streamline its operations.
Despite reports of salary cuts, STL officially denies any such measures. The company asserts that it has implemented a temporary restructuring of the compensation structure for mid to senior-level employees, positioning itself for long-term success amidst the current market challenges.
STL’s vice chairman and whole-time director, Pravin Agarwal, reportedly received 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.
In response to queries about the salary cuts, Ankit Agarwal, managing director of STL, emphasized the company’s commitment to cost competitiveness, stating that every internal cost element is under scrutiny. STL, as a major optic fibre manufacturer, is strategically positioning itself to benefit from upcoming mega connectivity initiatives despite the current setbacks.
STL transferred its Digital Business Undertaking to STL Digital Limited during FY23, aiming for strategic realignment. The company’s history includes the shutdown of STL Tech GmbH in 2022 and the merger of Sterlite Technologies Inc, USA with Sterlite Tech Holding Inc. In addition, Sterlite Global Venture (Mauritius) Limited divested its entire stake in Impact Data Solutions Limited, UK, to Sweden-based Hexatronic Group AB.
