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Incentive Support Framework — One Team, One Pakka

Objective:
At our organization, we are not just a workplace — we are a family (Sangh), where effort is respected, individual growth is appreciated, and every contribution is recognized.

Every day brings an opportunity to learn, grow, and enhance our capabilities. We work in an environment that promotes independent thinking and ownership. We believe that every individual can take the right decisions to improve quality and drive productivity to new heights.

Recognition:
To strengthen this journey, it is essential that our Production Incentive (PI) calculation is simple and transparent, so that every team member clearly understands how their effort and performance are directly linked to their incentives.

This ensures that everyone is rewarded based on their actual contribution and performance.
At Pakka, this creates clarity and fairness, where people do not just work — they take responsibility and grow together as a team.

General Guiding Principle:
As one team, we are building a new Production Incentive (PI) structure together, where all Sanghs work collectively as one Pakka.

This step further strengthens our shared ownership, transparency, and collective success.


New Structure:

  1. For incentive calculation, the total revenue of all business domains for three months will be considered.
  2. From this revenue, all sales-related expenses such as commission, cash discount, rebate, trade discount, and other related costs will be deducted.

    • This data will be taken based on the average of the last three months.

  3. To keep the process simple, no backdated entries will be considered.
  4. All material and operational expenses (direct and indirect) will also be deducted from the revenue.
  5. In case of any quality complaint, double the value of the rejected material will be deducted.
  6. The PI structure will be reviewed every quarter, and a new level will be set accordingly; however, it will not go below the current level.
  7. Based on the actual performance from Dec’25 to Feb’26, the PI structure for the first quarter of FY 2026–27 will be as follows:

Total Income: 1,054,430,969
Total Expenses: 53,329,674
Net Sales (Dec’25 to Feb’26): 1,001,101,295
Average per Month (In Cr.): 33.37
Per Day Average (In Cr.): 1.09


Days | PI Days
1 → 28.99
2 → 30.09
3 → 31.18
4 → 32.28
5 → 33.37
6 → 34.46
7 → 35.56
8 → 36.65
9 → 37.75
10 → 38.84


We believe that this new Production Incentive structure will be beneficial for the organization and all team members. Together, as one team, we will achieve our 2029 goals and take the organization to greater heights.

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