Godfrey Phillips India Ltd. Shifts Focus to Core Business, Closes Retail Arm '24Seven'
At the company's annual general meeting, Bina Modi, Chairperson of Godfrey Phillips India Ltd., defended the decision to close the retail business '24Seven'. This move aligns with the company's strategy to focus on its core business, as advocated by the late management guru Professor CK Prahalad.
"This focus on our core business is in consonance with the 'Theory of Core Competency' propagated by the late global management guru Professor CK Prahalad," Bina Modi stated. "This strategy has also led us to the closure of our retail business 24Seven. At times we need to bite the bullet in the long-term interest of the company and shareholders."
The decision to close '24Seven' follows a series of events, including a legal battle with Bina Modi's son, Samir Modi, who had filed a complaint alleging assault during a board meeting. The company's board had approved the exit from the retail business in April 2024.
The AGM also addressed the re-appointment of Bina Modi as Managing Director and her remuneration package. This resolution required a special majority vote due to exceeding the prescribed limits.
Godfrey Phillips India Ltd. is the flagship company of Modi Enterprises, known for popular cigarette brands like Four Square, Red and White, Cavanders, Tipper, and North Pole. It also manufactures and distributes Marlboro under a license agreement with Philip Morris.