Godfrey Phillips India Ltd

Godfrey Philips India (GPIL), promoted in December 03, 1936 by Godfrey Philips, London, has business presence in manufacturing of cigarettes, chewing products & tobacco products, trading of cigarettes, tobacco products, tea & other retail products, trading & distribution of vaping products, acquisition of securities and real estate development. Godfrey Philips India (GPIL) is now a part of KK Modi Group of companies. Phillips Morris, a major cigarette producer in the world acquired full ownership in GPIL through its wholly owned subsidiary Phillips Morris International Financila Corporation (PMIFC). Then in 1979 PMIFC along with five other Non-resident Foreign Shareholders reduced their shareholding in GPIL to a level not more than 40%. Presently Phillips Morris holds 25.10% stake in GPIL. The major Cigarette brands owned by the company are Black and White, Four Square, Cavander Navy Cut, Red & White, Virgin Gold, Chesterfield, and Originals etc. The company added four new cigaratte brands to its stable i.e Piper, Tipper, Prince and Jaisalmer in last two year during 2002-03. The Piper and Tipper being a unique product in the industry is well accepted in the market. During 2003-04, the company introduced a premium 69mm brand 'Maxus' a king size quality regular size cigarette and the company has test launched a new brand 'Force10' in Nagpur and Ludhiana markets. Further the company has also launched three Cigar brands i.e Phillies, Hav-a-tampa and Don Diego in 2002. These cigars are imported by the company under an arrangement with altadis of USA, one of the World's leading cigar manufacturers. The company has taken to outsource cigarettes and marketing under its brands. In this regard the company has entered into arrangements with some Assam based Small Scale Industries. In Sep.2003, the one more Cigar brand Santa Damania was also introduced. In 1987, it diversified into the blending and manufacture of branded tea at Guntur, Andhra Pradesh. In 1987, the company commenced the sale of specially blended and branded loose tea from an exclusive franchised outlet called Tea City, in Delhi. Distribution network for Tea City was further expanded to Bihar, Madhya Pradesh and Rajasthan. It also diversified into property development. The company's factory at Andheri, Mumbai has been awarded a certificate of ISO 14001. The certification takes into account the Environmental Management System in place in the factory enabling it to conserve natural resources. During 2004-05, the company set up a new pilot Research & Development plant in Andheri factory. The company launched the Six-Sigma Initiative called Project 'Lakshya' during 2004-05 and this will help to enhance the operational efficiency, fostor innovation, new product development and to implement effective marketing and distribution programs. During 2004-05, the company expanded its installed capacity of Cigarettes by 109 million Nos., and the installed capacity of cigarettes increased to 3377 million Nos. During the year ended 31 March 2014, GPIL's tea division focused on capturing the premiumization trend in the domestic market and extended its mainstay, the Supercup brand to develop the franchise and participated in the upper mid-premium segment by launching Supercup Gold and Supercup Premium, continued expanding presence in alternate high-growth channels like modern trade, institutions and home shopping. With an aim of strengthening quality focus, the company implemented the Kaizen and 5S systems at both its tea factories at Kolkata and Bazpur. In chewing products business, the company launched Raag' Pan Masala and Raaga' Zarda and reaped the gains of this launch in Gujarat & MPDuring the year under review, GPIL's Corporate Development division continued to serve towards fine-tuning the business model through long term planning for the Company and providing strategic inputs to the senior leadership as well as the business teams by continuously engaging in alignment of business objectives, long term planning for identification of key trends, monitoring the changes in the market and competitive landscape, understanding the industry trends and its impact on the business, analysing the regulatory environment and providing inputs on business portfolio optimization. GPIL suffered a setback in its chewing products business during the year ended 31 March 2015 despite investing significant time and money to develop the business. The company launched Raag Gold' Pan Masala and Raagaa Gold' Zarda in Nepal, with Mahanayak Rajesh Hamal as the brand ambassador.During the year ended 31 March 2015, the company's leaf tobacco exports recoded strong growth. Competitive pricing resulted into higher business from all regions including Greece, South Africa, Bulgaria, Brazil, Taiwan and Egypt. Pursuant to the approval of the shareholders at Annual General Meeting held on 23 September 2014, each equity share of nominal face value of Rs.10/- each was sub-divided into five equity shares of face value of Rs.2/- each with effect from 1 December 2014. During the year ended 31 March 2016, GPIL's tea business vertical focused on driving business basis the regional consumer taste preferences by creating exclusive blends for key markets of Rajasthan, UP and J&K. The company's tea business in the institutional segment has shown better performance during the year with supplies to prestigious institutions like CSD, CPC and ASC. With an increase in portfolio with mid premium segment brand Raag, GPIL's Chewing Products business initiated the foray into eastern markets with great success with steady revenues from the states of West Bengal, Odisha, Jharkhand & other North Eastern states. The company also made some advances in the confectionary business on the back of a successful foray into the lucrative Re. 1 candy segment with Pan Vilas candies. As part of the growth strategy, the company's branch office in Dubai was converted into a wholly owned subsidiary named Godfrey Phillips Middle East DMCC'. During the year ended 31 March 2017, GPIL's tea business vertical continued to focus on regional consumer taste preferences to drive demand of its products across its key markets. In an effort to drive long-term growth, the company invested in modernization of its Bazpur (Uttarakhand) manufacturing unit with the aim to enhance its compliance to regulatory, safety and quality standards. FY 2017 was breakthrough year for the company's Chewing Products business with a record 70% growth in sales revenue, growing from Rs. 151 crores to Rs. 258 crores in 2016-17. It was a year in which the company made significant inroads into capturing market share in both the premium and mid-premium segments of the Pan Masala industry. Through consistent delivery of a high quality product supported by efficiency in distribution and consumer acquisition, the company captured a majority segment share in Gujarat and also developed newer geographies like Odisha, Jharkhand and West Bengal which constituted 35% of national volumes. GPIL also showcased a record growth in sales revenue of 40% in the confectionary business in FY 2017 on the back of a strong showing in the Re. 1 segment. Pan Vilas Burst candies, launched during the year, established itself in the confectionary industry through a highly innovative taste and strength in distribution.During the year ended 31 March 2018, GPIL decided to divest from tea business. The company's Chewing Products registered highest ever gross revenue of Rs. 460 crore in 2017-18. During the year, the company made significant inroads in capturing market share in both premium & mid premium segments of the Pan Masala industry. Through relentless brand work, supported by efficiency in distribution and single minded focus to deliver a high quality product, the company increased its market share in stronghold market of Gujarat and revived growth in key geographies like Madhya Pradesh & Uttar Pradesh.The number of company's 24Seven chain of convenience stores increased from 46 to 61 in FY 2018. In FY'19, Company has done reasonably well in the cut tobacco business across CIS, acquiring multiple new clients. Its flagship cigarette brands Jaisalmer, Originals, Ultima, Business Kings and Stellar gained attraction in various markets. To augment the capacity and offer new formats, it tied up with factories in UAE and launched new formats such as Super Slims. Capsule filter cigarettes in various flavours like Blueberry, Mint, Spearmint and Menthol have gained major attraction across markets of Southeast Asia and Latin-America. The 24Seven chain of convenience stores had shown a rapid growth during FY 19 and opened 43 new stores. During FY 2020, 24Seven chain of convenience stores had shown remarkable growth. As on 31st March, 2020, Company had 7 subsidiaries apart from one other subsidiary which is an AOP and 3 associate companies. As on 31st March 2022, Company had 7 subsidiaries and 3 associate companies. During FY 2022, the Company opened a few low capex modelled stores. In 2023, Company launched a new variant Funda Gumshums Mint Chewing Gum.