 "Bina Modi defends closing retail brand 24Seven amid family tensions, as Godfrey Phillips shifts focus amid boardroom drama.")
Godfrey Phillips India Ltd Chairperson, Bina Modi, recently defended the decision to close the retail division ’24Seven’, originally created by her son, Samir Modi. During the company’s annual general meeting, she emphasized the move’s alignment with the strategy of focusing on core business strengths. Earlier, a court lifted an injunction that had temporarily blocked this change. This exit from retail follows a series of conflicts within the family, including allegations of physical assault made by Samir Modi against Bina Modi. Additionally, the AGM included discussions on her reappointment as Managing Director, facing opposition from some shareholders for the lack of performance criteria related to her remuneration.
Cigarette maker Godfrey Phillips India Ltd is making headlines as Chairperson Bina Modi recently defended the closure of the company’s retail business, ’24Seven’, during the annual general meeting. This decision, she explained, was made to prioritize the company’s core operations. According to Bina Modi, the shift aligns with the ‘Theory of Core Competency’ proposed by renowned management expert Professor CK Prahalad.
The closure comes after a legal battle that saw an injunction against the retail operation lifted by a district court in New Delhi. Earlier, Samir Modi, Bina’s estranged son and an executive director, had filed an application to halt the business separation. However, the board of Godfrey Phillips India had already approved the decision to exit from the ’24Seven’ brand back in April.
Tensions between Bina and Samir Modi have escalated, with Samir alleging he was physically assaulted during a board meeting. The AGM also covered Bina Modi’s reappointment as Managing Director and the approval of her remuneration, as it exceeds regulatory limits, requiring a supermajority vote.
In recent developments, US-based proxy advisory firm Glass Lewis advised shareholders to vote against Bina’s reappointment, citing the absence of clear performance conditions for her commission. Godfrey Phillips India remains a significant player in the cigarette industry, known for brands like Four Square and Marlboro.
With these ongoing internal conflicts and strategic shifts, all eyes are on Godfrey Phillips India as it navigates its future direction.
Tags: Godfrey Phillips, Bina Modi, 24Seven, cigarette industry, corporate governance, AGM, Samir Modi, retail business, proxy advisory.
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Why is the retail business closing?
The retail business is closing so the company can focus more on its main cigarette business, which is more profitable. -
Will employees be affected by this closure?
Yes, some employees may be affected. The company will provide support and resources to help them find new job opportunities. -
What will happen to the current stock in the retail stores?
The current stock will be sold off as part of the closing process, and any remaining products will be cleared out. -
When will the retail stores officially close?
The retail stores will close on a specified date, which will be announced soon to ensure customers are informed. - What does this mean for customers who enjoy shopping at the retail stores?
Customers will no longer be able to shop at these stores, but they can still buy cigarettes through other channels the company will continue to operate.
