Godfrey Phillips to go ahead with exit from retail business under 24Seven

Delhi: Cigarette maker Godfrey Phillips India on Wednesday, said it is going ahead with plans to exit from the retail business operated under the ‘24Seven’ brand following the setting aside of an interim injunction on the move by a district court in the Capital.

Earlier an injunction order was passed against hiving off the retail business on June 27, 2024, by a city court here over an application filed by its executive director Samir Kumaar Modi.

Now the District Judge of South-East District at Saket Court, New Delhi has set aside the said injunction order in favour of the company, said a regulatory filing from the company.

Consequently, the company is taking steps in accordance with the decision of the Board of Directors on April 12, 2024, it added.

The company's board on April 12, 2024, approved exiting from carrying out the retail business division operated under 24Seven, subject to completion of the necessary formalities.

However, an ex-parte ad interim injunction order was passed by the District Judge, South-East District, Saket Court, New Delhi on June 27, 2024, directing the company to maintain the status quo with regard to the retail business, Godfrey Phillips India said.

The next day, legal counsel for Samir Kumaar Modi had served a copy of the order to the company, it added.

Godfrey Phillips India said revenue from operations from the retail business division for FY23-24 was Rs 403 crore, being 7.6 per cent of its total revenue from operations. The retail business division had a negative net worth as of March 31, 2024.

The company claimed after due consideration of the stakeholders' feedback, long-term performance of the division since inception, prevailing market conditions of the retail sector and long-term business strategy of the company, the board had decided to exit from the retail business.

Samir Modi has been involved in a boardroom tussle with his mother Bina Modi and even accused the latter of orchestrating an attack on him during the company's board meeting.

He had filed a complaint before the Delhi Police alleging that he was stopped from participating in the board meeting of Godfrey Phillips India (GPI) scheduled on May 30 by Bina Modi's PSO and was "grievously injured" after being assaulted.