Bina Modi Defends Strategic Shift amid Family Dispute at Godfrey Phillips India

At Godfrey Phillips India Ltd's annual general meeting, Chairperson Bina Modi defended the decision to close the retail business '24Seven', previously led by her estranged son Samir Modi. The shift aims to focus on core business strategies and navigate ongoing family disputes, including allegations of physical assault.

In a strategic move to refocus on its core business, Godfrey Phillips India Ltd Chairperson Bina Modi defended the closure of the company's retail venture '24Seven' during the annual general meeting held on Friday. The decision came amidst a heated boardroom battle with her son, Samir Modi, who originally spearheaded the retail project.

A significant agenda item was the special business of not filling the board vacancy left by Samir Modi's retirement, which coincided with the appointment of his sister, Charu Modi, as an executive director. Bina Modi referenced the 'Theory of Core Competency' by late Professor CK Prahalad to justify the strategic pivot away from retail, asserting the long-term benefit for the company and its shareholders.

The AGM also saw discussions on the special resolution for Bina Modi's reappointment as Managing Director, which requires a supermajority vote due to compensation exceeding Rs 5 crore. Proxy advisory firm Glass Lewis recommended shareholders vote against this reappointment, citing undefined performance conditions. Despite family disputes and legal challenges, the company focuses on strengthening its mainstay cigarette brands, including Four Square and Marlboro under license.

(With inputs from agencies.)