Godfrey Philips shareholders thrash proposal to sell unmanufactured tobacco to Philip Morris Products

13 Sep 2023 , 11:19 AM

Godfrey Phillips India’s shareholders have rejected the company’s plan for a related party transaction in which the company would annually export unmanufactured tobacco worth up to Rs 1,000 crore to Philip Morris Products SA.

Philip Morris Products SA is a member of the group that includes Philip Morris Global Brands Inc, USA, the company’s promoter shareholder.

At Godfrey Phillips India’s annual general meeting on September 1, up to 57.94% of shareholders voted against the ‘material related party transaction between the company and Philip Morris Products SA’.

The idea was to continue selling unmanufactured tobacco to Philip Morris Products SA on a non-exclusive and arm’s length basis, subject to the aggregate amount of the sale/export of the unmanufactured tobacco being up to Rs 1,000 crore in a fiscal year.

The resolution received only 42.06% votes in favour, of the total votes polled in the AGM.

Only simple majority is needed to pass an ordinary resolution. According to a Scrutinizer’s Report lodged by the firm with the bourses last week, it garnered less than the required number of total votes polled and was therefore rejected.

For the fiscal quarter ending June 2023, Philip Morris Global Brands Inc, which controls cigarette brands such as Marlboro and Benson & Hedges, owns 25.10% of Godfrey Phillips India.

For feedback and suggestions, write to us at [e-mail]