Godfrey Phillips India Limited (GPI), a company established in London and which expanded its business during the British rule in India, is now a part of the Indian company Modi Enterprises, but there seems to be a war going on between the mother and son over this company. This company deals in everything from cigarettes to pan masala and is one of the big companies selling cigarettes. The famous brands of this company are Marlboro cigarettes and Pan Vilas.
Now a new controversy has emerged regarding the command of this company. In fact, veteran businessman and executive director of GIP company Sameer Modi has expressed concern about his mother’s command in Godfrey Phillips India. Sameer Modi claims that the business is in danger under the leadership of his mother Beena Modi. Beena Modi is the managing director of this company. Sameer Modi hopes that the shareholders will vote keeping in mind the future of the company in the upcoming Annual General Meeting (AGM) to be held on September 6.
The shareholders will decide whether I should be removed or not
In an exclusive conversation with Business Today TV, Sameer Modi said that I am still the executive director of this company. There have been many attempts to remove me from here. The shareholders will decide whether to remove me or not. He also said that Glass Lewis says that there is not enough information about why they want to remove me. Sameer Modi told that Glass Lewis, a leading American proxy advisory firm, had advised the shareholders to vote against the re-appointment of Bina Modi as chairperson and management director.
Why are questions being raised on my contribution?
Sameer Modi said that she (Bina) is 80 years old, not 25. I am turning 55 and I still have 25 years ahead of me. I have taken more training, worked with my father and have experience in building brands. I have added value to the company for more than 30 years – so how did it suddenly happen that my contribution is being questioned?
The entire dispute is about property worth 11000 crores
Veteran businessman KK Modi died in the year 2019. KK Modi has two sons and a daughter. The elder son Lalit Modi is accused in the money laundering case, while daughter Charu Bhartia looks after the education business of the Modi Group. Younger son Sameer Modi handles retail and cosmetics related businesses.
After the death of KK Modi, there was a tussle within the Modi family over the division of property worth Rs 11000 crore. The dispute increased to such an extent that the matter is in court. No decision has been taken on this yet. Let us tell you that the Modi family owns about 50% of the shares of Godfrey Phillips.
What if Bina Modi becomes a director again?
Bina is the managing director of this company and if she is re-elected as the managing director, she will need the permission of 75% of the shareholders, which she will have to fulfill due to her age. If she is re-appointed, she will get 5% of the company’s net profit for each financial year as commission.
Trying to resolve the dispute many times
Sameer Modi said that he has made several attempts to resolve the issue. He said that he stood outside his mother’s house and office for hours trying to find out the reasons behind their dispute. He said that he wants to end this dispute and focus on building the business rather than destroying it.
Samir said that his late father KK Modi had envisioned a future in which the family would work together to maintain the legacy and continuity of the business. He said that his father wanted his mother and sister to handle the chemical business, while he and his brother would manage Godfrey Phillips India (GPI).
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