Godfrey Phillips India Limited said that the suggestion of alleged violation of the FDI laws of India is completely misconceived and misplaced.
The company said that it has entered into a commercial arrangement with IPM Wholesale Trading Private Limited (an Indian entity and affiliate of Philip Morris International Inc., USA) to manufacture Marlboro cigarettes in India in May 2009 which is a year before May 2010 when the restrictions on FDI in manufacture of cigarettes came into being.
The commercial arrangement referred to above is in complete compliance with the extant regulations governing the FDI laws in India, the company said.
All the business transactions entered and executed between the parties since 2009 are governed by the above referred commercial arrangement, the company added.
Godfrey Phillips India Limited, a flagship company of the Modi Enterprises, is one of India’s largest cigarette manufacturers. The company makes some of the best cigarette brands in the country including Four Square, Red & White, and Cavanders. Godfrey Phillips also has an exclusive procurement and supply agreement with Philip Morris International to manufacture and distribute Marlboro in India.