The leadership dispute at tobacco manufacturer Godfrey Phillips India continues to escalate. In this family feud, Lalit Modi and his mother, Bina Modi, are now on opposite sides. Lalit Modi has called on shareholders to vote against his mother.
Lalit Modi’s Appeal Against His Mother
Lalit Modi, founder of IPL and president of Modi Enterprises, recently shared an update on the social media platform X. He urged shareholders to vote against Bina Modi and her associates, claiming it would result in significant annual benefits for them. This appeal comes just a day before a shareholders’ meeting for Godfrey Phillips.
Background of the Family Dispute
The Modi family holds 47% of the shares in Godfrey Phillips. Bina Modi is the current chairperson and managing director of the company. The dispute began when Bina Modi’s leadership decided to remove Lalit Modi’s brother, Sameer Modi, from the board. The board, under Bina Modi’s leadership, wants to sell the retail business and the 24Seven chain, which Sameer Modi opposed.
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Despite Sameer Modi’s objections, the board decided to close and sell the 24Seven business. Sameer Modi argues that this decision betrays the shareholders. Reports suggest that Godfrey Phillips is also planning to sell the New Shop retail business.
Potential Benefits for Shareholders
Lalit Modi supports his brother in this conflict. In his recent post, he highlighted that Godfrey Phillips India has around ₹5,000 crore on its balance sheet, which should be given to shareholders as dividends. He stated that if shareholders vote to remove Bina Modi and her team, they could receive ₹150 crore in annual dividends.
Shares Held by American Company
Before the shareholders’ meeting, analysts predict a possible decision to remove Bina Modi. Besides the Modi family’s shares, American company Philip Morris Inc. holds 25% of the shares in Godfrey Phillips. The American advisory firm Glass Lewis has also urged shareholders to vote against Bina Modi’s reappointment as chairperson and managing director.
