You are here » Home » Companies » Company Overview » Godfrey Phillips India Ltd

Godfrey Phillips India Ltd.

BSE: 500163 Sector: Consumer
NSE: GODFRYPHLP ISIN Code: INE260B01028
BSE LIVE 15:55 | 22 Sep 1010.10 -25.65
(-2.48%)
OPEN

1032.55

HIGH

1036.00

LOW

984.00

NSE 15:55 | 22 Sep 1016.15 -22.00
(-2.12%)
OPEN

1041.00

HIGH

1041.00

LOW

1010.10

OPEN 1032.55
PREVIOUS CLOSE 1035.75
VOLUME 14325
52-Week high 1542.00
52-Week low 823.15
P/E 47.38
Mkt Cap.(Rs cr) 5,253
Buy Price 1010.10
Buy Qty 49.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1032.55
CLOSE 1035.75
VOLUME 14325
52-Week high 1542.00
52-Week low 823.15
P/E 47.38
Mkt Cap.(Rs cr) 5,253
Buy Price 1010.10
Buy Qty 49.00
Sell Price 0.00
Sell Qty 0.00

Godfrey Phillips India Ltd. (GODFRYPHLP) - Chairman Speech

Company chairman speech

Dear Shareholder

Global economy remained subdued in 2015 with growth rate slowing down to 3.1% from 3.4%in 2014. Both the IMF and the World Bank have cut their 2016 global forecasts to a ratelower than 2015 thereby indicating that the global recovery remains fragile. Tightening offinancial conditions in the U.S. and Japan geopolitical tensions in advanced nations netcapital outflows from the emerging markets continued slowdown in growth rates in Chinalower commodity prices and above all the British unexpectedly voting to exit from theEuropean Union are some of the risks of the world falling into a ‘low-growthtrap’.

Riding on some feel good factors the Indian economy has grown at 7.6% in 2015-16compared to 7.3% in 2014-15. It is a midterm for Modi government and some of theeconomists and independent policy experts feel that 8% growth is possible in this yearthough IMF forecast is for 7.4%. Public investment and urban consumption demands had beenthe two growth drivers but with good monsoon-led rural demand and stabilising exportsthe economy seems to have finally found four legs to walk on. Other growth drivers couldbe lowering of interest rates boost from GST and other reforms rising foreign directinvestment cleaning up of bank NPAs improved corporate earnings etc. But there are afew worrying factors such as the bank’s reluctance to extend credit to SMEsinflation holding its head high private investment not picking up as expected andrepayment obligations of USD 32 billion FCNRB loan taken in 2013.

With the passage of constitutional amendment bill by the Rajya Sabha the Goods andServices Tax (GST) that uni_es India as one market would at last become a reality aftermore than a decade of bickering by the political class. GST will be an important input inhelping accelerate the investment cycle and thereby enhance growth over a long period. Asthe economists say it could prove to be an economic game changer for India.

The concept of plain packaging and excessively large pictorial health warnings on thecigarette packs has given rise to an interesting debate in the intellectual propertyrights (IPR) circles worldwide as it is strongly felt that these erode the value of thedistinctive trademarks and pack designs that have been assiduously developed and nurturedthrough substantial investments over a period of time.

Euromonitor International estimates the worth of global tobacco industry to be USD 770billion in 2015 growing at 3% CAGR since 2010 with cigarettes contributing to about 90%of this. The underlying value potential of the cigarette industry therefore remainsstrong and your Company envisages leveraging this value potential in becoming one of theleading global tobacco players.

I offer my heartfelt gratitude to all the Shareholders and stakeholders for continuingto place their confidence in the Company.

With best wishes and warm regards

R. A. Shah