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Godfrey Phillips India Ltd.

BSE: 500163 Sector: Consumer
NSE: GODFRYPHLP ISIN Code: INE260B01028
BSE LIVE 15:45 | 17 Nov 1041.65 13.10
(1.27%)
OPEN

1037.35

HIGH

1053.40

LOW

1024.80

NSE 15:40 | 17 Nov 1042.30 13.00
(1.26%)
OPEN

1032.00

HIGH

1054.00

LOW

1024.00

OPEN 1037.35
PREVIOUS CLOSE 1028.55
VOLUME 14558
52-Week high 1375.80
52-Week low 823.15
P/E 36.12
Mkt Cap.(Rs cr) 5,417
Buy Price 1041.65
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1037.35
CLOSE 1028.55
VOLUME 14558
52-Week high 1375.80
52-Week low 823.15
P/E 36.12
Mkt Cap.(Rs cr) 5,417
Buy Price 1041.65
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00

Godfrey Phillips India Ltd. (GODFRYPHLP) - Chairman Speech

Company chairman speech

Dear Shareholder

The global economy continued to be subdued in 2016. However the recent data revealsthat it is gaining momentum. The IMF estimated global economic growth at 3.1 % in 2016 andforecasts a 3.5% growth in 2017.1 see this as a step towards economic stabilization. TheUS saw an increase in consumer spending by 4.3% and its exports exceeded imports.Developing economies particularly India with its strong growth was a beacon of hope forglobal economy.

Concurrently there are also headwinds in the global operating environment. Globalinvestments slowed down world trade growth was only 1.2% and we witnessed flaggingproductivity in 2016. Commodity prices were also largely stable with marginal improvementin the second half of 2016. However the financial markets reflected a broad uptrend in2016 despite Brexit and US Fed rate hikes. These are challenges that your Company needs toaddress through product and process innovation leading to growth in new consumer markets.

The geo political scenario is a concern; however there are emerging opportunitieswithin that os well. Mass migrations in Europe are creating newer markets within existingmarkets. This is changing consumer preferences such as increased demand for hookah andsheesha in Eastern Europe. Your Company's export portfolio is likely to benefit fromsimilar trends. In addition the stability of the Indian Rupee will add to the exportrevenue of your Company.

2016 was a year of cautious growth for your Company. The revenue base grew by over 3%.Our cigarette volumes stabilized after successive declines in past few years due to steeptax hikes. I am more optimistic about our domestic opportunities. India is expected togrow by 7.4% in 2017-18. Inflation in Indio is at a record low (June 2017: 1.5%) leadingto a scenario of more disposable income with consumers. The implementation of the 7*Pay Commission and pension reforms from July 2017 will further add to the wallet power ofconsumers. An uptake in consumer demand is great news for your Company as well. Moreoverthe various initiatives and reforms unleashed by the Modi Government have built an idealplatform to facilitate a quantum jump ahead. All these developments add to my optimismabout the future growth of your Company.

The regulatory landscape for tobacco in India is gradually mirroring the globalregulations. The gap between global and Indian regulations has further narrowed down withthe implementation of 85% Graphic Health Warning (GHW). Your Company's readiness towardsglobal regulations has improved. Despite the much debated subject of highlydisproportionate taxation on cigarettes versus other forms of tobacco in India we are allcommitted to respect the regulatory framework as a responsible corporate citizen.

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