Assure shareholders they will get their fair share, says Bina Modi

Bina Modi speaks to Business Standard about expansion plans of GPI, exit from the retail business, the inheritance battle with her son, and the legacy of KK Modi

Bina Modi, wife of the late industrialist K K Modi, was reappointed managing director (MD) of Godfrey Phillips India (GPI) with 86.6 per cent approval from the shareholders at the annual general meeting (AGM) on September 6. Her son Samir Modi was ousted from the company’s board the same day. Bina Modi talks to Bhavini Mishra about GPI’s exit from the retail business, inheritance battle with her son, and legacy of K K Modi.

The shareholders have backed you as MD of GPI. What is the company’s outlook?

We are growing everyday, our market share in the domestic business is increasing, our brands are becoming stronger, and our export of unmanufactured tobacco is expanding fast. All of this is being seen by the market in a positive manner and helping unlock value for the shareholders.

Some stakeholders are unable to come to terms with you being at loggerheads with your son. Why did things reach this point?

It is not easy as an individual or as a mother to take things the way they have gone. But I do not let any of these come in the way of discharging my responsibilities towards the company and the shareholders. Everything can be resolved, but my husband’s legacy is not up for sale. As managing trustee I want to assure all of their fair share.

Now that you have another term of five years as MD, what is your vision for GPI and Indofil?

GPI is at an all-time high in profitability and market capitalisation. Our market share is increasing. Besides, as regards the people, GPI has been recognised as a great place to work for six years in a row. This gives me confidence that GPI has a lot of potential to grow. We are planning to increase our market share. We are entering new markets, expanding our export business, and monetising some of our valuable assets. Indofil has a great future and our focus continues to be on crop protection, innovative solutions, biologicals, and design thinking.

The tobacco and cigarettes business is profitable but most companies want to de-risk their businesses by diversifying revenue streams. Why is GPI doing the reverse? You decided to exit 24/7.

We have tried our hand at various ventures. They have not gone the way we would have liked. We have taken steps to exit those. As of now, we want to focus on our core and expand our footprint in areas where there is scope for growth. We are entering new markets, increasing the footprint in the leaf export, etc. Recently we did a tieup with Ferroro Rocher, the benefits of which will start coming in the near future.

How are the relations with your joint-venture partner Phillip Morris? In your speech at the AGM, you talked of more involvement.

Relations with Phillip Morris are based on mutual trust. Since I took reins as MD, ties became stronger, which is evident from the unprecedented growth of Marlboro (a cigarette brand) in India over the past three years. We always had Phillip Morris’s support. Participation and support will continue.