Godfrey Phillips India shares snap seven-day fall to rise 7%; board says no royalty due over 24Seven trademark, appoints new COO

In September, Bina Modi was re-appointed as the MD of the tobacco company for five more years. Samir Modi was removed from the board at that time, and no longer serves as a director.

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26 Aug, 2025 12:21

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Leading cigarette maker and FMCG company Godfrey Phillips India's shares are higher by nearly 7%, rebounding from a seven-day fall after the board approved the appointment of Siddharth Chawla as the Chief Operating Officer (COO) of the company, said an exchange filing on December 26.

Former ITC veteran Chawla's tenure will commence from January 7, 2025. Siddharth Chawla stepped down from ITC as the Business Head-North India in 2019. He then joined e-commerce startup Udaan and later joined pharma sector's e-B2B commerce platform Pharmarack.

Godfrey Phillips' shares have been under pressure for the past one month, down more than 6% in December, and have rebounded after a seven-day losing streak. However, on a YTD basis, the shares are higher by 158%. The company has a market capitalisation of close to Rs 28,000 crore.

Legal Tussle Over 24Seven

The company on December 24 also informed that 24Seven Retail and Samir Modi, son of Managing Director Bina Modi, have sought royalty for trademark, and moved a case before Delhi High Court. Godfrey Phillips India has contested the demands and said there is no royalty payable. In September, Bina Modi was re-appointed as the MD of the tobacco company for five more years. Samir Modi was removed from the board at that time, and no longer serves as a director.

24Seven Retail's lawsuit alleges that Godfrey Phillips India continued to use the '24Seven' trademark without authorization even after exiting the retail business. Godfrey Phillips said it ceased using the trademark on October 10, three months after exit from retail business.

"The Plaintiffs have now filed a claim for payment of royalty along with interest and damages for use of the 24Seven trademarks owned by Plaintiff No. 1, by the Retail Business Division of the Company during the period between June 2005 to 31 August 2024. The Plaintiffs have also sought for an injunction restraining the Company and its associated entities from using the
24Seven trademarks," the statement said. A demand for Rs 2 crore in damages has also been made over the royalty demand.

Godfrey Phillips India in its response has said that it has a strong case in the matter, and there will be no financial implications on the company. "It is the Company’s case that no royalty is payable to the Plaintiffs. Based on internal assessment by the Company and legal advice obtained, the Company believes that it has a good case to defend on merits and therefore, does
not expect any material financial implications," said Godfrey Phillips India.

Godfrey Phillips India said it has closed operations of the retail business division and ceased the use of 24Seven trademarks.

The matter will now come up for hearing in March 2025, said legal news website Bar and Bench.

Godfrey Phillips India has an exclusive sourcing and supply pact with Philip Morris International to make and distribute the Marlboro brand in India. Tobacco makes up 98% of Godfrey Phillips India's gross sales value. Read more on September quarter results right here.