FMCG major Godfrey Phillips has signed the term sheet for sale of retail business 24Seven with retail startup player New Shop, and is looking to close the deal by the end of September, CNBC-TV18 reported on September 3, citing sources familiar with the development.
Under the term sheet, the work has already begun to transfer shops to New Shop, which operates across 35 cities and has 160 stores round the clock.
In July this year, the Delhi High Court had allowed Godfrey Phillips to proceed with the sale of the retail business 24Seven. The board's decision to sell the retail business was opposed by Executive Director Samir Modi, who is also in the middle of an inheritance tussle with the MD of Godfrey Phillips, Bina Modi.
Established in 1936, Godfrey Phillips has been known primarily for cigarette brands Four Square, Red & White, and Cavanders. It also has an exclusive sourcing and supply pact with Philip Morris International to make and distribute the Marlboro brand in India. It had diversified into retail business in 2010, in order to reduce reliance on tobacco business and to tap into the growing consumption market. At last count, 24Seven had more than 150 stores spread across Delhi NCR, Punjab, Telangana, with a gross sales of Rs 484 crore.
However, due to continued losses, the board decided to review the operations of 24Seven, and based on stakeholders’ feedback and the long-term performance, decided on April 12, 2024 to exit from the retail business.
The Shares of Godfrey Phillips have been in a sharp uptrend since middle of last month, and on YTD basis are higher by more than 200 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
