Bina Modi: “I assure all shareholders of their fair share”

“Everything can be resolved, but my husband’s inheritance is not up for sale.”

Photo: Courtesy of Godfrey Phillips, India.

Bina Modiwife of the late industrialist K.K. Modi, was reappointed as managing director of Godfrey Phillips India (GPI) with the approval of 86.6% of shareholders at the annual general meeting on September 6.

On the same day, her son Samir Modi was removed from the company’s board of directors.

Bina Modi talks to Bhavini Mishra/Business standard in an interview in New Delhi about GPI’s exit from the retail business and the inheritance battle with her son.

Shareholders have supported you as Managing Director of GPI. What are the company’s prospects?

We are growing every day, our market share in the domestic business is increasing, our brands are becoming stronger and our exports of raw tobacco are expanding rapidly.

All of this is perceived positively by the market and helps unlock value for shareholders.

Some stakeholders cannot accept that you are at loggerheads with your son. Why has it come to this point?

It is not easy for either a person or a mother to accept things as they are.

But I don’t let any of this get in the way of my responsibilities to the company and shareholders.

Everything can be resolved, but my husband’s inheritance is not up for sale. As Managing Trustee, I want to ensure everyone gets their fair share.

Now that you have another five-year term as an MD, what is your vision for GPI and Indofil?

GPI is at an all-time high in profitability and market capitalization. Our market share is increasing.

Plus, when it comes to people, GPI has been recognized as a Great Place to Work for six years in a row.

This makes me confident that GPI has great potential for growth.

We plan to increase our market share. We are entering new markets, expanding our export business and monetizing some of our valuable assets.

Indofil has a bright future and we continue to focus on crop protection, innovative solutions, biologics and design thinking.

The tobacco and cigarette business is profitable, but most companies want to reduce the risk of their business by diversifying their income streams.
Why does GPI do the opposite? You decide to go out 24/7.

We tried our hand at various projects. They didn’t go the way we wanted. We have taken steps to get out of them.

For now, we want to focus on our core business and expand our presence in areas where there are opportunities for growth.

We are entering new markets, increasing the share of leaf exports, etc.

We have recently entered into an agreement with Ferrero Rocher, the benefits of which will begin to appear in the near future.

How is the relationship with your joint venture partner Phillip Morris? In your speech at the general meeting you spoke about more active participation.

Relationships with Phillip Morris are built on mutual trust. Since I took over the reins, the ties have become stronger as evidenced by the unprecedented growth of Marlboro (a cigarette brand) in India over the last three years.

We always had the support of Phillip Morris. Participation and support will continue.

Presentation of the feature film: Aslam Hunani/rediff.com