On Friday, tobacco manufacturer Godfrey Phillips India Ltd announced its decision to discontinue its retail business division, 24Seven, due to a negative net worth as of March 31, 2023, following incurred losses.
Godfrey Phillips informed the exchanges that, after carefully evaluating the performance of their retail business division, operating as “24Seven,” and taking into account stakeholder feedback, the division’s performance since its inception, current market conditions in the retail sector, and the company’s long-term business strategy, the Board of Directors has decided to discontinue the operations of the Retail Business Division.
It further added that the exit would be subject to the completion of the necessary formalities.
Additionally, as per the company’s filing, the revenue generated from operations for the retail business in FY23 amounted to INR 396 crore, constituting approximately 9.3 percent of the total revenue from operations for both the Company and the retail division.
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As of December 2023, the retail chain 24Seven, owned by the KK Modi Group firm, was managing 150 stores.
At 24Seven stores, customers can find groceries for daily needs, ready-to-eat meals, beverages, cosmetics, personal hygiene products, music and movies, as well as magazines.
Moreover, it provides various services including bill payments, mobile phone recharges, movie ticket purchases, instant photo printing, as well as domestic and international courier services.
Godfrey Phillips India serves as the flagship business of Modi Enterprises, specializing in the production of renowned cigarette brands such as Tipper, Cavanders, Red & White, Four Square, and North Pole. Additionally, the company manufactures and markets the Marlboro brand under license from Philip Morris.
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