Ahmedabad: The K.K. Modi Group, a part of the $2.8 billion Modi Enterprises, plans to consolidate its business entities into one. The company has 10 business lines including chemicals, business, fashion, packaged consumer products, healthcare and travel.

“The promoters are planning to consolidate all the business verticals of the group under one roof and a decision on the same is expected during Diwali this year," said Nita Kapoor, chief operating officer- domestic, Godfrey Phillips India Ltd, the flagship firm of the K.K. Modi Group.

The group has hired international consultant Monitor Group for planning the consolidation drive.

Godfrey Phillips is one of India’s largest cigarette makers with annual sales of 4,220 crore; it has expanded into tea, chewing pan masala and confectionaries. Even so, the company earns about 90-95% of its revenues from cigarettes.

“The growth potential in the cigarettes business has gone down in the last few years. One of the main reasons for this is that 46% of the turnover goes to excise and VAT (value added tax), among others," Kapoor said.

The flagship company is increasing its focus on mouth fresheners, including chewing masala, to maintain growth trajectory, Kapoor said.

Godfrey Phillips India plans to achieve sales of 500 crore in the next two to three years from its Pan Vilas brand, compared with 160 crore now.

It launched a new product called Pan Vilas Silver Dewz—billed as a premium mouth freshener—on Tuesday in Ahmedabad and joined hands with Bollywood actor Shah Rukh Khan and his cricket team Kolkata Knight Riders to promote the new brand.

The company has invested about 250 crore in setting up new pan masala manufacturing facilities in Faridabad and Ghaziabad. It plans additional investment to the tune of 100-150 crore in this product space.

Close