Modi denies sell-off plans
In context, it may be mentioned that speculation has surfaced once again about Philip Morris renewing an offer to Modis since they got back to talking point in April last.
By Boby Kurian & Chaitali Chakravarty, TNN |
BANGALORE/NEW DELHI: In context, it may be mentioned that speculation has surfaced once again about Philip Morris renewing an offer to Modis since they got back to talking point in April last.
But Modi strongly denied any plans to sell out. The second reason could be the Union health ministry’s push for certain curbs on free cigarettes imports.
It has already circulated a note asking for cigarettes to be put in the negative list for imports. Under current regulation, cigarettes companies pay substantial import duties to bring cigarettes into the country. Manufacturing in India will help save that costs and also give GPI’s sales and distribution network.
In 2003, Philip Morris Services India SA bypassed its Indian joint venture company GPI and entered into an agreement with Barakat Foods and Tobacco for the distribution of Marlboro cigarettes in India. The company directly imported the product, which was then distributed by BFT under a non-exclusive agreement.
Philip Morris Services India is an affiliate of the Switzerland-based leading tobacco company Philip Morris International. Its brand portfolio includes L&M, Parliament, Chesterfield, Bond Street, Philip Morris, Lark and Marlboro.
Philip Morris had said that Marlboro was a valuable international trademark for Philip Morris and it was the company’s policy to control the brand directly wherever permissible. It had also said that since its does not enjoy majority ownership of GPI, it would not like to hand over the brand to it.
But Modi strongly denied any plans to sell out. The second reason could be the Union health ministry’s push for certain curbs on free cigarettes imports.
It has already circulated a note asking for cigarettes to be put in the negative list for imports. Under current regulation, cigarettes companies pay substantial import duties to bring cigarettes into the country. Manufacturing in India will help save that costs and also give GPI’s sales and distribution network.
In 2003, Philip Morris Services India SA bypassed its Indian joint venture company GPI and entered into an agreement with Barakat Foods and Tobacco for the distribution of Marlboro cigarettes in India. The company directly imported the product, which was then distributed by BFT under a non-exclusive agreement.
Philip Morris Services India is an affiliate of the Switzerland-based leading tobacco company Philip Morris International. Its brand portfolio includes L&M, Parliament, Chesterfield, Bond Street, Philip Morris, Lark and Marlboro.
Philip Morris had said that Marlboro was a valuable international trademark for Philip Morris and it was the company’s policy to control the brand directly wherever permissible. It had also said that since its does not enjoy majority ownership of GPI, it would not like to hand over the brand to it.
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