A 24Seven store in India.
Credit: https://www.24-seven.in/
New Delhi: Cigarette maker Godfrey Phillips India on Friday said it has decided to exit from its loss-making retail business 24Seven. The board of the company in a meeting held on Friday 'decided to exit from carrying out the business operations of its Retail Business Division,' said a regulatory update from Godfrey Phillips India.
Godfrey Phillips India was operating 150 stores/kiosks of 24Seven as of December 2023.
A decision in this regard was taken following a detailed review of the company's retail business division and after due consideration of the stakeholders' feedback, long-term performance, prevailing market conditions of the retail sector and long-term business strategy of the company, it added.
"The exit will be subject to completion of the necessary formalities," it said.
Revenue of 24Seven in FY23 was Rs 396 crore, contributing 9.3 per cent of the total revenue from operations for the company.
"The Retail Business Division had a negative net worth as on 31st March 2023 on account of accumulated losses generated by it," the company said.
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes popular cigarette brands like Four Square, Red & White, Cavanders, North Pole and Tipper.
It also manufactures and distributes brand Marlboro under a license agreement with Philip Morris.