You are here » Home » Companies » Company Overview » Godfrey Phillips India Ltd

Godfrey Phillips India Ltd.

BSE: 500163 Sector: Consumer
NSE: GODFRYPHLP ISIN Code: INE260B01028
BSE 00:00 | 24 Apr Godfrey Phillips India Ltd
NSE 05:30 | 01 Jan Godfrey Phillips India Ltd
OPEN 1010.00
PREVIOUS CLOSE 1059.90
VOLUME 10985
52-Week high 1480.40
52-Week low 675.30
P/E 14.33
Mkt Cap.(Rs cr) 5,373
Buy Price 1033.35
Buy Qty 7.00
Sell Price 1070.00
Sell Qty 5.00
OPEN 1010.00
CLOSE 1059.90
VOLUME 10985
52-Week high 1480.40
52-Week low 675.30
P/E 14.33
Mkt Cap.(Rs cr) 5,373
Buy Price 1033.35
Buy Qty 7.00
Sell Price 1070.00
Sell Qty 5.00

Godfrey Phillips India Ltd. (GODFRYPHLP) - Chairman Speech


Notice: Undefined variable: pattern in /usr2/unibs/application/modules/live-market/views/scripts/company/annual-report.php on line 72

Company chairman speech

Dear Shareholder

Godfrey Phillips continued its business momentum from last year into the fiscal year2018-19 with particularly pleasing performances in the Tobacco and 24Seven businesssegments. For the second consecutive year cigarette volumes registered strong growthprimarily driven by improved sales of own brand cigarettes. Our International Businessalso delivered robust growth of 21% due to increased exports of leaf and cut tobacco.Furthermore we have added 43 new 24Seven convenience stores and are delighted with thesuccess and market acceptance of the stores across the Delhi and NCR region. In theChewing segment we continued to implement our core strategy to focus on premium panmasala coupled with profitable growth. Overall it gives me immense pleasure to reportthat the Company's operational performance translated into profitable financials duringFY2019. The global economy which was accelerating in 2017 across major economies wasclearly impacted during 2018 primarily due to escalating US China trade tensions tightermonetary policy in advanced economies auto sector slowdown in Europe and geopoliticaluncertainties in certain parts of the world. Amid these challenging market conditionsglobal growth declined to 3.6% as compared to 3.8% in 2017 and is expected to softenfurther to 3.3% in 2019. The current year started on a weaker note however it is expectedto pick up pace in the second half owing to an accommodative monetary policy stance by theUS Federal Reserve along with optimism around a US China trade deal. Despite these globalheadwinds the Indian economy remained one of the fastest growing economies in 2018registering GDP growth of 7.1%. This clearly reflects the underlying strength of theIndian economy which was well supported by prudent fiscal and monetary policies. Havingsaid that the year did face some challenges due to the start of an economic slowdownlower private consumption due to the NBFC crisis and muted exports due to certain traderestrictions. The consumer sector continues to thrive on the back of India's strongdemographic profile. India's millennial population in the range 18-35 years constitutes34% of the total population which in turn has led to an increasing workforce a risingnumber of households and greater per capita income. All these factors continue to drivethe Indian growth story. Technological advancement deeper internet penetrationurbanization preference for convenience based services and increased disposable incomesare leading to changes in consumer spending and consumption patterns. With this backdropof an ever developing economy and growing consumerism India provides an attractiveplatform to drive growth across both the Tobacco and 24seven business segments of theCompany. Godfrey Phillips is focused on capitalizing on growth market opportunities inIndia coupled with rising consumerism. We will continue to strengthen our core Tobaccosegment with product innovation and leveraging our strong sales and distribution network.The Indian tobacco industry is closely observed and regulated by government authorities.Implementation of GST has created a level playing field for all cigarette manufacturingcompanies however disproportionate taxation compared with other forms of tobacco is stilla concern. India is the third largest producer of tobacco with exports to more than 100countries and the livelihood of 4.5 crore people dependent on it. Godfrey Phillips remainsfully committed to complying with the regulatory requirements. The Indian retail market isgrowing at a rapid pace especially where the traditional unorganized retail sector ispredominant. The shift towards the organized retail sector is now clearly evident and isexpected to grow further in the coming years. Household shopping is all about anexperience where consumers prefer to buy from modern retail stores with all products underone roof attractive layouts and digital payment facilities. Our 24Seven stores areespecially designed to meet the demand of new age consumers and deliver an internationalshopping experience stocking a wide variety of products and providing a range of servicesaround the clock. We are confident that our store format will succeed in deliveringprofitable growth in the coming years. I am delighted to report that your Company has beenranked 37th in the India's Best Companies to Work survey for 2019. With that inmind I would like to take this opportunity to thank the senior management all ouremployees customers channel partners distributors and shareholders for their unwaveringsupport and vote of confidence in Godfrey Phillips.

With best wishes and warm regards
R. A. Shah