The joint venture between the KK Modi Group and international tobacco giant Philip Morris, Godfrey Phillips India (GPI), will soon start selling the famous brand Marlboro that is owned by the latter. Marlboro is proposed to be launched this week. Presently, GPI is waiting to receive orders from the domestic dealers for the same.
The company plans to import the brand for at least for a month and later will commence manufacturing in India itself by using the facilities located at Mumbai and Ghaziabad. According to government’s policy any manufacturing capacity expansion is not allowed in tobacco industry either through grant of industrial licence or through FDI.
In 2003, Philip Morris choose Barakat Foods & Tobacco for the distribution of Marlboro cigarettes in India. This led to a clash between GPI and Philip Morris. But now after 6 years of affiliation with Barakat Foods & Tobacco, Philip Morris has decided to discontinue this partnership. Due to this GPI at present has become the official distributor of the brand.
Philip Morris also plans to launch its two other iconic brands Chesterfield and Parliament through GPI. But the launch of these brands is deferred due to increase in value-added tax on cigaretters from 12.5% to 20%.