Godfrey Phillips India to Exit Retail Business Following Court Decision

Godfrey Phillips India Ltd is proceeding with its plan to exit the retail sector operated under the '24Seven' brand. This follows a court's decision to set aside an injunction order that previously halted the move. The company cited extensive stakeholder feedback and market analysis as reasons for the exit.

Godfrey Phillips India Ltd announced on Wednesday that it is moving forward with its plans to exit the retail business operated under the ‘24Seven’ brand. This development follows a district court decision in the Capital to set aside an earlier interim injunction on the move.

Originally, an injunction order was passed on June 27, 2024, against the company's exit from the retail sector, following an application by its executive director, Samir Kumaar Modi. However, the District Judge at Saket Court, New Delhi, has now overturned that order, according to a regulatory filing by the company.

Consequently, Godfrey Phillips India is acting in line with a decision made by its Board of Directors on April 12, 2024, to exit the retail business. This decision came after thorough stakeholder feedback, analysis of the division's long-term performance, and prevailing market conditions. The retail division, which generated Rs 403 crore in revenue for FY23-24, had a negative net worth as of March 31, 2024.