Modi Group

Modi Group
Privately held company
Industry Conglomerate
Founded 1933 (1933) in Delhi, India
Founder Gujarmal Modi
Key people
 Krishan Kumar Modi (Chairman), Samir Modi (Managing Director)
Products Consumer products, multi-level marketing, cigarettes, food and beverages, fashion
Number of employees
 28,000 approximately
Website www.modi.com

Modi Enterprises is an Indian business conglomerate based in New Delhi, India.[1] It is a US $2.8 billion organization headed by Krishan Kumar Modi. The group, consisting of Godfrey Phillips India, Indofil Industries Ltd., Modicare Limited, has a diversified business portfolio including cigarettes manufacturing, education, agricultural chemicals, personal care,[2] tea & beverages, entertainment, consumer products, multi-level marketing, and gourmet restaurants.

History

Gujarmal Modi (1902–1976), founded the Modi Group, beginning with a small family run business,[3] then expanding from 1933 onwards with companies such as Modi Sugar,[4] Modi Vanaspati Mfr Co., Modi Industries Ltd, Modi Luft and Modi Rubber,[3] Modi Paints, Modi Oils, Modi Electrodes, Modi Lanterns and Torch works, Tube wells/drilling, Modi Distillery, Modi Steels, Industrial Gases, Modi Spinning and Wvg. Mills Co. Ltd., Modi Yarn Mills, Modi Threads, Modi Soap, and Modi Carpets etc.

By the time Modi's brother Kedar Nath Modi joined the company, the Modi Group was India's seventh largest conglomerate. The company had become the center of the eponymously renamed city of Modinagar. Modi died in 1976, and KN Modi succeeded him with the help of Modi's five sons and his own three sons who later joined the family business. The founder of the company did not leave a will and, although the family remained united under KN Modi's leadership, this oversight would later cause a rift that threatened to destroy the company.[3]

In April 2010, Krishan Kumar Modi, chairman of Modi Group, announced the succession plan for his business empire, stating to the media that his business was to be shared equally among his three children, run by KK Modi Family Trust, of which he is the managing trustee. According to Modi, his children will have the obligation to appoint his successor, and only by a unanimous vote. Otherwise, the group will be sold off with the profits from the sale shared equally among them.[5]

In June 2011, The Modi Group announced that it was planning to acquire majority control in Godfrey Phillips India from American tobacco company Philip Morris. Both groups had a 36% share in the company until in 2009, Modi Group acquired an additional 11% stake in GPI from Philip Morris, taking its share to 47%. As per the Joint Venture agreement, Modi Group has the right to take its holdings up to 51% by buying further into Philip Morris' holdings to gain majority control of the company. The deal brought Philip Morris' stake down to 21%.[6]

Brands

The company's brands include Four Square and FS1 cigarettes, Tea City, Dessange, Twenty Four Seven,[1] and Modi Academic International Institute. Its multi-level marketing division operates under the business name Modicare.

References

  1. 1 2 Sarkar, John (Mar 10, 2017). "KK Modi group eyes 500 more stores". The Times of India. Retrieved 2018-04-26.
  2. ↑ Dutta, Arnab (2017-03-18). "KK Modi group plans Rs 4,000-cr business rejig in four years". Business Standard India. Retrieved 2018-04-26.
  3. 1 2 3 Majumdar, Shyamal (August 5, 2014). "Everything you wanted to know about the Modi business family feud - and more". First Post. Retrieved 2018-04-26.
  4. ↑ Rana, Uday (May 14, 2016). "Lalit Modi's uncle who owes over Rs 400 crore to farmers absconding, claim cops". The Times of India. Retrieved 2018-04-26.
  5. ↑ "Modi empire may be sold: K K Modi". The Financial Express (India). Apr 27, 2010. Archived from the original on April 3, 2015. Retrieved November 15, 2017.
  6. ↑ Doval, Pankaj (Jun 23, 2011). "KK Modi eyes 51% in Godfrey Phillips". The Times of India. Archived from the original on September 19, 2012. Retrieved November 15, 2017.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.