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Philip Morris paid for India manufacturing despite ban on foreign investment, reveals documents

Updated : March 07, 2019 08:16 AM IST

Restricting foreign investment leaves cigarette manufacturing largely in the hands of domestic players, and is supposed to prevent any foreign-funded expansion. A year after the government's decision, Japan Tobacco exited India, citing an "unsustainable business model".
Philip Morris, though, stayed in India and used another route, according to company documents dated between May 2009 and January 2018. A year before the FDI ban, it struck an exclusive deal with India's Godfrey Phillips to locally manufacture the world-famous Marlboro cigarettes.
One invoice from January 2018 sent from Godfrey to Philip Morris showed the Indian company had spent Rs 20.6 crore ($3 million) on capital expenditure for Marlboro-related manufacturing activities since 2009, though it was not clear how much of that was paid by Philip Morris.
Philip Morris paid for India manufacturing despite ban on foreign investment, reveals documents
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