Philip Morris says Godfrey Phillips charges machinery costs; calls it 'business expense'
Updated : March 14, 2019 08:21 AM IST
Philip Morris has for years paid manufacturing costs to Godfrey Phillips, despite a nine-year-old government ban on foreign direct investment in the industry.
Ahead of the ban, Philip Morris formed a new wholesale trading company with Godfrey in 2009, and the two sides signed a procurement agreement.
Philip Morris' director for corporate affairs in India, R. Venkatesh, said on Wednesday that under that agreement Godfrey "manufactures Marlboro cigarettes and recharges any costs related to special machinery for the manufacture" of those cigarettes to the global tobacco giant's Indian unit.
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morning
YOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more