Godfrey Phillips India Limited has entered into a Contract Manufacturing Agreement with Polisetty Somasundaram Tobacco Products (India) Pvt. Ltd. signed on May 27, 2026. The agreement covers the manufacturing and delivery of cigarettes and other tobacco products being manufactured and marketed by the Company on a contract manufacturing basis.
The agreement is a domestic exclusive manufacturing arrangement with an initial term of nine years. Polisetty will manufacture the products exclusively for Godfrey Phillips India at its manufacturing facility in accordance with specifications and standards prescribed by the Company. Production materials will be supplied by Godfrey Phillips India for the manufacturing process.
Under the terms of the agreement, Polisetty is required to make its best efforts to set up the manufacturing facility and obtain all requisite licenses and approvals to commence operations within 12 months. Godfrey Phillips India may, at its sole discretion, provide various machines and equipment on a bailment basis for use in the manufacturing of the products.
The Company shall pay Polisetty a Manufacturing Fee comprising both fixed and variable components during the subsistence of the agreement. Based on Polisetty's latest audited financials for the year ended March 31, 2025, its revenue from operations was Rs 1.86 crore and profit after tax was Rs 1.64 crore.
The transaction has been confirmed as not a related party transaction and is conducted at arm's length. The agreement is expected to enable Godfrey Phillips India to augment its production capacity and ensure uninterrupted availability of its products. This strategic manufacturing tie-up aligns with the Company's growth objectives.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.