About Godfrey Phillips India

Godfrey Phillips India is one of the largest players in the Indian cigarette industry with an

annual turnover of over Rs3,600 crores (estimated 2012-13) has other business interest in

tea pan masala and confectionary.

A flagship company of the diversified K. K. Modi Group,Godfrey Phillips India’s operations

primarily spans the country with prominence in northern and western part of the country

and recent forays into West Bengal and South of India.

The Company manufactures some of the most popular cigarette brands in the country like

FS1, Four Square, Red and White, Cavanders, Tipper and North Pole. Additionally,Godfrey

Phillips India also manufactures and distributes iconic brand Marlboro under a license

agreement with Philip Morris .

Godfrey Phillips India concerted efforts in Tea City has led to successful Symphony and

Super Cup launch. The Company has forayed into the highly competitive confectionary

segment with Fundamint and FundaGoli using their extensive distribution launch to have a

pan India reach. Godfrey Phillips India has also recently launched Pan Vilas pan masala

which has already shown great potential with positive outcomes.

Godfrey Phillips India has also spread its footprint into the international markets. Today, the

International Division collaborates with some of the top players in the international tobacco

industry to assist them in marketing their products and providing various professional and

expert services including contract manufacturing, cut tobacco, smoke analysis and various

other consultancy services. Many countries from the Middle East to West Africa, South East

Africa, South East Asia, East Europe, Australia, South America and Central America have

been added to the portfolio. The International Division also exports Bulk and Specialty Teas

to Germany, USA, Japan, UAE, Kazakhstan and Iran.

Godfrey Phillips India Bravery - a corporate social initiative by Godfrey Phillips India

recognizes and awards civilian bravery. Instituted in 1990, the awards have four categories,

are held over zone and one national event that include 20 states, the initiative has awarded

over 1200 brave. With two decades of committed and dedicated work, Godfrey Phillips India

Bravery has now evolved into a movement. From merely awarding and recognizing the

brave, the CSR initiative has added Amodini, Women’s Empowerment initiative that believes

that financial independence helps women to take control of her life. Over 20000 women

have benefitted directly from the projects that have been undertaken in partnership with

renowned nonprofit organizations

Vision & Values

Vision

To become a leading tobacco player in India and beyond.

To sustain and enhance our position as one of India’s most prominent business

organizations, while leveraging our proven competencies to diversify our reach across the

globe.

Values

Passion for winning Innovation through learning and intrepreneurship Winning trust internally and externally. Global mindset Socially Responsible Corporate Citizen

The Management Godfrey Phillips India is a Company committed to innovation and continuous

improvement which can be seen in the Company employees; from the top

management to the factory level. Godfrey Phillips India’s management represents

the optimum mix of professionalism, knowledge and experience. They are the

guardians to the Company, and protectors of the shareholder’s interest.

Achievement & Award

Godfrey Phillips India, Guldhar Factory won Gold Award at 12th Greentech Safety Award, in 2011 and 2012

Godfrey Phillips India, Andheri Factory won Gold Award at 12th Greentech Safety Award, 2012

Godfrey Phillips India Andheri Factory was awarded with "Special Commendation" for the Golden Peacock Award for Occupational Health & Safety and Gold Award for Outstanding Achievement in Environment Management, Greentech Environment Awards, for the year 2011

Godfrey Phillips India Guldhar Factory was awarded the ‘Greentech Foundation Gold Award’ in 2009, 2010 and 2011 for Outstanding Achievement in Environment Management. These awards are the most coveted awards in the corporate world for outstanding achievements in the field of Environment Management.

Godfrey Phillips India Andheri Factory won the Greentech Safety Silver Award in recognition of excellence in safety management.

The Indian National Suggestion Scheme Association (INSSAN) presented awards to Andheri factory, Mumbai team for its best suggestions/ideas during the various conventions held on different topics and places for a record 15th consecutive year in a row in 2011.

Won Golden Peacock Award 2007 for excellence in Product Innovation category for Four Square.

Tipper won Golden Peacock Award for the best product innovation in the year 2003 and then again in 2006 for innovative product and service. It has also won the Silver medal at the Monde Selection Brussels, World Selection of Quality 2006.

The Guldhar factory won The 'Greentech Environment Excellence Awards' and Greentech Safety Awards', in the year 2006. These awards are the most coveted awards in corporate world for outstanding achievements in the field of environment management.

The pack design of Jaisalmer, the premium King Size cigarette of the Company, won the coveted PFFCA (Paper, Film & Foil Converters Association) Star Award, felicitating the pack for its excellence in design, development and creativity in packaging.

North Pole has also won the Golden Peacock award for innovative packaging in 2005.

Financials Godfrey Phillips India as a Company is dedicated to the interests of all those who

have invested their faith in it. The Company strives to maximize growth in revenue

while equally managing the cost of doing business. Thereby, it continuously seeks to

create greater value for the shareholders.

Investors Information

In terms of a circular dated 22nd January, 2007 of Securities and Exchange Board of India,

the Company has decided to designate an exclusive Email Id of the Grievance Redressal

Division at the office of its Registrars and Transfer Agent, M/s Sharepro Services (India) Pvt.

Ltd. as under:

Mr. Anantha Krishnan

Sharepro Services (India) Pvt. Ltd.

Email: akrishnan@shareproservices.comRegistered Office13 A-B, Samhita Warehousing Complex,

2nd Floor, Near Sakinaka Telephone Exchange,

Andheri-Kurla Road, Sakinaka, Mumbai 400072.

Phone : +91-022-67720300, 67720400

Investors’ Service Centre912, Raheja Centre,

Free Press Journal Road,

Nariman Point, Mumbai 400021.

Phone : +91-022-66134700

E-mail : sharepro@shareproservices.com

The Shareholders may forward their queries/grievances to the Company at the

following address :

Compliance Officer:Mr. Sanjay Gupta 

Company Secretary

Godfrey Phillips India Limited

40-41 Community Centre

Friends Colony, New Delhi-110025

India

Tel. No : +91-11-26832155

Fax No : +91-11-26840775 

Email : skgupta-gpi@modi.comWebsite : www.godfreyphillips.com

Code of Business Conduct

PreambleIn terms of the revised Clause 49 of the Listing Agreement with the Stock Exchanges, the

Board of Directors are required to lay down a code of conduct for all its Board members as

well as senior management one level below the executive directors including all functional

heads ( a list of present directors and senior management is attached). This code of conduct

has accordingly been approved by the Board of Directors by a resolution passed by

circulation which will be effective from 1st January, 2006 and the same shall be uploaded on

Company’s website for information of general public.

ApplicabilityThis code is applicable to the Board Members and Senior Management who are members of

its core management team one level below the executive directors including all functional

heads (hereinafter collectively referred to as “Employee(s)”). All employees must read and

understand this code and ensure to abide by it in their day-to-day activities.

Values and Expected BehaviorsPassion for winning

Constantly thrive in bettering the competition in every field.

Have a positive attitude, and restlessly seek and capture new opportunities.Innovation through learning and entrepreneurship

Be a world class innovative organization by continually developing and successfully

launching new brands.

Encourage risk taking and learning, and create conditions for empowerment with

accountability.Winning trust internally and externally

Build enduring relationships with all stakeholders including employees, shareholders and

trade/alliance partners, and honor all commitments.

Encourage transparent and fair systems and policies.Global mindset

Constantly benchmark in all areas against the best globally, and strive to exceed those

benchmarks.

Develop opportunities through a global network of distributors and alliances.Socially responsible corporate citizen

Ensure the compliance of all applicable laws and the highest standards of corporate

governance.

Support and encourage employees to actively participate in identified social and

environmental concerns.

In addition to the above values and expected behaviors, the business will be conducted in

such a manner that it ensures the following :-

Safety in Workplace

The safety of people in the workplace is a primary concern of the Company. Each of us must

comply with all applicable health and safety policies. We maintain compliance with all

applicable laws to help maintain secure and healthy work surroundings. The employees will

also ensure that there is no sexual harassment at the work place and in case any allegation

is made, it is immediately dealt with in accordance with the guidelines laid down by the

Supreme Court.

Conflicts of Interest

Each of us has a responsibility to the Company, our stockholders and each other. Although

this duty does not prevent us from engaging in personal transactions and investments, it

does demand that we avoid situations where a conflict of interest might occur or appear to

occur.

All employees must avoid situations involving actual or potential conflict of interest. Personal

involvement with a competitor, supplier, or subordinate employee of the Company, which

impairs an employee’s ability to exercise good judgment on behalf of the Company, creates

an actual or potential conflict of interest.

An employee involved in any of the types of relationships or situations described in this

policy should immediately and fully disclose the relevant circumstances to his or her

immediate supervisor, or any other appropriate supervisor, for a determination about

whether a potential or actual conflict exists. If an actual or potential conflict is determined,

the Company may take whatever corrective action appears appropriate according to the

circumstances. Failure to disclose facts shall constitute grounds for disciplinary actions.

Protecting the Company’s Confidential Information

The Company’s confidential information is a valuable asset. This information is the property

of the Company and may be protected by patent, trademark, copyright and trade secret

laws. All confidential information must be used for Company business purposes only. Every

employee, agent and contractor must safeguard it. This responsibility includes not disclosing

the Company’s confidential information such as information regarding the Company services

or business over the internet. You are also responsible for properly labeling any and all

documentation shared with or correspondence sent to the Company’s Legal Department or

outside counsel as “Strictly Confidential”. This responsibility includes the safeguarding,

securing and proper disposal of confidential information in accordance with the Company’s

policy on maintaining and managing records. This obligation extends to confidential

information of third parties, which the Company’s has rightfully received under Non-

Disclosure Agreements.

Obligations Under Securities Laws "Insider" Trading

In the normal course of business, officers, directors, employees, agents, contractors and

consultants of the Company may come into possession of significant, price sensitive

information. This information is the property of the Company. You may not profit from it by

buying or selling securities yourself. Further you are not to tip others to enable them to

profit or for them to profit on your behalf. The purpose of this policy is both to inform you of

your legal responsibilities and to make clear to you that the misuse of price sensitive

information is contrary to Company policy and applicable laws.

Insider trading rules are strictly enforced, even in instances when the financial transaction

seems small.

For more details, you should read the Company’s Insider Trading Rules carefully, paying

particular attention to the specific policies and the potential criminal and civil liability and/or

disciplinary action for insider trading violations. You should comply with the Company’s

Insider Trading Rules, follow the pre-clearance procedures for trading and trade only during

a trading window.

Use of Company Assets

We all are perceived as Trustees of Company’s properties, funds and other assets. We owe

fiduciary duty to each stakeholder, as their agent, for protecting the Company’s assets. We,

therefore, must safeguard and protect the company’s assets against any misappropriation,

loss, damage, theft, etc. by putting in place proper internal control systems and procedures

and effectively insuring the same against any probable fire, burglary, fidelity and any other

risk.

Maintaining and Managing Records

The purpose of this policy is to set forth and convey the Company’s business and legal

requirements in managing records, including all recorded information regardless of medium

or characteristics. Records include paper documents, CDs, computer hard disks, e-mail,

floppy disks, microfiche, microfilm or all other media. The Company is required by applicable

laws, rules and regulations to retain certain records and to follow specific guidelines in

managing its records. Civil and criminal penalties for failure to comply with such guidelines

can be severe for employees, agents, contractors and the Company, and failure to comply

with such guidelines may subject the employee, agent or contractor to disciplinary action,

up to and including termination of employment or business relationship.

Conduct ourselves in a manner that reflects credit to the company

All of us are expected to conduct ourselves, both on and off-duty, in a manner that reflects

credit to the Company. The sum total of our personal attitude and behavior has a bearing on

the standing of the Company and the way in which it is perceived within the organization

and by the public at large.

Equal opportunity Employer

The Company expects each employee to ensure that only meritocracy is rewarded in the

Company and that there is no discrimination based on sex, religion, creed, color or origin.

Compliance with the CodeAs employees of Company, we will uphold and promote the principles of this code

The future of the organization depends on both technical and ethical excellence. Not only is

it important for employees to adhere to the principles expressed in this Code, each

employee should encourage and support adherence by other employees.

Treat violation of this code as inconsistent association with the organization

Adherence of professionals to a code of ethics is largely a voluntary matter. However, if any

of us do not follow this code by engaging in professional misconduct, the matter would be

reviewed by the Board and its decision shall be final. The Company reserves the right to

take appropriate action against the guilty employee.

Interpretation of Code

Any question or interpretation under this Code of Business Conduct will be handled by the

Board or any person/committee authorized by the Board of Directors of the Company and

their decision shall be final and binding on all concerned.

Miscellaneous

Continual updation of code

This code is subject to continuous review and updation in line with any changes in law,

changes in Company’s philosophy, vision, business plans or otherwise as may be deemed

necessary by the Board.

Directors (A) Executive & Not Independent Directorso Mr. K. K. Modio Mr. R. Ramamurthyo Mr. Samir Kumar Modi (B) Non-Executive & Non-Independent Directorso Mr. Lalit Kumar Modi (C) Non-Executive & Independent Directorso Mr. R. A. Shaho Mr. Lalit Bhasino Mr. Anup N. Kothario Mr. C. M. Maniaro Mr. O. P. Vaish

Our Businesses

We are dedicated towards improving the quality of people’s lives through the

implementation of innovative ideas and solutions, developing best-in-class operational

competencies and committing to deliver excellence. We have successfully branched to

consumer goods and retail, offering a bouquet of goods and services under the Godfrey

Phillips umbrella. The new, matured consumer class seeks goods and services that fulfill

their needs and support their aspirations. Godfrey Phillips India recognizes this need and,

besides our renowned cigarette brands, have diversified into-

Chewing Masala Tea Retail Confectionary

 Each category is well researched and the products have been positioned in a manner to

build brand value by offering our customers a unique value proposition. Godfrey Phillips

India continues to broaden its horizons everyday; envisioning a major role for itself in the

social and economic progress of the nation.

We, at Godfrey Phillips India understand the importance of innovation in a dynamic business

environment, where technology and processes can easily become redundant. TPM processes

like Six Sigma, Kaizen, 5S, and Haichi ban have been successfully incorporated in our value

system to improve the quality and efficiency of our work place. This perseverance towards

quality has infused our sales, marketing, and distribution channels with new life and led to

the creation of a motivated, dynamic, work force geared to take on any kind of challenge.

Cigarette Brands

Godfrey Phillips India is one of the largest players in the Indian cigarette industry and has

two major stakeholders, the K. K. Modi Group and Philip Morris. The company’s operations

primarily span the entire northern and western part of the country with new markets like

West Bengal and South of India. The company today manufactures some of the most

popular cigarette brands in the country like FS1, Four Square, Red & White, Cavanders,

Tipper and North Pole. Godfrey Phillips India is known for its innovations. The company has

created popular products like Stellar, India’s first slim cigarette and ‘i-gen’ a king-size

cigarette, the first in India to conform to EU norms of 10-1-10 in their kitty. Godfrey Phillips

India’s global mindset also drew the company towards an arrangement with Philip Morris for

manufacturing and sale of the iconic brand Marlboro in India. The Company cigarettes are

manufactured in state-of-the-art factories at Guldhar, Andheri & Rabale. A robust supply-

chain & distribution network ensures that the popular brands reach the length & breadth of

the country. The wide network comprises of 520 exclusive distributors and over 800,000

retail outlets.

FSI

FS1 is the premium line of cigarettes launched by Four Square. Each Turkish Blend cigarette

in the FS1 pack attributes its distinct taste and aroma to Luxury Long Leaf blended with the

finest Indian hand picked tobaccos. It is designed to give the Ultimate Taste Experience. FS1

comes in 3 variants – Full Flavor, Extra Smooth and Regular.

Four Square

Four Square is a well established and leading cigarette brand in India. Launched way back in

1964, the brand commands trust and reputation amongst its consumers and is known for its

innovative ways to meet the changing consumer preferences.

Today, the Four Square franchise has a wide portfolio of variants that are available in both

King-size and Regular-size segments, namely - Four Square Kings, Four Square Special, Four

Square Premier, Four Square Fine Blend and Four Square Rich Gold.

In its relentless pursuit to provide value to customers and leveraging advancements in

technology, the brand has many firsts to its credit like introducing innovative pack designs

with a tactile look and feel, and applying digital means to communicate with and delight

consumers.

Marlboro

Godfrey Phillips India has an arrangement with Philip Morris to manufacture and distribute

their brands, including the iconic Marlboro brand of cigarettes. Available at select cities in

India at approximately 65,000 retail outlets, the brand has 7 variants including the recently

launched Marlboro Gold Advance.

Red & White

Enjoying an iconic stature and a strong emotional bond with its loyal consumers, Red &

White is one of the fastest growing regular filter brands. With a presence in markets such as

those of Punjab, Haryana and Delhi, it is available as a R&W Filter, R&W Plain, R&W Super

and R&W Premium. The brand continues to retain its iconic popularity as ‘Red & White

peene walon ki baat hi kuch aur hai’ still resonates strongly with consumers and is one of

the most memorable ad-lines in India.

North Pole

An innovative brand from the stable of Godfrey Phillips India, it is the largest selling menthol

cigarette in India.

Cavanders

Cavanders is one of the oldest and most trusted brands from the house of Godfrey Phillips

India. Associated with a unique taste and value proposition, Cavanders has always enjoyed a

strong emotional connect with consumers owing to its unique positioning of "Friendship".

The brand is available in a host of variants ranging from Cavanders Gold Leaf and Magna in

the plain segment to Cavanders Gold, Cavanders Special and Cavanders Magnum filter in

the Regular size filter and Cavanders Magna filter in the Micro filter segment. Through the

variants stated, Cavanders has a foothold across the length and breadth of India.

Tipper

Tipper is a brand driven by innovation, superiority of imagery and offering. The new Tipper

Filter variant has been able to attract a significant share of Tipper's erstwhile micro

consumers.

Cigars

The Group’s Cigar business can be credited with organising the fragmented cigar market in

India and securing the position of a market leader in cigar distribution. The Division is the

largest importer of Cigars in India, and appointed distributor of world famous companies like

Habanos SA (Cuba), Altadis (SA), Oettinger Davidoff (Switzerland), Altadis (USA),

Scandinavian Tobacco Group, and Villiger Sons (Switzerland). The entire range of renowned

brands , hand and machine rolled, like Cohiba, Montecristo, Romeo y Julieta, Partagas,

Guantanamera, Davidoff, Phillies, Hav-A-Tampa, Don Diego, Santa Damiana, Flor de Copan,

Henri Wintermans etc. are now available for the discerning consumer.

With an exclusive cigar shop in Delhi, plans to open one in Bangalore, Express Kiosks in

Delhi and NCR, Mumbai, Hyderabad and Kolkata, Custom Bonded Warehouses in Delhi and

Mumbai, and Regional sales offices in Delhi, Chandigarh, Mumbai, Ahmedabad, Jaipur,

Kolkata, Hyderabad, Bangalore and Chennai, the Cigar business is poised for growth across

the country. Growth that will bolster the Group’s plans to expand into the premium

segments to fulfill its ambitious vision for the future.

Pan Vilas

The quest for the perfect pan masala comes to an end with Pan Vilas. The delicately

balanced blend and the rich trove of finest ingredients give Pan Vilas an unmatched and

lingering taste. The brand goes a step further to ensure quality and establish trust by using

a natural alternate to banned Magnesium Carbonate and applying the best worldwide

technology in manufacturing.

It is a treat for those discerning people who can go to any length for the elusive perfect

taste. Thus “Shauq badi cheez hai” aptly captures the brand’s ethos of passionate

indulgence. It was launched successfully in India in early 2010. Pan Vilas is manufactured at

Baramati, a state-of-the-art plant that employs some of the world’s most advanced food

processing technologies.

Tea City

Tea City presents an extensive range of fine teas from our master blenders crafted to carter

to different segments and markets. Young tea buds and tender leaves are delicately hand

plucked, then tested for quality and freshness using the most advanced technology and

processes, to make every blend a special one.The consumer can enjoy and appreciate the

fine teas through a variety of brands from Tea City –Symphony,. Samovar, SuperCup, Super

Cup Duet,Utsav and Rangoli. The Brands and their attributes are presented in detail

below. Read more...SymphonyTea City presents Symphony, a premium assortment of original brews and flavors that relax

and revive you instantly. Available in three variants- Assam Tea, Green Tea and Darjeeling

Tea.

Symphony Assam Tea

A refreshingly balanced blend of distinct taste and strength, this all-timefavorite brew is

crafted with the finest mix of fresh granular and orthodox long leaves picked from the

superior tea gardens of Assam. Feel even the dullest moment come alive with its full bodied

flavour and stimulating aroma.

Symphony Green Tea

Green Tea also called the wonder tea is nature’s most unique gift. High on antioxidants and

nutritional content, this natural tea is famous the world over for its innumerable health

benefits.

Have a sip of this fine portion and experience nature’s healing powers.

Symphony Darjeeling Tea

Reminiscent of the misty highlands of Darjeeling, the carefully handpicked leaves of this

classic brew give a light golden coloured liquor with muscatel flavour and distinctive aroma

on brewing.

This magical brew soothes your senses even before you have had the first sip.

Samovar

Samovar Green tea is a special blend of pure long leaves. Its tender leaves when brewed

with “noon”, a special additive ,gives a refreshing taste and distinct color which brings you

the purity and originality of ‘noon chai’ made in a samovar.

Utsav

Made from choicest of tea leaves , small quantity of Utsav tea leaves gives a full bodied

strength and rich colour. It is an value for money offering that comes in leaf as Utsav Chai

and dust variant as Utsav Dust Chai.

Super Cup

A mid premium segment brand of Tea City is a blend from sprawling tea gardens of Assam

which gives a full bodied brew. It is for them who like their tea 'strong'. Its strength and

stimulating flavour creates a strong combination of intense taste, enriching colour and

refreshing aroma.

Super Cup is available in two formats: Leaf & Dust

Super Cup Duet

This tea offers a completely new tea drinking experience. Along with strong granular CTC

one can enjoy the aromatic Darjeeling tea which is mixed along with CTC. While the granular

CTC gives strength and colour, Darjeeling tea gives a delightful aroma in every sip.

Rangoli

A special blend of Assam CTC tea, its fuller granules give it strength and a rich colour. It is

an value for moneyoffering that comes in two variants to suit all taste palates – Leaf and

Dust.

Madhuban Festive Pack

Take Home a Taste Of India with Madhuban Authentic Teas.

Cultivated across the land and nurtured to perfection, the Madhuban range of teas are

distinct in flavor and unanimous in taste – fine and authentic. It contains the finest range of

authentic Indian Teas. The Madhuban Assam Tea is a black tea with invigorating, malty

flavor and a beautiful ruby- amber hue. To get a taste of luxury,sip the Madhuban Darjeeling

Tea, and savor its golden hued liquor and aromatic muscatel flavor. Equally exquisite is the

Madhuban Nilgiri Tea which is a dark and intensely fragrant brew, with a full bodied flavour.

Funda Goli

Brand Funda embodies the right balance of international quality with an Indian core. Godfrey

Phillips India first ventured into the highly competitive confectionery segment in 2008 with

the launch of our mouth freshener- Funda Mint. The launch of the Funda Goli range of

candies in 2009 has helped us establish a niche for ourselves as a unique confectionery

brand. Developed with the objective of providing the Indian consumer with a candy that is

not only fun to eat, but also one that caters to the varied Indian taste profile, the brand is

synonymous with flavours that are meant to capture the Indian heart. From Refreshing

Saunf to Orange mints, Slurpy Lychee and KacchaAam candies, FundaGoliendeavors to

tingle the Indian taste buds.

Twenty Four Seven

Twenty Four Seven Convenience Stores are India’s only convenience stores operating round

the clock.

Our range of offerings comprise of fresh food, groceries, vegetables, RTE (ready to eat)

meals, frozen food, wide assortment of beverages, imported products, OTC pharmaceuticals,

cosmetics, personal care products, travel accessories, pet food, toys, music, movies,

magazines, cigarettes, hukkas, gifts and souvenirs.

We also offer a wide range of services for your convenience. Couriers domestic and

international, credit cards and utility bills payment, mobile recharge, DTH recharge, PVR

movie tickets, Air, Rail & Bus tickets, Drop boxes for cheque payments or various services.

Our mission is to be the preferred choice of the modern, busy consumer for round-the-clock

convenience in a friendly and safe environment.

International Business

Our foray into international markets and success with new business ventures has been part

of an endeavour to realize our vision of becoming a leading player in India and beyond.

Today, we collaborate with some of the top players in the international tobacco industry to

assist them in marketing their products and providing various professional and expert

services including contract manufacturing, cut tobacco, smoke analysis and various other

consultancy services.

Many countries from the Middle East to West Africa, South East Africa, South East Asia, East

Europe, Australia, South America, Southeast Asia and Central America have been added on

to our portfolio of exporting cigarettes as well as cut tobacco. Our brands Force 10,

Jaisalmer, Originals and Ultima are already making substantial inroads in their respective

markets.

Our International Division is continually making efforts to forge new global contacts to

facilitate tea exports. Our primary tea brand, Tea City has already made a successful entry

into the export market. Under the brand, we offer Indian teas from various origins such as

Assam, Darjeeling, Dooars, Terai, Nilgiris and South India to meet the requirements of cup

quality.

We also export Bulk and Specialty teas to Germany, USA, Japan, UAE, Kazakhstan & Iran

with the objective to expand our consumer base horizontally as well as vertically across

segments. We persistently work towards understanding our consumers and their distinct

taste palates in order to develop the most customized blends as well as specialized teas like

organic tea, flavors in packets & tea bags.

The success of our International Division can aptly be credited to the superior, state- of- art

infrastructure that supports it, which begins right from the superior quality leaf ensured by

our Leaf Division to the end product from our Manufacturing units. In order to become a

leading player in the tobacco industry, we have constantly been upgrading and improving

our systems and processes through better R&D practices, upgraded manufacturing facilities

and a better understanding of consumer and market needs.

R&DThe R&D facility at Godfrey Phillips India employs some of India’s best scientists, cigarette

designers, blenders and flavourists, and has the distinction of getting an ISO 17025

certification. Ours is the first laboratory in the Indian tobacco industry to be accredited with

such a certification. We have also been recognised by the Department of Science &

Technology (the apex body governing affairs related to Science and Technology in India).

Located alongside our production facilities, our R&D division extends its competencies to

combine synergies and create the best blends for domestic and international markets. In

order to bring greater reliability to our analytical results, we also take part in initiatives such

as the Asia Collaborative Study (ACS). Our participation each year, along with 58 other

prominent cigarette companies of the world such as PMI, BAT and JTI, helps cross calibrate

our results with the best in the business. Our Z- scores, which determine the quality of

analytical data, vis-à-vis the best in the world, have proven to be excellent year on year.

Leaf Export DivisionOur Leaf Division is located in the tobacco growing area of Guntur in Southern India. We are

the first leaf operations company to have been accredited with the ISO 9001: 2000

certification. We export FCV as well as Non-FCV tobacco to both, quality and value-conscious

customers. Our Non-FCV farming operations are monitored by the Leaf Development Team.

We have implemented and observed GAP (Good Agricultural Practices) in all developmental

arenas through our leaf developmental team to enhance productivity and improve the

quality of tobacco, while keeping it free of chemicals and pesticides. Our leaf team

comprises of the most experienced professionals in the industry. We are one of the few leaf

operation companies in India to have our own R&D as well as a state-of-the-art QA facility to

support operations.

We have two captive Threshing Plants equipped with the latest technologies to process

tobacco that is meant to cater to domestic as well as export demands. Godfrey Phillips

India’s tobacco reaches some of the biggest manufacturers in the industry today, namely

Philip Morris, ITG, JTI, Eastern Co., European Tobacco, Libyan Tobacco Company and RNTA.

Our major countries of export include Belgium, Egypt, Philippines, South Africa, Germany

and Brazil.

We can also proudly announce that we are the first Indian company to initiate a state-of-the-

art Recon Manufacturing Plant located near Ongole in South India with an annual capacity of

750 Mt of Reconstituted Tobacco, which is then blended while making cigarettes to bestow

them with the requisite characteristics that brings them at par with international brands.

Manufacturing UnitsGodfrey Phillips India is continuously adopting the latest technology to deliver products

which are at par with global standards and international quality in the market. Driven by

innovation and speed to market, our two manufacturing facilities in Ghaziabad, U.P. and

Mumbai, Maharashtra are equipped with state-of-the-art equipment and ensure the

incorporation of best practices such as TQM, Haichi-Ban, 5S, Kaizen Teian and so on. Since

we embarked on integrating Six Sigma initiatives 5 years ago, both our manufacturing units

boast of a deeply enriched Six Sigma culture and continually undertake a significant number

of Six Sigma projects for quantum improvements each year.

Each of our manufacturing facilities at Ghaziabad, U.P., Mumbai, Maharashtra, and Rabale,

Navi Mumbai, Maharashtra are recognized not only for their superior production capabilities,

but also for the adoption of environment friendly processes. Our Ghaziabad and Mumbai

factories are equipped with state-of-the-art, high speed cigarette making and cigarette

packing machines. We house the latest cigarette making machines from GD, Italy that run at

a capacity of 12,000 cigarettes per minute and packing machines that run at 600 packets

per minute. Our primary manufacturing departments that process tobacco in order to supply

to the cigarette making machines are also equipped with high-tech equipment to produce

cut tobacco at par with global standards. All our manufacturing departments are equipped

with Computerised Data Acquisition Systems to closely monitor each stage of production in

order to ensure a consistent smoking experience for our consumers. The two recent

additions to our manufacturing facilities are plants that facilitate the production of Expanded

Tobacco and Reconditioned Tobacco, both of which, when added to cut tobacco further

enhance the smoking experience.

Our manufacturing facilities are supported by state-of-the-art R&D facilities in Mumbai,

which assist with the development and creation of new products as well as improving the

current range of products for the domestic as well as international markets. Our product

range includes 69 mm to 100 mm cigarettes in regular as well as super slim sizes with

customer oriented packaging.

Our facilities comply with international quality standards such as the ISO 9001:2008 and ISO

14000. The high standards of environment-friendly manufacturing processes are brought

about entirely due to the recommendations of our motivated factory personnel.

The ISO 14001:2004 (Environment Management System) certification of Mumbai and

Ghaziabad plants evidences our commitment towards environmental control. Both the

factories have also adopted various environment friendly initiatives like recycling of water,

rain water harvesting, using solar power systems, etc. Both factories are also certified

OHSAS 18001:2007, as our commitment towards Occupational Health and Safety.

Our Ghaziabad plant is the first cigarette manufacturing unit in India to have been

accredited with a Social Accountability (SA) 8000:2001 certification. Our Ghaziabad factory

was awarded the ‘Greentech Foundation Gold Award’ in 2009 and in 2010 for its

Outstanding Achievement in Environment Management. We also received the Eco Friendly

Award in 2009 from the Ghaziabad Management Association for implementing ‘Best

Environment Management Practices’. These awards are the most coveted awards in the

corporate world for outstanding achievements in the field of Environment Management and

we endeavor each year to continue delivering upon their expectations.

Our Mumbai facility boasts of extreme dedication of employees that has led us to establish

an industry record by winning the INSAAN Awards (The Indian National Suggestion Scheme

Association, given for the best suggestions made by a factory worker in the year) for 14

consecutive years. Our Mumbai factory was also awarded the 2010 Greentech Silver award

as a commendation of its efforts in outstanding achievements and excellence in safety

management.

Our latest, upcoming third manufacturing factory in Rabale, Navi Mumbai has been

registered with IGBC for green factory building and it is the first registration after Standard

for Green Factory Building was launched in 2009. The Rabale factory is equipped with high-

speed cigarette making and packing machines along with the latest primary manufacturing

facilities for cut tobacco production. The facility also has a state of the art automatic storage

and retrieval system for all raw materials.

The Rabale factory like our Ghaziabad and Mumbai units, has already adopted the use of

environment friendly measures such as recycling water, rainwater harvesting and using

solar power systems, amongst various other initiatives.

International Trade Enquiries:Godfrey Phillips India Ltd.

International Business Division,

41, Community Centre, Friends Colony,

New Delhi - 110025

Phone : +91 11 268 32155/268 36468

Fax : +91 11 268 40775/268 35803

Email : email-gpi@modi.com