Key Quantitative Figures
Based on latest available audited financials for the year ended 31st March 2025 of Polisetty Somasundaram Tobacco Products (India) Pvt. Ltd., its revenue from operations stood at Rs. 186 lakhs and profit after tax stood at Rs. 164 lakhs.
Dates of Action
The Contract Manufacturing Agreement was signed today at 12.15 P.M. on 27th May 2026. The disclosure was digitally signed by Pumit Kumar Chellaramani on 2026.05.27 at 16:03:08 +05'30'.
Parties Involved
The agreement is between Godfrey Phillips India Limited (Scrip Code: 500163, Symbol: GODFRYPHLP) and Polisetty Somasundaram Tobacco Products (India) Pvt. Ltd. ("Polisetty").
Agreement Details
Area of Agreement: Contract Manufacturing Agreement for manufacturing and delivery of cigarettes and other tobacco products being manufactured and marketed by the Company ("Products").
Scope: Polisetty will manufacture the Products at its manufacturing facility exclusively for the Company in accordance with the specifications/standards to be prescribed by the Company and out of the production materials to be made available by the Company, on a contract manufacturing basis.
Domestic/International: Domestic agreement
Consideration: During the subsistence of the Agreement, the Company shall pay to Polisetty the 'Manufacturing Fee' comprising of fixed and variable components in consideration of the manufacture and delivery of the Products.
Significant Terms: Polisetty shall make its best efforts to set up the manufacturing facility and obtain requisite licenses and approvals to commence the manufacturing operations within a period of 12 (twelve) months. The Company may, at its sole discretion, make available to Polisetty on bailment basis various machines and equipment required for use in the manufacturing of the Products. The initial term of the Agreement is nine (9) years and is subject to customary terms and conditions including warranties and indemnities.
Related Party Transaction: The acquisition does not fall within related party transactions and the promoter/promoter group/group companies have not acquired any stake in the entity being acquired.
Purpose/Rationale
The Agreement will enable the Company to augment production and ensure uninterrupted availability of the Products.