Modi, former executive director at tobacco major Godfrey Phillips India Ltd, part of Modi Enterprises—KK Modi Group, plans to launch home decor stores and expand his direct-selling venture, which he started in 1996. His cosmetics brand Colorbar is also undergoing a revamp.
“I’m not concerned with the (inheritance) fight; that’s in the background. I’ve got businesses to run, people take care of,” Modi, founder and managing director of Modicare Ltd, said in an interview on Friday at the company’s office in New Delhi.
In August last year, Modi was ousted from the tobacco maker’s board over his conduct during board meetings and outside. His mother Bina Modi was reappointed as managing director for five years with effect from 14 November, and his sister Charu Modi joined the board.
The dispute dates back to 2014 when his father KK Modi, mother Bina and the children executed a restated trust deed, consolidating the family’s assets to ensure equal distribution among all branches.
Since KK Modi’s death in 2019, his grandson Ruchir and son Lalit Modi have been embroiled in legal battles over their exclusion from key roles in family companies, including Godfrey Phillips India and Modicare Ltd.
Bina Modi was appointed chairperson of Modi Enterprises–KK Modi Group, in 2019.
“My nephew is contesting it. I have no time for it. I’ve taken somewhat of a backseat from it. But nobody can take my share away from me. I have 25% shareholding in the group. That cannot be taken away and not contested by anybody,” Samir Modi said.
Modi Enterprises has interests in chemicals (Indofil Industries Ltd), tobacco, travel, education and direct selling.
In fiscal 2024, Godfrey Phillips, the group’s listed entity that sells cigarettes under the Marlboro and Benson & Hedges brands, reported a gross sales value of ₹11,271 crore and a net profit of ₹884 crore.
Expansion business
Modi joined the family business at the age of 19, working at the tobacco factory. Lalit Modi, the founder of the Indian Premier League, is his elder brother.
Samir was involved in the group’s expansion in other consumer segments such as retail (24Seven convenience stores) and beauty products (Colorbar Cosmetics).
Last year, Godfrey Phillips closed its 24Seven retail business due to stakeholder feedback, poor long-term performance, challenging market conditions, and accumulated losses. Modi has sought payment of royalties for using the 24Seven trademarks between June 2005 and 31 August 2024, along with damages.
“It was a great business. Family fights end up having business casualties. I believe they have given a management contract to somebody; but the brand name is mine; it is owned by me,” he said. “However, I’m no longer part of the company, so I’m not aware of the strategy.”
Modi is focusing on expanding his businesses, including the recent launch of more premium weight loss and health supplement products through Modiway’s direct-selling network.
Tough market
However, that comes as more consumers shift to buying goods online and through quick commerce. Despite the traditional model’s reliance on network-based sales and Modi claiming a large active membership, the industry faces scrutiny.
Government regulations have been implemented to protect consumers from fraudulent schemes, following enforcement actions against major players.
Modi is, however, unfazed and convinced the industry is here to say, citing job opportunities it provides.
Meanwhile, the beauty market has evolved, too, with direct-to-consumer brands entering the fold and chipping away share from incumbents. That has prompted a revamp of Colorbar.
“We are changing everything—the packaging, social media and positioning it as a more premium brand,” he said.
Modi intends to take the business public within the next three years. Colorbar is cutting costs to achieve profitability milestones. “We are streamlining business and could touch ₹1,000 crore in revenue by next fiscal up from ₹700 crore now,” he said.
Modi is also launching Banaras Bhang, a multi-brand design store, in Delhi-NCR this May, expanding into the lifestyle business.
Meanwhile, shares of Godfrey Phillips India have risen over 30% since Modi’s ouster despite volatility in the broader stock market.
“Why is this happening—I don’t know, but it’s unusual,” he said.
Promoter shareholding in Godfrey Phillips India stands at 72.58%; while foreign institutions hold 10.63%.
Modi wasn’t bogged down by his public ouster last year. “There were different kinds of issues when I was working with my father such as how to be an entrepreneur and how to stay afloat in a large family business,” he said. “The other kind of struggle, which has been in the news recently, is probably far more emotional and personal in nature.”
