'I have 25 years ahead, she’s 80': Samir Modi's inheritance battle with mother Bina escalates

Samir Modi has raised fresh concerns over his mother Bina Modi’s leadership at Godfrey Phillips India, claiming the business is at risk under her. 

Modi hopes shareholders will vote with the company's future in mind at the upcoming Annual General Meeting (AGM), scheduled for September 6.

“I’m still the executive director. The shareholders will decide whether to remove me. Glass Lewis says there isn’t enough information on why they want me out,” Samir told BT TV, emphasizing the uncertainty surrounding his possible ouster.

Glass Lewis, a prominent US proxy advisory firm, had advised shareholders to vote against Bina Modi’s reappointment as chairperson and managing director. The firm also urged shareholders to reject the proposal to remove Samir Modi from the board. 

Bina’s reappointment will require the approval of 75% of the shareholders, a threshold she must meet due to her age. If reappointed, she is entitled to receive 5% of the company’s net profits as commission for each financial year. 

"She’s (Bina) 80 years old, not 25. I’m turning 55 and still have 25 years ahead of me. I’ve had more training, worked closely with my father, and have experience in building brands. For over 30 years, I’ve added value to the company—so how is it that suddenly, my contribution is in question?"

Samir’s criticisms of his mother stem from what he sees as a gradual decline in company performance. He supported her appointment following his father's death in 2019, believing it was in the family's and shareholders' best interest. However, Samir now argues that under her leadership, dividend payouts have fallen to some of the lowest in the industry, with Godfrey Phillips distributing just 33%, compared to ITC’s 84%, VST’s 77%, and Philip Morris International’s 103%. He also noted the company's declining market share, which dropped from 10.9% to 9.2%.

In an ongoing legal battle, Samir has pleaded for individual voting rights for family members, given the lack of unanimity within the family trust. Samir and his brother Lalit, who share similar views, hold approximately 12% each, while Bina and her daughter Charu hold an equal share and support Bina’s leadership.

Samir expressed his concern over the unresolved conflict, revealing that he has made numerous attempts to resolve the issue, including standing outside his mother's house and office for hours, seeking answers to the reasons behind their dispute. He emphasized that his goal is to end the conflict and focus on building the business, not destroying it.

Samir mentioned that his late father, KK Modi, had envisioned a future where the family would work together to preserve the legacy and continuity of the business. He shared that his father's wish was for his mother and sister to run chemicals business while he and his brother managed Godfrey Phillips India (GPI). Samir urged for a division of responsibilities that would protect the family legacy, ensure succession, and maintain continuity.