Monday, March 03, 2025 | 09:20 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Philip Morris terms machinery cost charged by India partner as biz expense

Philip Morris has for years paid manufacturing costs to Godfrey Phillips, despite a nine-year-old government ban on foreign direct investment in the industry,

Image via Shutterstock
Premium

<a href="http://www.shutterstock.com/pic-241089592.html" target="_blank">Image</a> via Shutterstock

Reuters
Philip Morris International Inc's Indian partner charges machinery-related costs for manufacturing its Marlboro cigarettes in India, the company said on Wednesday, following a Reuters article that showed it may have circumvented foreign direct investment rules.

Philip Morris has for years paid manufacturing costs to Godfrey Phillips, despite a nine-year-old government ban on foreign direct investment in the industry, Reuters reported last week, based on a review of dozens of internal company documents dated between May 2009 and January 2018.

Philip Morris and Godfrey have said they comply with Indian rules.

India prohibited foreign direct investment in cigarette manufacturing in 2010.

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in