Philip Morris International (PMI) is in talks with its Indian partner, Godfrey Philips India (GPI), for a possible splitting of GPI into two entities, with one focusing only on manufacturing and the other overseeing GPI brands, reports The Economic Times.
Another option under consideration is a demerger of GPI into a real estate and a tobacco business, wherein PMI, without investing any new funds in line with current foreign direct investment regulations, will take a higher and potentially controlling stake in the tobacco unit in exchange for a proportionately lower shareholding in the real estate business.