Godfrey Phillips is one of the most popular Indian cigarette. Its stocks recently soared up to 7% after signing a pact with Ferrero India.

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A day after the company announced that it had inked an agreement with Ferrero India Pvt. Ltd for the distribution and resale of certain sweet-packaged food goods supplied by Ferrero through specific channels, Godfrey Phillips India’s shares saw a spike of about 7% on May 3.

As per the terms of the deal, Godfrey Phillips India will purchase goods from Ferrero India Private Limited and resell or distribute them via a few of its network’s chosen channels.

The business notified the stock exchanges that the first deal included the distribution of Ferrero products in the Indian domestic market for a period of two years.

Among the many cigarette brands produced by Godfrey Phillips India are Four Square, Red & White, and many others.

Indian cigarette brand- Godfrey Phillips operations

In India, the company also produces and distributes the well-known international cigarette brand Marlboro thanks to a partnership with Philip Morris.

The sweet-packaged food company Ferrero, a division of the Italy-based Ferrero Group, is well-known for its high-quality chocolates.

Godfrey declared last month that it would close its retail section, 24Seven, because it had incurred losses as of March 31, 2023, leaving it with a negative net value. Renowned for its 24/7 convenience store models, 24Seven operated in Telangana, Punjab, and the National Capital Region (NCR) of India.

Godfrey Phillips shares were up 6.4% at Rs 3,503.50 on the National Stock Exchange (NSE) at 11:51 a.m. The stock has increased by 108 percent in the past year, outpacing the benchmark Nifty 50’s gain of about 25 percent in the same period.

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