Lalit Modi's - Godfrey Phillips

Godfrey Phillips is one of those rare businesses with strong brands, loyal customers, and significant pricing power. The cigarette industry requires relatively little capital to grow, yet generates substantial cash flow and high returns on capital. Demand tends to be resilient even during economic downturns, and premium brands like Marlboro continue gaining share. Regulatory risk is always present, but purely from a business-quality perspective, it's a very attractive franchise.