The KK Modi Group has decided to acquire 10.83% stake in Godfrey Phillips India (GPI) from joint venture partner Philip Morris.

The deal is estimated to be in Rs 100-125 crore range.

Post acquisition, the deal will bring down US-based tobacco giant Philip Morris' stake in the joint venture to around 25%, while making the Indian business group the single-largest shareholder in the listed firm with 47% stake.

GPI sells cigarette brands such as Four Square, Jaisalmer and Red & White.

According to an official, who was aware of the development said, the two partners are planning a separate company to market Philip Morris's iconic cigarette brand Marlboro in India in which the foreign company will hold a majority stake.

It should be noted that the two companies had clashed in 2003 after Philip Morris bypassed its Indian partner and struck an agreement with Barakat Foods & Tobacco for the distribution of Marlboro cigarettes in India. The joint venture was set up by Philip Morris and the KK Modi Group in 1979.

Philip Morris International has global brands such as L&M, Parliament, Chesterfield, Bond Street, Philip Morris, Lark, Virginia Slims and Marlboro, none of which are marketed by GPI in India.