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Growth of Tobacco Industry

Discuss Growth of Tobacco Industry within the Management Of Small Scale Industries forums, part of the Resolve Your Query - Get Help and discuss Projects category; Market size and growth The per capita consumption of tobacco in India is 0.7 kg, compared to the world average ...

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Abhijeet S
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Growth of Tobacco Industry - September 20th, 2010

Market size and growth


The per capita consumption of tobacco in India is 0.7 kg, compared to the world average of 1.85 kg. Domestic tobacco consumption has been growing at 2-3% pa.


Out of the 250 million tobacco consumers in India, less than 20% consume it in cigarette form, while over 50% consume it in bidi form and the rest in raw /gutkha forms. Worldwide, cigarettes account for over 80% of tobacco consumption.


Distribution of tobacco users in India
Users (mn) % to Total
Bidis 125 50
Chewing 77 31
Cigarettes 88 19


One of the main reasons for the high usage of bidis is the low price. Excise on bidis is significantly lower than cigarettes. Although bidis pose a greater health hazard, they are taxed at a nominal rate. Bidis are manufactured in the small scale sector and provide employment to a large number of people and therefore enjoys high political support.


The segment which accounts for a major part of tobacco consumption has remained insulated from steep excise hikes. Infact the recent budget hike on the less than 60mm segment, which directly competes with the bidi segment, indicates the strength of the bidi lobby.

Tobacco accounts for 5% of India's agricultural exports.


Market share of major players


Competitor Analysis


Godfrey Phillips India Limited operates in the Cigarettes sector. This analysis compares Godfrey Phillips India Limited with three other tobacco companies in Asia: I.T.C. Limited (2002 sales of 51.91 billion Indian Rupees [US$1.09 billion] of which 155% was Cigarettes), VST Industries Limited (3.34 billion Indian Rupees [US$69.99 million] of which 210% was Cigarettes), and Lakson Tobacco Company Limited which is based in Pakistan (6.89 billion Pakistan Rupees [US$119.20 million] of which 236% was Cigarettes & tobacco
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Re: Growth of Tobacco Industry - November 2nd, 2010

Tobacco is a principal cash crop of National importance. It has been playing a prominent role in the development of Nation's Economy. Although the cultivation of Tobacco is restricted to 0.3% of the total cultivated area, it provides employment to large number of people on the one hand. On the other hand, it makes significant contribution to National Exchequer by way of excise revenue and foreign exchange earnings. Tobacco being a labour intensive crop provides employment to more than 60 lakhs people who are engaged in the farming curing, redrying, packaging, grading, manufacturing distribution, export and retailing activities. The bidi industry which provides employment to around 44.00 lakhs essentially unskilled rural folks mostly women is also arresting the influx of rural labour to urban centres.


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Re: Growth of Tobacco Industry - January 10th, 2016

Quote:
Originally Posted by abhishreshthaa View Post
Market size and growth


The per capita consumption of tobacco in India is 0.7 kg, compared to the world average of 1.85 kg. Domestic tobacco consumption has been growing at 2-3% pa.


Out of the 250 million tobacco consumers in India, less than 20% consume it in cigarette form, while over 50% consume it in bidi form and the rest in raw /gutkha forms. Worldwide, cigarettes account for over 80% of tobacco consumption.


Distribution of tobacco users in India
Users (mn) % to Total
Bidis 125 50
Chewing 77 31
Cigarettes 88 19


One of the main reasons for the high usage of bidis is the low price. Excise on bidis is significantly lower than cigarettes. Although bidis pose a greater health hazard, they are taxed at a nominal rate. Bidis are manufactured in the small scale sector and provide employment to a large number of people and therefore enjoys high political support.


The segment which accounts for a major part of tobacco consumption has remained insulated from steep excise hikes. Infact the recent budget hike on the less than 60mm segment, which directly competes with the bidi segment, indicates the strength of the bidi lobby.

Tobacco accounts for 5% of India's agricultural exports.


Market share of major players


Competitor Analysis


Godfrey Phillips India Limited operates in the Cigarettes sector. This analysis compares Godfrey Phillips India Limited with three other tobacco companies in Asia: I.T.C. Limited (2002 sales of 51.91 billion Indian Rupees [US$1.09 billion] of which 155% was Cigarettes), VST Industries Limited (3.34 billion Indian Rupees [US$69.99 million] of which 210% was Cigarettes), and Lakson Tobacco Company Limited which is based in Pakistan (6.89 billion Pakistan Rupees [US$119.20 million] of which 236% was Cigarettes & tobacco
Hey abhi, nice article on the growth of tobacco industry. I have made a presentation on the tobacco industry and its growth in the global market. I think you should check once for taking more ideas on the subject.
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agricultural exports, bidis are manufactured, cigarettes sector, competitor analysis, consumers in india, consumption of tobacco, domestic tobacco, godfrey phillips, growth, growth of industry, industry, lakson tobacco, major players, mall scale sector, phillips india, political support, project on tobacco, tobacco, tobacco consumption, tobacco industry, usage of bidis, vst industries limited
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