This document provides information about the cigarette industry in India. It discusses that India is the second largest producer and exporter of tobacco in the world. The industry is highly labor intensive and provides livelihood to millions of people. ITC Limited is the dominant player in the market, controlling over 70% share. Other major players include Godfrey Phillips and VST Industries. The industry has significant growth potential as cigarette consumption in India is much lower than the global average.
4. It is highly labor intensive & provides livelihood to about 5 million people directly and indirectly.
5. Cigarette is an item falling under the First Schedule to the Industries (Development & Regulation) Act, 1951 and requires an industrial license.
6. India is the second largest producer of tobacco in the world.
7. It exports a good amount of cigarette in various countries, which generates a handsome amount of revenue for the company.Cigarette exports during 2007-08 increased by 11 % in volume terms over the exports of previous year.
8. Major markets for cigarettes are UAE and USA, Romania, Saudi Arabia and Iraq where the demand for generic low cost cigarettes is growing.THE INDUSTRY IN SPECIFIC
24. It is one of the eight Indian companies to feature in Forbes A-list in 2004.
25. It has more then 21,000 employees at more then 60 location across India with 4,86,000 shareholders.
26. Ranks No. 4 among Indian listed Private Sector Companies bymarket cap. (@ April 09)
27. Rated as- one of Indias Most Respected Companies(IMRB-Business world Survey 2006)ITCHISTORY OF THE COMPANYOn 24th Aug. 1910 the company was incorporated as a private company under the name, Imperial Tobacco Co. of India ltd.
28. On 27th Oct. 1954 the company was converted into a public limited company.
29. The name of the company was changed from the ImperialTobacco co. of India ltd., to India Tobacco co. ltd. In May 1970.
30. On Oct. 1972 company entered into Hotel business.
31. On 2000 company has launched a project e- choupal in Bhopal to Web-enable farmers to make a beginning in Agriculture e-trade.
32. During the same year ITC has launched Wills sport, a full range of internationally styled premium wear for Men & Women.Vision and MissionVisionSustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.MissionTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
33. They have a DIFFERANTIAL MARKETING STRATEGY type.
45. Extensive FMCG distribution network. Direct servicing of 1,00,000 markets & nearly 2 million Retail outlets.Exciting long term growth potential.
46. World-class state-of-the-art technology and products.Investment - Rs.10 billion in six yearsAbout 71% of the Total Turnover depends upon this Business.CIGARETTE PRODUCTS Super Premium Products
47. InsigniaITC Insignia. 97 mm.Cost: Rs 130 for 20 Where quality touches infinity, redefine perfection Advertised in Higher SES area555ITC 555 premium filter: regular 84 mm.Cost: Rs 100 for 20Advertised in Higher SES
48. India KingITC India King. 84 mm.Cost: Rs 100 for 20Rule your WorldAdvertised in Higher SES areaWills Silk Cut(king size) ITC Wills Silk Cut Filter: 84 mm. Cost: Rs 88 for 20 A blend so right a filter so fine Advertised in Higher SES
50. Wills Classic/Mild/Regular/Menthol / Ultra MildITC Wills Classic/Mild Filter: King 84 mm. Cost: Rs 94 for 20 Discover a passion Advertised in Higher SESWills Navy Cut(Filter Tipped)ITC Wills Navy Cut Filter: ,74 mm. Cost: Rs 68 for 20 Made for each other Advertised in Higher SES
51. Wills Navy Cut(Duotec)ITC Wills Navy Cut Filter: ,84 mm. Cost Rs 80 for 20Advertised in Higher SESNavy Cut(Regular Size)ITC Wills Navy Cut Filter: ,69 mm.Cost Rs 48 for 20 Advertised in Higher and Lower SES.
52. Gold Flake(Premium) ITC Gold Flake Premium: Regular 69 mm. Cost: Rs 58 for 20 Its Honeydew Smooth, Smooth, exquisite, timeless. But then, all art is Advertised in Higher and lower SESGold Flake King/Lights/Ultra Light Filter ITC Gold Flake King/Light: Regular 84 mm.Cost: Rs 88 for 20Now in a Bevelled Edge pack Advertised in Higher and lower SES
69. Advertised in Higher and Lower SESSWOT Analysis StrengthBiggest and the largest player in the Indian tobacco market with a market share of 80%.Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.WeaknessIt still has to consolidate its foot in the cigar market largely dominated by Godfrey Philips.
70. SWOT Analysis OpportunitiesITC is moving into new and emerging markets like developing countries of Eastern Europe, Africa etc.ThreatsThe obvious threat is from competition, both domestic and international.Health hazardIncreasing tax in Cigarettes
80. Has two major stakeholders, one of India's leading industrial houses - the K. K. Modi Group and one of the world's largest tobacco companies, Philip Morris.Godfrey Phillips India ltd.
81. GPIHISTORY OF THE COMPANYIncorporated in India in 1936, the Company established its own manufacturing facilities in 1944On 1946 GODFREY PHILLIPS became a Public Ltd. Co. with its manufacturing operations in Mumbai Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets
82. Vision and Mission VisionTo become a leading tobacco player in India and beyond.Missionempowers all its people to think and act radically, stretch relentlessly and generate path breaking ideas and strategies to propel the Company. This helps to create and build powerful brands with unmatched service and world class processes.
83. MAJOR Brands Four Square FilterGPI Four Square Filter: Regular.69 mm Cost: Rs 48 for 20 Man with the smooth edge Advertised in Higher and Lower SESStellarGPI Stellar Slims Cost: Rs76 for 20 Low nicotine, High Satisfaction Advertised in Higher SES area
89. Indias 1st Euro Norm 10-1-10 cigarette holds the promise of an advanced cigarette quality and immense style.Advertised in Higher and Lower SESjaisalmer
103. Advertised in Higher and Lower SESSWOT AnalysisStrengthThe second biggest tobacco company in IndiaThe first and only tobacco company to organize the fragmented cigar market in India and secure its position as the market leader in the cigar distribution.Partnering with some of the top most players in the international tobacco industry. Weaknesslow popularity of most of its products No sole authority
104. SWOT AnalysisOpportunitiesAlready present in the Middle East, West Africa, South East Africa and South East Asia, GPI can strengthen its position as an international player by entering new markets.Even expanding market share in the Indian tobacco market is an opportunityThreatsITC getting into the cigar marketIt has a mere 12% in market share
106. Buyers bargaining powers:Oligopoly market situation. Suppliers bargaining power:Fragmentation, consolidation & integration.Low switching costs Threat of substitutes:Depends on buyer to buyer. Some are Brand Loyalists. Competitive rivalry:New innovative products by rivals.Porters Five Forces analysis
110. GTC is the first wholly owned company specializes in manufacturing & exporting an exclusive range of Cigarettes, Flavor Cigar & Non Tobacco smoking product.
111. GTC has manpower strength of 2000 employees spread across manufacturing.
112. The Company has two major production facilities in Mumbai as well as Baroda.Vision and MissionVision
113. To be a largest, Human sensitive , Global Tobacco Company.
115. Constant R & D to develop the finest blends guided by relentless focus to deliver world class packaging, with the aim to exceed expectations of our consumers both in India and around the globe . All of our long-term strategies & short-term will be bound by the finest standards of professionalism and dedication.MARKETING STRATEGYWe work with commitment , dedication & Integrity towards a common goal.
117. We believe that learning is a life long process & provide an environment attuned to growth.
118. We are a balance of the boldness, energy and courage of youth, sharpened by the experience, foresightedness and wisdom of veterans.Major brandsPANAMA
153. To cater to the changing youth of the country, The name STYLE says it all.A distinctive blend , which was very well accepted by the Indian Youth. steel(Regular & king size)
157. Premium quality Virginia blend producing rich & pleasant characteristics.June Slim has been designed meticulously to suit the life styles of those who like to carry themselves.
164. The third largest player of Cigarette industry in India.
165. In 1984 the name of the Company was changed from The Vazir Sultan Tobacco Co. Ltd. to VST Industries Ltd.
166. The Company embarked upon a major modernization program designed to improve its competitive ability in domestic and international markets.
167. The company recorded revenues of INR3,401.7 million (approximately $84.5 million) in the fiscal year ended March 2008.
168. The Company manufactures and distributes Cigarettes The products are sold under the trade names `Charminar Specials', `Shah-I-Deccan', `Qila', `High Court', `Vazir' and `Ambassador'.chArms