1. The document discusses Nirdosh, a herbal smoking device developed by Mr. Bhavsar's company Maans Products in 1982 as a non-tobacco alternative to cigarettes and beedis. 2. It took Mr. Bhavsar several years to develop Nirdosh through experiments with different herb mixtures, rolling and packaging methods. Nirdosh was rolled manually and contained a mixture of 14 ayurvedic herbs. 3. In its early years, Mr. Bhavsar promoted Nirdosh by distributing free samples and obtaining feedback. Sales of Nirdosh fluctuated around Rs. 1.5 lakhs annually through the company's shop in Ahmedabad and retailers in other cities

1. ..
,
.
BHAVSAR'S HERBAL SMOKING DEVICE -NIRDOSH
Mr. Natvarlal Bhavsar, owner of the Maans Products (India), Ahmedabad was
reviewing his six/seven years of experience of developing the product
"NIRDOSH" (a unique non-tobacco smoking device) as well as the marketing
strategy for popularizing "NirdoshJf.
Nridosh a unique non-tobacco smo~ng device wc!s developed in 1982 by
Maans Products, Ahmedabad. This was made from 14 herbs which were turned
into granular form and rolled into tendu leaves in the shape of cigarette. These
were then packed into a cigarette-type cardboard box which was in turn
covered by cellophane wrapping.
The Company: .r
Maans product, Ahmedabad was a family owne"dproprietary organisation. Mr.
Bhavsar, Senior, had been running a biri manufacturing and marketing
enterprise for about two decades. This was a family business he had ~nherited.
The total sales volume of this business was Rs.lO lakh a year. In 1980s his two
sons joined the business after finishing their education, one of which had
passed his B.Com examination before an year. In addition, another youngster,
a distant cousin also worked for the firm. A third son., who appeared for 12th
Board Examination did not perform that well to enter science stream and hence
tleclded to assist in the business along with registering himself into "some
vocational correspondence course in sales and marketing management
Mr. Bhavsar Senior:
He appeared to be in his early fifties. He wore khadi dhoti kurta and a white. .
cap. He was the one who picked up the idea of manufacturing non-tobacco
smoking device and spent most of his time worrying about it leaving the
overseeing traditional business of :Biri manufacturing Jmarketing to the
youngsters. He has been so deeply involved (missionary zeal) with developing
and propagating this new product that he had not been able to think of
anything else for the last couple of year~. Mr. Bhavsar had considerable social
connections in both financial institutions as well with local political leaders.
. This case has been prepared by Prof. M.N. Vora.
,
Case material of the Indian Institute of Management, Ahmedabad is prepared
as a basis for class discussion. Cases are not designed to present illustrations of
either correct or incorrect handling of administrative problems.
Copyright (C) 1990 by the Indian :{nstituteof Management, A'bad.
1

2. Bhavsar the Younesters:
The youngBhavsar brothers respectedfather' s zeal and effort and tried their
level best to be of help. However, at times, they have difference of opinion
with Mr. Bhavsar, the senior about "Nirdosh"business activity.
Assets of the Company:
The major assetsof the companywas the manufacturingand storing premises
for Biri. . Mr. Bhavsar owned "premiseswhere in 30-40 workers were provided
sitting accommodationand other facilities for rolling Biris as well as Nirdosh.
He had a large storage area for the raw material and finished goods. A part of
the area was used for drying of raw material and other such operations.
Nearly all of his operationswere manual and hence no machinery was
involved.Only for developmentof Nirdoshthat attempt was made to develop
manufacturingmachine. However,finally he has machinesand equipment
valued for about Rs. 10000only
The other major asset of the company was the shop in. the Gheekantaroad (in
the heart of the city); Ahmedabad.The shop was about 1O-12.feetwide and
about 24 to 28 feet (deep). Part of back area was converted into a kind to open
cabin with glass partition.
Mr. Bhavsar and his sons ownedtwo scooters(two wheelers) for moving
aroundform factory to shop as well as going aroundthe market. The distance
betweenfactory premises and shop was abouttwo kilometers only.
The shop furniture consisted of usual showcase, see through glass cupboard,
sitting arrangementswith Gaddi and low level wooden bench for customers
and visitors to sit. In the partitionedcabin, there was a chair, a table, wooden
shelveswherein box files, books of accountsetc, were kept. in addition to a
table fan. From his shop not only he sold Biris and Nirdoshbut also loose tea
etc. However,Tea and other products accountedfor very small proportion of
his turnover.
The Product Idea - The Beeinnine:
The owner of Maans Products got interestedin developing an ayurvedic herbal
non-tobaccosmoking .devicein late 1970s,when he was asked by some
Vaidyas to roll Ayurvedicmaterial mix in the form of Beedi for their patients.
He thoughtthat this kind of activitycould be an interestingbusiness
opportunity.He examined well known and respectedbooks by Ayurvedic experts (e.g.,
Charak) and identified specificherbs recommendedfor Dhumpan (1.)* He started
experimentingto prepare a herbal mix to be rolled
2

3. in the Tendu leaf (used for Biri making) and test/smoke it. Fmally he came out
with a good mix of some 14 herbs which was first tried in powder form and
then turned into granular form with the help of some special processes and .
machines and rolled into herbal beedi. Later on he added a filter at the end and
rolled it into Tendu leaf but in the shape of a cigarette. He also realised that the
same mix of herbs could also be presented in other pr~uct forms if necessary.
* (1) Dhumpan was a concept described in the old scriptures. This related to
inhaling of smoke arising out of Yagna Ahutis. It is therefore, a smoke
emanating from valuable herbs. While Dhumrapan refers to inhaling of smoke
of tobacco, smoking of cigarettes or beedis is considered as &CDhumrapan".
Product Development:
Mr. Bhavsar went through identifying aDd resolving several problems for
developing &CNirdosh"into p~rfect product in the last seven/eight ye.ars. The
problems related to raw material (herbs) procurement and converting the raw
material into rollable form. Selection and procurement of Filter, selection and
development of wrapper material in which herbal mix could be rolled (or
filled), development of the cardboard pack, the instruction material insert, the
brand name and so on. Exhibit-I gives a detailed write up on this
developmentaleffort. . - .
Manufacturine and Pack!n2 :
Rolling of Nirdosh is carried out manually. Of course special care is taken. The
workers work under specially created hygienic conditions. Before they start
rolling they were supposed to clean their hands with soap and water and wipe
them with clean towels. Only a selected set of workers were allowed to work
on Nirdosh. Mr. Bhaysar tried to use a mechanical process. He employed an
engineer to develop a special machine with the help of inputs and advice from
technical institutions.. Eight to ten months of effort and expenditure of
Rs.60,00Q was incurred on this experiment in 1982-83 which was finally given
up. Mr. Bhavsar then tried to explore possibility of buying cigarette making
machinery. He enquired throughout the world to locate lowest cost machine.
. Most of the cigarettemakingequipmentwas high speed, high volume and very
high investment affair..Nirdosh business really did not require such high speed
high volume machines. Mr. Bhavsar naturally was not in a position to invest
Rs.70 to 80 lakhs in machines. He came across old unused machines lying with
a cigarette manufacturer in India, who was ready to dispose of it at very low
prices. But he was not ready to promise to put these machines into working
condition before sale and Mr. Bhavsar knew that he cannot arrange to put these
in working order without considerable technical help. Therefore the matter was
kept in abeyance. In early 1990, he has. again given this task to an engineer in
Bombay, who is trying to make an appropriate machine.
-
3
. .

4. Promoting "Nirdosh" in the Initial Years :
Mr. Bhavsar distributed free sample of these smoking devices to friends.
relatives and acquaintances for testing and to get a feedback on its effect in
relieving some ailments. He also supplied free samples to various well known
Vaidyas, Allopathic doctors, Cancer Research Institutes, Medical Officers,
Tata Institute of Fundamental Research, well known personalities like Film
Star Ashok Kumar and some others for their opinions. He also obtained
laboratory test reports on smok~ analysts etc. He received positive feedback
about the beneficial effect of smoking Nirdosh in curing certain ailments like
cold, cough, fever, asthma, tonsillitis, premature. graying- of hair, insomDia,
toothaches, weak gums, bad odour, gastric problems etc. An appropriate pack
insert was prepared (product literature) and Inserted in each pack. Exhibit-2
gives a copy of the pack insert.
Market Opportunity for Nirdosh :
The market opportunity for "Nirdosh" depended upon ..yhat"benefits" it wants
to address itself to. If Mr. Bhavsar wants to target it for the major purpose of
helping smokers of tobacco devices (cigarette and biri) to stop smoking, the
market was very very large. One of his friends in a market research agency
gave Mr. Bhavsar lot of information about cigarette and biri market and
marketing practices of manufacturers in these industries. These are reproduced
in Exhibit-ill Table 1 to 11.
In case he wants to present it as a health remedy, the market opportunity would
be significantly different. Exhibit IV Table 1,2 & 3 give information about this
'opportunity. '
Marketing and promoting Nirdosh :
(A) Sales and D,istribution Arrangements:
Since introduction Nirdosh was being distributed through (1) One main outlet
in Ahmedabad, (2) sent to ordering parties in various towns and cities of India
through VPP, (3) sent to some reseUers in other towns .through VPP. The sales
of Nirdosh have been fluctuating around Rs.1.5 lakhs an year. In 1983 the sales
was Rs.1.2 lakhs and in 1986 it was Rs.1.4 lakhs. A large proportion of sales
was to people who were biri I cigarette smokers and were using Nirdosh to get
rid of their smoking habit. The consumer paid Rs.2.50 for a pack of Nirdosh of
10 sticks. To reseUers the tenns offered in 1984 are reproduced in Exhibit-IV.
Off and an he used to get enquiries from parties in several cities to take
dealership stockistship etc. as well as for obtaining the product. In 1986 Mr.
Bhavsar introduced certain quantity discount scheme to the reseUers e'-g., he
will give 10% packs free' on large orders. If 400 packets are ordered 440
packets are sent charging the same price. " ,
4

5. . In 1989therewere two changesintroduced.One the pack was redesigned and.
the price was revised to Rs. 5.00 per pack of 10 sticks (consumer price).
Second the youngest son, who joined the business part time, was asked to do
door to door selling of Nirdosh to offices. He used to visit various offices in
Ahmedabad explain and deD?-0nstrateNirdosh. He had a folder with all the
certificates from Vaidyas, Doctors, Drug authorities, Cine Star (Ashok Kumar)
and other important personalities to show to the potential customer. He also
requested them to test smoke a Nirdosh stick. In the second month of his
promotional effort he reported Very favourable response of selling on an
average 50 packs a day. -
(B) Publicity:.
Because of his. missionary effort and educatirig important individuals about
benefits of "Nirdosh" Mr. Bhavsar obtained lot of 'free publicity in terms of
newspapers and magazines writing articles and news about this wonderful non-
tobacco smoking, device. He was also asked to write up articles for some
magazines.
Mr. Bhavsar had made it a point to identify and join hands with stop smoking
voluntary organisations (or voluntary health crusaders). He attended the
meetings, discussions and lectures at various places and gave free samples of
Nirdosh as well as explained the health benefits of the product.
Mr. Bhavsar spent at times on press advertising' wherever he happened to
launch the product iri specific .market center (towns). This would have costed
Rs.1ooo to 1500 for a small introductory ad. Over all these years Mr. Bhavsar
spent about Rs.12,OOOon such advertising. The 1986 >advertising rates are
presented in Exhibit-VI .
(C) Sales:
Mr. Bhavsar kept a record of sales through VPP. He had an impression that
part of his sales through VPP was to the same individuals at same addresses
(repeat buying). Even in tenns of his cash sales at tIis shop he thought that
people who had used "Nirdosh" in past were themselves through their friends
making purchases at his shop. At times individuals came searching for his shop
for buying Nirdosh. Upto 1984, he.used to roll Nirdosh in biri form and packed
25 sticks in the conical fonn of a pack (similar to bin pack). From 1984
onwards he discontinued biri form but made the product in cigarette type of
fonn with filter first selling it at Rs.2.50 for the pack of 10 and in 1989 selling
it at Rs.S.OOper pack of 10.
His sales between 1984-85 to 1987-88 ranged between ,1.2 to 1.5 Iakhs of
rupees or about 60000 packs a year or 5000 packs a month. In 1989, however,
he sold about 8000 packs a month or nearly Rs.5 lakh worth of Nirdosh a year.
5

6. Costs. and Financial Resources :
Cost of making NIRDOSH in 1987 is presented in Exhibit -vn
Mr. Bhavsar being a small time operator had not had large amount of internal
resources to invest in "Nirdosh" project He had already spent about Rs.l.50
lakhs on various tasks - developing a machine for rolling and; packing.
granulating machine, promotional expenditure in terms of small adveqisements
etc. in specific markets. giving free samples to various institutions and
individupls attending some seminars on self help in the health field and
distributing Nirdosh prom<?tionalmaterial and sample; expenditure to visit and
participate in antismoking clinical groups and giving free samples and
material, expenditure on various kind of laboratory tests and other tests.
Mr. Bhavsar was, however, quite confident' that many friends. financial
institutions officers and local leaders will help in raising needed [mancial
resources. They all thought it was a great idea and that inoney should be
available for such a product and cause.
Exports Opportunity:
Mr. Bhavsar had been rec~iving enquiries from abroad about supply of
"Nirdosh". He had sent "samples" to U.K. as well as U.S.A. parties. These
parties were attempting to get approval of appropriate authorities in those
countries. Mr. Bhavsar expected large orders from abroad once the formalities
are carried out. ..
,-
6 .

7. BHAVSAR'S HERBAL SMOKING DEVICE - NIRDOSH
Exhibit - 1
PRODUCT DEVELOPMENT EFFORT
(a)Raw material
-. .
Herbs being seasonal crops, availability round the year had to be 'arranged.
Different herbs were grown in several parts of India and hence Mr. Bhavsar
had to develop a system of identifying where bes~raw material was available at
reasonable prices. Humidity, time and seasons had impact on the raw material,
HENCE system had to be developed for ensuring availability of appropriate
quality and quantum of material. Of course, the present requirements were not
very large.
Conversion of herbal material from raw from to rollable form.' This required
drying, shredding, grinding and granulating various material as well as th~
mixing of 14 herbs.
(b)Filter
When the raw material was made into powder form and rolled, the smoker
happened to inhale a little of powder while a puff (material entering the
mouth). Hence Mr. Bhavsar decided to use a filter at one end to stop the
material entering the mouth while taking a puff. But this required change in the
process of rolling. His workers were skilled in terms of rolling biris. Now the
rolling has to be gone in a cylindrical form like cigarette because filter
available were r7icUnlyfor cylindrical form.
(c)Wrapper
The material content was rolled in the tendu leaf used for rolling biri. For
cylindrical form like a cigarette the operation of using tendu leaf was not that
convenient However alternative would be to use 'Paper' as a wrapper like
cigarette, This would become essential if machine wrapping was to be adopted.
The white paper will have two problems one the paper when it bums has
some negative effect on smoker, the second Tor Nirdosh some of the
herbs used had a moisture and colour which will come out on the surface of the
white-paper after som~ time. This will spoil the appearance as well as give the
feeling of staleness. Mr. Bhavsar therefore tried to develop special coloured
medicinal paper which will not have that negative impact. For this he used
hand paper making facilitr available at Gandhi Ashram, Ahmedabad.
(d)Pack
First when Nirdosh was prepared. It was rolled in the bili form. Twenty five
such biris were aver wrapped by ordinary paper in a conical form. However
when sticks were made in cylindrical form, Mr. Bhavsar developed a'
7

8. rectangular pack similar to ones used in the cigarette business. The pack was
then again over wrapped by a cellophane paper similar to the one used an
cigarettes or blades packs. Over a period of six years he changed his pack three
times -significant changes in tenns of increasing the size or changing the color
design on the rectangul:1I"box and the words printed on it Exhibit-I.! gives the
picture of the pack. .
(e}Pack Insert
Mr. Bhavsar decided .to insert in the pack an. instructions leaflet describing the
Nirdosh content, benefits and the method of usage, etc. This was similar to
insert material one would find in pharmaceutical formulation packs. Exhibit-IT
giveslist of instructionson thispack insert. .
(f) Brand Name
After cansidering various options "Nirdosh" was selected as the brand name.
The meaning of "Nirdosh" is "innocent" without blemish".
(g) Print Content on the p~ck-
--
Not only brand name "Nirdosh" was to be printed, he had to decide as to/what
else to be printed. Shpuld he call it biri or cigarette. Biri would be low prestige
kind of word cigarette would convey harmfulness while this smoking device
was to help people stop smoking tobacco cigarettes and biris. Finally the word
used was Bicets. This was coined by taking first two letter from biris and
something from cigarette.
8

9. BHAYSAR'S HERBAL SMOKING DEVICE-NIRDOSH
Exhibit-I.I
,...81
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NiknoSHHERBAL FlLTEA
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BVr'mtUre,ffr;.e
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NIROOSH SMOKING IS
HEALTHY FOR HEALTH
1111111111111111
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t:
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t:
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NIRDOSH
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...
CD if HERBAL FILTER
"'" a- 1111"'."'."""E!. Bfi"rolllff Jfrrr
q;j(;&m1 &!r: I I , I "ii.
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NrRDOSH SMOI(IG IS Eoi
II NIRDOSH SMOY.INGIS
HEALTHYFOR HEAL1H
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HEJl1HY r('p HEAI,.TH":fL- - - - - * * '" -: 11111111

10. BHA VSAR 'S HERBAL SMOKING DEVICE-NIRDOSH
Exhibit :II
MAANS
PRODUCTS
(INDIA)
2 Gheekanta Road.
Ahmedabad.3 80 00 1
Phone. 24733
Phone"'NIRDOSH"
Manufacturer of NIRDOSH
Mumbai Firm
Dear Friend,
We have pleasure to Inform you that we have placed in the market a new packet of
Herbal Filter NIRIDOSHwith tried out Improved formula with better appealing taste.
Thousand of people have used NIRDOSHand have found its beneficial effects on heath.
We hope, you will also get similareffect, on studyingthe results of its use to redress your
certain health problems.We say this confidentiallywith a hope that you will convey your
experienceto your near and familiar persons and thus you will have a satisfaction of doing a
piecefulhumanitarian serviceto your friends and acquaintances.
Our Company has carried out experiments for making NIRDOSH more and more useful
to serve the needs of different kinds of people Modificationshave been made from time to time
and their results have been studied so that present preparationof NIRDOSH-will satisfy
people having different kinds of taste, temperamentand health problems" It was a challenging
task to develop this products. Reportsfrom tobacco smokerssay that it has been found
beneficial in cold, cough,headache, gas trouble and indigestion..
Herbs having medicinalpropertieshave been used preparationof NIRDOSH viz.
Tulsi, Sugandhvala,TarnalPatra (cinamumleaves), YastimadhuHeridra,Kustham,BrihatEla,
Gugal,Almo, Tindu-Ieavesetc.
Ayurved the oriental scienceof health and medicinehas alsorecommended herbal
Smokingas one of the important aspectof daily routine but not of tobacco and intoxicating
Smoking.
In place of tobacco Cigarettes in the market, which are harmful to health. NIRDOSH has
no adverseeffect and keeps body and mind delighted.
We earnestly request you to try this beneficial preparation and be free from harmful
effects of tobacco.
With all the good wishes from:
PRODUCERS OF NIRDOSH HERBAL
FILTIER
10

11. BHAVSAR'S HERBAL SMOKING DEVICE -NIRDOSH
Exhibit - III: Table - 1
(A)
Ciearette and Beedi Consumption for the year 1979-80
Items Cigarettes Beedis
Estimates 1
Beedis
Estimate 2
Note: For Beedis two separate estimates were available.
(B)
Another important source for consumption expenditure is National sample survey - Consumer
Expenditure Study rounds. One of the item of expenditures listed in the family expenditure table
rotates to PAAN, TABACCO, INTOXICANTS etc. According to NSS the private annual
consumption expenditure was follows (estimated at current prices)
Year Expenditure in Rs. Crores
1970-71 1379
1979-80 2934
1980-81 3385
1981-82 3675
Source: Business India, Sept.29- October 12,1980, p.35
11
I) Annual Tobacco consumed 85mn.kg I25mn.kg 153mn.kg
2) Estimate of Smokers 25mn. 125mn. 125mn.
3) Annual Tobacco Consumed 3.4 Kg 1 Kg 1.23kg
Per smoker
4) Average Tobacco content 1.06 gm 0.184 gm 0.277 gm
Per stick
5) Average sticks smoked 3200 5424 5424
Per year
6) Average sticks smoked8.76 14.86 15.00
Per day

12. Bhavsar's Herbal Smokine: Device- Nirdosh
Exhibit- III : Table - 2
Production of Cie:arettesin India
Year No. of Cigarettes
(in Cr pieces)
% Share of filter tippod
1980
1981
1982
1983
1984
1985(P)
7955.8
8683.8
9385.7
8044.5
8502.8
9000.0
26
30
29
42
46
46
Note (p). Provisional.
Source: economic Times, November 27, 1986.
Exhibit- III : Table - 3
Market Share Of Important Cie:arette Manufacturers 0986-87)
Source Business world -July 20-August 2, 1987,
Volume p.34.
CMIE March 1996 - Market & Market Shares.
12
1984
Company Sales %Share Market Share in 86
ITC (India Tobacco) 622 57 46%
VST (Vazir Sulton) 149 13 17%
GTC (Colden Tobacco) 153 14 21%
Godfroy PhilIps 130 12 11%
National Tobacco Co. 45 4 3%
Others - - 2%

13. Source: Business World; July 20-August 2, 1987, Volume p.34
13
BHAVSAR'S HERBAL SMOKING DEVICE - NIRDOSH
Exhibit - III : Table- 4
Leadine Brands of Ciearettes in 1986
SNO. Brand Company Market Share
1) Scissors ITC 15
2) Panama GTC 11
3) Gold Flake ITC 10
4) Charminer VST 8
5) Wills ITC 6
6) Barkeley ITC 6
7) Charms VST 5
8) Capstan ITC 4
9) Cavanders GP 3
10) Red & White GP 3

14. BHA VSAR'S HERBAL SMOKING DEVICE- NIRDOSH
EXHIBIT - III Table -5
Consumer Prices of various brands of ciearettes in 1986
Source: ITC Branch at Ahemdabad
14
Brand Name (All ITC Brands) Suggested Retail Price Cost per Stick to
to consumer for a pack Consumer
of 10
1 Honey Dew 1.70 0.17
2 Now 1.70 0.17
3 Barkley Filter 1.70 0.17
4 Strido 2.90 0.29
5 Bristol Filters (Regular) 3.00 0.30
6 Bristol Filters (king) 3.00 0.30
7 Wills Flake (king) 3.00 0.30
8 Wills Flake (Regular) 3.00 0.30
9 Capston Kings 3.00 0.30
10 Gold Flake (Regular) 3.50 0.35
11 Wills King 5.15 0.52
12 Wills Filter (Tipped) 5.10 0.51
13 Wills lights 5.25 0.53
14 Gold Flake (King) 5.50 0.55
15 Classic International (pkt.of 20) 15.00 0.75
16 India Kings (pkt. of 20) 20.00 1.00

15. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
EXHIBIT - In Table-6
Chane:esin monthly sales of cie:arettesin various price catee:ories
*There was an important change in excise duty structure which probably resulted in to the above
kind of shift
Source: India Today, February 15,1986, p.130
15
.........--..""...........--- ---......-...
A. Filters Before Now (Feb'86) % Change
Seot' 85
King size Premium Filter 543 450 -17
Price before sept'85 40-50
paisa
Price Now: 60 paisa
King size Popular Filter 975 1170 +20
Price before sept' 85 25-30
paIsa
Price Now: 25-35 paisa
Reguler Premium Filter 970 715 -26
Price before sept' 85 25-30
paisa
Price Now: 35 paisa
Popular Regular Filter 1109 1265 +14
Price before sept' 85 15-20
paIsa
Price Now: 20 paisa
B All Non Filter 4555 3500 -23

16. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-IIITable - 7
Demoeraphic Profile of Smokers of Various Brands in Earlv 1970s
The Prices of the brands were these prevailing in 1906. While the profile of smokers was
prepared from brand-smokers study conducted in early 1970s.
** This percentage is calculated out of total smokers of that brand. For example for Bristol
66% of smokers were of the age below 35. It means Bristol smokers are comparatively
young than smokers of other brands. Similarly Gold Flakes smokers are probably older
people as on 27% of smokers are below the age of 35.
16
Brands Price* Ago (Years Percentage Education Occupation (Percental!e) Monthly Income
Pkt of Avg Modian Smokers aged Percentage (Ave.) Modian
10 Up to 35 Metric & Manual Small White Others Rs. Rs.
years** Above Traders Collar
1. Honey 1.65 40 40 39 21 61 10 21 5 100 257 222
Dew
2. Berkeley 1.75 33 37 47 38 38 18 39 6 100 340 265
3. Charminar 2.00 37 36 49 32 48 16 27 9 100 257 208
4. Panama 2.00 36 36 53 53 33 16 44 6 100 374 280
5. Wills 3.25 37 36 51 83 4 16 73 7 100 603 465
Flake
6. Capstan 3.50 42 42 33 66 15 18 59 8 100 512 371
7. Gold 3.50 40 39 43 17 53 14 28 4 100 209 190
Flake
8. Cavendors 3.50 36 35 53 26 50 21 24 5 100 272 233
(Mag)
9. Bristol 3.50 32 31 66 69 26 12 50 11 100 376 290
Filter
10. Wills 5.50 34 32 63 80 10 10 62 11 100 930 745
Filter
Tipped
11. Four 5.60 36 34 53 69 21 12 57 9 100 491 302
square
King
12. Gold 6.50 40 41 27 91 2 13 00 5 100 1040 1040
Flake
((Kind)
13. India 20.00 40 39 40 90 - 6 02 12 100 1572 1614
Kings
(Pkt of
20)

17. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-III Table - B
Media Habits of smokers of specific brands in earlv 1970s
(In percentage)
Source: An early I980s Study
17
Brand News Paper Magazine Cinema
Reading Reading Going
1. India Kings 99 73 67
2. Gold Rake (King) 90 70 60
3. Wills Filter 95 66 69
4. Bristol Filter 05 47 71
5. Panama 00 39 50
6. Cavenders (Mag) 66 17 40
7. Charminar 67 27 51
8. Honey Dew 63 13 39
9. Barkeley 81 44 61
10. Wills Rake 93 64 73
11. Capstan 87 42 51
12. Gold Rake Regular 42 7 20
13.Four Square Kings 07 45 50

18. BHA VSAR'S HERBAL SMOKING DEVICE- NIRDOSH
EXHIBIT - III Table -9
Images and attributes of cigarette brands examined in early 1970s study
Source: Earlv 1970s study of cigarette smokers.
18
A. List of image dimension B. List of attributes on which cigarette
were rated
1 Rather Mild Strength
2 Pleasant Flavor Flavor
3 Tasted Nice Taste
4 Smooth Filling
5 Satisfying Satisfaction
6 Easy Draw Draw
7 Firmly Filled Smoothness
8 Attractive Pack Pack design
9 Reasonably Priced Price
10 For heavy smokers
11 For modem People
12 Likely to be more popular

19. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
EXHmIT- III Table-10
Channels of distribution used bv ciearette companies
Channel of Distribution- ITC/VST/GP
Company
I- Super Wholesale DealerlDistributor
Wholesaler
Secondary wholesaler
l
Retailers
Mobile Sales Van Dealer
Retailers
*GTC/NTC have an additional link between the wholesale dealers. He is the super wholesale dealer.
Notes:
l. According to census of establishment 1971, there were 23 lakes retailers (5 lakh urban+ 15
lakh rural) involve in retail trade in food and food articles, beverages, tobacco, intoxicants.
2. According to ORG census of outlet 1969, there were about 240000 pan-bidi shops, 40% of
which were in towns about 20000 population and 60% were in villages.
3. According to Business India (January 20-February 1985) report on "Charms" VST had a sot
of 500 wholesale dealers through which its product were distributed.
4. According to universal cigarette case written in 1967,a large city (60 sq. miles) was
purchasing about 10m. cigarettes a month. In that city the distributor sold cigarettes to some
160 wholesalers who in turn sold to some 9000 retailers.
5. According to Business India, Jan. 16- 31, 1982 ITC was dealing with 41000 wholesalers.
6. According to 1987 lIMA students' SDM Reports, GP was selling to 150 semi wholesalers
whichreach4700pan-bidishops,via semiwholesalersas wellas 20 SM In Ahemdabadthe
consumers reached were 45 lakhs.
19

20. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-IIITable-11
Advertisine bv Ciearette Manufactures
1. Annual Advertising expenditures of two well know cigarette companies was as follows
a) ITC
b) VST
Rs. 4 crores for 1985-86 in 86-87 Rs.5.85 cr.
Rs. 1.16 crores for 1984 in 86-87 Rs. 3.99 cr.
2. Advertising expenditure experience on introducing a new brand was available about
"CHARMS" of VST. In the first year of launching Rs. 25 lakhs were spent on advertising
Charms. The campaign made much heavier use of color inserts in newspapers, as well as
considerable emphasis on outdoor display in hoardings or at the point of sale. Life style
advertising was used bringing in so called "damix cultures" probably as a symbol of
youthfulness and liberation. Charms proved a successful brand whose sales moved from 50
million a month in mid- 1983 to 300 million a month by end of 1984.
3. VST has always prided itself on being in the forefront of sponsoring of sports and the
performing art events. It spent a significant proportion of its budget on such activities.
4. The government has put a ban on advertising of Cigarettes on the TV. Also the industry has
decided not to advertise on the radio.
20

21. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-III Table-l
Medical Doctors. Hospitals and Dispensaries
· Total number of Ayurvedic hospitals and dispensaries (not included in these figures), were
329 and 12288 respective as on December 31,1983.
** In addition to these doctors, on 1stJanuary 1983, there were several categories of doctors
registered under Indian system of medicines. There were 2.321akh ayurvedic doctors, 1.16
lakh homeopaths, 0.28 lakh Unani, 11,500 siddha and 106 naturopathy doctors.
Source: 1 CMIE, August 1987. Basic statistics relating to the Indian Economy.
2 Health Statistics of Gujarat, 1987.
21
Year Allopathic System of Medicine
Lakhs Registered Doctors Hospitals Dispensaries
Per Lakh of Popn.
1950 0.59 16.5 2717 6891
1970 1.39 25.8 4239 10508
1975 1.98 33.0 4023 11295
1980 2.63 38.2 6670 15968
1981 2.69 39.3 6804 16751
1982 2.72 39.6 6897 17409
1983 2.84** 41.5 7189* 21777*
1984 2.97 43.4 7369 21872
1985 - - 7297 25808

22. BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-III Table - 2
Market Potential for Pharmaceuticals & Avurvedic Products
1. Proiected Demand of allopathic Bulk Drul!s & Formulations in India
(Rs.crores)
Year Bulk Drul!s Formulations
1984-85
1989-90
665
1033
2450
4800
Source: IDMA Bulletin (Pharmaceutical Industry in India- Index 8, Gujarat).
2. The case Associated Chemicals written around 1979-80 estimated total cough
syrup market to be of the order of Rs. 12crores, and Balm market of the order of
Rs. 13 crores.
3. RIll.:s annual report, gives date about lozenges production of the value of
Rs.5Y2crores in 1984. Therefore, the cough drop market might be of the order of
Rs. 10 to 12 crores. It also reports that ointments and creams RIlL had produced
were of the value of Rs. 15 crores in 1984. The balm market therefore might
have grown to the size ofRs. 18 to 20 crores.
4. Reckitt & Colman annual report indicates the production of analgesic tablets of
the value of Rs. 2.6 crores in 1983. Probably Analgesic tablet market therefore
might be of the order of Rs. 10 crores.
5. One hears interesting stories of Dabur, Vaidyanath and other leading ayurvedic
products' manufactures. Dabur is considered a very large firm with turnover of
more than 50 crores.Even Zandu a comparatively small firm had a sales volume
of about 7 crores in 1984. In other words the market for ayurvedic products
could be that of more than Rs. 100 crores.
Note: Nirdosh had beneficial effect on persons suffering from the following
ailments: Cold, Cough, Fever, Asthma, Tonsillitis, Premature Graying of hair,
Insomnia, Toothaches, Weak Gums, bad odour, Gastric problems etc.
22

23. ..
BHAVSAR'S HERBAL SMOKING DEVICE- NIRDOSH
Exhibit-III Table - 3
lllustrative Examples of Products for two of the ailments
I. Anti Asthmatic Drue:s:
II. Coue:h Medicines:
Source: Indian Pharmaceutical guide, 1985
23
Medicine Form Qty Price to Retail Manufacturer
Retailer Price
1. Asthaline Liauid 100 ml 6.69 7.50 Cipla Labs
2. Asthalite Tablet 10 Tabs 3.24 3.79 Litake Labs
3. Asthanol Tablet 10 Tabs 2.55 3.00 Lincoln Pharma
4. Asthma -
50gm 5.45 6.52 Zandu
Reliever
Medicine Form Qty Price to Retail Manufacturer
Retailer Price
I.Couh Lozenes Tablets IOxiO 8.00 10.56 Briht Pharma
2.Cough Nashak Liquid IOOml 3.60 4.50 Dharmani
Dawakhana
3.Cough Mixture Liquid 450 ml 18.54 20.26 Sponcor
Pharma
4.Vicks Cough Liquid 90ml 3.82 4.18 Richardon
Mixture Hindustan
5.Cough Lozenges Lozenges 4 Lozs. 1.54 1.84 -Do-

24. BHAVSAR'S HERBAL SMOKING DEVICE- NIRODSH
Exhibit- V
TERMS AND CONDITIONS
Gram: NORDOSH Tele: 24733
MAANS PRODUCTS (INDIA)
244,Gheekanta Roads, Ahemdabad-380001
Price-List of Nirdosh Herbal Filter Beedi
Effective from 1stDecember 1984
Sr no. Packine Details
1. 10 Pes. Inone packet
2 10 Packets in one Plastic Pack
3. 20 Plastics Packs in One Carton
4. 40 Plastics Packs in One Carton
5. 80 Plastics Packs in One Carton
The suggested consumer price per pack is 2.50
Rate Unit
2.00 Packet
20.00 10 Packets
400.00 Carton
800.00 Carton
1600.00 Carton
TERMS
I. Availability
2. Delivery
3.Sales-Tax
4.Payment
:From your ready stock.
: By VPP at our cost, if minimum order is for 60 packets or more.
: Rates includes all taxes.
: Cash/Draft against delivery.
NOTES
1. Against minimum order of 200 packets i.e. our smallest carton (at a time), above-mentioned
rate is applicable.
2. Rs.2.15 per packet will be charged, if minimum order is for 50 packets or more, but less
than 200 packets
3. Minimum 10packets will be sent by VPP.
4. NIRDOSH is free from Tobacco and Nicotine and this antibeedi is made of the variety of
herbs in accordance with Ayurvedic prescriptions to tone-up throat, lungs and nerves and
fumes of these herbs cures bronchitis, cold headache and insomnia.
24

25. BHA VSAR'S HERBAL SMOKING DEVICE- NIRODSH
Exhibit-VI
Current Advertisine Rates (1986)
I.Newspaper Advertisine: Daily-
a) Times of India, Bombay, whose circulation was about 2.89 lakhs was charging Rs 105 per
column Centimeter. This probably would work out to be about Rs.12000 for a quarter page
insertion (total printable area is 456 col.cms) A fill page would cost Rs48000/-
b) Gujarat Samachar from Ahmedabad whose circulation was 2.97 lakhs was charging Rs 100
per col.cm.The quarter page therefore would cost Rs 10800/-
c) Janwani a Kannada newspapers with circulation 21000 was charging Rs.14 per col.cm.A
quarter page would cost RsI428/-
d) Two other southern vernuacular papers were having Rs.28 and Rs.29 per col.cm.However,
Matrubhumi a Malayalam paper with 4.5-lakh circulations was charging Rs.I 05 per col.cm
Bengali Anand Bazar Patrika with 4.1-lakh circulations was charging Rs.125 per col.cm.
Hindi Navbharat Times was Rs.80 per col.cm.
2.Maeazine:
a) A full-page black and white ed.in "Illustrated Weekly" (English) would cost Rs 10500.
(circulation 1.14Iakhs), "Chitralakha", a Gujarati weekly having 2.5 lakh circulation cost Rs
10000 for a full page Ad .The full page rates for "Dharmyug"(circulation 1.41 Lakhs) was
9800/-, "Malayala Manorama"(circulaton 5.55 lakhs), Rs 10000, Sports week (circulation
0.44 lakhs), Rs 3500/-
b) In fortnightly "India Today"(3.16Iakh circulation) full page ad. Would cost Rs 21000, while
business India (0.61 lakh circulation) Rs 11000, Femina (0.65 lakh circulation) cost
Rs.6500/-
c) Monthly Stardust (1.45 lakh circulation) full-page ad. cost Rs 15000.
3.Radio Advertisine:
A 7 seconds spot announcement cost ranged from Rs.30 to Rs. 80 per insertion in various categories of
city stations. 15 seconds spot announcement cost double that of 7 seconds and a 30 seconds spot
announcement cost 4 times that of 7 seconds spot.
For a lower category of these slots, the cost was nearly 2/3 to % of the above rates. While for a
superior category the cost increased by 15 to 25%.
* Source- Year Book-I956, Publication
25

26. 4.Doordarshan:
The standard spot is a 10 second.one. There are four classifications in terms of time slots. In the
national network the IO-second spot would cost Rs 15000 to Rs 45000 depending upon one of
the four classifications. Cheapest is Srinagar, Gauhati which ranges in cost from Rs 1000 to Rs
2500. Nagpur, Jalandhar and RT costs nearly double that of Srinagar and Gauhati. Delhi and RT
ranged from Rs 5000 to Rs .25000, Bombay and RT ranged from Rs 4000 to Rs 15000 while
Calcutta, Madras, Bangaloru, Trivandrum, Hyderabad, Ahmdabad, Lucknow and RT ranged
from Rs 2000 to Rs 6000/ -
5.0utdoor Advertisine:
a}Hoardines: Monthlv Rental
For a standard hoarding of 20'x 10' rental rate per month was Rs 2000 for Madras Rs.
2500 for Calcutta, Rs 3000 for Bombay Rs. 6000 for Delhi. For Smaller cities with population
between 1 to 5 lakhs the rate was Rs 350 per month while for 5-10 lakhs city it was Rs 600 per
month.
b)Bus Panels: Monthly Rentals Back Panels
The monthly rental for a 36" x 38"back panel for a Bombay Bus was Rs. 225, while
for Ahmedabad bus panel of 72" x 36" it was Rs 415. For Pune for 60"x 36"the rate was
Rs.65 while for Calcutta for 72" x 30" rate was Rs.150/- Delhi Bus 66" x 34"the rate was Rs
350/-.
Monthly rental for side panels were Rs 400 for 240' x 27' Bombay Bus Pane: Rs 80
for 216" x 24" Ahemdabad bus panel; for Calcuttta 120"x 24" Rs. 200; Delhi 120"x 24"
Rs.150 Pune bus 192"x 24" was Rs.80/-.
26

27. BHAVSAR'S HERBAL SMOKING DEVICE- NIRODSH
Exhibit.VI
The Cost Structure for Nirdosh*
l.Raw Material:
a) Herbs for 1000 Cigarettes cost Rs 150.00.Herbs for I packet (10 Cigarettes) Rs 1.50
b) I packet ** =RsO.25
c) Packaging paper @ Rs 120 per ream
One Ream= 144 sheet (20" x 30")
One sheet =20 packets
Packaging paper per packet= Rs.0.04
Total Raw Material Cost per Packet =Rs1.79
2. Labor:
a) Rate for rolling 100 cigarettes= Rs 3.50
Cost of rolling one packet (10 Cigarettes)=Rs.035
b) Raw material preparation and packaging =Rs 0.10
Total Labor cost per packet= Rs0.45.
TOTAL MANUFACTURING COST=Rs.2.24//packet
* The estimates presented here were based on the best judgment of owner of Maans Products.
** The box used for packing the cigarettes.
27