3. CIGARETTE INDUSTRY
Tobacco is an agricultural commodity product.
Cigarettes constitute the principal form of tobacco usage in the world
and account for 85% of global tobacco consumption by volume and
93% by value.
The Food and Agricultural Organization (FAO) has forecast an annual
growth rate in global tobacco production and consumption at around
1.9%
The world market for tobacco products grew by 32% over the last
five years.
4. CIGARETTE INDUSTRY IN INDIA
India is the third-largest tobacco producer in the
world, with annual production of about 800 million
kg’s.
The Biggest player in cigarette industry is ITC with
market share of 72%
Has many small Beedi players who do not follow
sustainable practices.
5. SIZE OF THE INDUSTRY
India is exporting tobacco to over 100 nations
Cigarette industry is providing livelihood to 25
million people in the country
India is one of the major producer in the world and
it is 4th largest consumer of tobacco in the world
Indian tobacco industry is expected to reach USD
35 Billion by FY 2018
6. The tobacco board
Facilitator for tobacco growers, traders and
exporters
Estimates demand and regulates the production
and price of FCV tobacco.
Assists tobacco farmers in securing crop loans,
quality seeds, fertilizers and other critical inputs.
On the export front, it strives to improve the
existing markets and develop new markets.
7. Harm Reduction: Less harmful alternatives to
smoking or products to help quit smoking.
Supplier Performance Assessment: BAT
checks on agricultural and environmental
practices; social and human rights.Also works
towards improvement.
Good agricultural
practices
• Farmers training and
technical support
• Pest Management
• Soil andWater
Conservation
• Sustainable use of fuels
• Promoting afforestation
Labour standards
• Sets expectations of
working conditions and
labour standards for
farmers and their families
• Address the issue of
child labour
SustainableAgricultural Development
Programme: BAT’s SADP empowers rural
villagers below the poverty line to become self
sufficient by introducing them to food
cultivation and animal husbandry.
JT Group’s anti bribery and corruption
policy:The JapanTobacco group has an e-
learning platform to communicate to the
employees that it is mandatory to adhere to
the anti-bribery and corruption policy.
8. • One of India’s leading companies
• Market capital of US $40 billion
• Gross revenue of US $8 billion
• Featured in Forbes A-List, 2004
• One of the companies in Asia’s ‘Fab-50’
• Esteemed as India’s most desirable company
• Tops the charts of the world’s most sustainable
companies, in a study by BCG
Hotels
FMCG
Information
Technology
Agri-business
Paperboard
and specialty
papers
• Market leader of cigarettes in Indian market
• Wide range of brands
• Market leader in each segment
• Portfolio: Insginia, Lucky Strike, Gold Flake,
Players, Capstan, Bristol, Silk Cut, India Kings,
Classic, Navy Cut, Scissors, Berkeley, Flake,
Duke & Royal
11. RECOMMENDATIONS
Reduce the amount of pesticides
used.
Reduce the non-biodegradable
components being sourced.
Afforestation programs to
compensate for loss in forest.
Improve working conditions for
the workers.
12. Philip Morris
Established in
1900.Headquatered
in NewYork. Initially
named Altria
Marlboro brand
launched in 1924
Marlboro positioned
as a men’s cigarette
Philip Morris
International formed
in 2008 as London
Based company
Operational headquarters
established in Lausanne,
Switzerland and PMI
designated to handle global
sales
13. Sustainability Issues
Non
Biodegradable
waste
accumulation
Impact on
cultivation and
agriculture
Impact on water
bodies and soil
nutrient content
• Use of non-
biodegradable
filters leading to
land pollution
• Felling down of trees
and altering of regular
crop cycles during
cultivation may
impact the ecological
balance
• Use of insecticides
and pesticides may
affect the water
bodies and soil
quality
15. Unhygienic working condition
Ban of exploitation of migrant workers
Reforms in child Labour Issues
Correct marketing strategy and eligible audience
Modified agriculture practices
Modified tobacco agricultural practices- Reduced pesticides and
water management
RECOMMENDATIONS FOR PHILIP MORRIS:
(Triple Bottom Layer)
16. CONCLUSION
• Stage of industry in India- maturity
• Highly attractive market with significant risk
• Broadening portfolio- Mitigate risk
• Alternative marketing ways:
a)Eco-friendly marketing
b)Social Marketing
• Recycling cigarette buds into useful
products
17. REFERENCE
1. https://en.wikipedia.org/wiki/ITC_(company)
2. Annual report of ITC
3. Annual report of Philip Morris
4. Annual Sustainability report of ITC
5. Annual Sustainability Report of Philips Morris
6. https://blog.ssbmg.com/2015/04/17/the-triple-layered-
business-model-canvas-a-tool-to-design-more-sustainable-
business-models/
