ANALYSIS OF CIGARETTE
INDUSTRY IN INDIA
Presented by Ajeet Singh
The oldest cigarette manufacturing firm was established around 1887
by 1930 the industry had spread across the country
Initially under British East India Company and there after British Raj
First private company to set up was Imperial Tobacco now ITC ltd.
INDIAN CIGARETTE INDUSTRY
•India is the third largest producer of tobacco in the world.
•Tobacco occupies a prime place in the Indian economy on
agricultural, industrial and export sectors.
•India is one of the leading Tobacco exporting countries in the
Per capita income is increasing
High education level
After lot of taxes growing rate of 6.6%
Potential rural market
FIVE FORCES ANALYSIS
Supplier Bargaining Power
Buyer's Bargaining Power
SWOT on the INDUSTRY
one the largest manufacturers of tobacco in terms of production
traditional item of India's foreign trade
leading Tobacco exporting countries in the world
burden of Tobacco tax
Prohibition of Direct advertising
significant opportunity for cigarette industry to extent and
consolidate its position in intentional market due to some recent
trend like withdrawal/reduction of agricultural subsidy and
escalating cost in the traditional cigarette exporting countries.
Various N.G.O’s and Forums against the use and consumption of
Smuggled foreign cigarettes