SECTOR CAPSULE: CIGARETTES IN INDIA

22 Sep 2016

HEADLINES
Cigarettes retail sales increase 2% in current value terms in 2015, but decline 8% in volume terms to reach
INR622.2 billion and 88.1 billion sticks, respectively
Increased excise tax and regulation enforcement reduce cigarette volume demand across India
All cigarette tar types suffer volume decline in 2015, but mid-tar experiences the smallest decrease
A duopoly of domestic players continues to dominate the cigarettes category in 2015
Retail volume sales are expected to post further negative performance, with a CAGR of -3%, to fall below
75 billion sticks in 2020 as government efforts to discourage smoking impact the market

COMPETITIVE LANDSCAPE
Cigarettes remained a duopoly in 2015, with ITC Ltd and Godfrey Phillips India Ltd (GPI) the leading
manufacturers. ITC led the cigarettes category with a retail volume share of 79%, followed by GPI with
11%.
Cigarettes continued to be dominated by domestic companies, with the leading domestic manufacturers
together accounting for a retail volume share of almost 98% in 2015. Other domestic players, such as VST
Industries Ltd, have a strong presence in certain regions.

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NATIONAL BRAND OWNERS AND THEIR BRANDS

Company Name (NBO)
Godfrey Phillips India Ltd
Golden Tobacco Ltd
ITC Ltd

Philip Morris India Ltd

VST Industries Ltd

Brand (GBO)
Cavenders (Godfrey Phillips India Ltd), Four Square (Godfrey Phillips India
Ltd), North Pole (Godfrey Phillips India Ltd), Red & White (Philip Morris
International Inc), Tipper (Godfrey Phillips India Ltd)
Panama (Golden Tobacco Ltd)
Benson & Hedges (British American Tobacco Plc), Benson & Hedges
Lights (British American Tobacco Plc), Berkeley (Japan Tobacco Inc),
Bristol (ITC Ltd), Capstan (ITC Ltd), Classic (ITC Ltd), Classic Milds (ITC
Ltd), Classic Ultra Milds (ITC Ltd), Duke (ITC Ltd), Gold Flake (ITC Ltd),
Gold Flake Light (ITC Ltd), Scissors (ITC Ltd), Wills Navy Cut (ITC Ltd)
Marlboro (Philip Morris International Inc), Special Extra Smooth (VST
Industries Ltd)
Charminar (VST Industries Ltd), Charms (VST Industries Ltd), Moments
(VST Industries Ltd)

Source: Passport by Euromonitor International

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FORECAST

DEFINITIONS AND METHODOLOGY

Cigarettes
RETAIL SALES OF DUTY PAID CIGARETTES
The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured whitestick products. This does not exclude brands of cigarettes that do not use white paper but it is designed
to exclude the volume of non-machine manufactured products such as bidis/beedis (India), kreteks
(Indonesia), papirosy (Russia), and other smoking products made with tobacco but that either do not
resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured.
The exclusion of these products is intended to give a more accurate picture of the "true" market for
cigarettes and cigars which has been distorted in official statistics and published reports because of the
inclusion of hybrid products. NB Please note that the machine manufactured portion of kreteks in
Indonesia IS included in the database proper.
DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes.
ILLICIT TRADE CIGARETTES
Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid
cigarettes (includes smuggled & counterfeit/fake products combined).
Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national
purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back
are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals
in France are attributed to France).

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Methodology
This report is derived from Euromonitor Internationals Passport information system. Industry
research is carried out by a global team of more than 600 in-country analysts and is based on a core
set of research techniques:
National-level desk research, company research and analysis, store checking, trade interviewing with
national players and market analysis
International-level desk research, multinational company research and analysis, trade interviewing with
international players and market analysis

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