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Distribution Chain

Presented by: Asmita Pawar Jason Pereira Prajkta Malve

Pritesh Martins
Raghav Swamy Talib Hussain

Introduction
India is the second largest producer of tobacco in the world after China India holds a meagre 0.7% share of the US$30 billion global ImportExport trade in Tobacco Cigarettes/cigarette tobaccos accounting for 85% of the countrys total tobacco exports

For the government, it means excise duties and export revenues and it translates into huge employment opportunities.
India is the ninth largest exporter of tobacco and tobacco products in the world There is only an export demand for flue-cured tobacco, which is used for cigarette manufacturing

Major Players in the Indian Market

ITC 66.90 %

Godfrey Phillips 12.30%

VST 12.00%

GTC 7.80%

Market Share

Distribution Channel Used


Relatively short distribution chain Manufacturers usually do not offer credit for the goods Price variation will be in terms of quantity ordered

Distribution Chain
1
2 Manufacturer supplies cartons to Wholesaler

Wholesaler receives orders from retailers


Retailer sells to customers

Profit Margins
Party Involved Wholesaler Profit Margin Rs 4/ packet (contains 20 cigarettes) Rs 9/ packet (contains 20 cigarettes)

Retailer

Thank You
Smoke break