Presentation 1420

8/4/2019 Presentation 1420

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Technology

Resources availabilitySocial trends

Economic trends

Customer needs

WEAKNESSES

Tobacco smuggling

Tobacco related diseasesWasted wealth and resources and labour


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Technology

Resources availability

Social trends

Economic trends

Customer needs

WEAKNESSES

WEAKNESSES

Tobacco smuggling

Tobacco related diseases

Wasted wealth and resources and labour


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OPPURTUNITIES

High quality products

Focus on new regulations

Employment

THREATS

Litigation

Government sanctionsdwindling market


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Central Tobacco Research Institute

Organization of Indian council of Agriculture

Located in Rajahmundry district in southern

state of Andhra Pradesh.

Objectives include high yielding cultivars of

tobacco, quality up gradation thereby

improving farmers economies and tobaccoexports.


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Government interventions in support of the

industry can broadly be classified into:

(i) Institutional and regulatory support;

(ii) (ii) Price and market support;

((iii) Export promotion;

(iv) Research and development (R&D);

and(v) Direct fertilizer and credit subsidies.


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MARKET SHARE

ITC is the leading companies in the Indian

tobacco

market, holding a 72% share of the market's

volume.

Godfrey Philips accounts for a further 12% of

themarket's volume.


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Consum

India is one of the biggest tobacco markets in

the world, ranking forth

in total tobacco consumption behind only the

markets of China and the

United States.

However, the per capita consumption in the

country is 0.9 kg

compared to the world average of 1.8 kg.

Tobacco usage in India is contrary to world

trends since chewingtobacco and beedi are the dominant forms of

tobacco consumption,

whereas internationally, cigarette is the

dominant form of tobacco use.

The use of tobacco and its various products

appears to have declined

in the rural and urban populations of India

over the period from 1987-

1988 to 1999-.2000. This trend in decline in

consumption is faster

among the urban population


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.2000.

While India's share in the world's area under

tobacco crophas risen from 9% to 11% in the

last 3 decades, its sharein production has

inched up from 9% to 10%.

Of the 200 million tobacco consumers in India,only 13%

consume it in the form of cigarettes, while 54%

consume it

in the form of beedi and the rest in raw/gutka

forms.

India is the only country where the bulk of

production

consists of numerous non-smoking types of

tobacco. The

presence of a strong domestic demand for

beedi,hookah,chewing and snuff tobacco necessitates the

cultivation of

non-cigarette types of tobacco to a relatively

large extent.

Production Trend in India


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Andhra Pradesh, Gujarat, Karnataka,

Maharashtra, Bihar and

Tamil Nadu are the major tobacco producing

states in India.Around 65% of Indias production comes from

Andhra Pradesh

(34%),Gujarat (22%) and Karnataka (11%).

Tobacco being a labour intensive crop provides

employment to

more than 60 lakhs people who are engaged inthe farming

curing, redrying, packaging, grading,

manufacturing distribution,

export and retailing activities. The bidi industry

which provides

employment to around 44.00 lakhs essentially

unskilled rural

folks mostly women is also arresting the influx

of rural labour to

urban centres.


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Indian trade scenario of tobacco

Tobacco occupies a prime place in the Indian

economy

on account of its considerable contribution to

the

agricultural, industrial and export sectors.

India is the third largest producer and eighth

largest

exporter of tobacco and tobacco product in

the world

In 2000-2001, the contribution of tobacco to

the Indianeconomy was to the extent of Rs81.820 million, whichaccounted for about 12%

of the total excise collections


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Consum

Top Tobacco Consuming Nations (2005)

1.China ... 2.66 million tonnes (38% of world

total 7 million tonnes)

2.European Union ... 0.71 million tonnes

(10.2%)

3.India ... 0.52 million tonnes (7.4%)

4.Russia ... 0.44 million tonnes (6.4%)

5.United States ... 0.43 million tonnes (6.2%)

6.Brazil ... 0.23 million tonnes (3.3%)

7.Japan ... 0.18 million tonnes (2.6%)

8.Indonesia ... 0.17 million tonnes (2.4%)9.Turkey ... 0.14 million tonnes (2%)

10.Pakistan ... 0.10 million tonnes (1.4%)


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Ex

World tobacco leaf exports from 1998-2000

averaged

1.98 million tonnes per year which the FAO

expects

to grow by 1% to 2.2 million by 2010.

Today developing nations are responsible for

almost

65% of global tobacco exports, while

developed

countries account for the remainder. Of the

countries below, the domestic economies of

Zimbabwe and Malawi depend most heavily

on

Zimbabwe and Malawi depend most heavilyon

tobacco exports to the rest of the world.

tobacco exports to the rest of t


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Top Tobacco Leaf Exporting Nations

1.European Union ... 18.1% of world total

2.Brazil ... 16.6%

3.United States ... 9.9%

4.Zimbabwe ... 9.1%5.Turkey ... 6.5%

6.China ... 5.6%

7.India ... 5.5%

8.Malawi ... 5.3%

9.Russia ... 3.9%

10.Other European countries ... 2.0%Because cigarette manufacturers have developed new processing

technologies that use lower-quality tobacco leaves, developing countries

are more competitive and can increase their shares of the world tobacco

market. Regardless of superior tobacco quality, higher production costs

mean that tobacco exports from developed countries like the U.S. Cost

twice as much as tobacco shipped from developing n


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Ex

World tobacco leaf exports from 1998-2000 averaged

1.98 million tonnes per year which the FAO

expects

to grow by 1% to 2.2 million by 2010.

Today developing nations are responsible

for almost65% of global tobacco exports, while

developed

countries account for the remainder. Of the

countries below, the domestic economies

of

Zimbabwe and Malawi depend mostheavily on

tobacco exports to the rest of the world.


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Types of tobacco use in India

Smoked forms of tobacco use

Bidis, Cigarettes, Cigars, Cheroots, Dhumti,

Pipe, Hooklis, Chillum, Hookah.

Smokeless forms of tobacco use

Paan (betel quid) with tobacco, Paan masala

with tobacco

Tobacco, areca nut and slaked lime

preparations,Mainpuri tobacco, Mawa, Khaini,

chewing tobacco, snus, gutkha

-Tobacco products for application: Mishri, Gul,

Bajjar, Lal dantmanjan, Gudhaku, Creamy

snuff, Tobacco water, Nicotine chewing gum.


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Types of tobacco use in India

Smoked forms of tobacco use

Bidis, Cigarettes, Cigars, Cheroots, Dhumti,

Pipe, Hooklis, Chillum, Hookah.

Smokeless forms of tobacco use

Paan (betel quid) with tobacco, Paan masala

with tobacco

Tobacco, areca nut and slaked lime

preparations,Mainpuri tobacco, Mawa, Khaini,

chewing tobacco, snus, gutkha

-Tobacco products for application: Mishri, Gul,

Bajjar, Lal dantmanjan, Gudhaku, Creamy

snuff, Tobacco water, Nicotine chewing gum


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Resources availability

Social trends

Economic trends

Customer needsWEAKNESSES

Tobacco smuggling

Tobacco related diseases

Wasted wealth and resources and labour


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Presentation 1420