2. Evolution
•
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.
3. INDIAN CIGARETTE INDUSTRY
•India is the third largest producer of tobacco in the world.
•Tobacco occupies a prime place in the Indian economy on
account
of
its
considerable
contribution
to
the
agricultural, industrial and export sectors.
•India is one of the leading Tobacco exporting countries in the
world
7. FIVE FORCES ANALYSIS
Entry Barriers
Supplier Bargaining Power
Buyer's Bargaining Power
Industry Rivalry
Substitutes
8. SWOT on the INDUSTRY
Strength
1.
one the largest manufacturers of tobacco in terms of production
2.
traditional item of India's foreign trade
3.
leading Tobacco exporting countries in the world
Weakness
1.
burden of Tobacco tax
2.
Prohibition of Direct advertising
9. SWOT (CONTD…)
Opportunities
1.
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.
Threats
1.
Various N.G.O’s and Forums against the use and consumption of
tobacco
2.
Smuggled foreign cigarettes
