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Run up to the Budget: Cigarettes industry
State of the industry (2000-2001)
- In 2000, cigarettes accounted for around 18 per cent of total tobacco demand. (Remaining tobacco was consumed in the form of bidis, chewing tobacco and other non-smoking tobacco varieties.)
- In 2000, cigarette sales declined by around 4 per cent, as compared with those in 1999. Sales volumes declined largely in the mini/micro cigarette category (70 mm or lower). However, sales increased in value terms, due to the increasing usage of filter cigarettes (largely in the non-premium segment).Sales were also affected due to increased smuggling of the premium foreign brands.
- During the April-December 2000 period, in spite of a decline in sales, profits of the four large players increased, as compared with those during the corresponding period in 1999. Profits increased largely due to an increase in unit price realisations, which could be partly attributed to the increase in the demand for filter category cigarettes.
Cigarettes: Excise and customs duties
|
Segment |
Cigarette
length |
1999-2000 |
2000-01 |
|
|
|
Customs |
Excise |
Customs |
Excise |
|
Filter |
>
85
mm |
40 |
1,470 |
44 |
1,545 |
|
|
75-85
mm |
40 |
1,200 |
44 |
1,260 |
|
|
70-75
mm |
40 |
900 |
44 |
945 |
|
|
<
70
mm |
40 |
550 |
44 |
580 |
|
Non
filter |
60-70
mm |
40 |
370 |
44 |
390 |
|
|
<
60
mm |
40 |
110 |
44 |
115 |
Notes:
1) Excise duties are in Rs per '000 sticks and customs duties are in per cent.
2) For 2000-01, customs duty includes the SACD of 4 per cent, effective since 1999-2000. In 1999-2000, the SACD was applicable only for non-traders, and hence, has not been included in the customs duty.
Source: Central Excise and Customs Tariff
Rediff-CRISIL Budget Impact Analysis
Budget 2001
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site.
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