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Presented by:

Asmita Pawar

Jason Pereira

Prajkta Malve

Pritesh Martins

Raghav Swamy

Talib Hussain

Distribution Chain

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IntroductionIndia is the second largest producer of tobacco in the world afterChina

India holds a meagre 0.7% share of the US$30 billion global Import-Export trade in Tobacco

Cigarettes/cigarette tobaccos accounting for 85% of the countrystotal tobacco exports

For the government, it means excise duties and export revenues andit translates into huge employment opportunities.

India is the ninth largest exporter of tobacco and tobacco products inthe world

There is only an export demand for flue-cured tobacco, which is used

for cigarette manufacturing

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Major Players in the IndianMarket

ITC

66.90 %

GodfreyPhillips

12.30%

VST

12.00%

GTC

7.80%

Market Share

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Distribution Channel Used

Relatively short distribution chain

Manufacturers usually do not offer credit for thegoods

Price variation will be in terms of quantity ordered

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Distribution Chain

1 Manufacturer supplies cartons

to Wholesaler

2 Wholesaler receives orders

from retailers

3 Retailer sells to customers

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Profit Margins

Party Involved Profit Margin

Wholesaler Rs 4/ packet(contains 20cigarettes)

Retailer Rs 9/ packet(contains 20cigarettes)

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Thank You

Smoke break