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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
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