Shubham Mukherjee
Ahmedabad, 27 November
ENTHUSED BY the reduced promotional activity by Indian cigarette majors, especially ITC,
the grey market appears to have moved in for the kill with a range of smuggled cigarettes
at various price points. According to the latest market estimates, there are over 90
smuggled brands in the market.
For many years, the contraband cigarette market only had premium brands like Marlboro,
Rothmans, State Express, 555, Benson & Hedges, Dunhill and Camel, with Marlboro
leading the pack in sales.
Some of the foreign brands currently on offer in the Rs.66 and above category include
Cartier, Davidoff, More, Kent, YSL, Monte Carlo, Chetserfield, Main Street, Pierre Cardin,
Main Street. In the Rs.45 - Rs.65 segment, the main brands include Salem, Silk Cut,
Winston, Peter Stuyvesant, Gold Tiger, Viceroy, President, Bond Street, Dallas, Business
Club, Morata and Vogue.
In the Rs.36 - Rs.46 category, most of the brands are not very well known and includes
brands like Free Box, Coronas, Karelia Lights, USA, Victory, Sun Light, Milky Way,
Peacock, among others. In the Rs.20-35 category also there are lesser known brands like
Double Happiness, Montana Filter, Mehr Lights, Century, Gold Seal, Horse, Toupan, Double
Dragon, and Fine. The under Rs.20 category includes brands like Aziz Gold, Gold Leaf,
Rider, Friends, Banani, Solid Gold, Gold Tiger, Saga and Golden King. Against these, there
are about 40 Indian brands in the market.
While the inflow of smuggled brands was a trickle earlier, it has gained momentum ever
since the recent government policies restricted the Indian cigarette majors from high
profile promotions and campaigns. It may be pointed out that ITC has recently pulled out
of its high profile sports sponsorships and reduced its advertising spend following the
restrictions imposed.
Industry sources said the grey market now offers more variants at every price point than
the Indian cigarette manufacturers.