3. Cigarette
Pack
“Tukda” Carton
Sr # Cigarette Variant Qty. per tukda Qty. per pack
1 Goldflake (Lights and Kings) 20 10
2 Wills NavyCut 20 10
3 Flake 50 10
4 Wills Classic (All variants) 10 20
5 B & H 10 20
A single carton contains 10,000 cigarettes
4. The retailers are mostly
• Small temporary
stores locally called
“tapri”
• Small permanent
store
• Grocery stores
• Bars & Restaurants
Mr. Shekhar
Opposite D-Hostel ,
Symbiosis , Hinjewadi
• He sells almost all brands
of ITC
• He gets fresh stock
almost every day
• He buys a pack for Rs
138 and sell it for Rs 150
• Very less demand for
small cigarettes in and
around MIDC
• We also contacted a small retailer from Delhi.
• He buys a pack of Wills Classic at Rs. 138 and sells the same Rs. 150 thus earning a
margin of Rs. 12 per pack.
• He buys a tukda of any variant of GoldFlake (20 packs) at Rs. 1054.
Bill of A Retailer
5. Santosh stores and Prakash stores , Hinjewadi
• The wholesaler buys from the
distributor and sells the cigarettes
to the small retailers.
• He earns a margin on each tukda
sold and not on individual packs.
• The wholesaler keeps a regular
stock of worth Rs. 2 lakh per week.
Sr # Cigarette Variant
Margin Earned per
tukda (Rs.)
1 Flake 14
2
Goldflake (Lights and
Kings) 12
3
Wills Classic (All
variants) 10
4 Wills NavyCut 8
• We also contacted a wholesaler
from Delhi who sold cigarettes
to the small retailer mentioned
in the previous slide.
• He earns a margin of Rs. 16 per
tukda of Goldflake he sells.
Prakash Stores
6. • Once the distributor receives the
cigarettes, he appoints certain agents
to deliver it directly to the small
retailers.
• Each agent is allotted a particular
area.
• This agent daily travels to the allotted
area on a bike with a red box
containing cigarettes tied to it and
sells the same to the retailers.
• For the agent, it is purely a business
based incentive pay
• We managed to contact the agent who travels
in the Hinjewadi area – Mr Ram Baros.
• He said that he receives 0.8% of the total
sales he manages.
• He also mentioned that he sells cigarettes
worth Rs.100000 daily. So he earns around
Rs. 800 per day.
• Other than that he gets Rs. 3000/- per month
as fuel charges.
• This amount has remained constant for the
last 5 years.
7. We contacted the following distributor from the
Pimpri Chinchwad market :
Bombay Traders
Kalewadi Phata
Pimple Saudagar stocking unit.
The distributor refused to
divulge the information of
the profits earned by him,
he helped us in
understanding the
distribution network of ITC
Cigarettes.
MonthlyTargets
Arrival of Goods From Factory
RedBoxesforAgents
8. ITC has cigarette manufacturing units at the
following locations:
1. Kolkata (Kidderpore) , West Bengal
2. Saharanpur, Uttar Pradesh
3. Bengaluru, Karnataka
4. Hyderabad, Andhra Pradesh
5. Ranjangaon, Maharashtra
Cigarette manufactured in Ranjangaon Cigarette manufactured in Bengaluru &
Hyderabad
11. During the 20 minutes presentation, around Rs 5555 worth
Cigarettes have been sold at Hinjewadi!!!!!
Considering the fact that cigarettes worth 2 lakhs are sold every day at Hinjewadi. We assume the business takes
place for eighteen hours every day
• Nearly 5 million people are involved in the commercial operation
pertaining to tobacco
• Nearly 12 lakh people are involved in the cultivation of tobacco in
• Tobacco’s share in India’s is around 1.8 per cent
12. • Field study and research in and around Hinjewadi,
Pune.
• http://www.livemint.com/Politics/2A6ThZPOTEdYqxQf
SvEcWK/82161-mn-Indian-smokers-will-die-every-
year8217.html
• http://content.time.com/time/health/article/0,8599,1
711154,00.html
• http://www.itcportal.com/businesses/index.aspx
• http://www.itcportal.com/businesses/fmcg/cigarettes.
aspx
