Cigarette manufacturers in India have announced a price hike, with ITC Limited significantly raising prices to counter the impact of increased excise duty.
Cigarette manufacturers in India, including ITC Limited, have recently announced an increase in cigarette prices, aimed at offsetting the burden of raised excise duties. The price hike ranges from 2 to 10 rupees per stick, with notable changes observed in various categories of cigarettes. For instance, Godfrey Phillips India increased the price of Marlboro Compact from 9.5 to 11.5 rupees per stick, illustrating a broader trend within the industry. This adjustment reflects a strategic response to the financial pressures imposed by government regulations.
ITC, which holds a dominant market share in the cigarette industry, is expected to see a significant impact, particularly in products categorized under 74mm cigarettes, where increases may reach up to 7 rupees per stick. Additionally, as part of their strategic adjustments, ITC plans to introduce new products in conjunction with the price changes, including items featuring Dual Sensory Filter Technology. These changes occur amid a positive response in the stock market, where shares of cigarette manufacturing companies have experienced a surge, indicating investor confidence amidst rising prices.
This price hike is indicative of ongoing trends in the Indian tobacco industry, where regulatory changes often necessitate adjustments in retail pricing to maintain profitability. The increase could further influence consumer behavior, potentially driving smokers towards lower-priced options or alternatives. The market will continue to monitor the effects of these changes on consumer demand and company performance in the near future.
