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Tag: cigarettes

  • ITC’s diversification strategy gains traction as profits climb to record highs

    ITC’s diversification strategy gains traction as profits climb to record highs

    KOLKATA: ITC, India’s Rs 1.25 lakh crore conglomerate, demonstrated the resilience of its multi-business model in the quarter ended 30th September 2025, posting net profit from continuing operations of Rs 5,179.82 crore—up 4.1 per cent—as its diversification investments continue to mature. For the half year, profit surged three per cent to Rs 10,092.18 crore, underscoring the momentum building across its portfolio.

    The numbers reveal a company hitting its stride. Cigarettes, the engine that funds ITC’s expansion ambitions, delivered robust 6.7 per cent revenue growth to Rs 8,722.83 crore, with segment profit reaching Rs 5,240.66 crore. This performance, achieved despite elevated taxation, provides the cash flow for the group’s ambitious forays into branded foods, personal care and digital ventures.

    More importantly, ITC’s strategic investments in FMCG are showing tangible progress. The other FMCG businesses—spanning Aashirvaad staples, Bingo snacks, Sunfeast biscuits and personal care products—grew revenue 6.9 per cent to Rs 5,964.44 crore. Whilst brand-building costs continue to weigh on near-term margins, EBITDA for this segment improved to Rs 594.08 crore. Management’s patient capital approach is paying dividends as these brands gain market share in India’s vast consumption economy.

    The paperboards division, a testament to ITC’s manufacturing prowess, grew revenue 5 per cent to Rs 2,219.92 crore with healthy margins. The agri business, though affected by seasonal commodity price volatility, remains a critical link in ITC’s farm-to-fork value chain.

    On a consolidated basis—reflecting the group’s expanding footprint through subsidiaries including ITC Infotech and new acquisitions like Sresta Natural Bioproducts—the picture brightens further. Revenue stood at Rs 21,255.86 crore whilst profit climbed 4.2 per cent to Rs 5,186.55 crore. For the half year, consolidated profit jumped 4.6 per cent to Rs 10,529.96 crore, with earnings per share at Rs 8.28.

    The company’s balance sheet remains fortress-like, with total assets of Rs 90,802.66 crore and negligible debt. Cash generation remained strong, with operating activities throwing off Rs 5,782.15 crore in the half year, funding both dividends of Rs 9,823.58 crore and continued capital expenditure of Rs 1,006.71 crore.

    The board’s decision to appoint Amitabh Kant, architect of India’s economic reforms as former Niti Aayog chief, as an independent director signals ambitions for the next phase of growth. The reappointment of Hemant Malik as wholetime director ensures continuity in execution.

    ITC’s transformation from a cigarette company into a diversified consumer powerhouse is well underway. With market-leading positions emerging in multiple FMCG categories, a robust pipeline of innovation, and the financial muscle to sustain long-term investments, the company is positioning itself to capture India’s consumption boom. The patience investors have shown may soon be rewarded as scale benefits begin to flow through.

  • Indian government wants streamers to develop a social conscience

    Indian government wants streamers to develop a social conscience

    MUMBAI: Most creators have been singing hosannas about how streaming platforms have allowed them to express themselves freely. But how freely? That’s a question that the  ministry of information and broadcasting (MIB)  is posing. Especially in light of its observation that “certain streaming content available on OTT platforms is inadvertently promoting, glamorising or glorifying the use of narcotic drugs and psychotropic substances through such portrayal by the main protagonist and other actors. Such a portrayal has serious repercussion, particularly regarding the potential influence on young and impressionable viewers.”

    In advisory to the industry, the MIB has advised  OTTs to  stop portraying drug use or abuse as fashionable or acceptable to society especially when it is part of the narrative of a series or film. And it has also cautioned them that should the streamer or content creator choose to portray misuse of psychotropic substances, liquor, smoking, tobacco or any behavior that is  likely to incite the commission of any offence, including infliction of self-harm, and that children and young people may potentially copy, then they should place the film or series in a higher classification of self-certification. 

    The ministry has directed the platforms to  put in place measures like carrying public health messages and disclaimers about the dangers of drug abuse, especially in programs in which it is part of the story line. Then it has requested them to arouse their corporate social responsibility conscience and make and popularise content and documentaries which highlight how substance abuse is health-harming in the long term. Accepting that OTT content is beginning to impact public opinion and behaviour, it has reminded them of their social responsibility and how their content helps shape culture and society. 

    The advisory also warns that in case they find any streamer crossing the red line, strict regulatory scrutiny will follow  under the provisions of the Information Technology Act, 2000 read with the Narcotic Drugs and Psychotropic Substances Act (NDPS), 1985. And if evidence is found conclusive, then strict penalties will apply.

    Are the writers and creators and commissioning editors in streaming platforms listening? As well as the standards and practices guys?

  • Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    New Delhi: Close on the heels of imposing stringent punishments to vendors of tobacco products in the vicinity of educational institutions in January and raising the tax in the budget in February, the Government has implemented its decision asking manufacturers to use 85 per cent space on tobacco packets on health warnings. The decision has come into effect from this month. An affidavit filed by the Health Ministry before the Rajasthan High Court on 28 March said the warning would appear on both sides of tobacco products and come into force from 1 April.

    This follows a decision taken in September last year, after an earlier order for implementation from April 2015 was stayed in June by the Government to allow a parliamentary committee to study the issue further. The Cigarettes and Other Tobacco Product (Prohibition of Advertisement & Regulation of Trade and Commerce, Production, Supply and Distribution) Act also prohibits the sale of cigarettes or other tobacco products to people below 18 years and in areas within a 100- metre radius of educational institutions.

    The Government nailed its latest decision by informing the Rajasthan High Court earlier this week to stick to its decision of 85 per cent pictorial warnings on every packet, thus forcing major tobacco companies to consider shutting shop in India. Interestingly, the Government has bypassed the advice of the Parliamentary Committee which recommended only 40 per cent pictorial warning. Until now, the coverage was forty per cent.

    The Tobacco Institute of India  said a unanimous ‘closure’ decision was  made by the players in the industry in response to the ‘ambiguity’ in the centre’s policy on pictorial warnings on tobacco product packs. Prominent members of the TII including ITC, Godfrey Phillips and VST have already announced their decision in this regard. ITC is already understood to have shut down five of its units. ITC, Godfrey Phillips and VST reportedly account for over 98 per cent of domestic cigarette sales, along with other members of the Institute.

    TII in a press release estimated a daily loss of Rs 350 crore in revenue for the tobacco industry from the production stoppage. It asserted that the revised pictorial warning would promote the trade in illegal cigarettes and affect the livelihood of 45.7 million (4.57 crore) people dependent on the industry.

    The Indian tobacco industry had in mid-March written to the Health Ministry seeking clarification but did not get any reply, leading to the decision for closure ‘fearing, potential violation of rules by continuing production.’
    TII has claimed that illegal cigarettes account for one-fifth of the industry, resulting in an annual revenue loss of Rs 9,000 crore to the exchequer. It even blamed ‘foreign-funded anti tobacco activists’ and ‘vested interests’ for pushing such a policy.

    In fact, many of the tobacco majors in the country have already made inroads in other sectors like hotels, FMCG etc.

  • Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    New Delhi: Close on the heels of imposing stringent punishments to vendors of tobacco products in the vicinity of educational institutions in January and raising the tax in the budget in February, the Government has implemented its decision asking manufacturers to use 85 per cent space on tobacco packets on health warnings. The decision has come into effect from this month. An affidavit filed by the Health Ministry before the Rajasthan High Court on 28 March said the warning would appear on both sides of tobacco products and come into force from 1 April.

    This follows a decision taken in September last year, after an earlier order for implementation from April 2015 was stayed in June by the Government to allow a parliamentary committee to study the issue further. The Cigarettes and Other Tobacco Product (Prohibition of Advertisement & Regulation of Trade and Commerce, Production, Supply and Distribution) Act also prohibits the sale of cigarettes or other tobacco products to people below 18 years and in areas within a 100- metre radius of educational institutions.

    The Government nailed its latest decision by informing the Rajasthan High Court earlier this week to stick to its decision of 85 per cent pictorial warnings on every packet, thus forcing major tobacco companies to consider shutting shop in India. Interestingly, the Government has bypassed the advice of the Parliamentary Committee which recommended only 40 per cent pictorial warning. Until now, the coverage was forty per cent.

    The Tobacco Institute of India  said a unanimous ‘closure’ decision was  made by the players in the industry in response to the ‘ambiguity’ in the centre’s policy on pictorial warnings on tobacco product packs. Prominent members of the TII including ITC, Godfrey Phillips and VST have already announced their decision in this regard. ITC is already understood to have shut down five of its units. ITC, Godfrey Phillips and VST reportedly account for over 98 per cent of domestic cigarette sales, along with other members of the Institute.

    TII in a press release estimated a daily loss of Rs 350 crore in revenue for the tobacco industry from the production stoppage. It asserted that the revised pictorial warning would promote the trade in illegal cigarettes and affect the livelihood of 45.7 million (4.57 crore) people dependent on the industry.

    The Indian tobacco industry had in mid-March written to the Health Ministry seeking clarification but did not get any reply, leading to the decision for closure ‘fearing, potential violation of rules by continuing production.’
    TII has claimed that illegal cigarettes account for one-fifth of the industry, resulting in an annual revenue loss of Rs 9,000 crore to the exchequer. It even blamed ‘foreign-funded anti tobacco activists’ and ‘vested interests’ for pushing such a policy.

    In fact, many of the tobacco majors in the country have already made inroads in other sectors like hotels, FMCG etc.

  • Two new anti-Tobacco health spots for ‘Tobacco-Free Film Rules’ released under COTPA

    Two new anti-Tobacco health spots for ‘Tobacco-Free Film Rules’ released under COTPA

    NEW DELHI: Two new anti-tobacco spots titled ‘Child’ and ‘Dhuan’ have been released by the Health Ministry to be screened on movies and television whenever smoking scenes are depicted, even as studies have shown very little effect of government’s attempts to prevent smoking scenes.

    The spots have been released under the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act (COTPA) rules and will be effective from today. These spots have been dubbed in 16 Indian languages for a pan India coverage. It is mandatory for cinema halls to prominently display these spots whenever smoking scenes are shown as part of the movie. These spots were released to media by Health Ministry Additional Secretary C K Mishra.

    Interestingly, studies undertaken by the Ministry in collaboration with the World Health Organisation after the promulgation of  “The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act” (COTPA) shows that while 76 per cent films were depicting tobacco use in 2003, this had increased to 89 per cent in 2006.

    Similarly, the percentage of the lead character shown smoking had gone up from 40.9 per cent to 75.5 per cent in these years, of the films which showed tobacco scenes. Tobacco brands/product placement and visibility also rose from 15.7 per cent to 41 per cent between 2003 and 2006.

    In 2003 before COTPA was enforced, the Ministry with the support of World Health Organization commissioned the study titled “Bollywood: Victim or Ally” to help develop a strategy to reduce smoking in films.  The aim of the study was to understand the extent to which movies impact youth’s lifestyles and the impact of portrayal of tobacco in Indian films

    In 2006, after COTPA 2003 banned tobacco advertisements of any kind, another study was commissioned to document changes in tobacco imagery in films.

     The anti-tobacco health spots and disclaimers are being provided by the Ministry under the COTPA Rules. Two spots ‘Mukesh’ and ‘Sponge’ depicting harmful effect of usage of smokeless and smoking forms of tobacco were used with effect from 2 October 2012.

    Speaking at the media launch of the two new spots, Mishra said since 2 October 2013 marks the completion of five years of implementation of smoke-free laws in India, the launch of these two spots, ‘Child’ and ‘Dhuan’,  reinforces the government’s emphasis on the issue of secondhand smoke and implementation of smoke-free policies in India. While the narrative at present is more on control on smoking, the Ministry will soon move towards the smokeless form of tobacco. He said that the ban on ‘gutka’ was a major achievement in the direction of banning the use of tobacco in the country.

    ‘Child’ and ‘Dhuan’  have been developed to warn about the health costs of smoking and second hand smoke and of the penalties to be faced by violating the smoke free law.  ‘Child’ focuses on the health risks of smoking and secondhand smoke, while ‘Dhuan’ especially models the behavior expected of business managers, advocates, enforcement officials, smokers and non-smokers. The spots have been developed by World Lung Foundation (WLF).

    COTPA was aimed at regulating consumption, production, supply and distribution of tobacco products, by imposing restrictions on advertisement, promotion and sponsorship of tobacco products; prohibiting smoking in public places; prohibiting sale to and by minors, prohibiting sale within a radius of 100 yards of educational institutions and through mandatory depiction of specified pictorial health warnings on all tobacco product packs.  

    Section 5 of COTPA prohibits all forms of advertisements, promotion and sponsorship of tobacco products.

    The 2006 study clearly established that tobacco imagery, including brand display had markedly increased in the wake of tobacco advertising bans in other media. Consequently, COTPA’s rules were refined in 2005 to meet the challenge of tobacco imagery in films. However, these rules could only be implemented from 2 October, 2012 after addressing all the implementation concerns of the Information and Broadcasting Ministry.

    As per the Rules all films and TV programmes certified/produced on or after 2 October, 2012 that depict tobacco product or its use must have a strong editorial justification explaining the necessity of display of tobacco products or its use (to the Central Board of Film Certification); anti-Tobacco Health Spot of 30 seconds duration each (beginning and middle); anti-Tobacco Audio Visual Disclaimer of 20 seconds duration each (beginning and middle); anti-Tobacco Health Warning as a prominent static message during the period of display of tobacco products or their use.