Domestic technical textiles Industry Segment-wise consumption of ...

Cigarette and Cigarette filter market in India
The total size of the filter cigarette industry in India is around 120 billion cigarettes. ITC Limited has
a near monopoly with around 73% volume market share followed by Godfrey Philips and Vazir
Sultan Tobacco (VST).
The Union budget 2008-09 has increased the excise duty for cigarettes below length of 60 mm by
500% and non-filter cigarettes in the 60-70 mm length by 250%. In addition to excise hike a 12.5%
VAT on these products has rendered the non-filter cigarette industry unviable. Hence, over the next
few years the capacities of these non-filter cigarette capacities would gradually convert to filter
cigarette capacities which would further boost the demand for cigarette filters. The number cigarettes
manufactured per filter rod is typically 5.5 based on ITC data and this is metric is used to arrive at the
number of cigarette filters market in the next five years.
Consumption norms and the market size
The cigarette filter is typically 20 mm long in each cigarette and is a 100% technical textile. Typically
six cigarettes are made from one cigarette rod. The length of the cigarette rod is made to the
specification of the cigarette manufacturer.
The current and future forecast of cigarette filters industry is given below:-
Market size of cigarette filter 2007-08 2012-13
Quantity
Around 14,000
million filter rods
Around 17,000
million filter rods
Value Rs 152 crore Rs 182 crore
Source: Industry Survey, IMaCS Analysis
The potential market for cigarette filter industry in 2012-13 is estimated at Rs. 182 crore up from Rs.
152 crore in 2007-08 (E). No inflationary increase has been assumed for the price of the material. In
volume terms, the usage of cigarette filter is expected to grow from around 14,000 million filter rods
in 2007-08 to around 17,000 million filter rods in 2012-13. The cigarette industry is expected to
undergo de-growth at around 3% y-o-y over the next 5 years. But, the conversion from cigarettes
without filter to filter cigarettes is expected to lead to the growth of cigarette filers.
The production and sales data of major cigarette manufacturers is as given below:-
Manufacturer Year Production
Quantity
Sales Quantity
(Million)
Quantity
(million filter
Value of Filter
rods