Cigarette Filters P.T. Sreekumar
Cigarette Filters P.T. Sreekumar
Cigarette Filters P.T. Sreekumar
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<strong>Cigarette</strong> <strong>Filters</strong><br />
P.T. <strong>Sreekumar</strong>
Business Description<br />
Filtrona <strong>Filters</strong> is the only global independent cigarette filter<br />
supplier to the tobacco industry<br />
With manufacturing and sales facilities strategically<br />
positioned in key locations worldwide the company can<br />
deliver:<br />
• innovative technology<br />
• highest quality products globally<br />
• cost effective and flexible solutions<br />
• local support infrastructure
Products and Applications<br />
Technology<br />
Services<br />
Mono acetate<br />
filters<br />
Mono acetate slim<br />
filters<br />
Definition Product & Application<br />
Joint development consultancy,<br />
scientific services.<br />
Conventional mono cigarette filter.<br />
Conventional mono slim cigarette<br />
filter.<br />
Carbon filters <strong>Cigarette</strong> filters incorporating<br />
carbon or other additive.<br />
Flavour filters Flavoured cigarette filters of either<br />
mono or multiple segment<br />
construction.<br />
Other special<br />
filters<br />
<strong>Cigarette</strong> filters incorporating a<br />
unique filtration or physical<br />
differentiation.
Served Markets<br />
Customer Segments - Market Customer Segments - Filtrona<br />
M ultinat ional<br />
Independent<br />
M onopoly<br />
Geographical Segments - Market<br />
* By Volume<br />
Asia<br />
N America<br />
S Amer ica<br />
Eur ope<br />
Independent<br />
M o no po ly<br />
M ultinatio nal<br />
Geographical Segments - Filtrona<br />
Asia<br />
Europe<br />
N America<br />
S America
<strong>Cigarette</strong> Market Breakdown 2006<br />
Total <strong>Cigarette</strong> Market: 5.8 Trillion Sticks<br />
3% Unfiltered<br />
97%<br />
Filtered<br />
16.6%<br />
3%<br />
80.4%<br />
Specials<br />
Polypropylene (China)<br />
Standard Mono<br />
Cellulose Acetate<br />
Source :Euromonitor/TDC Research
Global <strong>Cigarette</strong> Market by Tar Brand<br />
(excluding China)<br />
Volume (Trillions)<br />
4.00<br />
3.50<br />
3.00<br />
2.50<br />
2.00<br />
1.50<br />
1.00<br />
0.50<br />
0.00<br />
57% increase<br />
13% decrease<br />
33% Decline<br />
45% increase<br />
83% increase<br />
1999 2000 2001 2002 2003 2004 2005 2006<br />
Ultra low tar cigarettes<br />
Low tar cigarettes<br />
Mid tar cigarettes<br />
High tar cigarettes<br />
Source: Euromonitor 2007
Market Position<br />
Total<br />
Customer Segments<br />
Multinational<br />
Monopoly<br />
Independent<br />
Total No. of Customers-<br />
Filtrona<br />
5<br />
6<br />
305<br />
313<br />
Total Number of Customers- Market<br />
5 (Account for 50% of cigarette market)<br />
7 (Account for 39% of cigarette market)<br />
500 (account for 11% cigarette sales)<br />
Approximately 6.5% global share of total filter market<br />
Approximately 27% global share of special filter market<br />
511
Global Footprint<br />
Manufacturing Locations<br />
US<br />
Mexico<br />
Venezuela<br />
Paraguay<br />
UK<br />
Italy<br />
Hungary<br />
Jordan<br />
Germany<br />
India<br />
Thailand<br />
Indonesia<br />
Sales Offices<br />
Singapore<br />
Beijing<br />
Technical / Development<br />
Centres<br />
UK<br />
US<br />
Logistics Hubs<br />
Korea<br />
Brazil<br />
Manufacturing<br />
Sales / Logistics
Sources of Competitive Advantage<br />
• Innovation in materials, products and processes<br />
• Global footprint and supply infrastructure<br />
• High calibre employees<br />
• International standard accreditations<br />
• Independence and reputation<br />
• Modern, flexible and low cost manufacturing systems<br />
The Preferred Solution Provider to the <strong>Cigarette</strong> Industry
Growth Drivers<br />
• High growth of special filters for PREPS<br />
• Asian market development<br />
• Market seeking innovation to create brand differentiation<br />
• Market leaders receptive to strategic relationships which<br />
add value<br />
• Cost effective, flexible supply chain
Forward Strategy<br />
• Differentiation strategy created through technology<br />
• Manufacturing strategy: cost competitiveness and supply<br />
flexibility<br />
• Developing market focus<br />
• Value creation by leveraging knowledge and branding<br />
• Value creation through joint developments and leveraging<br />
of scientific services
<strong>Cigarette</strong> <strong>Filters</strong>
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