- The Indian tobacco industry is valued at INR x billion currently and is expected to grow to INR x billion by 2020 at a CAGR of x%. India is the second largest producer and third largest exporter of tobacco. - Key drivers of the industry include social and cultural practices promoting tobacco use, benefits for tobacco growers, and a sophisticated industry infrastructure. However, high cigarette taxes and smuggling pose challenges. - Major players in the market include Companies 1-8, with Company 1 being the largest player with a xx% market share in legal cigarettes. The market is segmented into bidis, cigarettes, and chewing tobacco.

1. Tobacco Market – India
March 2017
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2. Tobacco Market in India 2017
Executive Summary
Market Overview
Drivers and
Challenges
Competitive
Landscape
• The Indian tobacco industry is currently valued at INR x bn and is expected to grow at a GAGR of x% to reach INR x bn by 2020
• India is the second largest producer and third largest exporter of tobacco
• Almost x% of the tobacco consumed in India is totally outside the tax net and a bulk of it is not even packaged
• India is poised to increase its share of leaf tobacco trade, particularly as India’s tobacco production share in the world is more than x%
• India is amongst the top tobacco exporters in the world
Drivers
 Social factors combined with cultural practices fostering tobacco
use in India
 Facilitator for tobacco growers
 Industry sophistication and infrastructure
Challenges
 Cigarette taxes in India are amongst the highest in the world
 Smuggling of tobacco products
 Surrogate advertising
Major Players
Company 1 Company 2 Company 3 Company 4
Company 5 Company 6 Company 7 Company 8
2

3. Socioeconomic Indicators
Market Overview
Market Influencers
Competitive Landscape
Recent Developments
Appendix
3
Trade Analysis

4. Tobacco Market in India 2017
Socioeconomic Indicators
Total Population
4
Population Density
0
1,000
500
1,500
mn X%
2020
k
2019
j
2018
i
2017
h
2016
g
2015
f
2014
e
2013
d
2012
c
2011
b
2010
a
0
100
200
300
400
500
Y%
2020
Persons per sq. km
k1
2018
j1
2019
h1
2017
i1
a1 b1
2010
c1
2011
d1
2012
e1
2013
f1
2014
g1
2015 2016

5. Tobacco Market in India 2017
Market Definition & Structure
5
Tobacco Market
Market Definition
• Tobacco is an agricultural crop, grown in warm climates, most commonly used to make cigarettes
• It can be smoked in a cigarette, pipe or cigar; or can be chewed or sniffed through nose
• A chemical known as Nicotine present in tobacco is a stimulant that makes tobacco addictive
xxxx xxxxxx
Smokeless TobaccoSmoked Tobacco
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx

6. Tobacco Market in India 2017
Market Overview
6
Market Size & Growth Forecast
• The tobacco industry in India is currently valued at INR xx bn and is expected to reach a value of INR xx bn by FY 2020, exhibiting a CAGR of x%
 At the core of the industry are primary suppliers, manufacturers, and distributors (both wholesale and retail)
 Advertising agencies and media outlets that promote the purchase and use of tobacco products also play an important role in the industry
• India is the second largest producer and third largest exporter of tobacco in the world
 In India, xx% of arable land (xx mn hectares) is used for tobacco cultivation
 Referred to as “golden leaf”, tobacco is one of the important commercial crops of the country
 Ten distinct types of tobacco are grown and produced in xx states of India including cigarette (such as FCV, Burley, Oriental) and non-cigarette types (such as bidi, hookah, natu, cheroot, cigar)
 However, almost xx% of the tobacco consumed in India is totally outside the tax net and a bulk of it is not even packaged
• XX
0
500
1,000
1,500
2,000
INR bn
Xx%
FY 2020
xx
FY 2019
xx
FY 2018
xx
FY 2017
xx
FY 2016
xx
Current Market Scenario

7. Tobacco Market in India 2017
Market Segmentation
7
• Chewing tobacco accounted for xx% of the tobacco market in 2015-16,
whereas bidis accounted for xx%, and cigarettes accounted for xx%
• XX
xx
xx
xx
Bidis
Cigarettes
Chewing Tobacco
xx xx
xx
xx
Others
VST Industries
Godfrey Phillips
ITC
Product-Wise Segmentation (2015-16)
Market Share – Legal Cigarettes (2014-15)
• Due to increase in tax duties, growth in the tobacco industry has declined over
the past decade
• XX

8. Tobacco Market in India 2017
Porter’s Five Forces Analysis
8
• xx
• xx
• xx
• xx
Competitive Rivalry
• xx
Bargaining Power
of Suppliers
Threat of New
Entrants
Bargaining Power
of Buyers
Threat of
Substitutes

9. Tobacco Market in India 2017
Market Drivers
9
• xx
Social factors combined with cultural
practices fostering tobacco use in India
• xx
Facilitator for tobacco growers
• xx
Industry sophistication and infrastructure

10. Tobacco Market in India 2017
Competition
10
List of Major Players
Name Website
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Company 7
Company 8
Company 9
Company 10

11. Tobacco Market in India 2017 11
Company Information
Products and Services
Category Products/Services
XX XX
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Stock Exchange : Ticker
Key People
Name Designation
Person 1 Chairman and Managing Director
Person 2 Chief Executive Officer
Person 3 Group President
Person 4 Chief Financial Officer
Business Description
• XX
Public: Domestic Company – Company 1

12. Tobacco Market in India 2017 12
Key Ratios
Particulars 2013 2014 2015 2016
Profitability Ratios
Gross Margin %
Net Income Margin %
EBITDA Margin %
EBITA Margin %
EBIT Margin %
Return on Assets %
Return on Capital %
Return on Equity %
Return on Common Equity %
Liquidity Ratios
Current Ratio
Quick Ratio
Leverage Ratios
Total Debt/Equity
Total Debt/Capital
Interest Coverage
Efficiency Ratios
Total Asset Turnover
Fixed Asset Turnover
Accounts Receivable Turnover
Inventory Turnover
Financial Snapshot
Key Financial Performance Indicators
Indicators Value (13/02/2017)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Total Income Net Profit / Loss
0
500
1,000
1,500
0
10
20
30
40
50
60
INR mn
XX
XXXX XX
XX
FY 2013
XX
FY 2014 FY 2015
INR mn
FY 2016
XX
XX
Public: Domestic Company – Company 1 (Continued)

13. Tobacco Market in India 2017 13
Key Business Segments Key Geographic Segments
0%
20%
40%
60%
80%
100%
FY 2016
XX%
FY 2015
XX%
FY 2014
XX%
XX%
XX%
FY 2013
Xx%
XX%
100%
80%
60%
40%
20%
0%
FY 2016
XX%
Country 1Segment 4Segment 3Segment 2Segment 1
Public: Domestic Company – Company 1 (Continued)
Company 1 has been operating solely
in Country 1 over the last four years

14. Tobacco Market in India 2017 14
Company Information
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Business Description
• XX
Private: Domestic Company – Company 2
Products and Services
Category Products/Services
XX XX
XX XX
XX XX
XX XX
XX XX
Key People
Name Designation
Person 1 Chief Executive Officer
Person 2 Chief Operating Officer
Person 3 Head – Operations
Person 4 Chief Marketing Officer

15. Tobacco Market in India 2017
Recent Developments
15
Date Category Description Impact
Feb 22, 2017 Collaborations & Partnerships Low
Feb 01, 2017 Product Launch Low
Dec 19, 2016 Regulatory High
Dec 15, 2016 Regulatory Medium

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