Govt strictness over pictorial warning on cigarette packs may force ITC to explore other options

If the ITC does not want to part ways with profits from its cash cow business, it will have to look for non-tobacco segment.

After the company shut its manufacturing plants in the wake of government’s new rule of larger pictorial warnings, ITC will have to stress on steaming other businesses and also attract health-conscious consumers.

As per Euromonitor, global tobacco sales may increase 4.3% annually through 2019 and cigarettes, which account for more than 91% of industry sales, may go down.

In a bid to remain in the business, companies will have to back non-combustible products.

As per experts, they have to innovate products and develop strategies for unconventional cigarettes.

ITC has already introduced e-cigarette 'Eon', nicotine chewing gum KwikNic. However, it remains to be seen how much growth will all these products see in the market and if government’s stricter regulations work or not.

(Image: BCCL)