10 Best Selling Cigarette Brands In India

Do you know what the 10 best selling cigarette brands in India are? India’s tobacco market is estimated at around $11 billion, and the country is poised to become one of the biggest tobacco markets over the next few decades. The country has become a huge market for cigarettes, accounting for more than 12% of the world’s smoking population. However, an estimated one million Indians die because of smoking, which is an ages-old habit in India. The country’s people have chewed tobacco and smoked hookah and bidis since ancient times, which has persisted into modern times, with approximately 48% of Indian males consuming tobacco and 16% smoking bidis.

But with rising levels of disposable income, India is poised to witness a paradigm shift from low-end products to high-end filtered cigarettes. Smoking is considered fashionable amongst Indian youth, who generally develop the habit at a tender age, although the legal age is 18. However, only 10% of Indian adult males smoke cigarettes according to the Global Adult Tobacco Survey India 2010.

Though most of the 10 best selling cigarette brands in India are comprised of top global players like ITC Ltd and Godfrey Philips, the majority of cigarettes consumed in India are also procured from illegal sources. The country is the fourth-largest illegal cigarette market in the world, with legal cigarettes accounting for just 11% of the country’s total consumption. A large number of cigarettes are also smuggled into India.

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Tobacco crops are vital for the Indian economy, as they contribute more than INR 300 billion ($4.64 billion) in annual tax revenue and also add to foreign exchange, according to the Tobacco Institute of India (TII). India also stands as the largest producer and exporter of tobacco in the world. Therefore, despite the harmful outcome of smoking, the government cannot take very stringent measures against tobacco production or the industry in general.

Check out our list of the 11 top selling cigarettes in the world to see how cigarette sales are faring globally.

Still, the Government of India has made it mandatory for companies to display 85% pictorial warnings on cigarette packets and completely banned smoking in public places. The excise duties and VAT (value-added tax) on cigarettes have also significantly gone up in recent years. The industry continually faces increased regulatory and taxation pressures which have led to a significant fall in the sale of retail cigarettes, with volume dropping by 8% to 88.1 billion sticks in 2015.

On the following pages, we have compiled the 10 best selling cigarette brands in India. Since we could not find a relevant source listing the sales of the most popular cigarette brands in India, we have ranked the most popular cigarette companies in India based on their sales and have listed their most popular brands. ITC Ltd and Godfrey Phillips India Ltd (GPI) are the leading manufacturers, with the former accounting for retail volume share of 79% and GPI at 11%. Other than domestic manufacturers, the country also has many large international players like Philip Morris, British American Tobacco, and R.J Reynolds Tobacco Co, selling cigarettes in India. However, the Indian government is considering tightening the foreign investment rules in the tobacco sector.

10. Philip Morris International Inc (NYSE:PM)

Popular brands – Marlboro, Benson & Hedges, Parliament

Philip Morris is a global manufacturer of cigarettes, with sales in more than 180 countries. In India, the company operates as a joint venture between Philip Morris of Switzerland and Indian partners Godfrey Philips, India Ltd. and K.K. Modi Services Pvt. Ltd. The Marlboro brand of cigarettes manufactured by Philip Morris (USA) is one of the 10 best selling cigarettes brands not only in India but also worldwide. These cigarettes come in a variety of flavors and sizes preferred by both men and women. Other than Marlboro, Benson & Hedges and Parliament are also sold in India.

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9. British American Tobacco Plc (NYSEMKT:BTI)

Popular brand – Dunhill

British American Tobacco ranks 9th in our list of best selling cigarette brands in India. It is a multinational cigarette company with its head office in London. Through strategic partnerships and acquisitions, the company has emerged to become one of the leading cigarette companies globally. British American Tobacco is the proud owner of some of the world’s best selling cigarette brands. Popular for its taste and smell, its Dunhill brand of cigarettes is sold in India. Although a bit expensive when compared to other options available in the market, the Dunhill brand is favored for its different varieties and varying levels of nicotine and tar.

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8. Reynolds American, Inc. (NYSE:RAI)

Popular brand – Pall Mall

R.J Reynolds is the second-largest tobacco company in the U.S, and was founded in 1875. Reynolds Tobacco’s Pall Mall is a popular selling brand in India. The cigarette was launched in the premium category and is known for its smooth taste and slow burn smoking experience. It is also one of the fastest growing cigarette brands in the U.S. The cigarette is available in different tobacco strengths and methanol content.

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7. PT Gudang Garam Tbk

Popular brand – Gudang Garam

We are continuing our list of best selling cigarette brands in India with Gudang Garam, that is a popular Indonesian brand of cigarettes sold in India. The hand-rolled cigarettes are manufactured at two sites in Java, Indonesia. These cigarettes are preferred by smokers who have a preference for smoking aromatic-flavored cigarettes, as they are clove-flavored (known as kretek cigarettes). Gudang Garam was the most smuggled cigarette brand in India in the past.

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6. NTC Industries – INR 89 million ($1.38 million)

Popular brands – Regent, Cool, No.10, NGF, Maypole, Jaipur, General

With annual sales of $1.38 million, NTC Ltd. ranks sixth on our list of the 10 best selling cigarette brands in India. NTC Industries, formerly known as National Tobacco Co. of India Limited, was founded in 1931. One of the oldest manufacturers of cigarettes in India, the company today has a manufacturing capacity of 11.2 billion cigarettes annually, in a wide range of brands. The company was the pioneer of 84mm King Size filter cigarettes and menthol cigarettes in India.

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5. RTCL – INR 120 million ($1.86 million)

Popular brand – Current

Formerly known as Raghunath Tobacco Company Ltd., RTCL Ltd is the next in line on our list of best selling cigarette brands in India. It is involved in cigarette and tobacco manufacturing. The company has a manufacturing facility in the central state of Uttar Pradesh in India, with a capacity of 2.38 billion cigarettes annually. It also plans to set up an in-house tobacco processing unit to further reduce costs.

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4. Golden Tobacco Ltd. – INR 440 million ($6.81 million)

Popular brands – Panama, Chancellor, Golden’s, Steel

We are continuing our list of best selling cigarette brands in India with Golden Tobacco Ltd. that came into existence in 1930. It was the first company fully engaged in the manufacturing and exporting of a wide range of cigarettes, cigars and other non-tobacco smoking products. The company has two established manufacturing facilities in India. Panama is the most popular brand of cigarettes made by Golden Tobacco.

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3. VST Industries Ltd. – INR 8.83 billion ($1.37 billion)

Popular brands – Charms, Charminar

The Vazir Sultan Tobacco Company Limited, or VST Industries Ltd., ranks 3rd in our list of best selling cigarette brands in India. It is one of the largest tobacco companies in India. Incorporated in 1930, the company today has a manufacturing facility in the southern state of Telangana. The manufacturing and selling of cigarettes is the company’s primary business activity, accounting for almost 87% of its sales, while unmanufactured tobacco sales account for the other 13%. Its Charminar is one of the most popular and reasonably-priced cigarette brands in India.

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2. Godfrey Philips India Ltd. – INR 24.11 billion ($3.46 billion)

Popular brands – Four Square, Red and White, Cavanders, Hawk Eye

Godfrey Philips is the second largest cigarette player in India. The world’s leading cigarette company, Philip Morris, holds a stake in Godfrey Philips. The company was incorporated in 1936 and today has more than 800,000 retail outlets. The company also has an international presence and exports its own cigarette brands like Force 10, Jaisalmer, Originals, Black Jack, Stellar and Sahara to the Middle East, Asia, Australia, and parts of Africa, Europe, and America. The company also manufactures and markets Marlboro cigarettes in India under a license agreement with Philip Morris.

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1. ITC Holdings Corp. (NYSE:ITC) – INR 368.37 billion ($56.97 billion)

Popular brands – Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal

With annual sales of nearly $57 billion, ITC Ltd. ranks first on our list of the 10 best selling cigarette brands in India. The Indian Tobacco Company (ITC) Ltd. is the market leader of cigarettes in India by far, with sales of more than 10-times its nearest rival. The company has four production facilities in India. ITC’s Gold Flake tobacco brand is the largest FMCG brand in India. The company recently announced that would increase the price of its ‘Navy Cut’ and ‘Gold Flake’ brands of cigarettes in India.

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