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INDIAN TOBACCO INDUSTRY

ORIGIN OF TOBACCO
Tobacco is a plant that grows natively in North and South America. It is in the same family as the potato, pepper and the poisonous nightshade, a very deadly plant.

The seed of a tobacco plant is very small. A 1 ounce sample contains about 300,000 seeds! It is believed that Tobacco began growing in the Americas about 6,000 B.C.! As early as 1 B.C., American Indians began using tobacco in many different ways, such as in religious and medicinal practices.

Tobacco was believed to be a cure-all, and was used to dress wounds, as well as a pain killer. Chewing tobacco was believed to relieve the pain of a toothache!

HISTORY
In India the tradition of chewing tobacco has been from age old centuries. Production of cigarettes is 90% of total production of tobacco related products in the rest of the world. In India Tobacco is an important commercial crop grown. Tobacco production occupies the third position in the world with an annual production of about 725 Million Kgs. As an exporter of tobacco, India ranks sixth in the world next to Brazil, China, USA, Malawi and Italy. After China, India is the second largest producer of tobacco in the world. Of the total tobacco produced in the country, around 48% is consumed in the form of chewing tobacco, 38% as bidis, and 14% as cigarettes. Today Indias per capita consumption of cigarettes in India is a tenth of the world average

India has witnessed an unexpected increase in its tobacco exports, which has escalated by 55% to reach at $169 million in first quarter of 2008. The biggest player in India Tobacco industry is ITC with a market share of 72%. Although it has been said that cigarette smoking is injurious to health but still, there is an increasing in the profit margin of the Indian Tobacco Company.

With its wide range of invaluable brands, it leads from the front in every segment of the market.
It's highly popular and highly consumed list of brands include Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

PRODUCTION OF TOBACCO IN INDIA


Introduction India is the third largest producer and eighth largest exporter of tobacco and tobacco product in the world. While India's share in the world's area under tobacco crop has risen from 9% to 11% in the last 3 decades, its share in production has inched up from 8% to 9% intobacco industry. Asia and America, together account for 75% of world's production of tobacco. China, USA and India are the three leading tobacco-producing nations in the world

Production area
Andhra Pradesh, Gujarat and Karnataka account for the major portion (80%) of raw tobacco production in India. These states produce FCV tobacco, bidi tobacco, natu tobacco, cigar tobacco, cheroot tobacco and snuff tobacco. Other states which manufacture tobacco are Maharashtra, Orissa, Tamil Nadu, West Bengal, UP and Bihar.

PICTURES
RATIO FACTORY

The tobacco industry


Tobacco is an extremely important commercial crop in India. It is also the worlds second largest consumer of tobacco products. Cigarettes (14% of total market share) over other traditional tobacco products such as bidis, chewing tobaccos, snuff and shisha, which together account for the balance of 86%.

Tobacco provides a livelihood to 38 million people, and its economic contribution to Indias GNP..

The Smokeless Industry


Popular

among rural and urban consumer

smokeless tobacco is also much more popular among woman than smoking

Smokeless tobacco products in India include khaini, gutka, mawa, gudhaku, and zarda. Another product, pan masala, is often confused with gutka because it is packaged the same but it does not contain tobacco.

Market Share of Top India Smokeless Brands Retail Volume (%)

BRAND
RMD guthkha Dilbagh Tulsi Baba Goa Pan parag

COMPANY NAME
Dhariwal Industries Som Sugandh Industries Dharampal Satyapal Dharampal Satyapal Shree Meenakshi Food Products Kothari products

2011
12.5 6 3.7 3.5 3.5 2

Type of Smokeless Tobacco Description


Khaini/ Kharra Gutka (Gutkha) Mixture of sun-dried tobacco and lime. A dry mixture of crushed areca nut, tobacco, catechu (spices), lime, aromas and flavourings as well as other activities. General term for areca nut product. Does not usually contain tobacco and is often confused with Gutka.

Pan Masala

Mawa
Gudhaku

Uses shavings of areca nut, tobacco and lime.


A paste made of tobacco and molasses.

Zarda saffron.

Raw tobacco that is scented using spices such as

INTERESTING FACTS
There are about 4000 chemicals , and out of the 100 identified poisons , 63 are known to cause cancer. Nicotine is an addictive drug which takes only 6 sec to reach the brain. Smoking kills more people than cocaine ,heroin ,alcohol , fire automobiles accidents , suicides and AIDS combined. Every 8 sec some one in the world dies due to tobacco related illness. More than 3 million people under the age of 18 smoke about a billion cigarettes each year. Smoking is responsible for every 1 out of 5 American death. A person who smokes dies an average 7 years earlier to someone who does not smoke.

TOBACCO INGREDIENTS
HERE ARE SOME INGREDIENTS FOUND IN TOBACCO
Arsenic (rat poison) Acetic acid (hair dye and a photo developer) Acetone (nail polish remover) Ammonia (typical household cleaner) Benzene (rubber cement) Cadmium (found in batteries) Carbon monoxide (poison) Hydrazine (used in fuel for jet and rockets) Formaldehyde (used to embalm dead bodies) Naphthalene (used in explosives , moth balls & paint pigments)

WHY PEOPLE SMOKE


PEER PRESSURE THEY THINK ITS COOL THEIR PARENTS SMOKE THEY WANT TO BE SKINNY (FASHION) THEY FIND IT RELAXING REBELLION

How Tobacco Companies Target Youth

TEEN SMOKING
Decision to start smoking is almost always made in the teen years. Smoking is the #1 preventable cause for premature death. 90% of adult smokers are addicted to tobacco before they reach the age of 18 and currently the age of initiation of tobacco is 11.

HARMING OTHERS
An estimated 3000 non smoking Americans die of lung cancer every year. Kids who have 2 smoking parents are more likely to become smokers than the kids who have non smoking parents. Secondhand smoke from a parents cigarette increases a childs chances for middle year problems.

LONG TERM AND SHORT TERM AFFECTS


Numerous studies have evaluated the adverse health effects smoking has on the body and the economy. The most serious facts on smoking related health and economic risks are listed below.
Smoking can cause chronic lung disease , coronary heart disease and stroke. It can cause cancers of: cervix, pancreas and kidneys Nicotine causes short term increase in blood pressure, heart rate and flow of blood from heart. Arteries narrow 90% of all lung cancer deaths can be directly contributed to smoking. In addition to that, smoking is responsible for 80 to 90% of all deaths related to chronic lung diseases.

EFFECT OF CONSUMING TOBACCO


Oral cancer

Lung cancer

Adverse effects of chewing tobacco


Many people believe, wrongly, that chewing tobacco is a safe alternative to smoking. However this is hardly the case as the body suffers from multiple adverse health effects of tobacco. Recent studies have shown that chewing tobacco is not a safe alternative to smoking tobacco.

What are the dangers associated with chewing tobacco?


quitting process much more challenging. Chewing tobacco is highly addictive. In the duration of a half hour chew, the average smokeless tobacco user ingests an amount of nicotine which is equivalent to the amount in 4 cigarettes. It would take nearly 60 cigarettes to equal the amount of nicotine in a single can of chewing tobacco. Many users find it necessary to chew while they sleep because they have become entirely dependent on the product. Chewing tobacco, also called smokeless tobacco or snuff, contains over 25 carcinogens or cancer causing agents.

STRATEGIES OF TOBACCO INDUSTRIES


1. SOCIAL ENVIRONMENTAL FACTOR

2. LIFESTYLE

THE CIGARETTE INDUSTRY


Cigarette consumption makes up a small portion of the tobacco market in India, only 14% of tobacco products sold are cigarettes.
The tax increase has also led to many unfiltered brands being removed from the market. ITC Ltd stopped unfiltered cigarette production entirely and some companies have launched filter versions of their most popular unfiltered brands to maintain their customers.

The cigarette market in India is controlled by four locally established companies, but most companies also have close ties to international tobacco companies.

Light and Low Tar Cigarette

By engaging in this deception, [the tobacco companies] dramatically increased their sales of low tar/light cigarettes, assuaged the fears of smokers about the health risks of smoking, and sustained corporate revenues in the face of mounting evidence about the health effects of smoking..."

The Bidi Industry


Bidis are slim hand-rolled, unfiltered cigarettes that are rolled in brown tendu or temburni leaves and held together by a string. The product is often flavoured, and in general bidis are stronger tasting than regular cigarettes. Bidis are cheaper than cigarettes which makes them very popular in rural areas and among the poor. bidis are the number one tobacco product used in India, very little is actually known about the organization of the bidi industry. Bidi production is fragmented and because most brands are hand-rolled in individual homes on a small scale, the bidi industry is considered to be a cottage industry. In 1995 the Ministry of Statistics and Programme Implementation estimated there were over 6,600 bidi manufacturers in India, compared to 40 cigarette factories and 55 smokeless tobacco factories, bidi manufacturers greatly outnumber other types of product manufacturers. A woman sitting at home rolling 100 sticks a day qualifies as a bidi factory. The bidi manufacturing industry is divided into two different sectors: organized and unorganized. The organized sector is factory based.

Company 1.Bharat beedi works 2.Kerala Dinesh Beedi Workers Coperative 3.Mangalore ganesh beedi works 4. Pataka Biri Manufacturing Co Ltd 5. Rajah Group (Kajah Beedi Group)

Leading Bidi Companies and Brands Location Production & Distribution Mangalore Produces 60 million bidis a day. Popular in North and West India Part of the Bharath Group

Brands Thirty brand beedies

Kerala

Produces 30 million bidis a day. Kerala dinesh Market covers Kerala, Tamil Nadu beedi and Karnataka. Produces 20 billion bidis annually Network of 30 branches Produces 100 million bidis a day Has 10 factories (2004) 501

Tamil nadu, karnataka

Delhi

502 pataka beedi

Tamil nadu, Kerala, Maharashtra

Cooperative of four different companies

Kajah beedi action beedi

Women and Tobacco


"Women are a major target of opportunity for the tobacco industry, which needs to recruit new users to replace the nearly half of current users who will die prematurely from tobacco-related diseases."

Slim cigarettes targeting women

female smoking population is currently very small (about 3%),21 cigarette companies in Since 2007, slim cigarette brands have been launched to appeal to women smokers. The first slim cigarette to hit the Indian market was the Stellar Slims brand by Godfrey Phillips in 2007. The brand is marketed as having lower levels of nicotine with the satisfaction of a regular cigarette. In 2008, ITC Group launched Wills Classic Verve slim cigarettes targeted at women and first time smokers. ITC describes the brand packaged in a shiny red as

The tobacco industry engages in a comprehensive marketing strategy to create the impression that tobacco use is widespread and acceptable. These strategies include direct advertising (ads on TV or in magazines and at point of sale) and indirect advertising such as sponsorship of sports and concerts, product placement, and brand stretching. Examples include:
In 2010, Godfrey Phillips India broke into the Indian chewing industry with the launch of Pan Vilas, a premium pan masala brand, and planned to invest Rs 1 billion over three years on marketing the product. Nita Kapoor, vice president of marketing and corporate affairs said in reference to promoting Pan Vilas that the company would push this product aggressively to penetrate deeper in the market. the successful marketing of a pan masala brand will allow Godfrey Phillips easier access to the smokeless tobacco market. The company plans to launch a zarda product by the end of 2013.

ToBaCcO

industry relying on movies for brand promotion

The tobacco industry is increasingly lean9ng on movies for the promotion of its business in INDIA & several other countries following the ban on tobacco advertising, the WHO has warned. A survey of popular films has shown that tobacco brand displays exploded in bollywood after its advertising was banned in the media in 2004. Of the 395 top grosser In 1990-2002,76 % depicted the use of tobacco. The percentage of scenes showing lead actors of heroes using tobacco increased from 22 in 1991 to 54 in 2002. Of the 110 Hindi movies produced in the year 2004-2005,89 % depicted tobacco use .The lead actors were shown smoking in 76% of these movies.

HOW THEY DO IT

Country or region China India Brazil United States European Union Zimbabwe Turkey Indonesia Russia Malawi

Production in thousands of tons 2,298.8 595.4 520.7 408.2 314.5 204.9 193.9 166.6 116.8 108.0

Smoking is an addiction
The facts on smoking indicate that smoking is very much an addiction, similar to heroin and cocaine. The main ingredient in tobacco, nicotine, stimulates the portion of the brain that is connected with a pleasurable feeling. The neurotransmitter, dopamine, controls the desire to consume drugs. Nicotine has been shown to increase dopamine levels in the pleasurable portion of the brain. This feeling is quickly realized, within 10 seconds of the inhalation of nicotine and dissipates soon after the cessation of smoking. This causes cravings and the subsequent use of nicotine to calm the craving. This repetitive process; craving, satisfaction, craving; associated with symptoms of withdrawal is indicative of addiction.

Irritability
Nicotine users can experience increased irritability when going through nicotine withdrawal.

Sleep disturbances
A person going through nicotine withdrawal can experience unpleasant sleep disturbances.

Decreased appetite
Another common withdrawal symptom of nicotine is an decreased appetite. This causes many people, especially women, to resume smoking.

India: Tobacco Industry

Tobacco Industry (From Tobacco Atlas, 2006) Cigarette Production 90 Billion Cigarette Imports 200 Million Cigarette Exports 1.5 Billion

Diseases Caused by Smoking: CPSII Study: Men


Standardised mortality per 100,000 per year
Life-long nonsmoker Current cigarette smoker Relative risk Attributable %

Cancer Lung Upper respiratory Bladder Pancreas Oesophagus Kidney Ischaemic heart Aortic disease aneurysm Stroke COPD All diseases

24 1 18 18 9 8 500 24 147 39 788

537 27 53 38 68 23 970 98 328 378 2520

22.4 24.5 2.9 2.1 7.6 3.0 1.9 4.1 2.2 9.7 3.2

87 89 36 25 66 37 22 48 27 72 40

Overall risk to smokers and never-smokers


100 80 80

Never smoked regularly

% Alive

60 40 20 0

Current cigarette smokers

59
7.5 years

33 12

40

55

70

85

100

Age
Doll et al BMJ 1994

Health benefits of smoking cessation


Increased longevity Stabilisation of lung cancer risk (but not absolute decline) Heart disease risk declines towards non-smoker level over 10 years Improved reproductive health Improved recovery from surgery

THE QUIT PLAN


TREAT YOURSELF WELL DRINK LOTS OF WATER CHANGE YOUR ROUTINES REDUCE STRESS DEEP BREATHING REGULAR EXERCISE

DO SOMETHING ENJOYABLE EVERYDAY


INCREASE NON-SMOKING SOCIAL SUPPORT OTHER IDEAS ?

Effects of quitting
20 mins: blood pressure and pulse rate return to normal blood nicotine & CO halved, oxygen back to normal CO eliminated; lungs start to clear mucus etc. circulation improves. lung function increased coughs decrease risk of lung cancer halved compared to continued smoking;

8 hours:
24 hours:

2-12 weeks:
3-9 months: 5 years:

Source: Health Education Authority

Lung cancer risk by age and smoking habit


20.0 17.9

Rate per 1000 person years

16.0 13.2
12.0 9.2 8.0 7.0 4.5 4.0 0.6 0.3 0.1 0.0 0.0 1.7 0.6 2.7 7.1 75-84 3.9 1.1

45-54
55-64 65-74

0.6

Nonsmokers

1-14 cigs

15-24

25 +

Smoking habit

CPS2

Lung cancer risk by age of quitting


Lung cancer deaths per 100,000
Current smokers Never smokers quit 30-39

1500

1000

quit 40-49

quit 50-54

500
quit 55-59

0 40 50 60 70 80

quit 60-64

Age

Halpern JNCI 1993: CPS2 data

Cumulative deaths from tobacco (millions)

Scenarios for future deaths from tobacco


520
500

Trend

400

300

220
200

100

70

0 1950 1975 2000 2025 2050

Year
Source: Peto et al

Cumulative deaths from tobacco (millions)

Scenarios: impact of prevention


520
500

Trend

400

500 If smoking uptake halves by 2020

300

220
200

100

70

0 1950 1975 2000 2025 2050

Year
Source: Peto et al

Cumulative deaths from tobacco (millions)

Scenarios: impact of cessation


520
500

Trend

400

500 If smoking uptake halves by 2020 340

300

220
200

If adult smoking halves by 2020

190
100

70

0 1950 1975 2000 2025 2050

Year
Source: Peto et al

REASONS TO STOP SMOKING


To live longer Better breath You will save a lot of money You will be around to see your grand children You wont harm people around you You will cough less You will not have to hide the habit from your family You will be able to taste & smell food better Your teeth will become whiter

HOW TO STOP
Set a date for quitting If u feel like smoking chew a gum or suck on hard candy instead. Keep yourself busy and occupied Change your morning routine Put away your ash trays and cigarettes Eat regular meals Reward yourself at the end of the day by going for a movie or out for dinner..

Health concerns
Do you think smokeless tobacco use is good for your health?
Good: (8%) Neither good nor bad: (10%) Not good: (81%)

Do you think smoking is good for your health?


Good: (8%) Neither good nor bad: (6%) Not good (85%)

To what extent, if at all, has smoking damaged your health?


Not at all: (2%) A little: (34%) Very much: (92%) Dont know: (10%)

CONCLUSIONS
Tobacco production is an important source of income for Indias farmers. Manufacturing, particularly of bidis, is also a source of employment and hence of income for a large number of people. To be effective, measures to control the use of tobacco would need to address all forms of consumption, not only cigarettes.

Presented ByDolly Rathod Mariyam Khatib Onkar Sawant Rishabh Engineer Sneha Iyer Siddhi Nalawade Wagisha Singh Yashika Malhotra

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