Previous Issues Industry Spotlight Industry Spotlight Q2 10
South Korea
KT&G has signed a licensing agreement with Imperial Tobacco Group Plc’s to manufacture Davidoff cigarettes starting in the first half of 2010, the company has announced.
KT&G has lost market share to imported brands in recent years, and this move is a sign that the company is taking back the initiative, according to some commentators. KT&G’s share prices rose as investors welcomed the news
India
The Indian white stick segment is once again bowing to the inevitable and prices to consumers have already risen in response to significant excise hikes. The effective rates of taxation on cigarettes was 190%, but the government’s new budget has slapped on another 17% or more in excise duties.
India
Hitkari Multifilters (Mumbai) announce that Debbie Hitkari has joined the board of Hitkari Multifilters and all other Hitkari Group of Companies (KKH Group). The KKH Group was founded in 1896 and has successfully grown over the years.
KKH Group continues to diversify with the help of management consultants and has entered into several JV’s in the recent past.
Philippines
Philip Morris Philippines Manufacturing Inc. (PMPMI) and Fortune Tobacco, who between them control around 90% market share in country with an estimated annual consumption of 85 billion cigarettes, have agreed to combine operations by forming a new company in which both entities will hold equal shares. "Philip Morris and Fortune Tobacco concluded an agreement to form a new company called PMFTC," announced Chris Nelson, president of Philip Morris Philippines.Fortune Tobacco’s tycoon head Lucio Tan, one of the richest men in the Philippines will be chairman of the new company while Philip Morris will manage day-to-day operations, according to a statement issued by PMPMI.
"The deal will allow creation of a portfolio of strong brands and will benefit the Philippine economy by boosting development and expansion of tobacco growing, exports and investment," according to Matteo Pellegrini, president of Philip Morris’ Asian operations. "This transaction is a tremendous strategic fit for our business that will cement our leadership in Southeast Asia."
Pakistan
Tobacco and cigarette exports earned Pakistan US$11.3 million in 2009, according to Pakistan Tobacco Board (PTB) secretary Noman Bashir quoted by APP. Citing the country’s research and development programs Bashir told reporters that the per-hectare yield had risen from 900kg to 2,500kg, the highest of any Far Eastern countries.
"In a bid to sustain its ability to export tobacco, PTB has focused on the application of balanced fertilization, deep ploughing and topping at appropriate stage as these factors contribute a lot towards quality improvement," Bashir noted. The Tobacco Board, has also worked to improve existing barn structures by redesigning the top and bottom ventilators, flue-pipe setting and venturi-type barn furnaces and introducing hygrometers.
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