Q&A: Arun Hitkari

Staff Report

Dapper and dedicated, suave and sophisticated, pleasant and philanthropic – that’s the picture that comes to mind when one thinks of Arun Hitkari, managing director and chairman of Hitkari Multifilters. Well-dressed and well-spoken, he has been a legendary figure in the industry for many years. Always urbane and erudite, Arun strikes a distinct picture with his Italian suits and other global bespoke attire during office hours, at worldwide conferences, or at cocktail-dinner soirees with colleagues and friends.

Actually, he is friends with everyone as he exudes a friendly figure when he personally meets and greets everyone with his warm and hospitable presence. Style and substance sums up Arun Hitkari.

And now he has shared with Tobacco Asia that after six or seven years, while he retains chairmanship of Hitkari Multifilters, he is deputizing his son, Arjun Hitkari, as managing director of the company and also of other group companies. Arjun, with seven to eight years work experience, is a hardworking, down-to-earth, humble person and just right to take on the reins. Here, Arun shares some of his thoughts and insight.

Tobacco Asia: Please could you share how you first joined the industry? What drew you to it?

Arun Hitkari: It was a natural choice as I was an avid smoker who enjoyed the enchanting whiff and wonder of a good smoke, immensely influenced by the aura of Hollywood movies that depicted acclaimed actors inhaling and exhaling superb smoke in style.

Tobacco Asia: How has it been like for you working in the industry? Could you please share some unforgettable experiences, good and bad, that particularly stand out in your mind?

Arun Hitkari: It has been a totally enjoyable experience working in the tobacco industry, for you get an opportunity to meet and interact with people from various countries and cultures which is an enriching experience. The plus point is that you come across people who are honest, hardworking, and knowledgeable. The common suppliers prevalent in the worldwide industry is great as most people know one another.

There is plenty of good in the industry. But then there is also a sad and bad part with, of late, the world changing, though I would not like to elaborate.

Tobacco Asia: When did you start Hitkari Multifilters?

Arun Hitkari: The Hitkari brand was established in 1896. One of the first Indian cigarette filter manufacturing companies, Hitkari Multifilters was founded on January 26, 1973, after Mr. A N Haskar, the then chairman of ITC, approached my father to start the business. It all began with viscose filters and steadily progressed to acetate filters and some more complex filters.  I am the fourth generation of the brand and my son, Arjun, on assuming the title of MD, would be the fifth generation.

Tobacco Asia: Hitkari Multifilters is now a leading filter manufacturer as well a  representative for many more companies in the Indian market. What’s next for Hitkari?

Arun Hitkari: Yes, we cherish receiving the prestigious award in 2008 from ITC in recognition for excellence in Quality Management from 2005 – 2007. We are happy to be instrumental in bringing foreign suppliers of spare parts, machinery, and raw materials directly into the Indian market, thereby giving Indian companies a chance of purchasing directly in India from world leaders. And, like the trend worldwide, we have diversified into the non-tobacco sector.

We have always advocated a social conscious and, like in the years gone by, we continue to contribute to social causes that are unrelated to the filter business. These include sponsoring a trust for orphans, helping finance a hospital in Mumbai, sponsoring a school near one of the many manufacturing facilities, and establishing a fund to assist widows of police officers who have sadly lost their lives in the line of duty.

Tobacco Asia: What do you see as being the key areas for future development and growth in the Indian and Middle Eastern markets?

Arun Hitkari: Since advertising of cigarettes is restricted, consumers can be drawn to brands that opt for cigarette packs that don special shapes other than the ordinary, like slim and tall packs, flat and broad ones, or even the artistic Japanese fan opening shape.  Special embossing of the aluminum foil inside the pack would also be another strong point in luring the consumer to cigarette brands.

Tobacco Asia: What are the challenges the industry currently faces in those markets?

Arun Hitkari: The big problem is that taxation in India is prohibitively high, resulting in very steep price of cigarettes. This has resulted in encouraging cigarette smuggling and counterfeit manufacture. This scourge has resulted in the Indian government losing crores of rupees. Moderate taxation is the need of the hour.

Another big bane is that 85% of the cigarette pack displays a health warning picture which makes India a country with the largest pictorial warning in the world. Countries like the US, China, and Japan, accounting for 51% of global cigarette consumption, have no pictorial warning whatsoever. Rationalizing of taxation and curbing of illicit manufacture and smuggling is required.