ITC UNLIKELY TO FEEL THE MERGER IN NEAR FUTURE

Article Abstract:

The proposed merger of British American Tobacco Plc and Rothmans International is not likely to affect ITC Ltd (ITC) immediately. The officials of ITC Ltd will meet to take stock of the situation. It has 65 percent share totally and 80 percent share in the premium king-size segment of the cigarette market in India. Its international brands have been accepted by consumers in India. The merged entity of British American Tobacco Plc and Rothmans International may plan to introduce some brands of Rothmans International in India through ITC Ltd. The premium segment is 5 percent of the total cigarette market and ITC Ltd has to take steps to increase its market share in this segment. (rk) (kvr)

Comment:

The proposed merger of British American Tobacco Plc and Rothmans International is not likely to affect ITC Ltd (ITC) immediately.

Asset sales & divestitures, Strategy & planning, Acquisitions & mergers, Facilities & equipment, British-American Tobacco Company Ltd., Rothmans International PLC, ITC Ltd.

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CIGARETTES GET 6-11% STICK, BIDIS SPARED

Article Abstract:

The current year's budget has slapped a six percent to 11 percent hike in excise duty on cigarettes, while bidis are spared. The premium brands will pay 11 percent more and the lower end varieties six percent higher excise duty. The excise duty as per last year budget was Rs1,100 per 1,000 sticks on the king size cigarettes, Rs820 per 1000 for 71 mm to 75 mm cigarettes, Rs500 for filtered cigarettes up to 70 mm. Non filtered variety was paying an excise duty of Rs350 per 1,000 for 61 mm to 70 mm, Rs90 per 1,000 for cigarettes up to 70 mm. (rk)

Comment:

India: Country's 1998-99 budget includes a 6% to 11% hike in excise duty on cigarettes

Taxes, Article

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MoF FOR CURBS ON 100% FDI IN CIGARETTES

Article Abstract:

The ministry of finance has proposed a restrictive policy for 100 percent foreign direct investment (FDI) in the cigarettes sector. The ministry has recommended that 100 percent FDI should only be allowed if the foreign company is setting up an export oriented unit (EOU). The ministry feels that domestic manufacturers will not be adversely affected as an EOU has to export 75 percent of its production and only 25 percent can be retained for the domestic tariff area. (khr)

International economic relations

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