CIGARETTE MANUFACTURING UNIT
[EIRI/EDPR/1406] J.C. 182, 537US$, 572
INTRODUCTION
Cigarette consumption in India in 2010-11 reached 102 billion sticks, down from a peak of 109 billion sticks in 2006-07.
Fewer than 6% of the adult population smoke cigarettes, representing a very small constituent of tobacco users in the country.
Despite accounting for just 15% of tobacco consumption, cigarettes contribute 75% of total tobacco tax revenues, a situation that continues to create difficulties for the growth of the segment.
Three major cigarette companies account for around 98% of legitimate domestic cigarette sales. But, as in other nations slapping high taxes on cigarettes, India has recently been forced to face the fact that an increasing number of illicit, tax-unpaid products are finding their way into the market.
Commercial tobacco is obtained by processing the leaves of plant genus NICOTIANNA. The processed leaves when smoked, hewed or in halted exert a mild narcotic effect on the human system, which is addictive. Tobacco products fall under three categories:- smoking, chewing and inhaling. Cigarettes, bidis, cigars, pipe and hookah tobacco is the products which are smoked. There are various types of preparations which are chewed. Shuff is the product which is inhaled.
The varieties of tobacco which are called desi-type have tall plants with broad long leaves and usually plants with pink flower. Rustlca variety known as vilayati and Kolkata have short plants with round puckered leaves and yellow flowers. Specific varieties in talcum species have been developed for cigarette, cigar, bidi, hookah, and chewing and shuff tobacco. The varieties developed in rustical species are used only for hookah chewing and shuff. They are not suitable for use in cigarettes, bidis or cigars.
COST ESTIMATION
Plant Capacity 1 Million Sticks/Day
Land & Building (4000 sq.mt.) Rs. 5.60 Cr
Plant & Machinery Rs. 5.64 Cr
Working Capital for 2 Months Rs. 3.92 Cr
Total Capital Investment Rs. 16.24 Cr
Rate of Return 42%
Break Even Point 43%
CONTENTS
INTRODUCTION
RAW MATERIAL
BIS SPECIFICATION
MARKET POSITION
TOBACCO BOARD
THE CIGARETTE INDUSTRY IN INDIA
MARKET SHARE:
FINANCIALS
TOP CIGARETTES BRANDS IN INDIA
CIGARETTE MANUFACTURERS IN INDIA
CLASSIFICATION OF INDUSTRY
RESEARCH METHODOLOGY
MARKETING & MERCHANDISING SERVICES OFFERED TO MARKET CIGARETTES
LICENCING REQUIREMENT AND THEIR DEPARTMENT
MANUFACTURING PROCESS
DETAILS OF MANUFACTURING PROCESS
MAIN STEP IN THE MANUFACTURING PROCESS OF CIGARETTE
PROCESS FLOW DIAGRAM
METHODS FOR MANUFACTURING CIGARETTES
PLANT LAYOUT FOR CIGARETTES
SUPPLIERS OF COMPLETE CIGARETTE
PRODUCTION PLANT & EQUIPMENT
SUPPLIERS OF RAW MATERIALS
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
