More Stories

Informist, Wednesday, Jun. 17, 2026

 

--Dealers: ITC launched smaller size Classic brand cigarette at 75 mm length 

--Dealers: ITC's new 75 mm Classic cigarette priced at INR 17 per stick 

--Dealers: Smaller size Classic available only in pack of 10 cigarettes 

--Dealers: Smaller Classic cigarettes available only in price sensitive mkts 

--Dealers: ITC launched smaller Classic cigarettes to maintain sales volume 

--Dealers: ITC launched smaller Classic cigarettes due to excise duty hike 

 

By Avishek Rakshit

 

KOLKATA – Faced with a sharp decline in cigarette sales after a steep price hike, ITC Ltd. has recently launched a new Classic brand of cigarettes, trimming the length and pricing it 41% lower than existing King sized cigarettes. 

 

Priced at INR 170 for a pack of 10, the new trimmed Classic brand of cigarettes is only available in select markets that are extremely price-sensitive, dealers told Informist. After the government hiked the excise duty on cigarettes sharply, ITC raised prices considerably to maintain margins while deciding to pass on the tax burden to consumers in a staggered manner.

 

Before the new excise duty came into effect, ITC's best seller Kings brand, Classic, was priced at INR 170 for a pack of 10 cigarettes. After the taxes were increased effective Feb. 1, ITC raised the 84 mm Classic price to INR 240 for a pack of 10. 

 

"Sales have tanked since then and the Kings portfolio, which is 84 mm cigarettes, was hit hard as consumers started downgrading to 74 mm packs. The newly launched 75 mm Classic brand is expected to prevent consumers from downgrading and stick to their preferred brand," said Ananda Roy, who owns a cigarette shop named Moti Variety Stores in Kolkata.

 

Roy said that the newly introduced 75 mm size of Classic looks exactly the same as the 84 mm size. "The filter size and quality in 75 mm is the same as 84 mm and the product packaging and logo is also the same like the King sized Classic. ITC has reduced only the length," he said. 

 

According to the 'sgovernment notification of the new excise duty, filter cigarettes of length exceeding 70 mm but not exceeding 75 mm are taxed at INR 5,400 per 1,000 sticks. Comparatively, all cigarette sizes exceeding 75 mm are taxed at INR 8,500 per 1,000 stick. This is in addition to the government hiking the Goods and Services Tax rate on cigarettes to 40% from Feb. 1 from the previous 28%. While the 84 mm Classic falls under the higher tax bracket, the 75 mm Classic is in the lower one. 

 

Shambhu Pal, proprietor of Kal Bhairav Traders, a distributor in the southern part of Kolkata dealing with ITC Ltd's cigarette brands, said the 75 mm Classic brand was available only in a pack of 10, while the 84 mm Classic brand was available in packs of 10 and 20. 

 

"ITC is testing waters with this pack and maybe at a later date, the company may roll out a 20s pack if the 10 pack finds traction. As of now, consumers who used to smoke the Classic brand but downgraded have switched back to the 75 mm Classic brand," Pal said. 

 

Dealers said ITC's cigarette sales volume fell sharply by 15-20?ter the company hiked prices following the sharp increase in taxes. This prompted ITC – the country's largest cigarettes company with a mammoth 70% market share – to come up with new cigarette sizes to maintain sales volume. 

 

"A consumer who was already paying INR 170 for a 10's pack of Classic will not mind paying the same amount for the same brand albeit a reduced size," Pal said. 

 

Dealers said new smokers also prefer new packs and sizes like slim cigarettes (100 mm - 120 mm) instead of the traditional King and Mini King sizes, prompting cigarette companies to experiment with new products and roll out differentiated ones under successful mother brands. 

 

For instance, ITC rolled out Gold Flake Social under the Gold Flake mother brand and also introduced low smell cigarettes christened Classic Alphatec under the Classic mother brand. ITC has cited new launches and differentiated products as one of the key sales growth drivers of its cigarettes business for the past several quarters. 

 

At 1202 IST, shares of ITC traded 0.5% lower at INR 290.35 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.