Archive · 3 Aug 2026
ITC Plans to Outgrow Cigarette Tax Shock in 2024
ITC is a big Indian company that sells cigarettes, food, and paper.
The government raised the tax on cigarettes, so ITC’s cigarette profits fell a lot.
Instead of raising prices all at once, ITC slowly increased prices over the quarter.
They also launched new products and longer cigarettes to keep people buying from them.
While cigarette sales dipped, ITC’s food and paper businesses grew, helping the company stay profitable.
ITC’s cigarette earnings fell 35% YoY after a steep excise duty hike.
The company staged gradual price increases, absorbing about 70% of the tax impact by June.
New product launches and longer king‑size variants helped keep volumes down only 5% YoY.
FMCG and paperboard segments grew, with paperboard profit up 43% and FMCG revenue up 12%.
Agri trading sales fell 16% due to West Asia conflict, but could have grown 9% without it.
- Who
- ITC Limited, an Indian conglomerate
- What
- Adjusting strategy to mitigate a steep cigarette tax hike
- When
- June quarter of FY 2024-25
- Where
- India
- Why
- To protect profitability and consumer base amid rising excise duty
- Company
- ITC Limited
- Fiscal Quarter
- June 2024 (Q1 FY 2024-25)
- Cigarette earnings drop
- 35% YoY
- FMCG revenue growth
- 12% YoY
- Paperboard profit increase
- 43% YoY