ITC slips 2%; Maharashtra bans sale of loose cigarettes

ITC has been struggling with its falling cigarette volume. January-March quarter was the eight consecutive quarter of volume decline in cigarettes. The company says that it is seeing unprecedented pressure on legal cigarette industry sales volumes.

June 02, 2015 / 10:01 IST

26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of ITC and Godfrey Phillips slipped around 2 percent intraday Tuesday on reports that Maharashtra has decided to ban sale of loose cigarettes. After Chandigarh, this is the second region to declare ban on sale of loose cigarettes as there are no danger warnings to smokers on those sticks. Unlike cigarette packets, which carry a written and a pictorial warning, loose cigarettes carry no such deterrent.

According to the report, Chief Minister Devendra Fadnavis has also approved it and Maharashtra will also declare it illegal to chew tobacco in public places.

A health department report indicated that more than 70 percent smokers in the state buy loose cigarettes, and its sale was in violation of the Cigarettes and Other Tobacco Products Act (COTPA) of 2003.

ITC has been struggling with its falling cigarette volume. January-March quarter was the eight consecutive quarter of volume decline in cigarettes. The company says that it is seeing unprecedented pressure on legal cigarette industry sales volumes. In Q4FY15, its cigarettes revenue grew to Rs 4,210.7 crore from Rs 4,079 crore (YoY) with EBIT margin at 64.3 percent against 62.6 percent (Y-o-Y). ITC sells brands like Gold Flake, Classic and India Kings.