TOBACCO


Harshit Jain – 66
Rahul Wani – 90
Dhruven Shah – 102
Onkar Bane – 104
Ruchi Panchal – 110
Sarita John - 113
 Introduction

 Tobacco is a product of :
Genus - Nicotiana
Family – Solanacea

 Commercial crop :
N. Tabacum

 Discovery

 Uses :
Cigarettes, Cigars, Bidis, Chewing Tobacco, Betel leaves pan

 India is the second largest producer in the world (8.3%)

 VST Industries

 Manufactures : Cigarettes
 Exports : Cigarettes and Tobacco
 3rd Largest Manufacturing Company
 Largest Exporter to the Middle East
 Dividend : 450% in 2011
 Location : Hyderabad.
 History :
1. Vazir Sultan Tobacco Company Limited
2. Incorporated on 10th Nov, 1930
3. Hyderabad Companies Act No. IV of 1320 Fasli
4. Mir Osman Ali Khan
 Name Change : VST Industries Limited (30th Apr, 1983)
 Four Major Cigarette Brand :
1. Charminar (1st Brand)
2. Charms
3. Moments
4. Kingston

 Hierarchy :

Chairman

Managing
Director CFO
Director

 Share Holders :
British American Tobacco (BAT) : 32.2%
 Godfrey Phillips

 One of the largest player in the Indian Cigarettes
 Annual Turnover – Rs.4,348 Crores (2015-2016)
 Established in 1930
 Five Manufacturing Facilities
 Tobacco based products and their export
 Non tobacco products/businesses
 Energy Conservation

 General Energy Situation
 Sustainability in Tobacco Production
 Energy Efficient Drive Technology
 Challenges

GPIL VST Ind. Ltd.

Manager’s Rating 4 4
Student’s Rating 4 4
 Strong Government

 Increase In Tax
 Implement larger pictorial warning
 Regulation on sale of tobacco products near educational
institutions
 Ban on advertisements, sponsorship and promotion of
tobacco

GPIL VST Ind. Ltd.

Manager’s Rating 2 3
Student’s Rating 3 3

 Effect of Inflation on
Tobacco industry

 Reducing Tobacco quantity
 Increasing Sale Price
 Reducing Length of sticks

GPIL VST Ind. Ltd.

Manager’s Rating 3 3
Student’s Rating 3 3
 Technological
Advancements

 Automated Filling Machines
 Highly Sensitive Metal detectors
 Flavour dosing system
 Packing Machines
 Dock Leveller

GPIL VST Ind. Ltd.

Manager’s Rating 5 5
Student’s Rating 5 5
 Hiring Minorities

 Minorities in the tobacco agricultural sector near both urban and rural
areas
 Minorities in the tobacco manufacturing sector :
1. Women
2. Children
3. Physically handicapped individuals
 Main functions of minorities in tobacco industry :
Sorting, Checking, Baking, Labelling, Packing, Distribution

GPIL VST Ind. Ltd.

Manager’s Rating 3 2
Student’s Rating 2 2
 Advantages &
Disadvantages

 Advantages :
1. Health Care
2. Maternity benefits
3. Group Insurance
4. Water Supply and Sanitation

 Disadvantages :
1. Less Wages for Minorities compared to men counterparts
2. Health Problems : bronchial asthma, tuberculosis, cancer,
spondylitis, anaemia and eye problems
3. Lack of Union for Minorities
4. Lack of Protection gear
 Higher Education

 Two Parameters taken into consideration:
1. Employees 2. Organisation
 Godfrey Phillips: No policies for employees and no association
with any Organisation
 VST Industries: Policies for the employees but no association
with any Organisation

GPIL VST Ind. Ltd.

Manager’s Rating 2 4
Student’s Rating 1 4
 Points Covered

 Introduction – Tobacco
 Introduction – 2 Organisations
 Energy Conservation
 Strong Government
 Effect of Inflation
 Technology
 Hiring Minorities
 Higher Education