ITC enters cigars business

"The company recently launched the Armenteros hand-rolled cigars in the Indian market," a company spokesman told PTI.ITC's entry he said, was to mark a presence in the cigar business in the country which at present was serviced by imports.

The company, he said, has entered into an arrangement with the La Aurora factory in Dominican Republic, one of the oldest cigar manufacturing companies in the world.
Asked whether ITC was also eyeing neighbouring markets for exports, he said that at present, the focus would be on the domestic market. ITC is the largest cigarette manufacturer in the country


The spokesman said that the cigars would be manufactured under ITC's specifications and the packaging would be custom-made.Asked whether the overseas outfit would have any kind of equity investment in the venture, he said that no such arrangement was there. "They will only do the blending for ITC."

According to industry estimates, the size of the cigar industry was around Rs 30 crore and it is growing.Initially launched in Mumbai and Delhi, the brand would be rolled out in the other metros as well.The spokesman said that the ITC brand would be cheaper when compared to imported ones.The product would be available in leading hotels, fine dining restaurants and clubs.