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PROJECT REPORT

UNNATI MANAGEMENT PRIVATE LIMITED

Marketing Wing- NTC Industries Limite
RDB GROUP

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INTRODUCTION
About the Institution
Bharatiya Vidya Bhavan was founded by Kulapati Dr. K. M. Munshi in the year
1938.The founding members of the Bhavan included Dr. Rajendra Prasad, Shri C
Rajagopalachari, Pandit Jawarharlal Nehru, Sardar Vallab Bhai Patel, several
distinguished scholars, statesmen and leaders of modern Indian Renaissance.
From small beginning, Bhavan has grown into an internationally reputed
intellectual, cultural and educational movement. It has 112 centre of which 7 are
overseas and there are 280 constituent institutions. Bhavans Institute of
Management Science more popularly referred to as BIMS hails from the
reputed fraternity of Educational Institutions under the Bharatiya Vidya Bhavan.
Born in the year 2000, with the aim of imparting managerial skills and business
acumen to the young and energetic, the institution has successfully created a
niche for itself among the B- Schools of Kolkata. It is worth mentioning that the
Bhavans family also holds a premier Management Institute, The S. P. Jain
Institute of Management and Research at Mumbai, besides similar ones at New
Delhi and Bangalore .

About the Company

Unnati management private limited was established in year of 2007. The founding
Directors are Mr. PRADEEP KUMAR HIRAWAT, Mr. PRAKASHH JAIN, BIDYUT DEY
and Mr. SUMIT BANTHIYA. Unnati Management Private Limited is a Marketing
and distribution company in FMCG products with more than 30 years experience
currently operating in Eastern India with a plan to be a national player with the
vision of to become Indias leading Marketing and Distribution Company in FMCG
Sector with an outlook to be international. Unnati Management Private Limited is
the Marketing Wing of NATIONAL TOBACCO COMPANY (NTC). Their mission is to
bring the Consumer and Company under one roof to facilitate availability &
Knowledge to experience the product at an affordable cost.

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About Unnati Management Private Limited

INTRODUCTION
A Marketing and distribution company in FMCG products with more than 30 years
experience currently operating in Eastern India with a plan to be a national player.
VISSION
To become Indias leading Marketing and Distribution Company in FMCG Sector
with an outlook to be international.
MISSION
To bring the Consumer and Company under one roof to facilitate availability &
Knowledge to experience the product at an affordable cost.
AIMS & OBJECTIVES
To provide best in class marketing and distribution solution infrastructure
to desiring companies who like to established their brand.
To establish a sustainable and professional distribution network that is
capable of maximizing distribution and availability in all relevant trade
channels.
Continuously benchmarking and improving the efficiency of our operating
model in each of our business.
Carefully extending our geographic footprints to provide new horizons for
growth.

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PRINCIPLES
That bond common interest.
That allow us to confirm long term partnership.
Profitable endeavor to both parties.
Work hard and strive to be the best.
PERSPECTIVE
Long term view in achieving common goals among related interest.
Deal in group related products that are available in similar outlets or are
intended for the same market.
To explosively improve long term profit and venture into whole new galaxy
of sales and distribution.
With multi products venture under one roof will empower all concerned
Organization with sustainable competitive advantage.
STRENGTH
Dedicated highly trained and enthusiastic sales team to sell & promote
products.
Product placement and brand awareness in quick time.
Have a very strong local presence and recognize the local retailers by name.
On time delivery of products to the retailers through direct door to door
marketing.

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PROJECT INTRODUCTION

Topic : Marketing Research

Key Responsibilities :
Collecting Information about Retailers
Introducing NTC products to retailers alongwith profit margins and
nature of the product
Noting down complains and greviances from retailers
Launching of a New Product

Research Design Methodology

Duration of the Project : 2 Months
Areas Covered : Nagerbazar, Madhyamgram, Barasat
Scope and Objectives : Market Awareness of NTC Products and Questionnaire on
National Gold Flake

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TOPIC OVERVIEW
Marketing Research
The process of gathering, analyzing and interpreting information about a market,
about a product or service to be offered for sale in that market, and about the
past, present and potential customers for the product or service; research into
the characteristics, spending habits, location and needs of your business's target
market, the industry as a whole, and the particular competitors you face.

Factors of Marketing Research

Product Development
Your competition might add features to its product or introduce completely new
products. Your current customers might age out of your target demographic
group. New technology might threaten to make your product or service obsolete.
If any of these scenarios happens, your internal research and development people
help you respond. Just because your sales are going well or youre a leader in your
marketplace doesnt mean you dont need to re-evaluate what youre selling on a
regular basis. Perform a SWOT analysis of your product or service each year to
determine your strengths, weaknesses, opportunities and threats so you can stay
ahead of the competition.

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Price
You ultimately control what your price will be, even when competitors raise or
lower their prices. If you must lower your prices, you have the opportunity to
decrease your overhead and production costs to help maintain your profit
margins. If you want to keep your current pricing structure, you can manage your
brand messaging to convince consumers you are worth your price because you
offer a unique benefit. In some instances, you might lower your prices even when
youre profitable to squeeze your competition.
Distribution
Where you sell your product is critical to maximizing your sales volumes and
profits. You can decrease the guesswork in choosing distribution channels by
performing a SWOT analysis of each. This will help you determine whether you
should use direct sales, wholesalers, retailers, distributors or sales reps. If you use
intermediaries, you can set limits on their activities. monitor their performance
and provide training and advice.
Communications
Your marketing team is responsible for creating, evaluating and choosing your
advertising, promotions, public relations, sponsorship, cause-marketing and social
media efforts. In addition to planning these activities internally, you can also track
the return on your investments using financial reports and tracking results via
coupons, website statistics, sales reports and customer surveys.
Budget and Resources
Based on your resources, you decide how much to spend on marketing and where
you will spend your budget. If you cant afford a full-fledged marketing
department, you can hire contractors to help with graphic design, social media

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campaigns, advertising buys, promotions and public relations campaigns. You
work with your contractors, directing their efforts, while they handle the
execution of your plans. As you or your marketing manager become more familiar
with these activities, or as your revenues grow, you can bring more of these
functions in-house.

Advantages
Indicates current market trends:Marketing research keep business unit in touch with the current market
trends and offer guidance for facing market situation with confidence.

Pinpoints deficiencies in marketing policies:MR pinpoints the deficiencies as regards product, pricing, promotion,
etc. it give guidance regarding different of marketing. They include
product
development,
branding,
and
packaging.
Explains customer resistance: MR is useful for finding out customer resistance to companys products.
Remedial measures are also suggested by the researcher to deal with
the situation. This makes the product and marketing policies agreeable
to
consumers.
Suggests sales promotion techniques:MR enables a manufacturer to introduce appropriate sales promotion
techniques, select most convenient channel of distribution, suitable
pricing policy for the products and provision of discounts and
concessions to dealers. Marketing research facilitates sales promotion.
Offers guidance to marketing executives:MR offers information and guidance to marketing executives while
framing marketing policies. It enables a company to face adverse

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marketing situation boldly. It acts as an insurance against possible
changes in market.
Facilitates selection and training of sales force:marketing research. It also suggests the incentives which should be
offered for motivation of employees concerned with marketing.
Promotes business activities: marketing research enables a business unit grow its activities. It creates
goodwill in the market and also enables a business unit to earn high
profits through consumer oriented marketing policies and programmes.
Facilitates appraisal of marketing policies:
Research activities enable business executives to have an appraisal of
the present marketing policies in the light of findings of research work.
Suitable adjustments in the policies are also possible as per the
suggestions
made
by
the
researchers.
Suggests new marketing opportunities:
MR suggests new marketing opportunities and the manner in which
they can be exploited fully. It identifies emerging market opportunities.
Facilitates inventory study:
marketing research is useful for the evaluation of companys inventory
policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw material.

Provides marketing information:

MR provides information on various aspects of marketing. It suggests
relative strengths and weakness of the company. On the basis of such
information, marketing executives find it easy to frame policies for the
future period. MR provides information, guidance and alternative
solutions to current marketing problems.

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Suggests appropriate distribution channels:
MR can be used to study the effectiveness of existing channels of
distribution and the need of making suitable changes in the distribution.
Provides information on product acceptance:
marketing research helps in knowing the probability of acceptance of
the product in its present form. It is also useful for the introduction of
modifications in the existing product line of a firm.
Creates progressive outlook:
MR generates progressive and dynamic outlook throughout the business
organisation. It promotes systematic thinking and a sense of
professionalisation within the company. It also creates enthusiasm
among marketing executives. This brings success and stability to the
whole
business
unit.
Has wider social significance:
MR is of paramount importance from the social angle. It is the means by
which the ultimate consumer literally becomes king of the market place,
with his desires, prejudice and every whim transmitted to the producer
and distributor. In brief, MR has wider scope significance. It is useful to
all parties involved in the process of marketing.

Disadvantages

Before a company develops a new product for the companys existing product
line, executives often conduct market research to see if the new product will be
profitable, while examining the direct need for the product. Although market
research for new products has advantages, disadvantages also are associated with
the process. Company executives must decide whether market research is
necessary for the new product in question.

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Research Costs:Market research can be costly depending on the methods chosen by the
company. Hiring a company to conduct the market research is one of the more
costly methods, but using existing employees is also costly as research,
questionnaires, interviews and examinations of the results must be scheduled and
accounted for during working hours. Asking a few individuals is not enough to get
reliable and credible information and figures for the market research.

Time:Another disadvantage of doing market research is the time associated with doing
the research and performing questionnaires and interviews. Time is directly
related to the costs, as the longer the research takes, the more costly it may turn
out for the company. Questions must be prepared, answers must be provided by
volunteers and answers must be examined by employees within a given time
period.
Needs of the Market:Another factor that influences market research negatively is the volunteers and
their respective answers. For example, the company may only survey one group
of people who all respond that the product is not interesting enough for them to
purchase. However, another group of individuals may be more than willing to
spend money on the product if it is available. One disadvantage of market
research is only getting a certain group of target buyers opinions rather than a
broad sample.
Limited Volunteers:Market research is primarily based on peoples opinions and views of a single
product or service. The lack of respondents may also be a negative factor for a
companys market research. If the company sends out an online questionnaire,
not everyone can fill it out, especially those with limited Internet access, for
example. Another disadvantage of performing market research is the lack of an
experienced interviewer representing the company.

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Sampling
Definition of Sampling :
A process used in statistical analysis in which a predetermined number of
observations will be taken from a larger population. The methodology used to
sample from a larger population will depend on the type of analysis being
performed, but will include simple random sampling, systematic sampling and
observational
sampling.
The sample should be a representation of the general population.
Meaning :
When taking a sample from a larger population, it is important to consider how
the sample will be drawn. To get a representative sample, the sample must be
drawn randomly and encompass the entire population. For example, a lottery
system could be used to determine the average age of students in a University by
sampling 10% of the student body, taking an equal number of students from each
faculty.
The sampling process comprises several stages:

Defining the population of concern

Specifying a sampling frame, a set of items or events possible to measure
Specifying a sampling method for selecting items or events from the frame
Determining the sample size
Implementing the sampling plan
Sampling and data collecting
Data which can be selected
Probability (Random) Samples
Simple random sample

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Systematic random sample
Stratified random sample
Multistage sample
Multiphase sample
Cluster sample
Non-Probability Samples
Convenience sample
Purposive sample
Quota
Simple random sampling
In a simple random sample (SRS) of a given size, all such subsets of the frame are
given an equal probability. Furthermore, any given pair of elements has the same
chance of selection as any other such pair (and similarly for triples, and so on).
This minimises bias and simplifies analysis of results. In particular, the variance
between individual results within the sample is a good indicator of variance in the
overall population, which makes it relatively easy to estimate the accuracy of
results.
Systematic sampling
Systematic sampling relies on arranging the study population according to some
ordering scheme and then selecting elements at regular intervals through that
ordered list. Systematic sampling involves a random start and then proceeds with
the selection of every kth element from then onwards. In this case, k=(population
size/sample size). It is important that the starting point is not automatically the
first in the list, but is instead randomly chosen from within the first to the kth
element in the list. A simple example would be to select every 10th name from
the telephone directory (an 'every 10th' sample, also referred to as 'sampling with
a skip of 10').

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Stratified sampling
Where the population embraces a number of distinct categories, the frame can
be organized by these categories into separate "strata." Each stratum is then
sampled as an independent sub-population, out of which individual elements can
be randomly selected. There are several potential benefits to stratified sampling.
First, dividing the population into distinct, independent strata can enable
researchers to draw inferences about specific subgroups that may be lost in a
more generalized random sample.
Second, utilizing a stratified sampling method can lead to more efficient statistical
estimates (provided that strata are selected based upon relevance to the criterion
in question, instead of availability of the samples). Even if a stratified sampling
approach does not lead to increased statistical efficiency, such a tactic will not
result in less efficiency than would simple random sampling, provided that each
stratum is proportional to the group's size in the population.
Third, it is sometimes the case that data are more readily available for individual,
pre-existing strata within a population than for the overall population; in such
cases, using a stratified sampling approach may be more convenient than
aggregating data across groups (though this may potentially be at odds with the
previously noted importance of utilizing criterion-relevant strata).
Finally, since each stratum is treated as an independent population, different
sampling approaches can be applied to different strata, potentially enabling
researchers to use the approach best suited (or most cost-effective) for each
identified subgroup within the population.
Probability-proportional-to-size sampling
In some cases the sample designer has access to an "auxiliary variable" or "size
measure", believed to be correlated to the variable of interest, for each element
in the population. These data can be used to improve accuracy in sample design.
One option is to use the auxiliary variable as a basis for stratification, as discussed
above.
Another option is probability proportional to size ('PPS') sampling, in which the
selection probability for each element is set to be proportional to its size

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measure, up to a maximum of 1. In a simple PPS design, these selection
probabilities can then be used as the basis for Poisson sampling. However, this
has the drawback of variable sample size, and different portions of the population
may still be over- or under-represented due to chance variation in selections.

Cluster sampling
Sometimes it is more cost-effective to select respondents in groups ('clusters').
Sampling is often clustered by geography, or by time periods. (Nearly all samples
are in some sense 'clustered' in time - although this is rarely taken into account in
the analysis.) For instance, if surveying households within a city, we might choose
to select 100 city blocks and then interview every household within the selected
blocks.
Clustering can reduce travel and administrative costs. In the example above, an
interviewer can make a single trip to visit several households in one block, rather
than having to drive to a different block for each household.
Quota sampling
In quota sampling, the population is first segmented into mutually exclusive subgroups, just as in stratified sampling. Then judgement is used to select the
subjects or units from each segment based on a specified proportion. For
example, an interviewer may be told to sample 200 females and 300 males
between the age of 45 and 60.
It is this second step which makes the technique one of non-probability sampling.
In quota sampling the selection of the sample is non-random. For example
interviewers might be tempted to interview those who look most helpful. The
problem is that these samples may be biased because not everyone gets a chance
of selection. This random element is its greatest weakness and quota versus
probability has been a matter of controversy for several years.

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INDUSTRY REVIEW

In India the tradition of chewing tobacco has been from age old centuries. Around
48% is in the form of chewing tobacco out of the total tobacco produced in the
country, were 38% as bidis, and only 14% as cigarettes. These bidis snuff and
chewing tobacco (such as gutka, khaini and zarda) form the bulk (86%) of India's
total tobacco production. Production of cigarettes is 90% of total production of
tobacco related products in the rest of the world. In India Tobacco is an important
commercial crop grown. Tobacco production occupies the third position in the
world with an annual production of about 725 Million Kgs. The production has
different types grown like , flue-cured tobacco, country tobacco, burley, bidi and
rustica. As an exporter of tobacco, India ranks sixth in the world next to Brazil,
China, USA, Malawi and Italy.
Indian Tobacco and tobacco products earn a whopping annual sum of about
Rs.10271 crores to the national exchequer by the way of excise revenue, and
Rs.2022 Crores (2006-07) by way of foreign exchange. In India the per capita
consumption of cigarettes is merely a tenth of the world average. The unique
tobacco consumption pattern is the combination of tradition and more essentially
the tax imposed on cigarettes. Cigarette smokers pay almost 85% of the total tax
revenues generated from tobacco.
Cigarettes:
A cigarette is a product consumed via smoking and manufactured out of cured
and finely cut tobacco leaves and reconstituted tobacco, combined with other
additives, then rolled or stuffed into a paper-wrapped cylinder (generally less
than 120 mm in length and 10 mm in diameter).The cigarette is ignited at one end
and allowed to smolder for the purpose of inhalation of its smoke from the other
(usually filtered) end, which is inserted in the mouth. They are sometimes smoked
with a cigarette holder. Approximately 5.5 trillion cigarettes are produced globally

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each year by the tobacco industry, smoked by over 1.1 billion people, which is
more than one-sixth of the worlds total population.
The Global Tobacco Market:
There is a widely held perception that globally tobacco is a declining industry. This
is not so. There has been a steady increase in production and consumption over
the last decade and this trend is expected to continue. The Food and Agricultural
Organization has forecast an annual growth rate in global tobacco production and
consumption at around 1.9%. The world market for tobacco products grew by
32% over the last five years the latest period for which authentic data is
available and was valued at approximately US$ 235 billion in 1994
Global cigarette consumption has grown by 22% since 1980 and was estimated at
5,422 billion sticks in 1995. Cigarettes constitute the principal form of tobacco
usage in virtually every market of the world and account for 85% of global
tobacco consumption by volume and 93% by value. Tobacco is a major source of
revenue to Governments in both the developed and emerging markets and
cigarettes contribute the lions share of such revenues.
Top 5 Cigarette Consuming Countries in the World
Data for the Year 2013-14

Top 5 cigarette consuming countries.

(In Million Cigarettes)
Japan
Indonesia
Top 5 cigarette
consuming countries. (In
Million Cigarettes)

USA
Russia
China
0

100000 200000 300000 400000

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Cigarette Consumption in world

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History of Indian Cigarette Industry
In India the tradition of chewing tobacco has been from age old centuries.
Around 48% is in the form of chewing tobacco out of the total tobacco produced
in the country, were 38% as bidis, and only 14% as cigarettes. These bidis snuff
and chewing tobacco (such as gutka, khaini and zarda) form the bulk (86%) of
India's total tobacco production. Production of cigarettes is 90% of total
production of tobacco related products in the rest of the world. In India Tobacco
is an important commercial crop grown. Tobacco production occupies the third
position in the world with an annual production of about 725 Million Kgs. The
production has different types grown like , flue-cured tobacco, country tobacco,
burley, bidi and rustica. As an exporter of tobacco, India ranks sixth in the world
next to Brazil, China, USA, Malawi and Italy.

Indian Tobacco and tobacco products earn a whopping annual sum of about
Rs.10271 crores to the national exchequer by the way of excise revenue, and
Rs.2022 Crores (2006-07) by way of foreign exchange. In India the per capita
consumption of cigarettes is merely a tenth of the world average. The unique
tobacco consumption pattern is the combination of tradition and more essentially
the tax imposed on cigarettes. Cigarette smokers pay almost 85% of the total tax
revenues generated from tobacco.

Size of the industry

India is exporting tobacco today to 80 nations which is over all the continents in
the world. At present the Indian Tobacco Industry is providing livelihood to more
that 25 million people in the country. From the total tobacco items exported from
India, the unmanufactured tobacco shares around 80 % to 85 % of the total
exports while the manufactured tobacco products hold around nearly 20 % to 25
%. In the unmanufactured tobacco exports, Flue Cured Virginia tobacco accounts
nearly 75 % to 80 % export. Non cigarette tobacco exported worldwide is
Lalchopadia, Judi, and Rustica are used for chewing and making bidis. Around 8 %

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to 10 % non- cigarette tobacco is exported in throughout the world. According to
the international trends, non cigarette tobaccos are the dominating item in the
national export. According to the current situation in the international tobacco
market India is proved to emerge out as the favorable market for the Indian
tobacco export. There are several advantages which can be put forth for favoring
the Indian tobacco. Like low unit production cost, average export prices of
tobacco in India, which are found more competitive than that of the prices of
Brazil, USA, Zimbabwe.
India is one of the major producers of tobacco in the world - ranking third with a
production of about 600,000 tonnes, after China (3,000,000 tonnes) and USA
(700,000 tonnes). India is the fourth largest consumer of tobacco in the world.
Many types of tobaccos are grown in India (not all are used for cigarettes).

Cigarette Industry in India:

The tobacco industry holds tremendous potential for India. For the government, it
means excise duties and export revenues, and for the Country in general, it
translates into huge employment opportunities.
Despite being the second largest producer, India is only the ninth largest exporter
of tobacco and tobacco products in the world. Out of the total tobacco produced
in India, only one-third is flue-cured tobacco suitable for cigarette manufacturing.
Most of the tobacco produce is suitable for the manufacture of chewing tobacco,
bidis and other cheap tobacco products, which have no demand outside the
country. There is only an export demand for flue-cured tobacco, which is used for
cigarette manufacturing.
If India adopted a rational tax policy for the tobacco industry that encouraged the
growing of export tobacco, tobacco farmer income would increase and export
revenue would grow. If India adopted Chinas tax policy on tobacco, tax revenue
could rise from the current Rs 6,031 crore to Rs 54,000 crore. Chinas economyoriented tax policies have given cigarettes 100% share of domestic tobacco
consumption. This strong domestic base has proved to be conducive to exports as
well as revenue generation.

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The Indian tobacco industry makes a very substantial contribution to
employment. 35 million people are directly or indirectly engaged in the
production and selling of tobacco & tobacco products as shown in the table
below.
The production of tobacco is integral to the economies of a number of Indian
states and regions, where it is grown. Tobacco is predominantly grown in Andhra
Pradesh, Karnataka, Gujarat and Uttar Pradesh. Growing of tobacco is very
lucrative owing to its short growing season and the profitability in relation to
other cash crops.
Indian consumption of tobacco does not follow western trends with 38% of
tobacco being consumed as bidis, 48% as chewing tobacco, and only 14% as
cigarettes. That is, bidis, snuff and chewing tobacco such as gutka, khaini and
zarda form the bulk (86%) of Indias total tobacco production. This low percentage
of consumption in cigarettes of 14% compares to 90% in the rest of the world. In
fact the per capita consumption of cigarettes in India is merely 1/10th of the
world average.
This unique tobacco consumption pattern is a combination of tradition and more
importantly the discriminatory tax imposed on cigarettes over the last 2 decades.
Cigarette smokers pay almost 85% (Rs 5,181 crore) of the total tax revenues
generated from tobacco. This discriminatory tax is justified on the grounds that it
is a luxury tax. This is a misnomer because it is the discriminatory tax, which is
causing the difference in prices between cigarettes and other tobacco products.
Revenue contribution from each of the forms of tobacco consumption. Cigarettes,
with only 14% of the Indian consumption, account for more than 85% of the total
revenue from tobacco products. In reading this chart one should realize more
than 50% of the revenue from cigarettes is taxation.
Tobacco consumption and revenue split 2002/2003
The Bidi industry is relatively unorganized, rural and labour intensive in nature,
with very few large producers. They wrap the product in tendu leaf and much of
the industry volume is hand rolled. The market is very regional in character with
different brands sporting different shapes and sizes dominating the market.

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Themajor centres of production are:
1. Andhra Pradesh (A.P.)
2. Bihar
3. Gujarat
4. Kerala
5. Madhya Pradesh (M.P.)
6. Chattishgarh
7. Tamilnadu
8. Maharashtra
9. Karnataka
10. Orissa
11. Uttar Pradesh (U.P.)
12. West Bengal
On the cigarette side India is rapidly seeing a growing demand for filter tipped
cigarettes on account of the rising middle class who are migrating from non-filter
cigarettes to filter tipped cigarettes, owing to the rise in the disposable income of
the people.
The tax collection from cigarettes is the highest in the tobacco industry: duty per
kg for cigarettes is as high as Rs. 722 per kg, while combined duty per kg for other
tobacco products like bidis and chewing tobacco is only Rs. 21 per kg.

Market Share by Cigarette Manufaturer in India

In India, three major cigarette players dominate the market, primarily ITC with
73% market share, Godfrey Phillips with 8% ,VST with 8% share and NTC with 4%
of the market and 2% for Others. However, for Godfrey Phillips there exists huge
untapped opportunity for growth on account of geographical expansion
possibilities (as it is presently available in only the northern, western and certain
southern parts of the Country) and product portfolio expansion.

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Indian Tobacco Industry - A brief overview

1. Indias total tobacco business across our nation.

1,16,166 million sticks in the year 2013 (increase of 4.19 % from
previous yrs)
2. Global tobacco consumption.
In the yr 1880 10 billion sticks and in 2013 5884 billion sticks
3. Global tobacco market growth rate.
2% to 3%
4. Indias annual excise revenue from tobacco products.
22000 cr
5. Market share by cigarette manufacturer.
73% ITC / 13% GPI / 8% VST / 4% NTC/ 2% OTHERS
6. Excise duty and VAT in major producing states.
64 mm 1200/ 000
69 mm 1700/ 000
72 mm & above 3000/ 000 for 10s packs
VAT as per state regulation W.B. 35 %

7. NTC production.
96 million sticks/ month.

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Pie Diagram for the Year 2013

Market share by cigarette manufacturer.

VST
8%

NTC OTHERS
4% 2%

GPI
13%

ITC
73%

CHALLENGES AND OUTLOOK

Taxing tobacco and tobacco products has always been the preferred way of
generating revenues by the central and state governments especially in times of
sustained inflationary pressures and uncertain macro-economic environment.
The consistent rise in excise duty and regulatory restrictions are the biggest
challenges for the sector. Besides, increasing anti-tobacco drives and the ban on
consumption in public areas further posses a big challenge for the sector. The
Union Budget 2014 announced a steep increase of 18% to72% in cigarette Excise
Duty rates. Besides, there were also arbitrary increases in Value Added Tax (VAT)
on cigarettes by States Governments.
While India's low per capita cigarette consumption bodes well for the sector, the
future growth of the industry is completely dependent on the individual
consumption patterns and their adherence to the anti-tobacco campaign.

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Product Life Cycle Of Cigarettes Industry
Product Life Cycle
A concept that helps the marketer to trace the stages of a product from birth to
death.
It consists of four stages:

Introduction

A period of slow sales growth as the product is introduced in the market. Profits
are nonexistent because of the heavy expenses incurred with product
introduction.

Growth

It is the period of rapid market acceptance and substantial profit improvement.

Maturity

A period of slow down in sales growth because the product has gained
acceptance by most potential buyers. Profits stabilize or starts declining because
of increase in completion

Decline

The period where sales show a downward drift and profits erode.
PLC Analysis Of Cigarettes
Analysis of the product life cycle of cigarettes is done in order to determine to
which stage cigarettes have reached in India. After analyzing the cigarettes
industry in India it was found that cigarettes are in the maturity stage of their PLC
This is because of the reason that most of the attributes shown by the cigarettes
in India are similar to the attributes of a product in maturity stage.

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Cigarettes are in the maturity stage because of the following reasons which are
also the attributes of a product in maturity stage:

Decrease in sales and profits

There is a decrease in per capita consumption of cigarettes which is evident from

the following table and graph showing that the sales of cigarettes have slowdown

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The main reasons for this decrease in sales is due to following reasons
o People have become more health conscious.
o A growing tax rate on cigarettes which has leaded to increase in price
of cigarettes which make people to which over to cheaper
substitutes like chewing tobacco and bidis.
o Customer has started looking for not only performance but also
cost

In cigarettes industry because of the intensive competition and standardized

products customer has become more powerful and demand not only for quality
but also low cost.

Market is being dominated a market leader

Cigarettes market in India is dominated by ITC because of its quality, low cost
production and mass distribution network.

Increase in promotion activities

Maturity stage shows a significant increase the promotional activities which is

clearly evident from the activities which are being followed by the cigarettes
company to increase their brand visibility

28:
SWOT Analysis of the Tobacco Industry.

Strengths
Distribution network well in place.
Variety of Brands.
Most companies are financially sound.
Addictive in nature.

Weakness
Hazardous Product.
Causes various forms of cancer.
Social Taboo.

Opportunities.
International market.
Market penetration.
Womens market.
Cigrattes to bidi making which is bigger.

29:
Threats.
Declining market.
Heavy taxes and duties.
Growing anti-smoking movement.
Increasing rate of smuggling of imported cigrattes.
Entry of global brands.
New government restrictions.
World Health Organisation.

Cigarettes Brands In Indian Market

Brands for cigarettes in Indian market can be divided two categories:-

DOMESTIC BRANDS
Regent Black
Fine Cut
National Gold Flake
Maypole
Cool
Navy Cut
Wills Insignia
Classic
Silk cut
Gold Flakes
India King

National Tobacco Company

National Tobacco Company
National Tobacco Company
National Tobacco Company
National Tobacco Company
Indian Tobacco Company
Indian Tobacco Company
Indian Tobacco Company
Indian Tobacco Company
Indian Tobacco Company
Indian Tobacco Company

30:
Scissors
Berkeley
Charms Filter King
Charms
Charminar
Four Square
Maxus
Jaisalmer
originals
Panama
Style
Loe tabac

Indian Tobacco Company

Indian Tobacco Company
Vazir Sultan Tobacco
Vazir Sultan Tobacco
Vazir Sultan Tobacco
Godfrey Phillips India Ltd.
Godfrey Phillips India Ltd.
Godfrey Phillips India Ltd.
Godfrey Phillips India Ltd.
GTC INDUSTRIES LIMITED
GTC INDUSTRIES LIMITED
GTC INDUSTRIES LIMITED

INTERNATIONAL BRANDS
Marlboro
Dunhill
Rothmans
555 State Express
Mild Seven
Benson & Hedges
More
Davidoff

Altris
British American Tobacco company
British American Tobacco company
British American Tobacco company
Japan Tobacco company
Gallaher Group
RJ Reynolds
Imperial Tobacco company

31:
Segmentation
Segmentation refers to the division of market based on similar preferences and
taste of the people. Talking about the Cigarettes industry in India, the
demand is based upon homogeneous preferences among the people stating the
urge of consuming tobacco by the way of smoking. Keeping these factors in mind,
the marketers have segmented the market on the DEMOGRAPHIC bases with
three main factors i.e. gender, income and age of the consumers.

1) To target different Income groups in the market, the companys uses three
different segment markets which are:
a) Super premium: It covers the upper segment of the market that have high
income level and more brand conscious while selecting the product from the
market and who are not concern about the price of the product. The consumers
targeted at this level are entrepreneurs, IT professionals, Doctors, Lawyers, top
level executives and other people at high post in government jobs.
b) Premium: The next level of segmentation done by the marketer is premium
levels, where Middle level people are targeted who are concern about both the
factors i.e. Brand as well as Price of the cigarette. In early stage of time, this
segmentation was given more attention in terms of Promotion and Brand
awareness due to high consumption of cigarettes at this level as compare to
other but with changing period of time, the concern for super premium has also
drawn equal attention.
c) Bingo: The lowest level for segmentation defined by the marketers in Cigarette
industry, where people with low income level are targeted. As people here are
more concern about the price of the product rather than the quality or the brand,
the companies are rarely concern about their brand awareness and promotional
activities.

2) Second bases of segmentation is done on the Geographical factors mainly

targeting three areas i.e.

32:
a) Urban areas like Delhi, Bangalore, Mumbai, Kolkata etc
b) Sub-urban areas like Nagpur ,Indore, Allahabad
c) Rural areas consists of all villages and other backward areas.
3) Finally the segmentation is done on the basis of age, where the light cigarettes
(that contain low level of Nicotine & Tar is less in the cigarette) are targeted to
the low age group of people and who are at their initial stages of smoking like
school going children, teenagers etc. where as strong cigarettes (with high level of
Nicotine & Tar) are targeted to the people of medium & higher age group and
people who are at later stages of their smoking like adults, professionals etc.

Distribution channel

Distribution channel refers to the process, through which the company is able to
deliver its product to the consumer, by the help of various intermediaries which
are generally known as wholesalers, retailers and distributors. Now as we know
the selection of channel is based upon various important factors like type of
product, type of consumers targeted availability of resources with the
organization etc.
Keeping above factors in consideration, the cigarette manufacturing firms are
using the following distribution network in the Indian market:

33:

Manufacturing Firms:As the name suggests the first module included in distribution network are the
firms which are manufacturing cigarettes using raw materials and other available
resources. In case of Indian market, there are mainly four manufacturing firms
which supply the products all over the country, although there are many local
players also available in the different parts of the country, but because they are
confined to their local places only in terms of selling of their product, they follow
their own distribution channel.
From the main four players, ITC is located in Kolkata, NTC in Kolkata, GTC in
Vadodra and VST in Hyderabad.

34:
Regional offices:
The second level of distribution channel is the regional offices which are mainly
known as depots in the local markets. Each of the regional office is situated in
different regions like North, South, West, East, North-west region etc. that are like
the branch of organization opened for the smooth functioning of the supply chain
management of the product in the market. Main task performed by these offices
are acting as an intermediate between the manufacturing firm and local
distributors who are involved in actual distribution of products to the different
selling points in the market. These depots are also said as the storage point for
the company where large amount of stock is stored depending upon the sales in
that particular region.

Distributors:The next level of the channel constitute of distributors. It mainly refers to the
agency holders of a particular company who act as the company representative in
the market and supplies the product to the different selling points in the market.
It is said to be most important module in the distribution channel of Cigarettes as
on the one hand they are representing company in the market and on the other
hand they are involved in promotional activities of the product due to restriction
on advertising and promotion of the Cigarettes using media types.

Retail outlets:
The last intermediate that is available before the Cigarette as a product reaches
to the customer are the retail outlets. With reference to the Indian perspective,
different retail outlets are present in different forms in the market like:a) Pubs/ Bars:
These are not basically the retail outlets of the Cigarette product but are included
under this category because few of the super premium brands are available in
each Pub for the facility of the customers coming to that particular place.

35:
b) Convenience stores (Kiryana shops):
Small and big shops present in every locality providing the basic & necessary
products to the nearby people or the locality in which it is located.
c) Local Pan Shops :
Small corner shops that are known with the name of Pan Shops but contributes
large share in total sales of Cigarettes in the market.
d) Kiosks:
Small outlets in big Malls like Forum, M2k, and Pacific etc. which only sells
Cigarettes of different brands of the same company like ITC. Kiosks are being used
by the companies to increase the visibility of the brands.
e) Large format stores (LFS):
It refers to the big retail outlets that are available in the local markets selling the
daily need goods and other middle range of products that are required by the
customers for the fulfillment of basic needs like vegetables, grocery, kitchen
appliances etc.
f) Multi Branding Outlets (MBO):
The outlets opened in the Malls and other shopping areas, which are similar to
the Kiosks but the only with a difference that products from different
companies are also available at one place with addition to different brands

36:
PRICING OF CIGARETTES:
Price is said to the most important factor that is related to a particular product
and is directly responsible for the success or failure of the product in the market.
In case of cigarettes the importance of pricing becomes more important because
in India, advertisements and other promotional activities are banned for the
particular product, so to compete in the market with other players for the same
market share; the company needs to analyze various factors before setting the
final price of a cigarette pack.
In India, the companies set the price mainly dependent upon the following
factors:
1. Target market:
It refers to the type of segment market company is targeting with a particular
brand of the product like Gold flake Cigarette manufactured by ITC is targeted to
the premium segment (explained above) of the market, so the price should also
be with respect to that only.
2. Brand value:
The next parameter that is considered in the setting of price is the brand value of
the company who is manufacturing the product. Like Insignia wills (Rs 120/pack)
produced by ITC and Jaisalmer (Rs 90/pack) produced by Godfrey Phillips, both
are part of the same segment market i.e. super premium and with same quality
and other features but still there is price difference of Rs 30 per pack (20 pieces),
showing the importance of brand value of ITC as a well known company in front
of Phillips which is not a famous brand in the Indian market.
3. Competition:
As explained above, there are only few players in the market who are competing
against each other for the market share showing low level of competition as
compared to other industries in the country but with the entry of more and more
foreign players in the market, the level of competition is increasing. So before
finalizing the price of the Cigarette pack, the company needs to analyze the
competitors price within the same segment.

37:
Here is price distribution of Cigarette products based upon the segmented
markets made by the researchers of the same industry.
Segment
Bingo
Premium
Super premium

Price/peice(Rs)
>3
3-5
<5

Pieces/pack
10
20
20

Examples
Scissors, flakes, Fine Cut
Classic,National Gold flake
Insignia, Jaisalmer

Promotional Strategies
Promotional strategies refer to the various activities carried out by the companies
to increase the brand awareness in the market and to differentiate from the
competetitors product by the way of advertising, promotional activities,
organizing shows, free samples etc. so that more of market share can be earned
by the firm.
Now talking about the cigarettes in India, advertising and promotional activities
are banned by the government but it is said that distribution network is so strong
throughout the country that this category itself has become the biggest FMCG in
terms of sales. So, marketing efforts really become inconsequential at this stage.
But we know that the industry where competition is increasing at high pace, with
large number of foreign players entering in to the market, the companies can not
merely depend upon the distribution network to compete in the market.
According to the researchers, advertisements are not only the way out for
marketing managers in these big firms to sell their products. Marketers will
always keep on innovating the new marketing campaign to increase the sales
level and market share in the market. Here are few new techniques used by the
marketers from the Cigarette industry:

38:

Convenience Displays:

This type of display is used to increase the

visibility of the product to the consumer when he enters in to the shop or small
Panvadis to purchase the particular brand of cigarette. Now it plays an important
especially in case of cigarettes as in India, people have trend of purchasing in
loose instead of a packet. Now suppose a person smokes 10 cigarettes per day on
an average and purchases only 1 or 2 at once, he will visit the shop for approx.6-7
times. Considering the situation, if a particular brand is not available with the
shopkeeper, the consumer may shift to some other brand.

Promotional Schemes:

The new technique used by the firms in the recent period is by attaching special
schemes with the products like latest scheme run by Godfrey Philips for their
brand Four Square. The promotion was Get 1 pack for 10 empty Four Square
Packs. Which resulted in positive response, as people started buying more packs
to get the extra pack. That finally resulted in increase in the sales volume of
particular brand in market.

Surrogate Advertising:

This is new concept started by the Cigarette companies in India, where the
companies are trying to sell other products with same brand name that is used to
sell cigarettes in the market. This way they are able to make their presence in the
market by using promotional advertisements without breaking the law made by
government. Few examples under this type of marketing are ITC-GTDs

39:
(greeting cards division) Expression Greeting Cards, Red & White Bravery Awards
and Wills sportswear
42 Wills Lifestyle retail outlets in India or Wills fashion week, indirectly reinforcing
brands like Wills Classic, Wills Milds etc.
Events:

As the name suggests, companies are emphasizing on organizing events like

Godfreys Red and White Bravery Award and Wills Fashion Shows etc. to increase
the sales in the market.

Social Marketing:

This concept was basically launched in the market to get the customer attention
by providing knowledge to them regarding the disadvantages of using
Tobacco and smoking cigarettes which are bad for health and human body. By
this way they are positioning themselves as the well wishers of the society but
there main aim is to make their presence in the market

40:
Company Overview
Manufacturer & Supplier of Cigarettes in India and Overseas. NTC industries
limited, earlier known as the National Tobacco Co. of India Limited, founded in
September 1931 with its office and works in the city of Kolkata, India, is a premier
organization for Cigarette and Tobacco Products manufacturing and marketing
within India and overseas.
NTC is the first company to manufacture and market filter and menthol cigarettes
in India.
NTC has a modern PMD for tobacco processing of any blend type- Virginia or
American. We can make and develop finest blends to suit customers choice.
NTC's cigarette making and packaging division are well equipped with full range of
modern machineries to produce quality cigarettes as well as excellent finished
packets in conformation to international standards.
NTC do not employ any child labour in our premises
NTC is a prominent name among cigarettes manufacturers in India. With a wide
range of brands, ntc has a presence in various segment of the market. NTC's
popular portfolio of brands includes REGENT, COOL and NO. 10.
The company pioneered the introduction of 84mm king size filter cigarettes,
mentholated cigarettes.
The company is working with single minded focus on continuous value creation
for consumer, through significant research & development in creating quality
blends, maintaining consistent quality, state-of-the-art manufacturing technology
& robust marketing and distribution.
NTC also offer high-quality, value-priced cigarettes and Roll-your-own tobacco to
USA, Africa and Central and Middle East countries through its export operations.

41:
NTC's cigarettes are manufactured in state-of-the-art factory at Kolkata with
modern technology & excellent work practices. A robust supply-chain &
distribution network ensures that the products reach across the length & breadth
of the country.

Company History - NTC Industries Ltd.

The Company was incorporated on November 15, 1991 as R.D.BUILDERS &
DEVELOPERS LIMITED and it received certificate for Commenoement of Business
on December 18, 1991. 1st name was changed to RDB Industries limited on 1st
August, 1994.
The Company was incorporated with the main object of real estate development.
The Company took over business of the firm M/s. R.D.BUILDERS'as a going
concern with effect from the close of 3Oth April, 1992. The Company has
constructed various buildings in and around Calcutta.
In April, 1994, the Company had taken over the assets of New Tobacco Company
on lease in terms of the Hon'ble Calcutta High Court order dated 23rd February,
1994. The Company has started commercial production on May 31 st, 1994 at
Agarpara, West Bengal factory and launched brands of Cigarettes namely
REGENT, NUMBER TEN FILTER, NUMBER TEN VIRGINIA, COOL, PRINCE HENRY
(Pipe Tobacco), and REGENT MINI KINGS.

42:
2003
-The Company has entered into an agreement with M./s Sampoerna Asia Pte Ltd
2006
-RDB Ind receives owner ship of New Tobacco
-The Company recommended a dividend of 5% on equity shares.
2007
-The Company has launched a new residential complex, named "Regent Ganga" at
9K, G T Road, Kotrang, Uttarpara, Hoogly, West Bengal having a built up area
measuring more than 2,50,000 sq. ft.
-A contract awarded by the office of the Director General Married
Accommodation Projects, New Delhi, to build 72 dwelling units at Fort Williams,
Kolkata, over a period of 18 months. The estimated value of the contract is Rs 21
crores.
-The Burdwan Municipalty, Burdwan, has awarded the Company land measuring
13,840 sq.m. approx. to build residential and commercial complex at Burdwan.
-The Gunawati Municipal Development Authority has awarded the Company right
to develop residential complex at Borsojai, Guwahati, on Joint Venture Basis over
a land measuring 28,328.46 Sq.m. approx.
2008
-The Company has recommended a dividend of 5% i.e. Re 0.50 per equity shares

43:
-RDB Industries Ltd has inducted Mr. Abhishek Rathi and Mr. Mahendra Pratap
Singh on the Board of the Company as additional directors w.e.f. March 18, 2008.
-The Ministry of Health & Family Welfare, Government of India, have awarded a
tender in favour of the Company for setting up Residential Complex at AIIMS
Patna, the estimated value of which is Rs 30 crore (approx)
2009
-The Company have been awarded tender by HSCC (India) Ltd for a total
estimated contract price of Rs 27.41 crores for Construction and Development of
New Campus for Indian Institute of Chemical Biology Salt Lake, Kolkata.
-M/s RDB Realty & Infrastructure Ltd has become wholly-owned subsidiary of the
Company.
2010
-Acquisition of Wholly-Owned Subsidiary.
2011
-Company has changed its name from RDB Industries Ltd. to NTC Industries Ltd. Registered Office of the Company has been shifted From Building, 8/1, Lal Bazar
Street, 1st Floor, Room No. 10, Kolkata - 100 001 to 149, B. T. Road, Kolkata - 700
058.
2012
-Sri. Naresh Chandra Chakraborty has been appointed as Managing Director of the
Company

44:
CIGARETTE MANUFACTURING PROCESS FOLLOWED BY NTC : (Information
collected from factory visit)
THERE ARE THREE DEPARTMENT OF CIGRATTES MANUFACUTRING.
PRIMARY MANUFACTURING DEPARTMENT(PMD)
SECONDARY DEPARTMENT (SD)
PACKING DEPARTMENT(PD)

1. PRIMARY MANUFACTURING DEPARTMENT (PMD)

The production of a cigarette involves two main factory procedures. The first
being primary processing'' followed by secondary manufacturing.
Primary processing - preparing the tobacco
The primary process converts tobacco leaf, that has arrived in 200 kg cases, into
batches of cut tobacco that are ready to be made into cigarettes. This leaf would
have been stored for approximately 8-9 months on average, allowing it to mature
to enhance its smoking characteristics, before entering primary processing.
There are three stages of Primary processing - conditioning, cutting and drying.
Conditioning : Tobacco leaf arrives dried in cases to preserve it during transport
and storage. If this leaf was processed dry, part of it would turn to dust, therefore
the first step is to moisten (condition) it. This is achieved using steam and
water.All of the leaf in a batch is fed through the 'conditioning line' and is then
placed into a 'blending silo', where it is layered to ensure effective mixing
(blending). This is important as each batch contains numerous 'grades' of leaf
from different countries and different parts of the tobacco plant.

Cutting : After blending, the leaf is cut into thin strands so it can be made into a
cigarette.

45:
Drying : The cut tobacco leaf is then dried back to a moisture level suitable for
making cigarettes and for smoking. A similar method is used to process tobacco
stem. The leaf and stem are then mixed (blended) together to form the final
blend, which is then ready to be made into cigarettes. Our process is monitored
electronically and by laboratory testing, with various quality assurance tests
undertaken throughout the different stages of the primary process.

2. SECONDARY DEPARTMENT (SD)

Modern, high-speed machines are used to make filters, assemble cigarettes and
pack them into packets, 'outers' (cartons) and 'shippers' (cardboard boxes).
Filter manufacture : Our cigarette filters are made from cellulose acetate.Filter
machines make enough filter rods per minute to make 18,000 cigarettes. Filter
rods are transferred to the making machines by vacuum tube.
Cigarette making : The next process is to form cut tobacco into a continuous
'cylindrical shape ', wrapping with cigarette paper and then cutting the whole into
specified lengths, making a cigarette rod.

For menthol brands, one method is for menthol to be applied to the cigarette
paper.A double filter is then inserted between pairs of cigarette rods, tipping
paper is wrapped around the assembly, and the double cigarette is cut in two.
Automatic inspection devices and meticulous attention to detail ensure first class
quality.
Each brand is made to a recipe, including a particular tobacco blend, filter and
tipping paper to a recipe designed to achieve consistent quality and
satisfaction.Some tipping paper is perforated to allow air into the smoke stream.

46:
3. PACKING DEPARTMENT (PD)
Packing : Once the cigarettes are made, they are transported to the packing
complex. First, the cigarettes are formed into groups as per the pack size, and
then the foil is wrapped around to form a 'bundle'. The cigarette packet arrives in
a flat cut-out form (a 'blank'). The blank is wrapped around the bundle, an inner
frame is inserted at the front of the bundle underneath the lid and glue is applied
to form the packet.
On a separate but linked machine, the packet is wrapped with film to prevent the
cigarettes from drying out and tear tape is attached. On yet another machine, the
wrapped packets are packed into 'outers' (cartons) for bulk sale. On another
machine still, the outers are packed into a 'shipper' (cardboard box) for
distribution and wholesale.
All of these machines are linked to create a packing complex.
An integral part of the quality assurance process is the authority given to
operators to stop any machine that does not operate to the exacting standards
necessary to produce top quality cigarettes.The shippers are transported by
conveyor to be palletized and then to the warehouse for distribution to
wholesalers and retailers, then to consumers.

4. READY FOR SALES AND EXPORT

From the stock the finished product is being distributed among the wholesaler
and some of it is exported to the rest of the world.

47:
Distribution
Logistics process of cigarettes plays a great role in marketing. It is required to
have a continuous supply of sticks into the retail market and into every market
sectors of cigarette market. Reaching tobacco products into markets in proper
time and exactly when there is an requirement present is important.
Logistics of tobacco products is done from the manufacturing process time. Raw
material or fine Virginian tobaccos are acquired from the south India part of
Karnataka and Andhrapradesh area. Proper logistics of raw tobacco during
requirement in a timely fashion is necessary. After that processed cigarettes are
then transported to the warehouses and distributer points all over India and also
exported to foreign countries with proper logistics channels. After that cigarette
sticks are supplied all over the retail and wholesale markets through the help of
Direct Salesman. Direct salesman not only supplies into retail markets but also to
the wholesalers according to their requirement and maintains a proper flow of
tobacco products into the market according to the consumer requirements.

48:
Code of Conduct
At ntc industries limited, it is commitment and continuous endeavor of the Board
of Directors and all the employees to attain good corporate governance, ensuring
truth and transparency, accountability in all its dealing with employees,
stakeholders, consumers and community at large. The Management believes that
the organization should be managed in a manner that protects and secures the
interests of its stakeholders. We (the Board of the Directors and all senior level
employees) recognize society as an important stakeholder in this enterprise in
addition to the promoters and other shareholders; therefore, it is part of our
responsibility to practice good corporate citizenship.
It is also our belief that in order to serve the interests of our stakeholders in
perpetuity, we must build this organization into an institution whose dynamism
and vitality are anchored in its core values.
Applicability
This code is applicable to the Board Members, members of the Management
Committees and all employees upto the level of functional heads (HODs)
(hereinafter collectively referred to as "Employee(s)").
All concerned must read, understand and ensure to abide by it in their day to day
activities. They may contact the Company Secretary in case any query relating to
compliance of this Code.
Purpose and Scope
This Code is intended to provide guidance and help in recognizing and dealing
with ethical issues and to help foster a culture of honesty and accountability.
Every employee is expected to comply with this Code in letter and spirit. One
must not only comply with applicable laws, rules and regulations but should also
promote honest and ethical conduct of the business. They must abide by the
policies and procedures that govern the conduct of the Company's business
We as employees undertake that:
Honest and Ethical Conduct:
Honesty is the basic input of Trusteeship. We shall act in accordance with the
highest standards of personal and professional integrity and honesty. Such acts
are not only on the Company's premises and offsite but also at company
sponsored business, social events as well as other places. Our act and conduct

49:
shall be free from fraud and deception. We shall conform to the best-accepted
professional standards of conduct.
Inter-personal Relationships:
In our relationship with colleagues - we recognize their respect and dignity and in
the same way, we ourselves would expect the same from them.
Honour Confidentiality:
We shall maintain the confidentiality of all material non- public information
about ntc industries limited (Henceforth known as ntc) business until and unless
discharged from such obligations under requirement of any law or any provisions
of this Code.
Fair Dealing:
Our dealing shall be fair with customers, suppliers, competitors, and employees of
the company and not to take unfair advantage through manipulation,
concealment, abuse of confidential, proprietary or trade secret information,
misrepresentation of material facts, or any other unfair dealing-practices.
Conflict of Interest:
It is expected on part of the employees to make business decisions taking into
account best interest of the Company as a whole, without being influenced by
personal relationships or benefits. They are expected to apply their proper mind
in arriving at sound decision without any conflict of interest, which may adversely
affect the companys business.
Conflict of interest may occur directly with employees, directors or through their
relative or family connection. It may arise when an employee or director or a
member of his/her family gets any undue personal benefits or interests due to
his/her position with the Company. Under such situation, he/she is expected to
disclose to the Departmental Head/ the Board about the same. The following
examples are given as guidelines for determining situations where such conflict of
interest may arise, but such examples are not intended to cover all possible
events.

Corporate Business Opportunities:

It is duty of the Employees and Directors towards the Company to enhance its
legitimate business interest whenever and wherever such opportunities so arise.
They are prohibited from taking benefit of such opportunities for themselves or

50:
through third party. More so, employees and directors are not to use corporate
property, information or position for personal gain or in competition with the
company.
Sometimes, it is difficult to draw a line between the benefit to an employee or a
director and the benefit to the company and under such situation it is prudent on
part of the said employee or director to get approval in this respect from higher
management beforehand.
Improper Influences:
Gifts and Entertainment: No employee or director must offer, make, solicit or
receive any bribe, kickback, illegal contribution or other improper payment. Such
activity is not condonable. Further, no employee or director should accept any gift
or gratuity of material value or excessive entertainment from any organization or
individual that is having business relationship with the company. In order to avoid
such situation, the employees and directors must use common sense and good
judgment in case of such circumstances.
Transactions with Affiliates:
As regards selection of vendors, they should be selected on competitive and merit
basis, without being influenced with favoritism. Under this policy, the employees
do not engage in any activities that might affect independence of judgment in
such selection and any deviation of such policy requires to be brought to
knowledge of the Management.
Confidential Information/Publicity:
Employees are not allowed to disclose or use any confidential information
obtained or gained in course of his/her employment for his/her personal gain or
profit or to any other person or party. Further they are not allowed to provide any
information either formally or informally to the press or to any publicity media
without authorization.

Legal Compliance:
Employees are responsible for the implementation of this Code ensuring
compliance under this Code as well as under all applicable laws, regulations and
corporate policies since such non-compliances are unethical and subject the

51:
company with unwanted fine or penalties. Therefore, to deter such occurrence,
negligence or willful default would call for disciplinary action upto and including
reprimand, suspension or termination depending upon the seriousness of the
offence and/or the employees overall record. To ensure necessary compliance
with various statutes and laws applicable to the company, the Board has assigned
such responsibility on Departmental Heads that they will provide such compliance
reports to CEO -CFO for placing the same in consolidated form to the Board.
Securities Transactions and Confidential Information.
No employee shall use or proliferate information that is not available to the
investing public as it would constitute insider information for making or giving
advice on investment decisions on the securities of the Company.
Such insider information might include the following:
Acquisition and diversification of businesses
Financial information such as profits, earnings and dividends
Announcement of new product introductions or developments
Asset revaluation
Investment decisions /plans
Restructuring plans
Major supply and delivery agreements
Raising finances
Reporting Concerns:
All employees shall report promptly to the management any actual or possible
violation of the Code or any event which could affect the business or reputation
of the Company.
Proper use of Companys assets and cost consciousness:
We are trustees of the companys properties, funds and other assets and as such
it is our responsibility for protecting the same against any misappropriation, loss,
damage, theft etc, by evolving proper internal control system and procedures. No
employee shall use the companys facilities for personal use. Even for use of
companys purpose, employees are expected to take utmost care for avoidance of
wastage so that cost to the company becomes reasonable.

52:
SOCIAL RESPONSIBILITY:

Community
Development
The Company continues to contribute to the communities in which we operate
and address social issues responsibly. Our products are safe to make and use.
We conserve natural resources and continue to invest in a better environment.
Transparency and shareholder value
We are committed to be driven by our conscience and regulatory standards, to
deliver value to our shareholders, commensurate with our management and
financial strength.
Safety, Health and friendly work place for the Employee:
The Management recognizes human resources as the prime machinery of an
organization; therefore they always give first priority to provide all safety
measure for good health of the employees. The Company expects that all
employees of ntc possess good habit and leave bad habit, if any, because fair
and fresh environment helps employees to realize their full potential
NTC Family Culture
The Management has fostered a culture of feeling of being togetherness and
attachment amongst ntc employees through participative management
practices, open interaction and mutual respect. All employees are expected
extend this ntc Family culture further.
The Company places highest corporate priority in ensuring and adhering to best
procedures relating to environment protection.

RISK MANAGEMENT:

The Company believes in evolving a comprehensive risk management

framework by a process of developing strategy to not only manage but also
minimize the risk. This is process of identifying, assessing and measuring the
possible risk, which may be faced by the company, and then formulating plans to
cover and manage the same.
We are aiming at an ideal risk management system where we have visions to
make this company a zero accident company with focus on safety and
environment. We like to market consumer friendly products of global best
quality and ensure safety and security of all stakeholders of the Company.

53:
Violation of this Code:
In case it is found that any of the employees does not follow this Code by
engaging misconduct, the matter would be reviewed by the Board whose
decision shall be final and the Company reserves the right to take appropriate
action against the guilty employee.
CONTINUAL UPDATION OF CODE:

This Code is subject to continuous review and updation in line with any change
in law, the Company's policy, vision & plans or otherwise as the Board may
deem necessary.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

ntc has adequate internal controls for safeguarding its assets, ensuring
transactionsare in accordance with our policies, and are duly authorised, recorded
and reported toprevent possibilities of frauds or other irregularities. The
Company is constantly puttingefforts to further strengthen the systems for
internal audit and risk assessment andmitigation.
Internal controls are supplemented by an extensive programme of internal audits,
reviewby management and documented policies, guidelines and procedures.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL

RELATIONS
The Management recognizes their human resources as the prime machinery of
theorganization. They are always given the first priority and are provided with all
the basicrequirements and safety measures for good health and well-being. The
Management hasfostered a culture of feeling of being togetherness and
attachment amongst NTC employeesthrough participative management practices,
open interaction and mutual respect. Besides,the Company also undertakes
periodical leadership trainings for their employees, whichwill enable the
organization to run smoothly and efficiently. The Company continued tomaintain
healthy industrial relations and did not report any sort of strike or lock out that
would have impacted Company's operations.

54:
QUESTIONNAIRE

55:
SURVEY DATA ANALYSIS
Data obtained from Survey of 20 individuals
Price is a Constraint For Buying

Price is Constain of buying

Price is not a constain of buying

Coupons are a factor for buying

Coupons are factor for buying

Coupons are not factor for
buying

56:
Smoking Influence

Influenced by
Advertisement
Influenced by friends &
peer
Influenced by family
Influenced by others

Smoker of NTC Produts?

NTC Smokers
Non NTC Smokers

57:
CONCLUSION

Its been a wonderful journey for me and our team to work with Unnati
Management Private Limited which has been continiously working hard
to achieve success and taking NTC Industries to a new height. I have
learnt a lot about the importance of marketing in FMCG sector and also
came in touch to the practical aspects of marketing of tobacco
products. I have also experienced the importance of Channel
Management and Logistics.