The latest revision elevates the total cumulative price increase for Gold Flake Premium to Rs 20, following an initial jump from Rs 115 to Rs 125 recorded in June. Tobacco manufacturers are enacting these changes to counter intense cost pressures and rising taxes, despite the persistent threat of softening demand in the legal cigarette space. To mitigate these headwinds, the company is actively expanding its non-tobacco revenue by revitalizing paperboards and scaling digital-first acquisitions. September-quarter results confirmed that strong performance across agriculture, FMCG, and digital brands successfully cushioned segment-specific pressures.
Key points
Cigarette manufacturers are raising consumer prices primarily to offset escalating operat…: Cigarette manufacturers are raising consumer prices primarily to offset escalating operational expenses and tax burdens.
Repeated price hikes create a growing risk of dampening overall consumer demand within th…: Repeated price hikes create a growing risk of dampening overall consumer demand within the legal cigarette market.
Diversification into digital-first brands like Yoga Bar and Prasuma helps cushion the com…: Diversification into digital-first brands like Yoga Bar and Prasuma helps cushion the company against tobacco tax pressures.
Sources checked by our analysis pipeline: 1
The latest increase follows another revision in June, when ITC raised the price of the same pack from Rs 115 to Rs 125. This means a pack that cost Rs 115 before June is now priced Rs 20 higher, representing a cumulative increase of around 17.4%.
Gold Flake Premium sees two price hikes in 2026
The latest revision comes amid mounting challenges for cigarette companies, including higher taxes and pressure on sales in the legal cigarette market.Read more - Adani eyes Chile's copper riches: Kutch Copper and Codelco sign MoU to explore Kaburkaala project
For manufacturers, raising retail prices can help offset the additional tax burden and other cost pressures. However, repeated increases can also make cigarettes more expensive for consumers, potentially affecting demand.
ITC looks beyond cigarettes for future growth
As per an earlier ET Bureau report, the price revision comes amid ITC's efforts to strengthen its businesses beyond cigarettes. The company's future growth will depend on expanding its FMCG portfolio, reviving its paperboards business and developing newer revenue streams.Premiumisation and a wider distribution network remain important parts of…
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