Tobacco Industry in brief

India is the second largest producer of tobacco and the fifth largest producer of cigarette tobacco in the world. Total tobacco production in India is about 700 million Kilograms annually. Exports of tobacco and tobacco products from India during 2006-07 have been increased by about 8% in quantity terms. The cigarette industry is one of the oldest agro based industries in India.  The total installed capacity of all the cigarettes manufacturing units in the organized sector in India comes to about 147.38 billion pieces per annum. India exported 6424 tons cigarettes worth INR 148.39 Crores during 2006-07. Cigarette export has been registered a growth 9% during the said period.
 
Department of Health, Ministry of Health and Family Welfare, Government of India is the nodal department, administering the subject. 100 per cent FDI is permitted through FIPB approval for manufacture of cigar and cigarettes subject to the industrial license under the Industries (Development and Regulation) Act, 1951.The main statutes governing this sector includes the Cigarettes and Other Tobcco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003, the Tobacco Board Act, 1975 and the Tobacco Cess Act, 1975.

CLG Tobacco Industry Practice

CLG has extensive experience in rendering legal services on various aspects of tobacco industry. It has been advising multinational clients in this sector on various issues including: