The year 2026 has been a turbulent one for ITC, especially after the government's excise duty hike on cigarettes, which has heavily impacted volumes in what is the company's most profitable and key driver of revenue.
In order to combat this crisis, ITC has launched a smaller version of its Classic cigarette brand at 75 mm length, priced at Rs. 17 per stick, dealers told Informist.
The new, shorter Classic variant is being made available only in markets considered price-sensitive, and is being sold exclusively in packs of 10 cigarettes, the dealers said.
The move comes as cigarette manufacturers navigate the impact of higher excise duty on per-stick pricing, with companies typically responding either by passing on the full cost increase to consumers or by adjusting cigarette length to manage price points without alienating volume-sensitive segments of the market.
A shorter stick allows ITC to keep the per-pack price more palatable for price-conscious consumers while still adjusting for the higher tax burden per cigarette.
ITC has not issued an official statement on the launch of the smaller variant. The company's cigarette business remains a key profit driver within its diversified portfolio, alongside FMCG, paperboards, agri-business and hotels.
ALSO READ: Your Cigarette Pack Is About To Get Even Pricier; ITC Yet To Pass On Full Tax Burden, Says Brokerage
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