DS Group, a leading name in the tobacco manufacturing industry is hopeful for a "favourable verdict from the Supreme Court" regarding the impending ban on tobacco, According to DS Group, Business Head, CK Sharma, the key lies in effective education rather than making legislations for blanket bans.
While some states have already banned the sale, purchase, manufacture and storage of chewing tobacco, the matter is under consideration in many other states. As a leading manufacturer of premium chewing tobacco in the country, DS Group is a big stakeholder in the tobacco industry. “We have tried our best to impress upon the states that blanket bans do not work,” Sharma told The Pioneer.
Talking about the market share of the DS Group in the mouth freshener sector, Sharma said, "Our own estimate is that the size of the industry is huge, it is about `30, 000 crore. We compete only in the premium segment, which constitutes about 12-13 per cent. In this premium segment, we are about as much as 90 per cent." When asked about competitors in the industry, Sharma said, "Every year we see new people coming in with celebrity endorsements in today's context, and we tell them better luck next time because we are very confident of how we're going to drive our business. Our business is based on the fundamentals - quality and innovation - which this company has followed for decades."
late last year, the Government had rejected the DS Group's proposal for establishing cigarette manufacturing units in the country arguing that the sector is on the banned list and fresh licences cannot be issued.
While some states have already banned the sale, purchase, manufacture and storage of chewing tobacco, the matter is under consideration in many other states. As a leading manufacturer of premium chewing tobacco in the country, DS Group is a big stakeholder in the tobacco industry. Sharma said, "We have tried our best to impress upon the states that blanket bans do not work."
As a way of addressing the health concerns regarding tobacco, Sharma suggested that educating the people about it is a better way to deal with the situation rather than imposing legislations. He added that "meaningful restrictions" like the age-bar of 18 years are reasonable enough. However, it is very difficult to monitor such restrictions as local vendors continue to sell regardless of age of the consumer.
Arguing against the ban, Sharma said, "Whenever there is a ban, counterfeits emerge. The other thing is that cross-border trade starts taking place. People start charging a premium which means that there is some kind of black money generated in the economy, which will lead to promotion of anti-social activities." Stating examples of bans in other states, Sharma added, "look at the case of Gujarat and liquor, it is freely available."
As per a report by the India Brand Equity Foundation, the tobacco industry employs about 36 million people in various stages of production. Imposing a blanket ban would most likely result in a loss of livelihood for these people.