FMCG firm ITC, largest maker of cigarettes in India, has increased the price of its popular brand, Gold Flake Kings cigarettes by 7 per cent.
As per the information available, the company has raised the maximum retail price of a pack of 10 cigarettes to Rs 47 from Rs 44 earlier.
When contacted company spokesperson confirmed the firm has increased the prices of cigarttes, but declined to comment on details and reasons for the price hike.
In November last year, ITC had increased prices of two other brands, India Kings and Benson & Hedges, by Rs 10 and Rs 5, respectively.
According to the industry analysts, the company's decision to hike prices is a pre-emptive move ahead of the Budget, with the government likely to add further tax burden as part of the drive to curb cigarette consumption in the country.
The total market for branded cigarettes in India is estimated to be around Rs 20,000 crore and ITC has around 80 per cent share of the market.
It has a variety of brands like Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
Analysts said Kings category cigarettes contribute around 11 per cent to ITC's total cigarette sales.
In the third quarter, the company's net sales from cigarettes were at Rs 2,331.63 crore.
