ITC Ltd has discontinued production of its largest selling single cigarette brand "Wills Navy Cut" from its newly refurbished unit at Kidderpore, Calcutta. The brand fetched around Rs 70 crore as revenue for the central excise department.
According to excise sources, premium brands such as Benson & Hedges which now roll out from the factory are not significant revenue earners as they cater to the premium segment and have restricted collections.
ITC sources said that shifts in manufacturing of brands at specific factories is an ongoing process, due to varying logistic and administrative conveniences.
However, as a rule the
location of centres for manufacturing specific brands is demand-driven.
It is believed that with the recent upgradation of the Kidderpore factory and installation of three new generation FOCKE machines at the factory in September 1999, the focus has shifted to producing high-end premium products which require flavoured tobacco.
It is also understood that premium brands such as Benson & Hedges and State Express 555, which were produced at the Bangalore factory, are now being manufactured at the Kidderpore unit.
The factory on the verge of closure in 1992.
According to ITC sources, the largest market for ITC's tobacco products is in south India, followed by Mumbai and western India.
It is also easier to supply to western India from the south Indian base , the sources said.
While the Wills brand is the single largest selling cigarette brand of ITC, the largest umbrella brand of the company is Gold Flake.
