ITC reworks cigarette portfolio as tobacco taxes rise to about 70%

ITC is recalibrating cigarette pricing, pack architecture and SKU launches to manage a sharp tax increase, while continuing to build its non-cigarette FMCG, agri and packaging businesses. Its FMCG revenue has grown from about ₹10,000 crore in 2017 to ₹24,000 crore.

— Filed Thu, 23 Jul, 2026, 21:15 IST · Source The Hindu BusinessLine · Updated

ITC is recalibrating cigarette pricing, portfolio architecture and new SKUs after tobacco taxes rose to about 70%. The conglomerate is also accelerating investment in non-cigarette FMCG, agri and packaging businesses, with FMCG revenue reaching ₹24,000 crore.

Why this matters

The cigarette portfolio reset follows ITC's push toward India's ₹8 lakh crore FMCG opportunity, including a ₹20,000 crore manufacturing plan and bets on AI and premiumisation.

Retail-company signals are accelerating, up +1055200% QoQ.