The Hindu Business Line : Wimco to foray into cigars

NOTWITHSTANDING the ban on tobacco advertising, matchmaker Wimco Ltd is planning to introduce a range of cigar brands. Its parent company, Swedish Match, which holds a 74 per cent stake in Wimco, has a host of cigar brands in its portfolio, and there are plans to launch them here.

Mr Subrata Dutta, Vice-President (Sales & Marketing), Wimco Ltd, told Business Line, "Our parent company Swedish Match already has a huge presence in the cigar market and we intend bringing in some of their brands."

However, the company is yet to fix a timeframe within which the cigars would come into the market. Besides, there are laws which restrict the company from directly importing the cigar brands; initially, therefore, Wimco would look bringing in the brands through an external importer.

Late last year, Wimco had forayed into the insect repellent market with its Homelites brand of mosquito coils. According to Mr Dutta, Wimco has already managed to break even in this business even with advertising being low-key.

Having appointed Publicis India to handle the brand, Wimco has decided to stay from advertising and has slashed its ad spends. Mr Dutta said, "We feel the brand is already doing well without any advertising and have thus decided to stay from advertising for a while."

Garnering a 3 per cent marketshare in the insect repellent category, there are plans to stretch the Homelites brand to other forms such as mats and vapourisers. "Being a new entrant, we had low ambitions for the Homelites brand, and besides last year was a bad one for the industry. In spite of this, we have managed to break even in the business," added Mr Dutta.