The Hindu Business Line : Godfrey, Villiger tie up to distribute cigars

“We have been looking at catering to mid-priced segment in cigar market and alliance with Villiger will fill the vacuum in our current cigar portfolio,” Mr Amrish R. Anand, Chief Executive Officer (International), Godfrey Phillips, told Business Line here on Friday.

The Rs 1,600 crore company currently has a 65 per cent share in cigar market in India. “The price range of our cigars is from Rs 5 to Rs 1,540 while Villiger cigars are priced between Rs 10 and Rs 120. We are targeting cigar smokers from middle class and above,” he said.

The long-term objective of Godfrey is to have a cigar in every pricing segment, he added.

Indian market

For Villiger, the alliance marked a foray into Indian market.

“We are already present in other markets of Asia such as China and Japan. We leverage Godfrey’s strengths in distribution channels and marketing strategy,” Mr Hrinrich Villiger, President, Villiger said.

“We are a strong brand in European Union. Our cigars have 100 per cent tobacco and no paper,” Mr Chris B. Pfister, Director (Export Sales), Villiger said. On the expected sales of its cigars in India, he said: “We have just launched our product and need to test the market.”

Villiger cigars would be imported into India from Switzerland. The company’s revenue was €20 million last fiscal.

On the future plans in cigar segment, Mr Anand said the company is currently seeding in. “Godfrey introduced cigars in 2003. Last year, we have grown by 44 per cent and sold five million sticks. This is still a nascent market. But we are bullish on cigars as it is being seen an affordable luxury by the smokers,” he explained.

During the current fiscal the firm would be selling over five million cigars, he added.

The company is also lining up new products in cigarette segment.

“Our recently launched products, including Champ, Stellar Slims are doing excellently. We have more products in pipeline,” Mr Anand said.