FMCG major ITC Ltd has shut down its cigarette factories from May 4.
In a notice to the stock market on Thursday, the company said the decision was taken following a Supreme Court directive on issues pertaining to 85 per cent pictorial warning on tobacco product packets.
On May 4, the apex court refused the tobacco products manufacturers’ plea to stay the implementation of the new cigarette packaging rules effective from April 1.
It also transferred all the petitions against the packaging rules to the Karnataka High Court.
“The Hon’ble Supreme Court on May 04, 2016 passed an Order transferring to the Karnataka High Court all writ petitions pending in various Courts challenging the Rules… The Supreme Court observed that all parties should endeavour to follow the Rules,” the notice said, announcing the production shut down “until the Company is in a position to comply with the interim requirements pending hearing in the Karnataka High Court”.
The Kolkata-based diversified conglomerate has five cigarette-making units, in Kolkata, Pune, Munger (Bihar), Saharanpur (Uttar Pradesh) and Bengaluru, catering to both domestic and export demand.
Earlier, the Union Health Ministry mandated a rise in pictorial warning on tobacco product packages from 20 per cent to 85 per cent of the principal display area.