Tobacco.org

Japanese firm tests FDI policy in tobacco 

The issue of foreign direct investment (FDI) in the tobacco industry may be rekindled with Japan Tobacco International Ltd (JTIL), the world's third largest tobacco company, applying to the Foreign Investment Promotion Board (FIPB) to raise its stake in its Indian venture from 50 to 74 per cent. The remaining equity of the company is with Indian domestic investors.

The company, which launched its Winston brand of cigarettes in Bangalore, Kerala and Mumbai last year, plans to invest $100 million to expand its presence in one of the world's fastest growing markets. The Rs 17,000-crore branded cigarette market is growing at 8 to 10 per cent. The company also owns the famous Camel brand.

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