Abstract

Philip Morris International (PMI) tied up with the Barakat Foods and Tobacco Pvt. Ltd., to distribute cigarettes under a non-exclusive distribution agreement. The caselet describes in detail the company’s cautious entry into India through the import route circumventing stringent Indian regulatory framework. It gives a brief mention of PMI’s pricing policy. Finally, the caselet examines the implications of PMI’s entry for the domestic tobacco industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Regulatory issues in cigarette market
• Pricing of cigarettes
• and Impact of international tobacco companies on Indian players.

Keywords

Philip Morris International, Marlboro, Godfrey Philips India (GPI), Barakat Foods and Tobacco Pvt. Ltd, High-end Customers, Import Route, Regulatory Framework, Foreign Investment Promotion Board (FIPB), Rothmans, Sampoorna, British American Tobacco, Philip Morris Services India Ltd (PMSI)., Open General License (OGL), Contraband Cigarettes, Bond Street