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Dalmia group plans to take non-tobacco bidis overseas
Monday, 09 February 2004, 20:30 IST
NEW DELHI: Targeting a niche population needing help to wean off tobacco, the Dalmia Consumer Care division of the Sanjay Dalmia group is eyeing a huge market overseas for its innovative non-tobacco bidis.
It is a little over seven months since the Dalmia Consumer Care division of the 
12 billion turnover company launched its Vardaan brand of non-tobacco, non-nicotine bidis, or cheroot, to take a slice of the estimated 150 billion bidi market of the total Indian tobacco industry, worth around 600 billion.
Already Vardaan is selling around one million bidis a day.
"The growth is not much considering that 108 billion bidis are sold every month, and the industry generates 220 million per hour on a 16 waking hour day basis," said Sudershan Banerjee, managing director and CEO of Dalmia Consumer Care (DCC).
"Our target is to wean more people to our non-tobacco products and give up the habit of smoking, which takes a toll of 800,000 lives every year in the country while resulting in cancer in large number of people," Banerjee told IANS.
The company has already initiated talks in neighbouring countries like Bhutan, Nepal and Bangladesh for possible joint ventures.
"We are in talks with 15 countries but initially plan to target the SAARC countries like Bhutan, which has banned tobacco, and others like Nepal and Bangladesh where bidi is smoked. We have already had initial talks with representatives in these countries. We are looking at joint ventures in all overseas markets," said Banerjee.
Pakistan is a major market that DCC plans to target through the proposed Bangladesh joint venture while in the case of the Western markets "our delivery vehicle will be cigarette for better acceptability".
Dalmia, which also has cigarette brands under its portfolio of products, is using the health mantra for growth in the non-tobacco segment.
As Banerjee said, "Our role is the same as that of a condom manufacturer trying to promote safe sex. We are trying to spread the message that tobacco high comes with cancer."
As any chain smoker or those given to smoking strong cigarettes would love to say, it is difficult to give up smoking much less switch to a different brand.
"I would love to give up smoking but am unable to do so. This bidi is fine but too mild," was the reaction of a smoker to Vardaan bidi.
The refrain is what the company has been hearing even as it pushes up efforts to promote its bidis designed to look like normal bidi but containing a number of commonly available herbal leaves like neem and jamun in place of tobacco.
Declining to disclose the exact contents of the bidi, Banerjee said, "It may take years to catch on, but we are prepared to wait."
Simultaneously with the bidis, DCC is seeking to expand its reach to the large tobacco chewing public through its flavoured chewing gum shaped like small betel nut pieces and with a flavour akin to the chewing tobacco.
Launched in December, Chabaaza too is slowly finding acceptability, encouraging the company plans of widening the retail network to more cities and towns besides rural areas.
So far, the company's products are finding more acceptability among youngsters and women who are keen to shed the habit of chewing or smoking tobacco. The hardened smokers and tobacco chewers are still a long way from being wooed.
Source: IANS
12 billion turnover company launched its Vardaan brand of non-tobacco, non-nicotine bidis, or cheroot, to take a slice of the estimated 150 billion bidi market of the total Indian tobacco industry, worth around 600 billion.
Already Vardaan is selling around one million bidis a day.
"The growth is not much considering that 108 billion bidis are sold every month, and the industry generates 220 million per hour on a 16 waking hour day basis," said Sudershan Banerjee, managing director and CEO of Dalmia Consumer Care (DCC).
"Our target is to wean more people to our non-tobacco products and give up the habit of smoking, which takes a toll of 800,000 lives every year in the country while resulting in cancer in large number of people," Banerjee told IANS.
The company has already initiated talks in neighbouring countries like Bhutan, Nepal and Bangladesh for possible joint ventures.
"We are in talks with 15 countries but initially plan to target the SAARC countries like Bhutan, which has banned tobacco, and others like Nepal and Bangladesh where bidi is smoked. We have already had initial talks with representatives in these countries. We are looking at joint ventures in all overseas markets," said Banerjee.
Pakistan is a major market that DCC plans to target through the proposed Bangladesh joint venture while in the case of the Western markets "our delivery vehicle will be cigarette for better acceptability".
Dalmia, which also has cigarette brands under its portfolio of products, is using the health mantra for growth in the non-tobacco segment.
As Banerjee said, "Our role is the same as that of a condom manufacturer trying to promote safe sex. We are trying to spread the message that tobacco high comes with cancer."
As any chain smoker or those given to smoking strong cigarettes would love to say, it is difficult to give up smoking much less switch to a different brand.
"I would love to give up smoking but am unable to do so. This bidi is fine but too mild," was the reaction of a smoker to Vardaan bidi.
The refrain is what the company has been hearing even as it pushes up efforts to promote its bidis designed to look like normal bidi but containing a number of commonly available herbal leaves like neem and jamun in place of tobacco.
Declining to disclose the exact contents of the bidi, Banerjee said, "It may take years to catch on, but we are prepared to wait."
Simultaneously with the bidis, DCC is seeking to expand its reach to the large tobacco chewing public through its flavoured chewing gum shaped like small betel nut pieces and with a flavour akin to the chewing tobacco.
Launched in December, Chabaaza too is slowly finding acceptability, encouraging the company plans of widening the retail network to more cities and towns besides rural areas.
So far, the company's products are finding more acceptability among youngsters and women who are keen to shed the habit of chewing or smoking tobacco. The hardened smokers and tobacco chewers are still a long way from being wooed.
Source: IANS