India, Nov. 10 -- India's cigarette industry is facing a difficult business environment, and the biggest concern is no longer just rising taxes. Higher taxation is also creating an opportunity for illegal cigarette sellers, putting pressure on legal manufacturers such as ITC and Godfrey Phillips India. As cigarette prices increase, companies are finding it harder to protect sales volumes, maintain profit margins, and compete with cheaper smuggled products.

The latest financial updates for the first half of FY27 highlight the pressure. Godfrey Phillips India reported a 41 percent year-on-year decline in net profit, while ITC said legal cigarette industry volumes remained under pressure. These developments highlight a growing problem for ...