Gold Flake 1s3l1x

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CHAPTER I

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"I like to think of fire held in a man's hand. Fire, a dangerous force, tamed at his fingertips. I often wonder about the hours when a man sits alone, watching the smoke of a cigarette, and thinking. I wonder what great things have come from such hours. When a man thinks, there is a spot of fire alive in his mind--and it is proper that he should have the burning point of a cigarette as his one expression." A cigarette is a product consumed via smoking and manufactured out of cured and finely cut tobacco leaves, which are combined with other additives, then rolled or stuffed into a paper-wrapped cylinder generally less than 120 mm in length and 10 mm in diameter. The cigarette is ignited at one end and allowed to smolder for the purpose of inhalation of its smoke from the other which is usually filtered at the end and is usually inserted in the mouth. They are sometimes smoked with a cigarette holder. The term cigarette as commonly used, refers to a tobacco cigarette but can apply to similar devices containing other herbs, such as cannabis. They are colloquially known as 'cigs', 'smokes', 'ciggies', 'straights', 'cancer sticks', 'death sticks',

'coffin nails' and 'fags'.

Cigarettes are proven to be highly addictive, as well as a cause of multiple types of cancer, heart disease, respiratory disease, circulatory disease and birth defects. A cigarette is distinguished from a cigar by its smaller size, use of processed leaf, and white paper wrapping. Cigars are typically composed entirely of whole leaf tobacco. Commercially manufactured cigarettes are relatively simple objects consisting mainly of a tobacco blend, paper, PVA glue to bond the outer layer of paper together, and often also a cellulose acetate based filter.



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In the beginning of the 16th century, beggars in Seville, Spain developed the first paper-rolled cigarettes when they collected discarded cigar butts, shredded them, and rolled them in scraps of paper. Although the Spanish elite first dismissed them as recycled garbage, these © or little cigars, eventually gained popularity during the 18th centu ry. Cigarette smoking spread to Italy and Portugal, and eventually to the rest of Europe and into Asia. Cigarettes were largely unknown in the English-speaking world before the Crimean War, when British soldiers began emulating their Ottoman Turkish comrades, who resorted to rolling their tobacco with newsprint. The cigarette was named sometime in the 18th century. During World War I and World War II, cigarettes were rationed to soldiers. During the second half of the 20th century, the adverse health effects of cigarettes started to become widely known and text -only health warnings became commonplace on cigarette packets. The United States has not yet implemented graphics-based cigarette warning labels, which is considered a more effective method to communicate to the public the dangers of cigarette smoking. Canada and Australia, however, have both textual warnings and graphic visual images displaying, among other things, the damaging effects tobacco use has on the human body. The cigarette has evolved much since its conception; for example, the thin bands that tr avel transverse to the "axis of smoking" (thus forming circles along the length of the cigarette) are alternate sections of thin and thick paper to facilitate effective burning when being drawn, and retard burning when at rest. Synthetic particulate filter s remove some of the tar before it reaches the smoker .

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Companies like Marlboro a brand of Cigarette made by Altria which started manufacturing cigarettes in 1924 gave ments that Marlboro is a µwomen¶s cigarette¶ based on the slogan ³Mild as May´. It became the most popular brand of United States in 2001. Marlboro became so popular that its sales never came down in the States and earned huge revenues. It started giving sponsorship to motor sports and racing cars. It was the main sponsor for Ferrari Formula One car and Yamaha in Super Bike Racing. It became famous globally till 2003 through Ferrari when it won the world championship of Formula One Racing. In mid-2006, special "racing editions" of Marlboro Red were sold in the UK, with a Ferrari-inspired design, although the Ferrari name and badge were not used. Mostly people smoke cigarettes for pleasure or because of frustration or problem. Once they start they get addict ed to it. It is very difficult to overcome the habit of smoking till one becomes used to it. In foreign countries most of the people started smoking cigarettes because of celebrities smoking in films and serials. This gave a boost to the cigarette manufact uring companies by increase in their sales and also promotion of the product as the demand increased. Most countries in the world have a legal smoking age of 18. Seven exceptions are Austria, Belgium, Denmark, , Portugal, the United Kingdom, and The Netherlands, where the age is 16. Since January 1, 2007 all cigarette machines in public places in must attempt to the customers age by requiring the insertion of a debit card. Turkey, which has one of the highest percentages of smokers in its population, has a legal age of 18. Another curiosity is Japan, one of the highest tobacco consuming nations, which requires purchasers to be 20 years of a ge.



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However, due to the prevalence of cigarette vending machines in the most public of places the effective ness of an underage ban is in doubt. In other countries, such as Egypt or India (especially Kerala) it is legal to use and purchase tobacco products regardless of age. Approximately 5.5 trillion cigarettes are produced globally each year by the tobacco industry, smoked by over 1.1 billion people, which is more than 1/6 of the world's total population . Many governments impose restrictions on smoking tobacco, especially in public areas. The primary justification has been the negative health effects of secondhand smoke. Laws vary by country and locality. In India the ban on tobacco and cigarettes has been implied since 2002, but still the companies continue to manufacture cigarettes as the smoking habits of the consumers do not change. Through sponsorship these companies try to publish their brand name and promotion of their product. Cigarette ment is also done through movies where the celebrities smoke cigarettes in the film. This also helps in brand and sales promotion. The Indian government is trying hard to impose strict actions against these ments and promotion. Even though by imposing strict tax rate these companies are able to continue their business as 1.1 billion people of the world consume cigare ttes. In many parts of the world tobacco advertising and even sponsorship of sporting events has been outlawed. The ban on tobacco advertising and sponsorship in the EU in 2005 has prompted Formula One Management to look for races in areas that allow the tobacco sponsored teams to display their livery. As of 2007, only Ferrari retains tobacco sponsorship, continuing their relationship with Marlboro until 2011. In spite of the ill effects and health hazards people continue to smoke cigarettes for pleasure or because of habit. This habitual of the people helps t he companies to overcome the ban and ment on cigarettes and tobacco.



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The Cigarette Industry is one of the oldest industries in India. It is an important agro-based industry. It is highly labour intensive and provides livelihood to about five million people directly and indirectly. Cigarette is an item falling under the First Schedule to the Industries (Development & Regulation) Act, 1951 and requires an industrial license. The cigarette industry has always been on the receiving end when it comes to imposition of taxes and duties in the financial budget of the country. The industry has been reeling under ever -increasing excise duties and innovative form of taxes like luxury tax. Also, due to the high taxes in the country, the competitiveness of the Indian cigarette manufacture is adversely affected in the global market. Its growth is being further stifled by the imposition of ban on smoking at public places and ban on ments. In add ition to this, increasing awareness about harmful effect of smoking and lawsuits in western countries has made the entire scenario pretty gloomy for the industry. This leads to increased government regulation and public litigation and a reduced ability to promote the product. In such a scenario, cigarette companies in India are going in for unrelated diversification. Also, with the increasing threat to the tobacco industry as a whole and decreased consumption levels of cigarettes, need gaps in the market are being met by new products like non -tobacco 0 , (betel leaf) flavored tobacco-free gum lets , and substitutes and tobacco patches like µClick¶ which are targeted at the traditional cigarette consumer base.

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At present, there are 19 units in the organized sector engaged in the manufacture of cigarettes with a total installed capacity of about 147.377 billion pieces per annum. The production of cigarettes during 2001 -02 was 60577 million sticks. During the current year i.e. 2002-03 (April 2002 to December, 2002) the production has been 43198.20 million sticks. In of volume, bids dominate the Indian market for tobacco products. India is the second largest producer of tobacco in the world after China. It produced 572 million kilograms of tobacco in 2002-2003. India only holds a meager 0.7% share of the US$30 billion global Import -Export trade in Tobacco, with cigarettes/cigarette tobaccos ing for 85% of the Country's total tobacco exports. The tobacco industry holds tremendous potential for India. For the government, it means excise duties and export revenues, and for the Country in general, it translates into huge employment opportunities. Despite being the second largest producer, India is only the ninth largest exporter of tobacco and tobacco products in the world. Out of the total tobacco produced in India, only one-third is flue-cured tobacco suitable for cigarette manufacturing. Most of the tobacco produce is suitable for the manufacture of chewing tobacco, b idis and other cheap tobacco products, which have no demand outside the country. There is only an export demand for flue-cured tobacco, which is used for cigarette manufacturing.

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If India adopted a rational tax policy for the tobacco industry tha t encouraged the growing of export tobacco, tobacco farmer income would increase and export revenue would grow. If India adopted China's tax policy on tobacco, tax revenue could rise from the current Rs 6,031 crores to Rs 54,000 crores. China's economy-oriented tax policies have given cigarettes 100% share of domestic tobacco consumption. This strong domestic base has proved to be conducive to exports as well as revenue generation. The Indian tobacco industry makes a very substantial contribution to employm ent. 35 million people are directly or indirectly engaged in the production and selling of tobacco & tobacco products as shown in the table below. In of volume, bidis dominate the Indian market for tobacco products. This traditional Indian smoke has shown steady growth during the review period, although manufacturers report that sales are not as high as in the 1980s. Cigarettes dominate the manufactured tobacco products market. This invaluable study analyses the market for cigarettes in India o ver the time period 1998-2002 and provides forecasts to the year 2007. This title investigates key trends and developments and can be used to evaluate competitive threats; identify strategic partners and acquisition targets; analyse market and brand share trends and forecast growth opportunities.

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ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. The Company's ownership progressively Indianised and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi -business portfolio encoming a wide range of businesses of Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable Company Brands', in a study conducted by Brand Finance and was also published by the Economic Times. ITC employs over 21,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,65,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations.

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ITC pioneered the cultivation and development of Leaf Tobaccos in India. ITC has helped the Indian farmer grow quality leaf tobaccos and linked him to global markets. ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating a global benchmark as the single largest integrated source of quality tobaccos. ITC serves in 48 countries across more than 69 destinations. ITC buys nearly 50 per cent of all tobacco types grown in India. ITC's Green Leaf Processing plants at Chirala and Anaparti in Andhra Pradesh, the tobacco hub of India, are benchmar ked with the best in the world. ITC process and deliver 120 million kilo grams of high quality tobaccos annually. ITC's collaboration with related Government agencies has helped develop new varieties of tobaccos and explore new areas for tobacco cultivation. ITC is the market leader in cigarettes in India. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quali ty, marketing and distribution. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

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ITC is the leading player in domestic cigarette market. The company commands over 60% market share both in value and volume . The company has some of the leading brands of cigarettes like Wills, Gold Flake etc in its portfolio. The cigarette business forms the bread & butter business of the company. It gets more than 85% of revenues. The company has slowly and steadily nurtured its brands over the years to secure this position. With margins as high as 40% in cigarette business the company has generated huge amount of cash from its operations and is thus facing the problem of plenty. The problem is not just restricted to ITC it is through for other tobacco companies also. Though ITC's management has good track record in managing its ci garette business, its report card on diversification and success of these unrelated business has not been good.

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£ Achieved

five star Health and Safety Rating from the British Safety

Council for its cigarette factories at Bangalore, Munger, Kolkata and Saharanpur and the "Sword of Honor" for Bangalore & Saharanpur for 2006-07.

£ Bangalore,

Kolkata and Saharanpur cigarette factories won the

prestigious Greentech Safety Gold Award for the year 2007 in the manufacturing sector. These awards are in recognition of the high level of performance that the units have achieved in Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger factories were honored with the same award in 2006.

£ Bangalore

Factory has also received the Platinum Award for

outstanding achievement in safety management in 2006.

£ Bangalore Factory has

won the "Safety Innovation Award 2006" for

Innovative Safety Management System from the Safety & Quality Forum (Institution of Engineers) and also Unnatha Suraksha Puraskara Award from NSC Karnataka Chapter.

£ The

cigarette factory at Kolkata was awarded the "1st National

Security Today Award 2005" in the category of Best Maintained Fire Safety System.

£ Bangalore,

Munger & Kolkata have won the prestigious Greentech

Environment Excellence Gold Award for the year 2006.

£ Munger

factory won the Excellence in Water Management Award

from CII-GBC for 2006.

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c Gold Flake is a widely-sold cigarette brand in India and Pakistan. It is sold in various varieties, including Gold Flake Kings (84mm), Gold Flake Lights, Gold Flake Filter (Filter tipped) and Gold Flake (plain). It is a well-positioned brand in India and is the market leader in its segment. This brand is owned, manufactured and marketed by ITC which is leader in cigarette industry in India. Other popular cigarette brands owned by ITC are Wills, Scissors. It is sold in three varieties. Gold Flake Kings is the largest selling brand of cigarettes in India. It has a mild flavour. Goldflake Filter King Size Lights (84mm) Goldflake lights is milder than Gold Flake and contains comparatively less nicotine. Goldflake Filter (Small) Goldflake Filter (small) has the strongest flavour amongst the three brands.. A pack of 10 costs about 34 Indian rupees. Goldflake Plain (Filter less). The very original Goldflake is simply known as Gold Plain or Plain in southern markets. It is the strongest of all. The cigarette market in India has 4 players ITC, a British American Tobacco (BAT) , is the largest cigarette manufacturer with 66% of the market share. Godfrey Phillips India (GPI), a Phillip Morris , and Vazir Sultan Tobacco (VST), a BAT , each have 13% of the total market share. Golden Tobacco Company (GTC) has 8% of the market share. There are lots of popular brands which are present in the Indian market. They are divided into 3 segments which are super , , and bingo segments. Few of the brands in these categories are: - Super - Wills Insignia - Wills Classic/Milds Wills Navy Cut, Wills Silk Cut, Gold Flake/Lights, four square Bingo± Bristol, Red and White.

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Goldflake was neither a brand nor a process of manuf acturing cigarettes. The word "Gold Flake" refers to cigarettes made using 'bright rich golden tobacco'. Brands other than wills gold flake are Bacons' Gold Flake, Hignett's Golden Flaked Honey Dew, Salmon and Gulckstein's Gold Flake.

ITC launched the brand Gold flake in India in the seventies. The source of the positioning of Gold Flake can b e traced back to its early days. In the Seventies, India was a country of the genteel rich. People aspired to be honorable and genteel. The lifestyle of the upper class was what the customers aspired for. The initial ads said, ³Wherever you go they are good´,´ Having f un wish you were there´ ³Worth its length in gold´, then came the Gracious People Campaigns ³For the Gracious People´ as the headline followed by, ³A touch of Gold´, with the headline "A tribute to the Gracious People". Gold Flake had been traditionally positioned as a cigarette. It targeted adult, male SEC A category smokers. It was meant to be a cigarette for the best and the rich ± the gracious people of India. It did not differentiate itself specifically from other brands. The brand wa s compared with Gold for the quality and purity of experience. Advertising emphasised this comparison to gold. The statement ± ³For the gracious people´ summed the core of the brand. The gracious people as defined by the brand were the class they w ere successful, elegant, and responsible, and had a sense of purpose.

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The consumer was bounded in the Indian ethos and roots. He was perceived to be unapproachable and sociable only in his high class. ITC's share of filter cigarettes in the country is more than 70%. In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-Val, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle East. The response to these brands has been encouraging .

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Commercially manufactured cigarettes are relatively simple objects consisting mainly of a tobacco blend, paper, polyvinyl acetate glue (PVA) to bond the outer layer of paper together, and often also a cellulose acetate based filter. While the assembly of cigarettes is straightforward, much focus is given to the creation of each of the components, in particular, the tobacco blend, which often contains over one hundred ingredients.

Cigarette rods are manufactured at high rates of speed using a cigarette making machine having a tongue which is equipped such that water is continuously fed there through in order to exit the surface of the tongue which s a tobacco filler stream ing through the garniture region of the cigarette making machine. The process of introducing water through the tongue during a cigarette making operation allows the manufacture to produce a continuous cigarette rod of controlled integrity. For example, cigarettes of controlled density and firmness, and having very low amounts of hard spots, soft spots and loose ends, can be manufactured. The process provides for the manufacture of cigarettes at high speeds, and for the manufacture of cigarettes having high filling capacity tobacco blends. For example, cigarettes having blends comprising relatively high levels of volume expanded tobacco can be manufactured efficiently and effectively.

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For manufacturing process of cigarettes includes six steps. It is a very long process. As the demand for cigarettes is increasing the demand for tobacco has also being increased. Cigarettes are being differentiated according to their smoothness, hardness, quality, size, tobacco content, etc. but the basic process for manufacturing is the same. The six steps for manufacturing cigarettes are: 1. Tobacco Harvest. 2. Tobacco Curing. 3. Tobacco grading and buying. 4. Primary processing. 5. Cigarette manufacturing. 6. Packaging.

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Harvest :

ITC pi

t

culti ti

and devel pment of Leaf Tobaccos in India.

ITC is t e largest buyer, processor and exporter of leaf tobaccos in India creating a global benchmark as the single largest integrated source of quality tobaccos. Serving customers in 48 countries across more than 69 destinations, ITC co-creates and delivers value at every stage of the leaf tobacco value chain and also process and deliver 120 million Kgs of high quality tobaccos annually. Tobacco is produced in Andaman and Nicobar Islands, Dadra and Nagar Haveli, Delhi, Pondicherry etc.

Tobacco is harvested in the following steps:-

£ Tobacco is a crop that can be grown in a wide range of soils and climatic conditions. Tobacco is also the only crop that thrives on low fertility land and is usually grown in rotation with other food crops and it needs cold climate.

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£ Tobacco seeds are miniscule and cannot be sown directly in the field.

Seedlings are first produced in plant beds or green houses and then transported after seven weeks by hand or planting machines into the fields. £ These plants are then fertilized according to the type and soil conditions.

The tobacco plant is susceptible to many diseases and therefore, great care is taken to protect these pl ants. £ The tobacco plant generally takes around 5 months from the germination

stage to harvest. In some countries such as Malaysia for example, there are 3 crop harvests in a year. £ The three types of tobacco typically grown, Virginia, Oriental and Burley

have varying stages of ripeness. Some of the tobacco leaves are harvested by hand while other plants are cut off at the stalk, taking the entire plant.

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acco Cur

:

£ Immediately after harvesting, tobacco is cured to remove all of the natural sap from the leaves so that it can be further processed and manufactured. There are three primary methods of curing cigarette tobaccos, air curing, flue curing and sun curing, but all curing focuses on regulating the rate at which moisture is removed from the tobacco.

£ The three stages of curing: Coloring: The continuation of natural ripening process. Lamina drying: The leaf tissue is dried to a particular moisture level. Stem drying: Moisture is removed from the stem.

£ |lue curing takes place in closed structures with ventilation and artificial heating. Heat and humidity are controlled to remove moisture from the leaf and this drying process fixes the characteristic orange-yellow color. |lue curing requires four to seven days.

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£ Air curing requires an open framework where sticks of leaves or whole

tobacco plants are hung. Leaf color changes from green to yellow to its final brown color as leaves and stems dry slow ly. This process takes about one to two months.

£ Sun cured tobacco is also called orien tal tobacco. These leaves are

usually dried by stringing the tobacco leaves and leaving them to dry in the sun. Sun-cured tobaccos have characteris tic aromas. This takes up to three to four weeks.

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3 obacco grad g and buy ng :

£ The quality of tobacco is dependent on the curing and fermentation processes. As a result, even within the same types of tobacco, two different batches of tobacco are not necessarily the same.

£ Depending on the area, tobacco growers use two main methods of selling tobacco - by auction or by a contract system. The former is when merchants buy tobacco selectively and the latter is when they buy the growers' whole crop. ITC mainly purchases tobacco in whole sale as it is large scale manufacturer of cigarettes.

£ The company has also hired Just in Time (JIT) buyers for buying qualitative tobacco for manufacturing, so that the manufacturing quality is also maintained. The JTI buyers know exactly what they are looking for when it comes to tobacco. They see, smell and feel the difference between the different tobacco qualities, when they buy it from the merchants.

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£ Before exporting, Virginia and Burley tobaccos are threshed. This

involves separating the midrib of the leaf, resulting in fairly small pieces of tobacco lamina suitable for cigarette production. Threshed tobaccos are then packed to specific controlled moisture levels. For JTI, grading parameters are stalk position, color, texture, aroma, and leaf size. £ ITC also purchases tobacco from outside India especially Burley tobacco

which is used for making stronger cigarettes.



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4 ¬r ary ¬rocess ng:

£ After the tobacco is stored and aged, it goes through a final processing phase according to blend formulas used for making various types of cigarettes. This process includes blending, conditioning, casing, cutting, drying and top flavoring. Once this is done, the raw material is finally ready to be made into cigarettes.

£ In order to produce a characteristic, homogeneous blend of tobacco, different types of tobacco are mixed according to precise recipes. Moisture is then added to render it supple enough to be handled, processed or manufactured.

£ Casing refers to the sauce composed of a variety of ingredients such as sugars, humectants and aromatic substances applied to tobacco before being cut into thin strands called cut rag.

£ ^hen the tobacco has been cut it is dried and cooled to the final moisture required before cigarette manufacture. The tobacco is then ready for the addition of concentrated scents and aromatic essences called top flavors.

£ The top flavors are sprayed onto the tobacco or applied in drums. In the manufacturing of menthol cigarettes, menthol is sprayed onto the tobacco instead of top flavors. After this, the cut tobacco is placed in silos.

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C garette Manufactur ng :

£ ITC uses industrial machines which are capable of mass-production up to 16,000 cigarettes per minute. After the tobacco has been treated and processed, the tobacco is made into cigarettes in a machine typically called the "Maker". They then are put through quality control checks to ensure they meet predetermined standards before being sent to the packing machine.

£ Tobacco is transferred from the silos via a pneumatic tube system into the "Maker" machine and the tobacco is shaped into a circular form. ^hite cigarette paper is then fed into a machine from a roller.

£ The trademark logo is printed and the paper is wrapped around the bare tobacco. The paper is then sealed with glue, creating a continuous cigarette stick. A cutting tool slices this into double-length sticks to which a filter is added.

£ The double-length sticks are cut in half and a double length filter is placed between the two sticks. Brown cork paper is wrapped around the filter to re the two halves and sealed with glue creating two cigarettes ed back-to-back.

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£ Finally, an ingenious mechanism divides the double cigarette and turns

one half the other ways around. This process ensures that the cigarettes created are facing the right direction and ready for the packing machine.

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6 ¬ackag ng:

£ Cigarettes that are ready for packaging are transported by conveyer belt to the "packer" machine where they are separated into feeder channels to be inserted into packs. Meanwhile, aluminum from a roller as well as cardboard is fed into another machine and template patterns of the packs are stamped out. Groups of 10, 20 or 30 cigarettes are inserted into the finished inner lining and then the final external packing is added.

£ Next comes the wrapping of each pack with a polypropylene film with pull strings and weld. This is done to preserve the humidity of the freshly made cigarettes - a vital factor in preserving their overall quality.

£ The packing process, however, does not end there. The final part is to collect the individual packs of cigarettes into cartons of ten, which are again wrapped by polypropylene.

£ |or customer shipping, fifty cartons are automatically packed in cardboard boxes. The pallet machine lifts the 15g cardboard boxes each containing 10,000 cigarettes, directly on transport pallets.

£ During the cigarette manufacturing process, engineers and technicians conduct numerous quality control checks aided by an array of monitoring devices as well as testing and measurement systems.

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CHAPTER III

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,. OF H ¬ OD.C

Gold |lake is a category brand name for the product class of cigarettes. The Gold |lake cigarettes are composed primarily of golden tobacco, which is distinctive feature from other cigarettes. Gold |lake cigarette is composed primarily of golden tobacco (brightly colored tobacco), which like any other tobacco is considered injurious to health. Some other cigarettes which are generally not very prevalent also consist of nicotine as opposed to tobacco. However, such cigarettes are not manufactured under Gold |lake brand name or by ITC or by any branded company. The smoke of the cigarettes is considered so harmful that it causes diseases even to the ive smokers, the diseases primarily of respiratory disorder nature. Paper is used to roll the tobacco inside. Gold |lake comes in various lengths and types. The length of a cigarette varies from 60mm to 100 mm. The various types are filter, plain and micros. A cigarette has may attributes and components like filter, shape, weight, color, form material, hard, soft, internal and external parts, style, etc.

¬aper (form

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Ho%der or Yccessory

obacco Ins de

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The various components and attributes of GOLD FLAKE are: M & : The shape of the Gold Flake cigarette is cylindrical and is called a stick. It has golden tobacco rolled in paper with filter on one side in case of filtered cigarettes. M / The length of a cigarette varies for different brands. There is different tax rate charged by the government on basis of cigarette length. High length of cigarette attract high tax rate. The Gold Flake cigarette (Large) has the standardized length of 84mm and Small Gol d Flake is having length of 69mm. M / Though the tobacco is also consumed in powder form, however in case of cigarettes it is usually smoked. The smoke carries the burnt tobacco particles with it which act as a stimulant, satisfying the motive of consumption for the consumer or smoker. M / The cigarette paper for Gold flake comes to the industry wrapped on Bobbins: a) Width: 26 - 27mm b) Length: 5,000 - 6,000m M ^ / The tobacco is the main component of weight in the cigarette . GOLD FLAKE is of different sizes 84mm and 69mm where the tobacco content is different which matters the weight of the cigarette as well as the size and price.

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M %/ The paper used is generally white in color. However, the whiteness of the paper varies. The filter comes in two colors that is golden and white. M / The price of large packet of Gold Flake is Rs 34/- containing 10 cigarettes, small packet is Rs 28/- and loose cigarette is Rs3.50/M % / It is a type of material which is used in every cigarette to reduced irritation, cough, bad breath, excessive phlegm , and smoke by-product on teeth, fewer symptoms of shortness of breath, tightened chest, and heart discomfort. Filter is safe, hygienic, and easy to carry. The specifications of the filter used in GOLD FLAKE cigarettes are: ë Diameter: 5-7 mm. ë Length: 13-16mm. ë Weight: 1g. ë Filter material: high-quality nontoxic plastic and inner core wood fiber ë Package material: high-quality nontoxic plastic sheets and aluminum

foil. ë UV sterilized.

M $ % / As such there is no external part, however, few people like to smoke with an additional pipe attached to it which also acts as a filter. M &% / The inherent word cigarette itself reflects style in some of the consumer minds. Gold flake is primarily associated with a state of richness. Most cigarettes give a perception of confidence to the .

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, People smoke cigarettes for many reasons as it helps in losing weight, release from stress, if anyone has a stuffy nose, and smoking will help the respiratory tract unobstructed. It also aids in relaxation and reducing boredom. Smoking a filter cigarette causes lesser harm to health than non filter cigarettes .

The benefits of the product have been divided into two categories. , "

& , "

M Superior quality.

M Improves concentration.

M Consistent quality.

M Reduces stress.

M Smoothness.

M Helps lose weight.

M Mildness.

M Helps to relax and reduce boredom.

M Refreshing.



M Helps to socialize. M Less Tar level. M Acts as appetite suppressant. M A companion when lonely. M Private indulgence for women.

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Gold Flake cigarettes come in packs containing 10 to 20 cigarettes. The packets are constructed from hard paper, with a water resistant glossy finish on the outside. The shape is polygonal (similar to packs of many other cigarette brands) with rectangular faces. The pack can be opened from the top via a paper lid. The lid is linked and ed for proper rotation.

The body of the packet is chrome yellow with a gold band separating the red colored lid. The logo is bordered with gold and display ed on both the front and back faces of the body as well as on the upper portion of the lid. The front face is depicted in the image above. The front and back faces have a slightly ribbed texture around the logo. ³FILTER TIPPED´ along with an 8 pointed star is written in gold on both sides of the lid. On one side of the lid, the no. of cigarettes inside is written in gold. On the other side of the lid ³NOT FOR SALE TO MINORS´ is written. The statutory warning is given at the base of the front face. The no. of cigarettes, price and packaging is displayed at the bottom of the packet. All the written information is in a Sans Serif style font. -

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Each single cigarette is white in color with an ochre colored bottom portion (with yellow flakes). W.D. & H.O. Wills is inscribed both on the packet and on each cigarette in a stylized font. The length of the cigarette in is around 69mm for a pack size of 10.

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