The high-priced segment of the Indian cigarette industry is expected to witness fierce competition after the Indian government Thursday said it will allow 100 percent foreign equity in tobacco companies. The high-priced segment, where foreign companies are expected to attack first, accounts for 17 billion cigarettes a year, said analysts. The entry of foreign companies will also squeeze the market for nearly 2 billion cigarettes smuggled into the country each year, as smokers will be able to get their favorite foreign brands from India-based companies, analysts said.
Some street vendors are concerned.
Copyright 1998 Lexington Herald-Leader.