ITC Ltd has sought the Indian government's permission for the import of essential raw materials (sheet reconstituted tobacco) from the United Kingdom to start the manufacture of Benson & Hedges in the country by January 1998.
It had earlier entered into a licensing agreement with the UK-based Benson & Hedges Overseas Ltd for the manufacture and marketing of the premium brand of cigarettes. In its application to the Directorate General of Foreign Trade (DGFT), ITC Ltd has stated that it needs to urgently import sheet reconstituted tobacco (SRT), which is essential for blending tobacco for the manufacture of Benson & Hedges cigarettes. The proposal put up before the DGFT envisages the import of 800 kilograms of SRT from the United Kingdom at a CIF value of 1,161.00 Great Britain pounds.
SRT is reconstituted from particles of waste tobacco generated during the manufacture of cigarettes and cannot be consumed directly. It has to undergo further processing for use in the manufacture of cigarettes, states the company's proposal.
ITC had earlier entered into a licensing agreement with UK-based BAT Ltd, Adrath Tobacco Company and Benson & Hedges for the manufacture and sale of two premium brands -- State Express 555 and Benson & Hedges in India.
The agreements had been cleared by the Ministry of Industry earlier this year.
Besides ITC bringing in these premium brands, Pall Mall-based Rothmans is set to manufacture and market its range of cigarettes through its wholly-owned subsidiary. However, Rothmans, which holds a two per cent stake in ITC Ltd, may have to get ITC Ltd's nod before going ahead with its plan.
The Indian market has undergone drastic changes with the introduction of foreign brands. ITC is gearing up to meet the challenge by upgrading technology, product quality and variety, reiterates the company's proposal.
ITC Ltd, which had a turnover of around Rs 5,900 crore during 1996-97, generated foreign exchange earnings in excess of Rs 650 crore during the period.
