Philip Morris India uses market intelligence to map illicit cigarette hotspots

Drawing on global experience, Philip Morris International has implemented track-and-trace systems in over 140 markets and is engaging with Indian authorities to strengthen enforcement and supply-chain transparency. | Photo Credit: Reuters

In a bid to crack down on illicit cigarettes, Philip Morris India Trading has leveraged market intelligence to map contraband hotspots and assess its penetration.

As per Euromonitor International, sales of illicit cigarettes remain high in India, driven by affordability compared to legal cigarettes. Illicit cigarettes evade taxation, while the legal industry struggles under high tax rates.

Based on estimates, Euromonitor International ranks India as the fourth-largest market for illicit cigarette consumption globally, after China, Brazil and Pakistan.

Smuggling routes

Recent public reports suggest enforcement agencies have estimated seizures of smuggled cigarettes worth ₹600 crore during FY’25, reflecting the growing scale of the illicit tobacco trade. Additionally, Directorate of Revenue Intelligence data has highlighted the North-Eastern region as the largest epicentre of cigarette smuggling, accounting for one-third of total seizures due to porous borders with Maharashtra-Goa (20 per cent), Tamil Nadu (13 per cent) and West Bengal (9 per cent) highlighting the growing use of coastal and maritime routes for such smuggling.

Global safeguards

With operations across multiple markets globally, Philip Morris International (PMI) has voluntarily implemented advanced Track and Trace systems in over 140 markets worldwide.

In regions such as the EU, UK, Russia, Jordan, and the GCC, every pack is digitally tagged and monitored, supported by scalable, locally adapted frameworks developed in collaboration with national authorities.

Additionally, PMI has consistently invested in technologies that protect supply chain integrity, delivering better visibility, stronger compliance and measurable reductions in illicit trade.

India collaboration

Navaneel Kar, Managing Director, Philip Morris India, said the company’s endeavour in India combines global expertise with local partnerships to strengthen enforcement and protect consumers.

The company this year engaged with over 50 key stakeholders, including various ministries and government departments, to deepen collaboration through market intelligence, advanced track-and-trace systems and collaborative frameworks to curb the inflow of illicit cigarettes, he said.

By combining technology-driven solutions with strategic partnerships and enforcement support, PMI remains focused on building a transparent, compliant, and secure tobacco ecosystem that protects consumers and strengthens national interests.

Philip Morris India Trading is a joint venture between Philip Morris Brands SARL of Switzerland and two Indian entities -- Godfrey Phillips India and KK Modi Investment & Financial Services.

Published on December 23, 2025