abhishreshthaa
Abhijeet S
Pan products
Pan products are peculiar Indian products and are reasonably popularly refers to betel leaf that is chewed after meals as its juice is good for digestion. Pan and pan products are prepared and sold by tens of thousands of small roadside shops (called pan wallas) scattered all over the country.
Pan products
Tobacco based Plain
Raw tobacco Flavored supari
Pan Pan
Gutkha Pan masala
Penetration
Pan products have a penetration of 16.8% in India, almost equally distributed in rural and urban areas.
Pan masala penetration is 7.2% which is marginally higher in urban areas at 8.6% as compared to 6.6% in rural areas.
Supari is reasonably popular, with a penetration of 14% in urban as well as rural areas. The penetration is relatively higher in small towns.
Penetration is higher in North India as compared to other parts of the country
The penetration of these products is significantly low amongst highly educated and upper class urban consumers.
Consumer habits and practices
Pan products are eaten either plain or with tobacco.
Consumers, who eat pan products with tobacco, are addicted and consume it several times a day.
Plain pan products are consumed just for fun or occasionally after heavy dinner at parties, weddings, etc.
Unbranded pan products like supari, dhania dal, etc are also consumed at home in large quantities.
Pan shops are typically located outside restaurants and at key junctions in residential areas. These shops generally serve as meeting point for youngsters who spend spare time with their friends at such locations.
The habit of eating pan/ pan products is more prevalent in Northern and Western states such as UP, Bihar, Rajasthan and Gujarat.
Major players
Kothari Products is the leading player with its Pan Parag brand name. Other players are Virat Crane Ltd (Crane) and Raghunath International.
Company Sales OPM Net profit Equity EPS
Kothari products 1713 13.9 245.8 50.0 49.2
Raghunath Internaional 103 9.5 0.6 50.0 0.1
Virat Crane 113 18.1 2.3 72.4 0.3
All figures in Rs mn
There are a large number of regional brands also. Some of the well-known Gutkha brands are Manikchand, Mahak, Vimal, Kuber, Tulsi, Badshah etc. The Gutkha segment is growing at 25% pa.
Excise structure
The Central Excise department, in a survey conducted on excise evasion had identified the pan masala industry is one of the highest evasion prone areas in the country. Evasion rate was as high as 75-80%.
The FY99 budget levied excise duty on MRP basis, on the segment, in order to check evasion by understatement of value of