Hit by the recent government diktats on banning smoking in public places, cigarette manufacturing firms are putting up a brave front and are gearing up to cope with the revenue loss. 

While companies like Godfrey Phillips have put up 'no-smoking' posters in their offices and removed ash-trays, lighters from their premises, others like ITC and the Indian Hotel Association have sought relief from the Supreme Court. 

However, all cigarette manufacturers say they would abide by the health ministry's directive of putting pictorial warnings on all tobacco products from December 1. This is in accordance with a notification issued by the Ministry of Health and Family Welfare (dated August 27, 2008), in accordance with the Cigarettes and Other Tobacco Products (Prohibition of advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003. 

"Whatever has been mandated in the ban is being followed. It's a little premature to comment on a possible slowdown in sales as the industry is experiencing this kind of environment for the first time. We'll have to wait and watch," a Godfrey Phillips India spokesperson said.

 ITC's cigarette business share has already come down to less than 50 per cent to the total turnover following the regulations in the past. The company, however, was unavailable for comment.

Earlier this year, the excise duty on non-filter cigarettes of 60-70 mm length was raised by almost 250 per cent leaving manufacturers with no choice but to pass on the burden to the consumers. 

According to sources, the annual cigarette sales are pegged at 102 billion sticks, while there are about 40 million tobacco users.

 While admitting a likelihood of a short-term slowdown for the industry, Golden Tobacco Company has taken a different view.

 "There may be a short-term slowdown in sales as the industry gears up for the new regulations but we perceive it as a first step in reducing the harm caused due to smoking tobacco and its by-products to the non-smokers. However, the larger impetus should be to reduce harm to the current smokers as well," says Sanjay Dalmia, chairman  Golden Tobacco.