Swedish Match plans to take Click global

Spurred by the success of its snus (category of specialised tobacco) product under the brand name of Click in India, Swedish Match, the diversified transnational tobacco major has now decided to position it as an international brand. Click was launched in India in 2001.

B Mukherjee, president, Swedish Match Consumer Products said, "The Click brand will be developed as one of Swedish Match's international brand and will be introduced in new emerging markets."

The group's main snus brands are Ettan and General among others.

Swedish Match has identified snus as its growth area. Currently, snus contributes to 21 per cent to its total sales.

Considering growing demand for its snus, particularly portion-packed snus, Swedish Match is setting up a new production plant in Gothenburg. It already has an existing unit at the same site which makes loose and portion-packed snus.

The group recently launched the Click brand in Russia and plans are to launch it in Japan.

The group's new markets includes India, Russia and southern Africa. India is one of Swedish Match's main market considering the sheer size for tobacco products estimated to be around Rs 40,000 crore (Rs 400 billion).

Bernt Svensson, director, new business development, North Europe division AB, said, "Swedish Match has undertaken exhaustive research regarding tobacco usage in India, prior to presenting the product to the Indian consumer."

"The Indian consumer has accepted the category and we have received an extremely encouraging response. Among emerging markets, India is the primary focus for Swedish Match. We are fully committed to our Indian operations and have a long-term business plan for India," Svensson added. Swedish Match, at present, outsources 50 per cent of tobacco from India.

The parent company owns 51 per cent shares of the Indian company Swedish Match Consumer Products and the balance is held by Wimco and Wimco Foods.

Currently, the authorized share capital is Rs 25 crore (Rs 250 million) and paid up capital is Rs 12.5 crore (Rs 125 million). Swedish Match Consumer Products is looking at setting up a packaging plant in Mumbai and/or Delhi, as part of its expansion plan.

(The correspondent's trip was sponsored by Swedish Match)