Tobacco Plus India

Pan Masala Market Not in a Very Good Shape: Chaurasia Traders

Chaurasia Traders is one of the oldest and most respected firms in the pan masala and tobacco trade in Mirzapur. The firm is currently managed by Mohan Chaurasia, while its foundation was laid in 1962 by his father, Shri Ramchandra Chaurasia.

Having closely witnessed the industry’s evolution for over six decades, Mohan Chaurasia told Tobacco Plus that the new taxation regime has significantly impacted the market. While a few brands have benefited from the revised tax structure, many others are struggling to maintain their market position.

According to Chaurasia, the return on investment has declined despite increased capital deployment. Trade margins have fallen by 25–30%, while working capital requirements have risen substantially. He explained that Mirzapur was traditionally a ₹5-for-2 units market, but after the implementation of the new taxation system, companies were compelled to revise their pricing strategy, which resulted in a decline in sales.

Chaurasia Traders deals in popular zarda brands such as Bhola, Jagat, Ratna, Gopal, and Kabir Zarda of Kashi Vishwanath. Mohan Chaurasia pointed out that Ratna is manufactured at two locations Muzaffarpur and Noida. The Noida-made Ratna is sold in Mirzapur because it is more competitively priced than the Muzaffarpur variant.

He said that Bhola, Kabir, and Jagat are currently the best-selling zarda brands in the region. Baba One is also performing very well, while Vani and several other brands continue to enjoy steady demand. The 500-gram pack of Baba Black is particularly popular, and Gopal also maintains a strong presence in the market.

In the pan masala category, Chaurasia Traders deals in Sir, Signature, and Cash brands. According to Mohan Chaurasia, the overall pan masala market is not in a healthy condition. At the same time, sales of desi pan masala brands such as Josh and Arzoo, along with khaini, have witnessed growth.

Among the premium pan masala brands, Rajnigandha holds the number one position. Its ₹10 pouch is selling exceptionally well. Chaurasia believes that the new taxation system has actually worked in Rajnigandha’s favour, leading to nearly 40% growth in sales.

Signature’s ₹5 pouch has also recorded increased sales. When its price was temporarily increased to ₹6, sales were affected, but after the price reverted to ₹5, demand recovered significantly.

Vimal chose not to increase its MRP, which proved advantageous. As sales of several competing brands declined, many consumers shifted to Vimal. Shikhar has also been performing well, while Shuddh Plus enjoys strong demand in rural markets. Bahar continues to maintain a stable market position.

Sales of Cash pan masala were affected due to temporary supply disruptions. In the zarda category, Kamla Pasand remains the market leader, while Signature has established a successful combination with zarda products.

In the paan accompaniment segment, Minakshi and Dilbahar are the leading paan chutney brands, whereas Paan Rasna is the most sought-after paan flavour.

Speaking about the khaini market, Mohan Chaurasia said that Asha Khaini continues to perform well, while Chaini Filter Khaini has built a strong identity in the filter khaini segment. Besides these, local khaini brands have also registered noticeable growth.

According to Chaurasia, the cigarette market is expanding rapidly and has begun to impact the pan masala industry. He observed that the younger generation increasingly considers cigarettes a status symbol, often downgrading their consumption of pan masala in favour of cigarettes.

He concluded by saying that the pan masala market has largely reached a saturation point, with brands now competing mainly by capturing each other’s market share rather than expanding the overall market. In the bidi segment, Masal, Toofan, and No. 122 continue to enjoy consistent demand, much like they have for years.

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