South Korea’s KT&G is intensifying its fight against counterfeit tobacco in India, one of the world’s fastest-growing illicit cigarette markets.
The maker of the premium cigarette brand ESSE has launched a sweeping legal campaign targeting fake products that are undermining brand value, distorting prices, and posing public health risks. KT&G retained local law firm S.S. Rana & Co. and issued legal notices to more than 130 individuals and retailers in the Delhi NCR region. The crackdown will expand this month to major states including Karnataka, Tamil Nadu, Maharashtra, and Hyderabad as part of a nationwide enforcement drive.
Globally, illicit tobacco accounts for roughly 11.6% of cigarettes sold, causing an estimated $40.5 billion in lost tax revenue. In India, illegal products represent about 20% of the market, with 30.2 billion cigarettes trafficked in 2022, resulting in over $16 billion in tax losses. KT&G identifies India, China, and Brazil as the three largest illicit tobacco markets worldwide.
KT&G emphasized that its campaign extends beyond trademarks. Many counterfeit ESSE cigarettes fail to meet health and safety standards, potentially misleading consumers and undermining public health regulations. “The spread of counterfeit and illegal cigarettes threatens consumer trust, India’s fiscal stability, and public health,” the company said. “We will pursue strict civil and criminal actions against all parties involved — manufacturers, distributors, wholesalers, and retailers.”
The company also plans to work closely with Indian enforcement agencies and comply with the country’s upcoming track-and-trace system for tobacco products. KT&G clarified that Kedara Trading LLP is the sole authorized distributor of ESSE products in India. Analysts say KT&G’s aggressive IP enforcement could serve as a model for other emerging markets, as the Seoul-based tobacco maker continues expanding across 148 countries with over 870 brands.
