Industry Overview
The beedi industry is one of India's largest tobacco-based sectors and remains largely unregulated despite its significant economic and social impact. Beedis continue to be more widely consumed than cigarettes in India, with an estimated 7.9 crore beedi smokers aged 15 to 69 years in 2022, compared with approximately 6.1 crore cigarette smokers. Research cited in the report also indicates that mortality rates among beedi smokers are substantially higher than among non-tobacco users.
The industry provides employment to an estimated 60 lakh workers, the majority of whom are women, highlighting its importance as a source of livelihood while also raising concerns about labour welfare. The report emphasizes that the sector is associated with occupational health risks and worker exploitation, particularly because production and trade remain largely unregulated.
Although several legislations exist to safeguard workers—including the Beedi and Cigar Workers (Conditions of Employment) Act, 1966, the Beedi Workers' Welfare Fund, 1976, and various social security laws—the report notes that gaps in implementation continue to affect worker welfare. It aims to examine the beedi industry across different Indian states, identify policy implementation challenges, and recommend improvements.
The report also describes the traditional beedi as a thin hand-rolled tobacco product originating in the Indian subcontinent. It is made by wrapping tobacco flakes in a tendu leaf (Diospyros melanoxylon) and securing it with a thread. The term "beedi" is derived from the Marwari word beeda, referring to a mixture of betel nuts, herbs, and spices wrapped in a leaf.
Cost Estimation
| Particular | Value |
|---|---|
| Plant Capacity | 1100 Packs/Day |
| Land & Building (3000 sq.mt.) | Rs. 85.25 Lac |
| Plant & Machinery | Rs. 42.70 Lac |
| Working Capital for 2 Months | Rs. 1.51 Cr |
| Total Capital Investment | Rs. 2.58 Cr |
| Rate of Return | 34% |
| Break Even Point | 55% |
Content Index
- INTRODUCTION
- OVERVIEW OF TENDU LEAVES
- INTRODUCTION
- TENDU LEAVES
- TENDU TREE
- TOBACCO CULTIVATION, HARVESTING AND CURING
- CHHATTISGARH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
- TENDU LEAVES COLLECTION AND TRADE PRACTICES
- THE YEAR WISE DETAIL OF COLLECTION AND SALE OF TENDU LEAVES IN THE STATE ARE AS FOLLOWS:-
- MADHYA PRADESH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
- DATA OF TENDU LEAVES TRADE
- COLLECTION RATES IN DIFFERENT SEASONS
- MANAGEMENT PRACTICES
- YOUNG TENDU TREES BY SIDE BRANCH CUTTING
- MARKETING STRATEGIES IN DIFFERENT STATES
- TENDU LEAVES COLLECTION AND TRADE PRACTICES
- COLLECTION OF TENDU LEAVES
- LOCAL COLLECTION CENTER 'PHAD'
- ODISHA TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
- UNIQUENESS OF ODISHA'S TENDU (KENDU) LEAF
- MARKETING OF KENDU LEAFS BY THE OFDC
- SELLING OF KENDULEAFS THROUGH E-TENDER/AUCTION SALE
- THE QUANTITY SOLD AND ITS SALE VALUE REALIZED DURING LAST FIVE YEARS ARE SHOWN BELOW:
- EXISTING LEGISLATION IS CURRENTLY IN PLACE IN INDIA:
- THE BEEDI WORKERS WELFARE CESS ACT, 1976
- THE MINIMUM WAGE ACT, 1948
- BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966
- THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT 1970
- THE EQUAL REMUNERATION ACT 1976
- THE MATERNITY BENEFIT ACT 1961
- THE CIGARETTES OR OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT 2003 OR COTPA
- TAXATION
- EMPLOYMENT IN THE BEEDI INDUSTRY
- STAKEHOLDERS:
- INDIVIDUAL STAKEHOLDERS:
- INSTITUTIONAL STAKEHOLDERS:
- THE MIDDLEMAN:
- BEEDI CONSUMPTION COSTS
- TOBACCO SMOKING
- SMOKELESS FORMS OF TOBACCO
- PAAN (BETEL QUID) WITH TOBACCO
- PAAN MASALA
- MAINPURI TOBACCO
- MAWA
- TOBACCO AND SLAKED LIME (KHAINI)
- TOBACCO INDUSTRY AND EXPORTS INDIA
- TOBACCO EXPORT TREND
- MAJOR MARKETS
- MARKET POTENTIAL
- MANUFACTURING PROCESS OF BEEDI
- THE PROCESS OF BEEDI MAKING INVOLVES THE FOLLOWING:
- PRINCIPLES OF PLANT LAYOUT
- MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
- PLANT LOCATION FACTORS
- PRIMARY FACTORS
- 1. RAW-MATERIAL SUPPLY:
- 2. MARKETS:
- 3. POWER AND FUEL SUPPLY:
- 4. WATER SUPPLY:
- 5. CLIMATE:
- SPECIFIC FACTORS
- 6. TRANSPORTATION:
- 7. WASTE DISPOSAL:
- 8. LABOR:
- 9. REGULATORY LAWS:
- 10. TAXES:
- 11. SITE CHARACTERISTICS:
- 12. COMMUNITY FACTORS:
- 13. VULNERABILITY TO WARTIME ATTACK:
- 14. FLOOD AND FIRE CONTROL:
- EXPLANATION OF TERMS USED IN THE PROJECT REPORT
- 1. DEPRECIATION:
- 2. FIXED ASSETS:
- 3. WORKING CAPITAL:
- 4. BREAK-EVEN POINT:
- 5. OTHER FIXED EXPENSES:
- 6. MARGIN MONEY:
- 7. TERM LOANS:
- 8. TOTAL LOAD:
- 9. LAND AREA/MAN POWER RATIO:
- UTILITIES
- POWER
- WORKING
- TOTAL MANPOWER AND PAYROLL
- UTILITIES
- PLANT AND MACHINERY MANUFACTURERS
- BEEDI MANUFACTURERS
- HERBAL BEEDI MANUFACTURERS
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF PLANT AND MACHINERY
- WEIGHING MACHINES
- PACKAGING MACHINE
- D.G. SET
- LABORATORY TESTING EQUIPMENTS
- DOCUMENTS REQUIRED FOR LICENSES
- LIST OF DOCUMENTS:
- ADDRESSES OF RELEVANT GOVERNMENT OFFICES
- ADDRESSES OF FINANCIAL INSTITUTIONS
- SWOT ANALYSIS
- PRODUTS IN THE MARKET
- ORGANIZATION CHART
- PLANT LATOUT
- IMPLEMENTATION SCHEDULE
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
A beedi is a hand-rolled tobacco product wrapped in a tendu leaf and tied with thread.
It originated in the Indian subcontinent and is manufactured by filling dried tendu leaves with tobacco flakes before manually rolling, tying, drying, packing, and distributing the finished product. The process is labour-intensive and depends heavily on skilled manual work, making the availability of quality tendu leaves and trained workers important factors in production.
Tendu leaves are the primary wrapping material used for manufacturing beedis.
The leaves provide the characteristic shape, strength, and burn quality of the finished product. Their collection, grading, storage, and trade form an essential part of the beedi supply chain. The report also highlights production practices and marketing systems for tendu leaves across several Indian states.
The industry faces regulatory, labour, and occupational health challenges.
According to the report, worker exploitation, limited regulatory oversight, occupational hazards, and inconsistent implementation of labour welfare laws remain significant concerns. These issues affect both workers and the long-term sustainability of the sector, highlighting the need for stronger policy implementation and improved social protections.
Several labour and welfare laws govern different aspects of the industry.
The report references legislation such as the Beedi and Cigar Workers (Conditions of Employment) Act, 1966, the Beedi Workers Welfare Cess Act, 1976, the Minimum Wage Act, the Maternity Benefit Act, the Contract Labour Act, and COTPA. These laws address employment conditions, worker welfare, wages, and tobacco regulation.
Plant location, raw materials, utilities, labour, and regulatory compliance are key considerations.
The report identifies factors such as raw-material availability, market access, transportation, water and power supply, climate, waste disposal, labour availability, taxation, site characteristics, and legal compliance. Proper plant layout and infrastructure planning are also important for efficient manufacturing operations.
A project report provides technical, operational, and financial guidance for establishing a manufacturing unit.
Based on the contents, this report includes manufacturing processes, market potential, plant layout, machinery, utilities, manpower requirements, licensing information, SWOT analysis, financial estimates, project economics, and implementation planning. These sections help stakeholders evaluate project feasibility before making investment decisions.
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