KT&G Launches Major Crackdown On Counterfeit ESSE Cigarettes Across India

South Korean tobacco major KT&G has initiated a strong legal campaign to combat the growing trade of counterfeit and illicit ESSE cigarettes in India. The company has partnered with S.S. Rana & Co. law firm to spearhead legal action against traders and distributors involved in the illegal sale of fake ESSE products.

As part of the first phase of the drive, KT&G and S.S. Rana & Co. have already issued more than 130 legal notices to individuals and retailers engaged in the illegal ESSE cigarette trade in the Delhi-NCR region. The company has also announced plans for a nationwide crackdown, targeting key states including Karnataka, Tamil Nadu, Maharashtra, and Telangana starting this month.

Globally, illicit cigarettes account for 11.6 percent of total consumption, resulting in an estimated $40.5 billion in lost tax revenue. In India, the situation is particularly severe, illegal and smuggled cigarettes make up nearly 20 percent of the total market.

KT&G has expressed deep concern over the unauthorised use of its ESSE brand and the increasing circulation of counterfeit products through illegal trade channels. The company warned that these fake cigarettes often fail to comply with national health and safety standards, posing significant risks to public health.

“Illicit and counterfeit cigarettes pose a serious threat to India’s economy, public health and consumer trust,” said Young-Hun Kim, Director of the IP Division at KT&G headquarters. “With illicit cigarette volumes reaching 30.2 billion sticks in 2022, India is among the largest markets for illegal trade after China and Brazil, causing an estimated INR 13,331 crore loss in government revenue. KT&G is firmly committed to preventing misuse of the ESSE brand and ensuring that consumers have access only to safe and authorized products.”

Kim emphasised that any inquiries regarding genuine ESSE products in India should be directed to Kedara Trading LLP, KT&G’s sole authorised distributor in the country.

A spokesperson for Kedara Trading LLP added that the illicit trade in cigarettes continues to damage the Indian economy and public health.

As part of its enforcement drive, KT&G has warned that it will pursue strong civil and criminal proceedings against any manufacturer, distributor, wholesaler, or retailer involved in the illegal trade of ESSE products. The company also plans to collaborate closely with enforcement agencies to track smuggling networks, ensure compliance with the government’s new track-and-trace system under the Finance Act 2025, and raise consumer awareness about the dangers of purchasing from unauthorized sources.

KT&G urged consumers to buy ESSE products only through authorised and verified channels, cautioning that illicit products often lack mandatory health warnings and fail to meet safety standards. These counterfeit cigarettes, often sold at lower prices, mislead consumers and may pose serious health risks.

“Illicit products are not produced to the required health department guidelines and may endanger consumers,” the company warned. “They not only evade mandatory pictorial health warnings but also mislead consumers into believing they are safer.”