China’s Tobacco Monopoly is 18th Profitable Company


China National Tobacco Corp., the nation’s cigarette monopoly, may be larger by annual profit than HSBC and Wal-Mart  according to a rare release of the company’s financial data. Its 2010 figures would make China National Tobacco the world’s 18th largest company by profit, one spot ahead of American International Group and just behind JPMorgan Chase & Co., according to Bloomberg. China National Tobacco made more in profit in 2010 than the combined total for Philip Morris International, British American Tobacco, and Altria Group, Inc., the world’s three- biggest listed tobacco companies, according to the figures.

Tobacco and the Environment: Smoking causes air pollution and to pollutes the ground. Approximately 4000 chemicals are present in cigarettes, which are breathed out and released in the atmosphere. The land, which is used for the cultivation of tobacco plants, could be better used for producing food for the third world countries. For the production and packaging of the cigarette requires a lot of trees. In an hour cigarette-manufacturing unit requires almost 4 miles of paper for rolling and packaging of the cigarettes. Just to produce 300 cigarettes one tree is being wasted. Energy and water is also being wasted for the production of the cigarettes as well as the chemical wastes from the manufacturing unit is also dumped into the soil.

Authorities in China, home to a third of all the world’s smokers, have been criticized by groups including the World Health Organizationfor not doing enough to prevent tobacco use. The tax revenue the government derives from the industry — more than $95 billion last year — has hindered efforts to discourage smoking.  About 1 million Chinese die from tobacco-related illnesses every year, according to the WHO. China, the world’s most-populous nation is home to more than 350 million smokers.Almost three in every five men smoke. The volume of cigarettes sold in China is expected to rise at an average 14 percent annually.

via Bloomberg