Tobacco Asia

42 tobaccoasia MANUFACTURING NEWS 制造新闻 The proposed measures add pressure to an industry that already faces some of the world's highest tobacco taxes. The move follows recent government action to cut taxes on everyday consumer goods to stimulate domestic demand and soften the impact of tariffs imposed by the US. As part of the changes, the government plans to set a levy of INR5,200 (US$57.63/US$1.00=INR90.23). per thousand sticks on cigarettes measuring between 65 millimeters and 70 millimeters in length. Cigarettes between 70 millimeters and 75 millimeters would face a levy of INR7,000 per thou‑ sand sticks. Together, the bills signal a renewed focus on taxing tobacco‑related production through both machinery‑based levies and revised excise duties, even as broader fiscal policy seeks to support consumption in other parts of the economy. Texas Nicotine Pouch Expansion Rena World, a specialist in advanced pouch manufacturing, said it has closed a US$5 million pre‑A funding round backed by private equity firms and family offices. The proceeds will fund the expansion of the company's manufacturing site in Texas, with phase 1 output targeted at 40 million cans a year and total capacity expected to surpass 100 million cans annually, raising the bar for nicotine pouch production in the US. Launched in 2023, Rena World has quickly built a reputa‑ tion as an innovator in the nicotine pouch segment, combining new technologies with high‑precision manufacturing. The Texas facility will rely on advanced automation and proprietary processes and will support production of both dry and moist pouches. These capabilities place Rena among a limited number of US manufacturers able to serve a broad range of pouch formats and specifications. "Rena is committed to advancing pouch technology and manufacturing excellence," said Toby Chen, founder and c.e.o. of Rena World. "With our new facility, we will set the industry standard for quality, scalability, and innovation, ensuring U.S. consumers and brands have access to the best pouch products available." Chen previously co‑founded SnowPlus, a Chinese vape brand that reached a peak valuation of US$1.5 billion. He has led multiple high‑profile product launches and development initiatives and now concentrates on next‑generation pouch technologies and tailored solutions for brand partners as Rena scales its US operations. He works alongside co‑founder Timothy Zhao, who leads manufacturing development and operations. "Our mission is clear — to build the best‑quality nicotine pouch manufacturing platform in North America," Zhao said. "The Texas facility is designed for absolute quality, full regulatory compliance, and unmatched execution speed — a new benchmark for operational excellence." Rena World applies a pharmaceutical‑grade approach across its production process. The company uses precise dosing and advanced granulation to ensure even distribution of nicotine and excipients, while spray drying and lyophilization create stable microparticles that improve absorption efficiency. Depending on the product type, forming technologies tightly manage temperature and pressure to protect active ingredients. Manufacturing remains standardized but customizable, with dosing and shaping engineered to pharmaceutical tolerances. The process holds critical parameters, such as mixing ratios, granulation temperature, and compression pressure, within ±1%. A high‑precision gravimetric feeding system maintains zero variance between batches, supporting reproducible results. This level of control supports long‑term product stability and uniform quality across every pouch. Rena said the new funding will speed construction and commissioning of the Texas plant, which is expected to come online in the near term. Once operational, the facility will allow the company to supply major brands and distributors nation‑ wide as the market shifts toward cleaner, compliant, and high‑performance nicotine products. FBR Shuts Illegal Cigarette Manufacturing Pakistan's Federal Board of Revenue (FBR) shut down the manufacturing units of Indus Tobacco Company and Souvenir Tobacco Company in District Mardan over allegations that both firms produced and distributed cigarettes without paying excise duty and without mandatory track‑and‑trace stamps (TTS). The enforcement action forms part of a broader, multi‑layered FBR strategy designed to eliminate illicit cigarette manufacturing, tighten surveillance, and dismantle illegal supply networks across the country. The Directorate of Intelligence and Investigation–Inland Revenue (I&I‑IR) Peshawar initiated the case after obtaining a warrant from a local magistrate. On November 3, 2025, officers raided an undeclared warehouse within the limits of Jabbar Police Station in Mardan. The search uncovered 200 cartons of non‑duty‑paid and non‑TTS cigarettes bearing the Business Class, Red, and Crown brands, all registered products of Indus Tobacco Company (Pvt) Ltd. Following the raid, I&I‑IR Peshawar submitted a contravention report to the Regional Tax Office (RTO) Peshawar on November 21, 2025. After completing procedural requirements and securing approvals, RTO officers sealed Indus Tobacco's production machinery on November 29, 2025 under Rule 28A(6) of the Federal Excise Rules, 2005. DC Inland Revenue Arsalan Ali led the operation under the supervision of the chief commissioner, RTO Peshawar. Authorities have launched further proceedings under multiple sections of the Federal Excise Act, 2005. Officials reported resistance during and after the raid, including from armed individuals linked to the company's management. One director allegedly confronted officers with firearms and reportedly belongs to a politically influential family in Mardan. Despite the pressure, enforcement teams completed the operation without interruption, reinforcing the FBR's stance on enforcing tax laws and protecting public revenue. On the same day, authorities took similar action against Souvenir Tobacco Company after finding evidence of non‑ duty‑paid and non‑TTS cigarette production. Officers sealed that company's manufacturing machinery as well. To reinforce enforcement nationwide, FBR also assigned more than 200 on‑site monitors under the Sales Tax Act, 1990 and the Federal Excise Act, 2005 to oversee production, track lawful removals, and verify tax compliance at manufacturing plants.

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