The Thailand Tobacco Monopoly (TTM) estimates a 10% shortfall in its sales revenue this year due to intensified competition and the lacklustre economy, says managing director Torsak Chotimongkol.
The state enterprise targets 70 billion baht in revenue, based on disappointing sales over the first two quarters of its fiscal 2014 as the slump took its toll.
Household debt is rising, and months of political unrest have dented domestic consumption and private investment demand.
TTM dominates 79% of the country's sales volume and 75% of the sales value, while cigarettes produced from foreign tobacco companies make up the rest. It plans to launch five new cigarette brands this year to combat foreign competition.
Mr Torsak said construction of TTM's new plant in Ayutthaya province is behind schedule due to the devastating floods in late 2011. Originally scheduled for next year, relocation is now expected to be complete in 2017.