In 1939, Thai government had planned to operate tobacco business itself. It, therefore, started to take over Thai tobacco factory from Burapha Tobacco Co., Ltd. At Saphan Leaung, Praram 4 road. Excise Department, under Ministry of Finance, had been assigned to take control over tobacco factory operation since April 19, 1939. The factory was named “Thai Saphan Leaung Tobacco Factory”, which ,thereafter, was changed to “Excise Tobacco Factory”.
Tobacco Industry had been expanded since the government took over another two cigarette factories from Kwang Hok company and Hoffun company. After that, the government continued to take over cigarette factory on Jalearnakorn read , Banmai district , from British-American Tobacco company (BAT). According to an agreement between the two, BAT staff would supervise the factory operation after taking over.
BAT offered 10 staff to take responsibility until the end of the year under Excise Department. The factory was called “Thailand Tobacco Monopoly”. Since then, Excise Tobacco Factory had been operated in accordance with BAT system dividing working area into 4 parts; Factory (operation) , Sales, Accounting, and Cultivation.
During that period, many difficulties occurred, for example; people were negative toward the change of possession from BAT to Excise Department, the shortage of materials and equipment, and cigarette hoarding as the World War 2 was erupted.