Business

As GST Settles In, Industries Looking For Normalcy In Market

News World India | 1
2562
| } October 8 , 2017 , 15:49 IST

As the government's new taxation system Goods and Services Tax (GST) hit the market, sales went down and it was chaos, however as the new system settles in with its 100-day completion, the industries are expecting a rise in demand.

Fast-moving consumer goods (FMCG) like Dabur India and Godrej have expressed that the companies are looking for an acute rise in the demand as the GST completes 100 days on Sunday.

According to reports, most of the FMCG firms were hit by the GST hue to de-stocking ahead of its implementation in July which created uncertainties over the transition to the new system.

However, these companies are saying that they have adapted to the taxation system and are now expecting the situation would back to normal in this quarter considering the stable market.

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Dabur India Chief Financial Officer Lalit Malik said, "With the market sentiments showing signs of improvement and stability returning post-GST implementation, we expect the demand scenario to move up, both in rural and urban markets."

Talking to a news agency, Malik said on a positive note that the company has seen a marked improvement in consumer sentiments and demand with the new indirect tax regime now is settling down.

India and SAARC GCPL Business Head Sunil Kataria expressed similar opinion saying, "Overall the massive destocking seen in June has been sufficiently refilled and we are seeing a clear recovery."

Although the wholesale channel has taken a bit longer to adapt to the new tax regime the retail channel recovered much faster and quite smoothly in the July-August period, he said.

Kataria taking about the recovery said, "By the end of quarter three, we will see a full recovery in the wholesale channel and are optimistic for a stronger performance in the coming quarters."

After the implementation of GST, major FMCG companies like Hindustan Unilever Ltd (HUL), Marico and Dabur India had seen an acute decline in their sales and their volumes were impacted by traders' de-stocking before the taxation system.