Hotline: 1800 102 2007
X
Search Business Opportunities
Aug, 04 2017

Hair oil to appliance makers in India still face problems due to GST

Sales of consumer goods makers including Marico and Emami Ltd. fell in the quarter through June and lagged behind analyst estimates as inventories were cut ahead of the implementation of the uniform tax regime last month crimping consumption that was alre

Companies from Marico to V-Guard Industries Ltd. see sales remaining weak for a few months after India introduced a nationwide tax disrupting supplies and prompting stores to focus on cutting inventories. There were “significant disruptions” of supplies in the three months ended June and lost sales will be recouped in the next couple of quarters, said Mithun K. Chittilappilly, managing director of electrical products manufacturer V-Guard. Marico, which makes Parachute hair oil, said it expects the impact from the transition to the goods and services tax to be “short lived and business should come back to normalcy in subsequent quarters.”

Sales of consumer goods makers including Marico and Emami Ltd. fell in the quarter through June and lagged behind analyst estimates as inventories were cut ahead of the implementation of the uniform tax regime last month crimping consumption that was already reeling from a ban on higher-denomination currency. Companies like toothpaste maker Colgate-Palmolive India Ltd. and soap manufacturer Godrej Consumer Products Ltd. said sales in the quarter were impacted by the tax overhaul. “There is hope that earnings will improve in the next quarter,” Juergen Maier, a Vienna-based fund manager at Raiffeisen Capital Management, said in a phone interview. “Quarterly numbers were negative especially on the consumer side with the impact of de-stocking, however, restocking in July and August will have some positive impact on sales in September quarter as people get used to the GST regime.” Shares of Marico declined 1.5 percent, V-Guard fell 0.5 percent, Emami dropped 1 percent and Godrej Consumer slid 1.8 percent as of 9:29 a.m. in Mumbai. The benchmark S&P BSE Sensex declined 0.1 percent.

Prime Minister Narendra Modi’s reform has seen a spiderweb of taxes and levies that varied state-by-state replaced with nationwide rates. On the first day of its implementation, many shops were closed and consumers stayed away in droves, deterred by the change in prices and uncertainty over how the tax would work. Businesses have also been grappling with GST’s complicated structure, which includes four tax slabs ranging from 5 percent to 28 percent as well as numerous exemptions. “Due to uncertainty about the new law, the trade in India was cautious, and shipments basically ground to a halt for the last two weeks of June,” John Faucher, senior vice president of Colgate-Palmolive Co., said on a call with analysts on July 21. 

Comment
Related opportunities
  • After School Activities
    Started in 2009, SportyBeans is India’s most reputed non-competitive multi-sport..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2010
    Investment size Rs. 10lac - 20lac
    Space required 1200-1500 sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Maharashtra
  • EuroKids pre-schools in 2001 with the idea of providing a..
    Locations looking for expansion Maharashtra
    Establishment year 1997
    Franchising Launch Date 2001
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • About  THE KETTLERY (CPK Food and Beverages Pvt. Ltd.) An exclusive tea..
    Locations looking for expansion Gujarat
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 20lac - 30lac
    Space required 400 - 800 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ahmedabad Gujarat
  • Quick Service Restaurants
    Kathi Junction – brings the golden opportunity to start your..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2009
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater NEW DELHI New Delhi
  • Join Hands With No.1 U.K. Concept International Preschool Chain SANFORT is..
    Locations looking for expansion Uttar Pardesh
    Establishment year 2009
    Franchising Launch Date 2010
    Investment size Rs. 10lac - 20lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ghaziabad Uttar Pardesh
  • Online learning/E-learning
     Join hands with Smart school Education Pvt Ltd and be..
    Locations looking for expansion New Delhi
    Establishment year 2008
    Franchising Launch Date 2011
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Central Delhi New Delhi
  • About Us: Join hands with Iris Florets - the happy play..
    Locations looking for expansion Telangana
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
  • AIITA - Pioneer in IT Education & Training brings you..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2007
    Franchising Launch Date 2007
    Investment size Rs. 10000 - 50 K
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Indore Madhya Pradesh
  • Fine Dine Restaurants
    People whose INVESTMENT CAPACITY less than 25 Lacs should not..
    Locations looking for expansion New Delhi
    Establishment year 1950
    Franchising Launch Date 2000
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Central Delhi New Delhi
  • Quick Service Restaurants
    To own a business in food & beverages industry, Chick..
    Locations looking for expansion Tamil Nadu
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Salem Tamil Nadu
  • Imagine yourself having a tried and tested winning formula in..
    Locations looking for expansion Maharashtra
    Establishment year 2002
    Franchising Launch Date 2008
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • World's Largest Flower Retail Chain - Ferns N Petals Pvt...
    Locations looking for expansion New Delhi
    Establishment year 1994
    Franchising Launch Date 2000
    Investment size Rs. 5lac - 10lac
    Space required 150-300 sq feet
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • Join Hands with Apollo diagnostics and start a business that..
    Locations looking for expansion Andhra Pradesh
    Establishment year 2002
    Franchising Launch Date 2015
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Andhra Pradesh
  • Others Consultancy
    Want to invest in a Water Care franchise business? Partner..
    Locations looking for expansion Chhattisgarh
    Establishment year 2006
    Franchising Launch Date 2012
    Investment size Rs. 2lac - 5lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Raipur Chhattisgarh
  • Car wash / Ceramic Coating / Detailing
    Auto Herb - a proven business opportunity in Car Cleaning..
    Locations looking for expansion Maharashtra
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Want to have your own business that is spread globally..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2010
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Nagpur Maharashtra
  • About Us: KRS Educreations Pvt Ltd brings a pre-school franchise model..
    Locations looking for expansion Uttar Pardesh
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 1000 - 2000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ghaziabad Uttar Pardesh
  • Ice creams & Yogurt Parlors
    Want to enhance the joy of eating by creating a..
    Locations looking for expansion Delhi
    Establishment year 2005
    Franchising Launch Date 2009
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Join hands with Smart school Education Pvt Ltd and be..
    Locations looking for expansion New Delhi
    Establishment year 2011
    Franchising Launch Date 2014
    Investment size Rs. 2lac - 5lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater North West Delhi New Delhi
  • Kids & Infant Products
    Want to be financially Independent? Want to work with convenience..
    Locations looking for expansion Gujarat
    Establishment year 2006
    Franchising Launch Date 2014
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ahmedabad Gujarat
  • Partner with Siyaram Silk Mills Ltd - one of the..
    Locations looking for expansion Maharashtra
    Establishment year 1978
    Franchising Launch Date 2006
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities