GST Reforms: A Step Towards Boosting Consumer Demand
Godrej Consumer Products Ltd (GCPL) reports short-term market adjustments following new GST slab implementations. Despite short-term impacts on growth and profitability, GCPL posits that recent GST reforms are a positive step for consumer demand. Godrej expects its Standalone business to experience mid-single digit growth, alongside benefits in its Home and Personal Care sectors.
- Country:
- India
Godrej Consumer Products Ltd (GCPL) has noted that new GST slab implementations have led to short-term adjustments in the domestic market, impacting trade dynamics. The company projects a 'low-single digit' volume growth for the September quarter.
These GST rate reductions have prompted distributors and retailers to emphasize liquidating existing stocks, as stated in GCPL's quarterly updates. This shift has delayed new orders and curtailed consumer purchases, posing challenges to growth and profitability.
Nonetheless, GCPL, a prominent FMCG player with brands like Cinthol and Good Knight, views the GST reforms as a positive move towards bolstering consumer demand. This renewed consumer confidence is projected to support structural growth in upcoming quarters.
(With inputs from agencies.)
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