Post GST, we did not hike prices and so now, no impact on consumers: NH Bhansali, Emami
ET Now|
Updated: Nov 10, 2017, 03.13 PM IST
Talking to ET Now, NH Bhansali , CEO, Emami , says while GST relief is a good development but more clarity needed, especially regarding consumers in North-east India.
Edited excerpts:
There has been a big development in the GST with Sushil Modi announcing that GST Council has decided to bring down taxes on a whole host of goods and services, only 50 items will be left in the 28% bracket. Some of those items which have been shifted to 18% include beauty products, detergents, washing powder, chocolates and chewing gum. This is a big development for a company like yours.
It is a good development. While we need more clarity, it is a positive development for the industry. But there is still one thing which needs to be clarified in terms of the exemptions which were earlier available in the north-east and other areas. Those have been truncated dramatically and there is still not clarity on how much will be refunded and that is important for the industry to understand.
I am guessing that you will have no choice but a lot your goods are going to become cheaper simply because there is an anti-profiteering clause that also exists as per the GST law right?
Yes that is fine, that is good for the consumers and that will definitely impact the demand as such.
Did falling under 28% bracket ever impact your sales?
It is very difficult to say what change has been there for which item. But it is agreed that change under the GST is a major thing. Change in the rates in some of the items played a part. Then, there was the impact of demonetisation, more in the wholesale channel and also some disruption in the demands in some of the pockets particularly because of the players who were taking a very different view over GST compliance.
So overall it is difficult to say that what had impacted what but there has been some slowdown and by the latest move, there will be some boost which will be available to the industry overall.
Post the GST rollout, did you have to increase the prices of many of your popular products whether it was Fair & Handsome or a Naturally Fair, the Emami Golden Beauty Talc, etc? Have they got more expensive and had they affected sales which you now think has been corrected by bringing them to the 18% slab?
No we have not increased the price of any of the products.
Therefore you had no price changes post GST rollout. But from a consumers point of view this is good news for Emami consumer?
There has not been any significant impact.
And you said that you would be seeking certain clarifications from the government, what would these be?
Yes, all the trade bodies and individually the companies talking with the government and seeking verifications and insisting that status quo which was available as earlier needs to be restored and government is also taking time to respond and this is one important verification which is expected to come soon and we expect more clarity on this from the government.
The West Bengal finance minister and you of course have a headquarters in West Bengal as well had said that only sin items should fall in the 28% bracket. This is exactly what the Congress Party has also been saying that the GST Council seems to be moving towards this as well so this is fantastic news for a company like yours and for your consumers unless of course chocolates and fair and lovely items are considered to be sin items?
Yes we have Fair & Handsome and many other products, It is a good news for the industry. There is a big change, there would be some reactions and it is expected as well. We feel that overall move has been right and it is good for the industry.
.
Edited excerpts:
There has been a big development in the GST with Sushil Modi announcing that GST Council has decided to bring down taxes on a whole host of goods and services, only 50 items will be left in the 28% bracket. Some of those items which have been shifted to 18% include beauty products, detergents, washing powder, chocolates and chewing gum. This is a big development for a company like yours.
It is a good development. While we need more clarity, it is a positive development for the industry. But there is still one thing which needs to be clarified in terms of the exemptions which were earlier available in the north-east and other areas. Those have been truncated dramatically and there is still not clarity on how much will be refunded and that is important for the industry to understand.
I am guessing that you will have no choice but a lot your goods are going to become cheaper simply because there is an anti-profiteering clause that also exists as per the GST law right?
Yes that is fine, that is good for the consumers and that will definitely impact the demand as such.
Did falling under 28% bracket ever impact your sales?
It is very difficult to say what change has been there for which item. But it is agreed that change under the GST is a major thing. Change in the rates in some of the items played a part. Then, there was the impact of demonetisation, more in the wholesale channel and also some disruption in the demands in some of the pockets particularly because of the players who were taking a very different view over GST compliance.
So overall it is difficult to say that what had impacted what but there has been some slowdown and by the latest move, there will be some boost which will be available to the industry overall.
Post the GST rollout, did you have to increase the prices of many of your popular products whether it was Fair & Handsome or a Naturally Fair, the Emami Golden Beauty Talc, etc? Have they got more expensive and had they affected sales which you now think has been corrected by bringing them to the 18% slab?
No we have not increased the price of any of the products.
Therefore you had no price changes post GST rollout. But from a consumers point of view this is good news for Emami consumer?
There has not been any significant impact.
And you said that you would be seeking certain clarifications from the government, what would these be?
Yes, all the trade bodies and individually the companies talking with the government and seeking verifications and insisting that status quo which was available as earlier needs to be restored and government is also taking time to respond and this is one important verification which is expected to come soon and we expect more clarity on this from the government.
The West Bengal finance minister and you of course have a headquarters in West Bengal as well had said that only sin items should fall in the 28% bracket. This is exactly what the Congress Party has also been saying that the GST Council seems to be moving towards this as well so this is fantastic news for a company like yours and for your consumers unless of course chocolates and fair and lovely items are considered to be sin items?
Yes we have Fair & Handsome and many other products, It is a good news for the industry. There is a big change, there would be some reactions and it is expected as well. We feel that overall move has been right and it is good for the industry.
.
