Goods and services tax has not impacted the consumer offtake: Hindustan Unilever

Vastavam web: FMCG major Hindustan Unilever (HUL) today said the new tax regime of goods and services tax (GST) has not impacted the consumer offtake and expects the price cuts undertaken by it to drive sales.In fact, with us taking the lead in reducing the consumer price, it should give a fillip to consumer demand and consequently to the volume,” HUL Chief Executive Officer and Managing Director Sanjiv Mehta said here.The company had reduced the prices of some of its detergents and soaps, extending the tax benefits it got under the GST regime to consumers.

Mehta said most of the trade channels are returning to normalcy, barring a few wholesale traders in the central part of the country.The company’s topline and volume growth were impacted by 200 basis points with the canteen store department not buying from it.”I think the most affected still remains the wholesale in the territory of central India like Uttar Pradesh, Bihar, those are the cases where the traders are still sitting on the fence, waiting to understand what they need to do and how they need to react to the new era of GST,” he said.