The Reserve Bank of India (RBI) has discontinued the issuance of Letters of Undertaking (LoU) and letters of comfort for trade credit by banks.
In an interview to CNBC-TV18, Anil Gupta, CMD of KEI Industries spoke about the latest happenings in his company and detailed the impact of LoU ban.
Gupta said that the cost of funding of raw materials will temporarily go up due To LoU Ban.
However, do not think in long-term revocation will impact sound importers, he said.
He further said that exports will not be affected due to revocation of LoUs.
We will have no impact on our business due to LoU ban, said Gupta.
Talking about business, he said our expected contribution from retail segment to revenues is 33 percent and we expect to increase it to 40 percent by 2020.
“I have given a guidance that in FY19, on conservative side, we expect to grow around 17-18 percent,” he added.
Watch accompanying video for more details.
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