Ahead of the planned goods and services tax (GST)t rollout on the first of July. Retailers have been offering big discounts to clear inventories due to the cost and process associated with making old stocks compliant with the new indirect tax regime.
To discuss this in detail, Pradeep Bakshi, President and COO, Unitary Products Business Group, Voltas shared his views on the same in an interview to CNBC-TV18.
According to Bakshi, the May and June sales were dampened because of the uncertainty of what GST rates would be and destocking is taking place. Therefore demand is muted.
He agreed that the discounts offered by dealers is much higher than was earlier offered, while some are offering even upto 40-50 percent discounts to clear stocks. However, he does not expect margins for the company to be impacted due to these discounts because they are happening at the dealers end and that too, usually, for old stocks.
Talking about the joint venture with Arcelik from Turkey, hes said they are looking at launching the consumer durable product around Diwali time. The actual impact of the sales form that will be noticed only after couple of years and not in months after the launch.
On the market share front, he said the company has maintained its leadership position, with market share around 20-21 percent for last many years no.
When asked if they were looking at an inorganic moves, Bakshi said they are currently not in a rush for inorganic moves and would like to concentrate on earlier ventures.
For full interview, watch video
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
