FMCG retailers bag big discounts before GST shift

Major fast-moving consumer goods (FMCG) companies are offering retailers quantity purchase schemes, providing a 4-20 per cent discount on a range of products, ahead of the implementation of new goods and services tax (GST) rates from September 22.

- SHARLEEN D'SOUZA & AKSHARA SRIVASTAVA

These discounts are valid until September 21, as firms seek to manage stock and adjust to the revised tax structure.

Hindustan Unilever (HUL), Procter & Gamble India (P&G India), Dabur India, L'Oreal India, and Himalaya Wellness are focusing on products where GST rates are falling from 18 per cent to 5 per cent, and 12 per cent to 5 per cent. Key items include shampoos, toothpaste, soaps, and more.

ITC is also offering discounts to retailers, according to a person in the know.

HUL is running a scheme called 'Retailer Bonanza' until September 20, providing an additional 4 per cent discount on soap brands such as Lux, Lifebuoy, Dove, Hamam, Liril, and Pears, and 7 per cent on Moti soaps — applicable for stock keeping units (SKUs) priced above ₹15. HUL is offering 10-20 per cent discounts on shampoos, and 7-11 per cent on hair oils.

In skincare, HUL is giving an 11 per cent discount on Ponds and Lakme products (for SKUs over ₹10), and 8 per cent on Pepsodent and Close Up (SKUs over ₹20). Discounts of 5 per cent on health food drinks and 7 per cent on beverages apply to higher-priced SKUs.