Revenue climbs as Marico adjusts to GST rate changes

Homegrown packaged goods company Marico Ltd said the revised goods and services tax (GST) rate cuts introduced in September led to a temporary disruption in trade channels, resulting in destocking at the end of the quarter. Demand trends, however, remained steady in July and August.

- Suneera Tandon

‘The firm passed on the GST benefits to consumers across relevant categories through price cuts or rise in grammage and about a third of the India portfolio has gained from the rate rationalisation. “Recent GST raterationalization by the governmentisa welcome step towards stimulating demand and long-term growth in the FMCGsector.30% of our India business has benefited from GST rate rationalization. We have passed on the benefits of revised GST rates toconsumersfor relevant product categories, reinforcing affordability and accessibility,” Saugata Gupta, MD & CEO, said.