Want speedy implementation of GST: Dabur India     

On the forthcoming Budget, Sunil Duggal, Chief Executive Officer of Dabur India, said there are two issues which stare at you in the face—one is a speedy and effective and transparent rollout of GST and second is continuation of economic stimuli in the rural areas. “I think that has driven demand, it’s benefited a lot of people and that move has been both populist and popular, and something which should continue."

On what impact the Budget implementations would have on the company, Duggal said, “As far as we are concerned any increase in excise will have zero impact. Around 95% of our production is excise-free zone so it’s a hypothetical question. So there won’t be any pressure on prices and therefore no demand impact on account of increase in excise duty.”

Further he said, “The whole Central VAT regime is going to be less impactful to our business than the State GST because VAT is a big element in our cost structure, excise is very little and service tax while being important is not half as much as VAT. So if Central VAT is rolled out, I think that would not have any huge impact on profitability or margins. But if there is a significant increase in State GST over the current VAT rate which is averaging around 10% then perhaps we will have to look at some price increases to neutralize, so it’s all very opaque at this point in time and it’s speculating too much on the possible outcomes, we prefer to wait and watch.”

Source: Moneycontrol.com, India, dated 11/02/2010