Kolkata, July 28 (IANS) FMCG major ITC Ltd on Friday said it has experienced “some hiccups” in trade channels after implementation of Goods and Services Tax (GST) but it is “getting better week by week”.
“GST is a transformative reforms, it is a huge tax reform. It will create a common Indian market. To expect that the transformative reforms will happen without any hiccups, I think we are expecting too much. So, yes there has been some hiccups in transition. But week by week it is getting better,” company CEO and Executive Director Sanjiv Puri told media here.
He also said the disruptions were less than what the company had expected.
“We are surprised that the amount of disruptions have been so little. It is much below what we expected,” he said.
On the impact of GST, Puri said the retail channel picked up faster, but the wholesale channel has been little slow to normalise.
“We have worked extensively with all our partners in preparation for GST. Most of our partners deal with that, in fact on Day One, 99 per cent of works were ready,” he said.
Puri said the company is quite optimistic with the government strategies which are expected to lead to a higher growth trajectory and when that happens, consumptions will grow faster.
On the company’s new FMCG business, he said: “Directionally, we believe that we will continue to grow much faster than the industry.”