‘It will strengthen healthy competition’
“When it comes to demonetisation, the Indian cleaning industry, like every other industry in the country has certainly felt a shift in the way it operates. Certainly, when it comes to labour issues, the lack of cash has created a labour pinch but not to the extent that daily operations are adversely affected. Of course, being a chemicals manufacturer, Buzil-Rossari has been immune to some of these shocks as most of the business is carried out via electronic or cheque payments. Aside from the temporary glitches though, the demonetisation has not seen our company face too many problems.
As for the GST, this holds great promise for our industry. Aside from streamlining the tax structure for manufacturers, it will also simplify our financial operations. As a manufacturer that puts a premium on producing our products within the Indian market, we welcome the new GST paradigm that will ensure that producers are not adversely affected by their geographical location. Our outlook is that this will only strengthen the healthy competition between the players in the cleaning chemicals sector while also encouraging more companies to invest in Indian manufacturing. By incentivising local production and reducing the clerical burden of having to deal with a mish-mash of different indirect taxes, the GST will make it even more attractive for companies to Make in India!
Finally, in the long run, anything that creates a system whereby businesses are on a level playing field is good for the entire industry. The cleaning industry both in the retail and wholesale sectors has begun a trend towards making their products cleaner and greener. An important part of this process is developing sustainable supply chains which will be greatly enhanced by the introduction of the GST. Therefore, it is our opinion that these developments will be beneficial overall to the economy and especially to the cleaning sector by encouraging more companies to invest and innovate in the long run.”
Edward Menezes, Director, Buzil Rossari