Home Latest News Emami hires PwC to asses GST regime impact

Emami hires PwC to asses GST regime impact

FMCG major Emami on Wednesday announced that it has hired consultant PriceWaterhouseCoopers (PwC) to assess the impact of GST regime on the company and chart a roadmap to realign firm’s strategy accordingly.
Emami hires PwC to asses GST regime impact
chart a roadmap to realign firm's strategy according to the GST Bill norms

“We are evaluating the impact and for that we have hired the PwC,” Emami Director Aditya Agarwal told PTI on the sidelines of the annual general meeting (AGM).

“We are waiting for greater clarity on GST. Some 72 per cent of total Emami’s sales come from Ayurvedic products, which attracts 4-5 per cent VAT while cosmetics attracts 12.5 per cent VAT. But taking into other components into account, the company may have a neutral impact,” Director Emami, Mohan Goenka told PTI.

The GST taxation could be at 16-18 per cent and it could have a bearing on product pricing strategy.

“However, a detailed study by the consultant will give a clearer picture and the consultant will advise us what we should do and realign our strategy accordingly,” Director Emami, Harsh V Agarwal was quoted by PTI as saying.

Emami CFO N H Bhansali was quoted by PTI as saying that the total long-term debt stands at Rs 410 crore, and the company was planning to become debt-free over the next four to five quarters in view of the strong cash flow from the current operations.

The debt was raised to acquire Kesh King brand at a total cost of Rs 1,684 crore. The brand generates 10 per cent of the total revenue and had Rs 60 crore impact on Q1 FY17 profits due to amortisation of intangibles.