ITC Executive Director: Optimistic about festive season with GST benefits, but inflation a concern

New Delhi, September 25 (PTI) leader FMCG player ITC, this season after the GST rate deduction expects an increase in festive demand and low prices for the packaged food industry will have a “multiplier effect” on volumes, he said.

However, FMCG Major is also careful about the current inflation on some products, the executive director of Heman Malik and the director of the Foods Business Department.

Aashirvaad, Sunfeast, Bingo! And NATURAL, which has popular brands, ITC has already passed the benefits of GST rate cuts that can be applied from 22 September, and an increase in consumption and investment and a multiplier effect on the economy are waiting for a multiplier effect.

Malik, “Expenditures made by consumers too many consumers are also directed by emotion. The message allows people to open their wallets, allowing people to open their wallets. It is an effect that multiplies in terms of volume increase … This has a multiplier effect both in terms of employment and employment.

The packaged food industry has been significantly affected by slow growth due to high inflation. However, he said that the company was “optimistic ında in terms of increasing urban demand after the company’s GST reduction and the government’s production -related programs in the food processing industry.

Malik inflation is still a concern, ve said Malik, and said that this difficulty should be discussed because the consumption of edible oil remains higher in the food industry and its prices continue to increase.

Malik said that the company has conveyed its benefits to consumers and that it would make a difference in terms of the growth of the economy ”.

In accordance with the GST 2.0, all daily foundations, including the Government Food Products, kept 5 percent of the lowest tax slice of 5 percent of previous high plates.

However, Malik said that there are some difficulties such as magical price points; However, these are ‘temporary’ in nature for a period of one and a half and two months.

“Most importantly, the government made sure that market forces will benefit each of us,” he said, instead of a complex pressure, he described it as a “very mature movement”.

According to Malik, for the snack industry, it is easy to pass grams from 22 September on the day of its application.

“However, when you look at a biscuit magical price point for 5 Rupi or 10 Rupi price point, it requires a lot of effort to achieve weight changes,” he said.

The industry should work very quickly to ensure that there is benefits in grams.

Malik said that the ITC joined both the ‘ready to eat’ segment and the ‘fruit and vegetable’ segment on the production -related incentive plan for the food processing industry.

“I am happy to declare that we have completed all the investments we have committed, and I think that even the process of returning the incentives is quite detailed, smooth. I can say that we look at the benefit or looking.”

However, Malik added that there are some difficulties in some segments where consumption has fallen in the last few years.

“Therefore, some categories could not make … Although there were investments, growth did not happen. We are in contact with the ministry to look a little easier.” He said.

According to Malik, the food industry has a ‘great opportunity’ for India, because foods packaged compared to 40 to 70 percent of developed economies have only 10 to 15 percent.

“Therefore, it is possible to grow in food processing,” he said, “We are all determined to continue to invest.