GST: FMCG cos expect dip in inventory levels, normalcy in Q2

FMCG firms are preparing for reduced stocks in their trade channels for a couple of months as anxious dealers cut down inventory levels in the run up to GST, the new indirect tax regime, from July 1.

The companies, however, expect to overcome the transition issues and the stocks to return to normal levels within the second quarter (July-September) of the current fiscal itself.

Marico, Godrej Consumer Products and Dabur said they are helping their trade partners to liquidate current inventory to ensure a smooth transition and reduce loss of sale at retail level.

"Given some level of anxiety and lack of clarity around GST, there is a possibility that the trade may cut down on their inventory pipeline towards the end of June," Marico CFO Vivek Karve told

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)