Business Today

Small Struggles

One year after GST, industry numbers suggest that the very small FMCG players are struggling; only the mid level brands are left to give competition to national players.

Jayesh Shah runs a wholesale cum retail grocery shop in Navsari, Gujarat. He claims he is one of the lucky few traders who emerged victorious from demonetisation because he was as comfortable with cheque payments as he was with cash. Now, in the Goods and Services Tax (GST) era, he proudly says he is GST compliant, though he murmurs in Gujarati that his costs have doubled due to GST. Filing monthly returns, hiring an accountant and having a resource who is computer friendly have added to his expenses. But as one gets into a conversation with him, one realises that GST has changed the way he does business.

Till a year ago, he was keen to push locally manufactured brands. If a person came for a Rs 10 soap, he would give him a lesser known brand such as Santosh even though he kept all major national brands such as Lifebuoy, Hamam and Godrej No.1. The local manufacturer gave him higher margins and longer

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