What has the Budget done for the FMCG sector?
Agarwal: The thrust on employment, the schemes to boost rural incomes and the tax breaks for consumer are positives. Most important: with VAT coming in, the advantage that unorganised players enjoyed will be gone. Rastogi: The Budget has helped indirectly, by increasing disposable incomes. If VAT is implemented properly, the larger FMCG players will gain. The cut in import duties for LAB (linear alkyl benzene, a detergent input) should lower input prices. Nambiar: VAT will help in the long run because the logistics would be aligned to the most optimal distribution structure and tax -wise it won’t matter which route you take. That should knock off a chunk of any FMCG company’s working cap requirements. Whether VAT implementation will happen on schedule is to be seen. Patel: The reduction in peak customs duties for some key inputs from 20 to 15 per cent should help. We believe that customers should accept the 10 per cent hike in excise duties for cigarettes. Shah: The focus on rural Indi
