Sept 26 (Reuters) – Hindustan Unilever said on Friday that recent goods and services tax (GST) cuts on consumer products caused a temporary disruption in sales as distributors and retailers worked to clear existing inventory at old prices.
Earlier this month, the Indian government reduced taxes on items ranging from soaps to small cars as it looks to boost domestic demand amid global headwinds including U.S. tariffs.
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It expects consolidated business growth to be nearly flat or in the low-single digit range for the quarter ending September 30, with the impact continuing into October, before prices start stabilizing from November.
Reporting by Manvi Pant; Editing by Sonia Cheema