ITC has blamed government’s demonetization policy for the disruption of its FMCG products in the wholesale trade channels. According to the company, the demonetization has led to the unavailability of ITC’s FMCG products in the markets. Last year, the company grew by 12.4% in FMCG business as compared to 2.8% growth of other listed FMCG companies.
At the company’s AGM, the shareholders expressed grievances that the FMCG products were difficult to locate at super stores. The company also highlights the effect of the Goods and Services Tax(GST) on its products. The tax on cigarettes has been increased by 202% in last six years which has led to smuggling of cigarettes and shift towards other forms of tobacco consumption.
The company manufactures a plethora of FMCG (non-cigarette) ranging from shampoo, soaps, biscuits, perfumes, packaged foods and others.