The Rs 6,500 crore fan industry in India has reported a de-growth of 10 per cent in the first quarter (April-June) of the current fiscal mostly on account of the Goods and Services Tax (GST).
The Rs 6,500 crore fan industry in India has reported a de-growth of 10 per cent in the first quarter (April-June) of the current fiscal mostly on account of the Goods and Services Tax (GST). “There had been a decline of fan sales by 10 per cent in the first quarter compared to the previous year and mostly it was due to GST,” Indian Fan Manufacturers Association chairman Rohit Mathur said here today after the annual general meeting.
The reasons being destocking by dealers, postponement of purchase decision in the wake of GST and sluggish real estate sector, the association officials said. There are 1.65 lakh retailers associated with the fan industry and GST registeration related issues and confusion among them led to disruption, members of the industry body said.
The association is represented by all leading fan makers of the country. The first quarter accounts 32 per cent of the total annual fan sales of over five crore units. The industry grew by 9.6 per cent in 2016-17 despite demonetisation.
Mathur said sales is recovering in the current fiscal but high GST will remain a concern for the industry. The fan maker’s body said they had sent three representations to the Union Finance ministry but there has been no respite from the 28 per cent GST imposed on fans.
“We are seeking to revise the 28 per cent tax bracket with air-conditioners and to bring it down to 12 or 18 per cent,” Mathur said.
Fan makers have refrained from hiking prices despite two to three per cent direct impact, he said.
Exports have also suffered due to market norms in Africa and Middle East. Fan exports in 2016-17 dips by 2.82 per cent against 30.15 per cent growth registered in the year before.