Speaking to CNBC-TV18 at the biannual conference – Varnam, held in Bengaluru, paint sector head honchos said they are all expecting Union Budget 2017 to boost affordable housing and help them recover all the ground lost on account of demonetisation.
Speaking on demonetisation and its effects KPS Anand, MD, Asian Paints said “I don’t think sales will drop, somebody who is going to paint his house is going to buy paint. Stocking, destocking and certain phenomena like that may occur which won’t have a repercussion of more than a quarter”.
However, Abhijit Roy, MD & CEO, Berger Paints said November was a bad month for the paints sector but demand has staged a comeback to normalcy in December from the demonetisation lows.
HM Bharuka, MD, Kansai Nerolac , on the other hand, views Goods and Services Tax (GST) as a disruptor for the sector. He said the industry is still not completely aware of the implications of GST. The biggest worry would be ‘Place of Service’ issues, which can lead to many disputes.