Emami Hires PwC For Strategy Roadmap In GST Regime

Kolkata: FMCG major Emami on Wednesday said it has hired consultant PricewaterhouseCoopers (PwC) to assess the impact of GST regime on the company and chart a roadmap to realign firm's strategy accordingly. "We are evaluating the impact and for that we have hired the PwC," Emami Director Aditya Agarwal said on the sidelines of the annual general meeting (AGM). "We are waiting for greater clarity on GST. Some 72 per cent of total Emami's sales come from ayurvedic products, which attracts 4-5 per cent VAT while cosmetics attracts 12.5 per cent VAT. But taking into other components into account, the company may have a neutral impact," Mohan Goenka, Director, Emami said. The GST taxation could be at 16-18 per cent and it could have a bearing on product pricing strategy. "However, a detailed study by the consultant will give a clearer picture and the consultant will advise us what we should do and realign our strategy accordingly," Emami Director Harsh V Agarwal said. Emami CFO N H Bhansali said the total long-term debt stands at Rs 410 crore, and the company was planning to become debt-free over the next 4-5 quarters in view of the strong cash flow from the current operations. The debt was raised to acquire Kesh King brand at a total cost of Rs 1,684 crore. The brand generates 10 per cent of the total revenue and had Rs 60 crore impact on Q1 FY17 profits due to amortisation of intangibles. Asked whether the company would raise any fresh debt for the Rs 300 crore Assam greenfield plant, Goenka said there was no plan to raise debt and the same would be done through internal generation. Emami has already infused Rs 150 crore into the plant and the rest would be invested this year to commence production from 2017. On international business, Emami Director Prashant Goenka said currently international business account for 14 per cent of the topline but over the next five years it is expected to expand to 30-35 per cent..(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Emami Hires PwC For Strategy Roadmap In GST Regime

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