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Online grocery retail in India grew 44% in 2016 over 2014, and India was ranked the fifth-largest online grocery market in the Asia-Pacific region last year. Companies are pushing stocks ahead of the GST rollout via extensive promotions on transition, or unsold stock. This is to avoid disparities in tax payouts between pre and post-GST taxes. “Inventory compliance will be a tougher challenge for the smaller, sometimes single-brand suppliers, and may take some time to smoothen out the demandsupply equation,” said Prem Kumar, CEO, SnapBizz Cloudtech. The tech startup works closely with both offline and online retailers. Unlike traditional offline stores, online stores have fewer intermediaries between manufacturer and consumer. The companies said they are working toward minimising inventory shortfall once the new tax comes in. “We will have enough stocks to fill up the pipeline. We are ensuring availability at every depot for quick replenishment of stocks,” biscuit maker Britannia’s managing director Varun Berry said. Dabur India chief financial officer Lalit Malik said the company is ensuring support to distributors and trade partners for a smooth transition to GST. “Going forward, our effort will be to ensure that the there is no demand-supply gap when the GST regime comes into play in July,” he said.
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