Undoubtedly, demonetisation have brought the small traders and businesses to a halt as they used to get the fuel from cash money only. But, that is one facet of the scenario, the grass is greener on the other side. Autolite Pvt Ltd is an Indian manufacturer that makes fog lamps and different kind of head lamps claims that their sales have seen a steep hike after the demonetisation moves by 20% in the month of November.
Adarsh Mahipal Gupta, the director of Autopile Pvt Ltd. said, “There are lot of copycat companies in the after-market segment producing counterfeit products or knock-offs. Cash is the main pillar of their business. Demonetization dealt a severe blow to them as their transactions came to a halt due to cash crunch. A significant portion of that demand got diverted to organized players. That’s how we were also benefited”.
The situation is same for the arranged players in the PVC industry which makes available broad range of products, right from toys to manufacturing materials, the benefits are far huge than sales boost.
Digvijay Dhabriya is the managing director of Dhabariya Polywood and mentioned that the company sales enjoyed a boost by 10% which is very different from the other months performances.
Dhabriya mentioned, “70% of PVC industry is in the unorganized segment which bore the maximum brunt of demonetization as cash dried up in the system. That was one of the reasons why we had a stellar growth in November. Because of the competition from the unorganized sector that enjoyed several unjustified advantages, attention to innovation and product quality did not find priority. Hope, the situation will change for the better”.
Also, an entrepreneur talked on unaccounted income of businesses and said, “For such companies which kept a significant portion of their business off the books, it would be a catch-22 situation. Even during the slowdown, they did not get impacted as much because they could avoid tax and also did not have the burden of contributing to EPF and ESI. Now for them to show up everything on the books will not escape the eyes of the tax authorities,”