Bathroom industry to strengthen after demonetization
Bathroom industry is expecting that the demonetisation will put a check on the unorganised suppliers and purchases of bathroom products from the organized players will increase.
“In the short term, the move will clearly impact the retailer network. As a cash-driven market it will be difficult to ramp up operations and many will need to move to the organized market,” says Pau Abello, Managing Director, Roca Bathrooms Products Pvt. Ltd.
According to some estimates, unorganised players cover nearly 50 per cent of the industry. Majority of the transactions taking place in the unorganized segment is unaccounted for.
“Companies that are purchasing raw materials from unorganized suppliers will witness a significant increase in prices. At the end, the conjunction of GST implementation and this demonetisation will force a lot of companies to stop selling in cash and be transferred to organised market or disappear,” he added.