Stock advisory Company>> Fan sales down 10% in first quarter mainly due to GST

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Fan manufacturers on Wednesday said their sales declined by 10 percent in the April-June quarter due to destocking by dealers and postponement of purchase decision before the implementation of the Goods and Services Tax (GST) from July 1. 

"There had been a decline of fan sales by 10 percent in the first quarter compared to previous year and mostly it was due to GST," Indian Fan Manufacturers' Association Chairman Rohit Mathur said here. The Rs 6,500 crore fan industry in India registered negative growth also because of the sluggish real estate sector. The first quarter accounts for 32 percent of the total annual fan sales of over five crore units and the industry grew by 9.6 percent in 2016-17 despite the demonetization impact faced by the trade.

According to officials of the association, there are 1.65 lakh retailers associated with the fan industry and GST registration related issues and prevailing confusion among them have led to such disruption.