The Italian Chocolate Makers Ferrero show up at the end of the Financial Year 17-18 with a 17% decline in revenues. This has been the worst performance ever since they set foot in this country.
Even the makers of Kinder Joy and Nutella faced a net loss of Rs. 89.6 Crores in the FY 17-18. Even though last year their net profits were over Rs. 21 crores.
On a per capita bases, every person in India consumes roughly 120 grams of chocolate every year, which is way less than most developed countries and other emerging markets. But these brands keep coming to India because the sheer size of the population makes this an attractive market for chocolate makers.
You must be wondering why these well known and much-loved brands are facing a loss. I have Three characters for you - G.S.T.
Since the implementation of the new taxation policy, the companies faced stagnation periods and a lot of their sales from before the policy also had to follow the same paperwork and that threw the numbers against their favour. These HUGE international brands faced such losses, imagine the plight of the brands right here. Has the new taxation policy made life easy for anyone? What do you think?