GST boost for big soapmakers' volumes

Aggressive price cuts, reduced competition from unorganised players aid growth

Organised soapmakers gained from the implementation of the goods and services tax (GST), showed the September quarter results of the two top sectoral players in the country, Hindustan Unilever (HUL) and Godrej Consumer (GCPL). The overall volume growth of both the companies was led, in part, by soaps.

The GST was rolled out on July 1. In the first quarter (July-September) since then, HUL’s volumes grew by 4 per cent, year-on-year (YoY). In the same period, GCPL’s volume growth was 10 per cent.

The soap business, which gives GCPL a third of its domestic revenue, grew in the September quarter by 18-19