'We never expected...': Dabur CEO on GST reforms

Mohit Malhotra, CEO of Dabur India, said the government’s goods and services tax (GST) reforms came as an unexpected step that could revive consumer demand and benefit the entire value chain.

“I think it’s fantastic, because we never expected this kind of reform would come into play. But I think the government has surprised,” Malhotra said. He noted the changes come at a time of high food inflation and weak consumption, especially in cities. “This GST reform will completely resurrect… the consumption. The consumer confidence index will go up.”



He also welcomed the move to remove tax differences between unbranded and branded products. For example, generic medicines and branded medicines were earlier taxed at different rates, creating what he called “almost a penalty” for higher quality products.

With uniform GST, he said, companies can lower branded product prices and pass benefits to consumers. The same applies to food items like parathas, which will now be taxed equally across branded and unbranded categories.

Malhotra said higher demand would drive investment and put “more money in the hands of the farmers also,” benefiting the entire ecosystem “from the farm to the fork.” He added that urban India and the middle class would see gains. “It is just not a focus on ‘have-nots’. It’s a focus on ‘haves’ also, so the middle class surge will actually happen.”

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Dabur, which has a market capitalisation of ₹96,506 crore, has seen its shares fall more than 18% over the past year.

For the full interview, watch the accompanying video

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