GST hits GSK

July 1, 2017 brought a change in the dynamics of the Indian economy and all the brands established in India. GlaxoSmithKline was no different.
  • In 2018, they continue to expect a low growth of single digit. But the growth is expected to reduce by 1.5%.
  • GSK sells Boost, Horlicks, Crocin and Iodex in India and they are confident of long term growth.
  • For GSK Consumers, India is the second largest market globally after the USA.
  • The UK company reported a 3% growth in sales. The consumer delivered low single digit growth though.
  • The international region benefited from comparison to quarter 4 of 2016, which was when demonetisation hit India.
  • The momentum has improved despite US weakening, divestments and GST in India.
  • The company is working with stockists to ensure they do not incur losses due to tax changes at the same time making sure there is no shortage of GSK’s drugs in the market.
  • Stockists want to hold less stock. Demand has come down considerably. They want to hold less stock as they want to minimise call-back of drugs for the sake of re-labelling.
The healthcare business has improved and has a potential growth despite GST. Since there’s more awareness on oral health. GSK is confident they will survive in this fast-changing scenario.


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