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Ahujasons Plans Expansion In North-India, Mumbai In Next 2-year
The company speaking on its dissatisfaction with the Goods and Services Tax revealed that earlier the VAT was 5 per cent but post-GST, it has increased to 12 per cent
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After firmly establishing a business in Delhi NCR, the supplier, exporter and manufacturer of Shawls, Stoles etc, Ahujasons Shawl Wale now plans to foray into the North-Indian and Mumbai market.
Currently operating at 4 self-run retail stores in Karol Bagh, South Extension, DLF mall of India and Private Luxury Store in Khan Market, the company is planning to open at least four new self-run brick-and-mortar stores in North-India and also in Mumbai in the next two years.
Speaking to BW Businessworld the chief executive officer of Ahujasons, Bhuvan Ahuja said, “Our product is a winter product and shawl is always treated as a gift of warmth in North-India, so that is why we planned to enter the North-Indian market.”
Ahujasons clocked Rs 159 crore turnover in 2016-17 which was a growth of 12 per cent Y-O-Y, claims company. The company also stated that the sector of Shawls, Stoles, Scarves etc. is highly unorganized and Ahujasons is the only organized player in the industry. “Ahujasons has been in profit since its inception,” said Ahuja.
Online Expansion Plans:
The company will very soon start selling products online via its own website. “Retail stores are more profitable and at present, the volume is from our retail stores due to a very minimum presence on e-commerce, but we will be launching e-commerce in a big way next month and will be investing heavily to market it domestically and internationally,” he said.
“We have had 12 per cent growth this year which was lower than our target of 18 per cent and that happened primarily due to demonetization and negative sentiments in the market. This year also we have reduced our target to only 10 per cent due to GST and negative sentiments,” said Ahuja. The company aims to achieve the target of Rs 200 crore in 2019-2020.
The company speaking on its dissatisfaction with the Goods and Services Tax revealed that earlier the VAT was 5 per cent but post-GST, it has increased to 12 per cent. The extra cost has not passed on to consumers and thus, affecting the company’s bottom line.
Ahuja explained, “With recent amendments in GST, where any unregistered vendor can trade handicrafts up to an annual turnover of Rs 20 lakhs across India, is encouraging the unorganized sector in our industry and hence it is proving to be a big disadvantage for an organized player like us.” However, the company does accept that in the long run, GST will turn out to be profitable for the overall industry.