FMCG major Hindustan Unilever Ltd (HUL) today said market growth would be "adversely impacted" in short term due to the ongoing demonetisation scheme of the government and GST but in the long term it would be "win-win for everyone".
"In the short term, market growths to be adversely impacted for a few months," HUL said in a investor's presentation.
Consumers will benefit by lower inflation, HUL added.
In short term, consumers would be impacted by lower cash on hand and would be cautious with their spend. Initially, they would spend only on basic necessities.
HUL further added that trade would be down due to liquidity squeeze and there would stocking of the material as a short term measure.
Its impact would be varied across the geographies but the wholesale trade would be impacted the most. Moreover, in the long distance routes, there would be logistical impacts also.
According to the company, gradual improvement in the market impact is expected to be led by urban segment and would depend on liquidity build up across the chain.
"Speed of recovery will be dependent on liquidity build up across the chain," said HUL in presentation copy submitted to BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)