Wooden flooring market and its changing trends after the implementation of RERA & GST.. Our product is available in numerous countries. Mainly focusing on the Asian markets, Inovar is present in the West, US too. On this Shivshankar K.R, MD at Inovar Floors India Pvt Ltd, shares his views on infrabuddy.com, all about the impact of RERA and GST on the wooden flooring and related markets
What are the effects of RERA / GST on your wood flooring business?
-Flooring market is effected as sales have slowed down among builders who are in the institutional market owing to the impact after enactment of GST and RERA. Subsequently, GST is an additional burden, while some of the builders are passing on the input credit of GST and some of them are not, since products are non MRP based, it not easy to confirm. The customers investing in the real estate market is wary of paying the GST upfront etc. With RERA the financing of projects and the cash flow model has changed, that is affecting our business too. When customers are buying flats they also need products like floor covering, paints, plywood, etc to decorate homes. The retail sales for finishing products in this segment has slowed down.
RERA & GST affecting the stability of your market?
It is not that the whole market is going to collapse; there is a drop in overall sales. We are seeing around 30% drop from this segment. Slow down and increase in unsold apartments, and more-of luxury apartments left unsold which is our segment is the reason for the drop in sales. Renovation market and second homes segment seem to be less affected. Builders are moving towards the affordable segment, which does not fall our focused segment, therefore products like paints, ceramics, which cater to the affordable segments, may not see a drop in sales.