The firm has decided not to pass on the 5 per cent Goods and Services Tax (GST) to the customers and is also helping retailers and distributors to get registered under the GST regime.
"We are planning to expand our production base. We are planning to set up production facilities in Andhra Pradesh and Kerala. Each plant would involve an outlay of around Rs 10 crore," N. Sugumar, Executive Director, told the media here.
Closing the last fiscal with a turnover of Rs 230 crore, the firm is looking to grow to Rs 275 crore this fiscal. The firm is also targeting to increase its export revenue to 10 per cent from the current 4 per cent.
"We are shipping our products to countries where Indian population is largely concentrated. We now plan to have a separate set up for exports," Sugumar added.
According to Sugumar, Anil Semia/vermicelli commands a market share of 40 per cent in Tamil Nadu.
"Nearly 40 per cent of our turnover is from vermicelli and the balance is contributed by products like salt, broken wheat, rice flour, maida, ragi vermicelli, noodles, atta and others," Sugumar said.
N. Kamalahassan, the Managing Director, said the group planned to get around 10,000 retailers to get registered under the GST regime free of cost so that they do not face any hassle under the new tax regime.
On the impact of GST on their products, Sugumar said the tax rate had gone up to 5 per cent from zero. "We have decided to hold our price line without passing it on to the customers," Sugumar said.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.