On the first anniversary of government’s bold decision of demonetization, we will have brief look on the segments which were affected the most.

Tiles & Ply: This sector has been badly impacted post demonetization, as the price difference between unorganized and organised players has increased.

FMCG: Almost 40% of FMCG sales is done through wholesale channel, which largely deals in cash and therefore post demonetization it has been affected to a great extent.

Automobile( 2 Wheeler) : Cash flow in rural India were impacted the most due to liquidity crunch , as a result of this sales of 2 wheeler companies were impacted.

Consumer Durable: White goods were the ones which were affected the most post demonetization. Later as the liquidity situation improved, sales were better.

Jewellers: Due to demonetization and GST small jewellers were impacted badly. Further, more than 70% of jewellery business was done by unorganized players, so it led to structural shift in demand to organised players, increasing their sales.

Brokerages : According to an estimate, almost Rs.2-3 lakh crore has been brought back to economy due to demonetization. As a result of demonetization and uncertainty in gold prices and real estates, equities were the only investable assets, so there was a good growth in revenues for brokerage houses.

Modern Retail: As the wholesale channel for FMCG, was impacted due to liquidity crunch, we can see an increase in the market share of the modern retail trade.

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