KOCHI: As construction industry takes a beating with the demonetisation of higher denomination currencies, it has also severely hit allied sectors. Traders dealing in construction materials like steel, granite and marble, cement, paints, upholstery and the like have said they have been severely hit.
Vishnu Bhakthan, managing director, New Rajasthan Marbles said since the announcement of currency demonetisation there up to 80% dip in sales. “Prior to the move of banning currency notes of higher denomination we were able to take to the bank an average of Rs 30 lakh per day. Now it has come down to Rs 5-10 lakh per day,” he said adding that they have completely stopped accepting Rs 1,000 and Rs 500 notes. “Currently money transactions are carried out in the form of cheques, demand drafts and online transfers,” said Bhakthan.
According to Venugopal Shenoy of AG Krishna Shenoy Hardware and Paints, the traders dealing in construction materials have lost 90% of their business.” He said their customers complain of lesser number of real estate deals and sales in apartment projects. “If you come down to Broadway you can see empty shops. Though there is stock there are no takers.
While the merchants pin their hopes on large scale and corporate customers they are not confident about individuals and small deals. Ajith Mohan of Ideal Interiors and Developers said, “While we would continue to get contracts from corporate clients , but we are not optimistic about getting work from individual houses, villas and flats.”
The traders said it would take at least 2-4 months to get a clear picture of the impact of this demonetisation move. With more and more people depositing money in the banks the financial institutions would be in a better position to provide more loans in the coming days. It would also bring down interest rates. “This is expected to provide a new lease of life to the real estate. Our belief is that more people would come come forward to invest in various projects,” said Bhakthan.
Credits ET Realty