Demand Constraint to the Fore

Demand Constraint to the Fore BATA INDIA'S domestic business during the year ended December 31, 1990 was seriously affected by the disturbed law and order situation in different parts of the country, especially in Punjab, Jammu and Kashmir and the north-eastern states. The directors are anxious about the decline in the disposable income of the middle class which forms the backbone of the company's business in the wake of inflation which worked out to be over 12 per cent per annum. The problem was compounded by the sharp increase in the cost of almost all raw materials and in operating expenses. Because of the fear of a further decline in sales Volumes, the cost increases were not passed on to the consumers.