HUL wary of COVID-19 pandemic but confident of business growth aspects

HUL is watchful of the situation after the second wave of COVID-19 pandemic but is confident of the medium to long-term growth prospects of the sector, says company chairman and managing director Sanjiv Mehta. In its annual report for 2020-21, the company said while there are encouraging developments, the trajectory of the pandemic still remains “unpredictable” to a large extent.

Mehta said HUL’s focus would continue to ensure uninterrupted supplies of COVID relevant portfolio and meeting the demand arising out of evolving consumer needs. “We remain watchful of the situation while focusing on driving volume-led competitive growth. Even though conditions will remain unpredictable and we will be living with the effects of the COVID-19 for some time, we remain confident of the medium to long-term growth prospects of the FMCG sector,” Mehta said.

HUL, despite being one of the fastest-growing markets globally for FMCG products, India’s per capita FMCG consumption is still amongst the lowest in the world, giving the industry a long runway for growth. It is also investing in building capabilities for e-commerce and modern trade channels as consumer shopping behaviors is shifting towards e-commerce. “We are investing in building capabilities for channels of the future viz. e-commerce and modern trade and are co-creating differentiated offerings which are fit for the channel,” Mehta said. “Over five lakh retailers are now ordering through HUL’s eB2B app Shikhar, which had enabled its retailer partners to place contactless orders. We are scaling up the adoption of Shikhar, our eB2B app to create a digitally wired customer ecosystem which will help in optimizing space and speed up restocking.”

Mehta said HUL’s overriding priority remains, therefore, to protect lives and livelihoods. “As the second wave of the pandemic unfolds with predictions of a third wave in the offing, our focus continues to be on our people’s health & safety, ensuring uninterrupted supplies of COVID relevant portfolio, meeting the demand arising out of evolving consumer needs, caring for the communities in which we operate, and finally protecting our business mode,” he explained.

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The executive also highlighted that the year 2020-21 recorded unprecedented disruption to lives and livelihoods across the world and India was no exception. Mehta said the economy declined sharply during the first half of the fiscal year as the country grappled with the pandemic. “Our people have shown their resilience and commitment to rise in the most difficult circumstances. With our strong portfolio of trusted brands, industry leading capabilities, resilient workforce and a clear compass strategy guiding our decisions, we are well placed to deliver consistent, competitive, profitable, and responsible growth.”