Discretionary food, personal care will see the sharpest recovery: Edelweiss’s Roy
FMCG companies are witnessing an increase in sales after Unlock 2.0 with easing of curbs on trading and movement by State governments and local authorities on account of falling number of COVID-19 cases.
States started lifting curbs in the first week of June.
Companies are witnessing tailwinds in sales, particularly in their health and hygiene portfolio — both in urban and rural markets.
Unlock 2.0 has also increased the convenience of business for companies as earlier distribution was limited to certain hours in a day in several States on account of restrictions and filling up empty shelves was a challenging task.
Dabur India CEO Mohit Malhotra said as several States were unlocking and local markets were opening up, consumer demand was showing an uptick.
“The drop in COVID-19 cases has not only boosted consumer sentiments but also helped the supply chain recover from the COVID-19-induced disruptions. We are seeing tailwinds in our healthcare portfolio, particularly in rural India, with demand growing for Chyawanprash, honey and immunity-building Ayurvedic products,” he said.
Jyothy Labs JMDUllas Kamathsaid, “We are seeing better traction [after unlocking],” he said, adding “now, a feel-good factor has come though there is the fear of a third wave.” Health and hygiene products such as body wash, soap and dish wash are doing well, he noted.
Echoing similar views, Edelweiss Financial Services executive VP Abneesh Roy said “ it had to happen.”
“It was not a demand issue in May but sales got impacted due to high number of COVID-19 cases leading to the closure of many shops and reduced hours for shops,” Mr. Roy said.
Both have now reversed. Sentiments are sharply improving as cases have fallen, apart from good rainfall, hike in MSP, etc,” he added.
He further said discretionary food and personal care will see the sharpest recovery, though other product segments will also grow.
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