Unlock 2.0: FMCG firms witness rise in sales with easing of curbs

New Delhi: 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 due to falling number of COVID cases.

States began lifting restriction in the first week of June.

Companies are witnessing a tailwind in sales, particularly in their health & 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 due to restrictions and filling up the empty shelves was a challenging task.

Moreover, some players also expect the current quarter to be a better one for the FMCG industry, helped by an increase in sales and convenience of business.

Dabur India CEO Mohit Malhotra said as several states are unlocking and local markets are opening up, consumer demand is showing an uptick.

The drop in COVID cases has not only boosted consumer sentiments but also helped the supply chain recover from the COVID-19-induced disruptions. We are seeing a tailwind for our healthcare portfolio, particularly in rural India, with demand growing for Chyawanprash, Honey and immunity-building Ayurvedic products, he said.

Jyothy Labs Joint Managing Director Ullas Kamath said from the FMCG perspective, most of the goods were in the essential category and our business was normal. After lockdown has been opened, we are seeing a better traction, he said adding Now a feel-good factor has come though there is a fear of a third wave".

Now products from health & hygiene such as personal care products, body wash, soap and dish wash are doing well.