Coronavirus pandemic | FMCG cos ramp up production to meet rising demand
FMCG majors such as Hindustan Unilever, ITC, Parle, Amul and Godrej Consumer have raised production to meet increased demand due to the novel coronavirus outbreak
March 23, 2020 / 10:59 AM IST
Fast moving consumer goods (FMCG) companies are increasing production to keep up with rising demand as consumers rush to buy essential groceries on account of the coronavirus outbreak, The Economic Times reported.
FMCG majors such as Hindustan Unilever, ITC, Parle, Amul and Godrej Consumer Products (GCPL) have raised production, the report said.
This is a sea change from last year, when companies were reducing production due to lower demand.
Moneycontrol could not independently verify the report.
The Centre has advised companies to close factories to contain the spread of COVID-19, but have permitted production of groceries, pharmaceuticals, and hygiene products.
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GCPL has raised soap and hand wash production by 30 percent and 3.5 times, respectively, the article quotes its Managing Director Vivek Gambhir as saying. “It’s a combination of our own plant and third-party manufacturers with spare capacities, which will come up into effect by April. The situation is pretty dynamic right now,” Gambhir said.
“We are seeing a surge in demand for two weeks and don’t want any unnecessary panic with supply shortages and prices going up. We want to ensure we don’t go out of stock at any point of time,” Mayank Shah, Category Head at Parle Products, told the publication. He added that there may be a lull in the coming months once the crisis is over.
But the panic buying by consumers may still not compensate for the declining sales in January and February, the report noted.