Hindustan Unilever (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, according to HUL Chairman and Managing Director Sanjiv Mehta.  

In its annual report for 2020-21, the fast-moving consumer goods (FMCG) company has said that while there are encouraging developments, the trajectory of the pandemic still remains “unpredictable” to a large extent as the country is witnessing the second wave of the pandemic.

While discussing prediction of the third wave, Mr Mehta has said that HUL's focus will 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 COVID-19 for some time, we remain confident of the medium- to long-term growth prospects of the FMCG sector,” Mr Mehta has said on the outlook for the company. 

According to HUL, despite being one of the fastest-growing markets globally for FMCG products, India’s per capita FMCG consumption is still among the lowest in the world, giving the industry a long runway for growth. HUL is also investing in building capabilities for e-commerce and modern trade channels as consumer shopping behaviour 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,” Mr Mehta gas added. Over 5 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 optimising space and speed up restocking,” Mr Mehta has said.