Coronavirus: Unilever, ITC, Godrej, Amul ramp up production as India stocks up due to lockdowns

As many parts of the country are undergoing lockdown, people are buying essentials and groceries in bulk for sustenance. Some of India's biggest consumer goods companies are now ramping up production to meet the sharp rise in demand.

Hindustan Unilever, ITC, Godrej, Parle, and Amul said that production has been increased to ensure that there are no shortages due to panic, as mentioned in a report in The Economic Times.

This appears to be a reversal of last year's fortunes, when companies slashed production due to weak consumption. However, experts told the daily that such a surge may be temporary and might not make up for slumping sales.

While the governments have asked companies to shut manufacturing units to cut down on the spread of coronavirus, manufacturers of groceries and essential products, including food, hygiene and pharmaceutical segments have been exempted. However, these units would work with skeletal staff and stagger shifts.

Also read: Coronavirus update: List of districts under lockdown till March 31

According to the report, Godrej Consumer Products is stepping up production of soaps, hand washes and sanitisers. Soap production is up 30 per cent and hand washes by 3.5 times Meanwhile, ITC is ensuring that there is adequate supply of all food products and staples.

Parle has raised production 10-15 per cent that it plans to review on a weekly basis. Mayank Shah, category head at Parle Products 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," as mentioned in the report. Shah, however, believes that there will be a lull once the crisis is over. 

Also read: Coronavirus: Protective health gear, N-95 masks, coveralls in short supply

Dairy company Amul India also said they have increased production by 15-20 per cent for its biggest-selling products such as tetrapak milk, paneer, cheese and butter, the report mentioned.

Consumer goods slowed down sharply in January and February over the previous year. Growth for categories such as soaps, shampoos and skincare had dipped, as mentioned by Nielsen. Meanwhile, a Care Ratings report stated that most items of consumer goods and food products saw a slump in output in the October-December quarter.

Also read: Panic buying due to coronavirus increases sales of Bigbasket, Grofers

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