Dabur calls coronavirus situation ‘fairly bad’; remains hopeful of normalcy in 3 months

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Published: April 13, 2020 12:42:22 PM

FMCG major Dabur has called the coronavirus situation ‘fairly bad’ as the country remains under a lockdown for 21-days.

While the company has already ramped up production of essential items, it is now also working with the government to sanitise kirana stores.

FMCG major Dabur has called the coronavirus situation ‘fairly bad’ as the country remains under a lockdown for 21-days. The maker of Hajmola candies, however, remains hopeful of normalcy in three months. “Hopefully, we are going to be back to normal in three months… It is right now fairly bad. When I say three months, what I mean is at least 40-50% of capacity we will get in Dabur in terms of consumption,” Amit Burman, Chairman, Dabur, told ET Now. The company has started production in several of its factories as it anticipates a surge in demand soon. “We have opened a couple of factories in Jammu, Sahibabad and in Baddi with limited capacity,” he added.

Also Read: Private labels, local brands find space in kirana stores as logistics handicap bigger FMCG firms

While the company has already ramped up production of essential items, it is now also working with the government to sanitise kirana stores. Starting with 10,000 stores for now, the FMCG company plans to go up to 2 lakh stores for its sanitising initiative, Amit Burman said. Dabur, which also runs food and beverage retail business Lite Bite, said that the restaurant business will take much longer to recover than the FMCG business. 

Meanwhile, the FMCG business is also seeing the challenges related to supply chains and logistics. With trucs stranded on roads due to a sudden announcement of lockdown, the companies are now facing a delay in deliveries. “The supply chain for any single FMCG product typically consists of 20-30 components and their seamless movement is absolutely necessary to ensure continued production and uninterrupted supply of the final product to consumers,” Shahrukh Khan, executive director-operations, Dabur India, had earlier told The Indian Express. Moreover, procuring raw material and packing material is also posing a challenge.

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