Impact of Covid-19 on FMCG Segment

1. COVID-19&its
impactonFMCG
Segment
SubmittedBy:AnushkaJain
Class:MBA-2nd Semester(2019-2021)
Subject:SeminaronContemporaryIssues

2. Jens Martensson
WhatisCovid-19?
Coronavirus disease 2019 (COVID-19) is defined as illness
caused by a novel coronavirus now called severe acute
respiratorysyndromecoronavirus-2,whichwasfirstidentified
inWuhanCity,China.
ItwasinitiallyreportedtotheWHOonDecember31,2019.
OnJanuary30,2020,theWHOdeclaredtheCOVID-19outbreaka
globalhealthemergency.OnMarch11, 2020,theWHOdeclared
COVID-19aglobalpandemic.
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3. Jens Martensson
Stages of Transmission of Coronavirus
Stage -1
It is the first appearance of the disease through people with a travel
history, with everyone contained, their sources traced, and no local
spread from those affected. The number of those infected would be
quite low at this stage.
Stage -2
It is local transmission, when those who were infected and have a
travel history spread the virus to close friends or family. At this stage,
every person who came in contact with the infected can be traced and
isolated.
Stage -3
It is community transmission, when infections happen in public and a
source for the virus cannot be traced. At this stage, large geographical
lockdowns become important as random members of the community
start developing the disease.
Stage -4
It is when the disease actually becomes an epidemic in a country, such
as it was in China, with large numbers of infections and a growing
number of deaths with no end in sight. It is then considered to be 3

4. Jens Martensson
Is India in the Stage-3 ?
India has maintained that the disease is in the second
stage, or between stage two and stage three with
“limited community transmission” in some clusters.
Since the outbreak emerged in India around two
months ago, the number of cases has undergone a
steady rise. In spite of the growing trend, Indian
authorities have maintained that the virus
transmission in the country is still in its second stage.
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5. Jens Martensson
Impact of Covid-19 on FMCG Sector
5
India’s biggest consumer goods companies
(FMCG) are ramping up production to meet the
steep rise in demand with people rushing to
stock up on essentials and groceries in bulk
amid fears of a lockdown due to the coronavirus
outbreak as several states imposed stringent
curbs on movement.
This marks a reversal of last year’s fortunes
when companies cut production because of
weak consumption across segments. Still,
companies and experts said the surge may be
temporary and not make up for slowing sales in
the past two months in this quarter.

6. Jens Martensson
Impact of Covid-19 Lockdown on GCPL
6
The three-week long lockdown will impact earnings of FMCG sector in Q1 (April-June quarter), and it is
not clear if it will linger to the second quarter, according to a Godrej Consumer top official.
Though Godrej Consumer Product Ltd (GCPL) is ramping up its manufacturing and distribution
network for the essential items, but it is still facing "bottle neck" in logistics and transportation along
with availability of man power.
The Godrej Group firm, operating at about 20-25 per cent of production levels of essential items, is
working along with the governmenton the issue and witnessing improvements with each passingday.
Presently, GCPL's about 60 to 70 per cent depots are open and 20 to 25 per cent of the distributors have
received permissions to operate, though delivery to retailers is still a challenge.

7. Jens Martensson
Committed towards Combating Covid-19
7
During this challenging phase of COVID-19, Hindustan Unilever Limited stands united with India. Recently
having announced our commitment of Rs 100 crores to help the nation fight Coronavirus, over the last few
weeks.
We are supporting hospitals in Mumbai, Pune, Kolkata, Tamil Nadu and several other areas by donating
Lifebuoy soaps, handwash, sanitizers, Domex floor and bathroom cleaners. To ensure that our products
reach low-income families, we are in discussions with social organisations like the United Way and the
United Nations Development Programme.

8. Jens Martensson
Dabur Group launches a slew of measures to fight Covid-
19
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The company said that it has ramped up production of essential and hygiene products and medicines to
meet consumer demand besides adopting strict and hygiene measures at its manufacturing units.
It has also established a ‘Dabur Care Fund for Covid-19’, to protect lives and livelihood, and support those
affected by the Covid-19 pandemic. The fund is about ₹21 crores towards relief efforts, helping meet
immediate needs of those most affected by this pandemic.
Out of this pledged amount, a sum of ₹11 crore is being contributed to Prime Minister’s Citizen Assistance
and Relief in Emergency Situation Fund (PM CARES Fund) by Dabur India Limited and other entities in the
Group

9. Jens Martensson
References
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1. www.thehindubusinessline.com
2. www.hul.co.in
3. www.economictimes.indiatimes.com
4. www.hindustantimes.com
5. www.livemint.com

10. Thank
You