Soap business does present a massive business opportunity in the aftermath of corona virus as more and many more people that adopt hygiene practices and become conscious of health concerns. “While growth rates and usage rates of the past 2 to 3 months may not sustain as well, the HUL management seems confident in the opportunity for volume momentum and also premiumization momentum being much stronger than it has been in recent years,” a Motilal Oswal report told that citing Sanjiv Mehta, MD, HUL. Further, and also other home cleanings and hygiene related products as like detergents are also expected to boom in the wake of coronavirus pandemic. “Big brands die whenever they do not reinvent and also remain contemporary, an exercise in that HUL has succeeded for the majority of its portfolio in recent years,” the report said.
The company started to ramp up the production of soaps, sanitizer, and also hand washes under its in-house brand Lifebuoy as early as March, even before the govt had implemented a nationwide lockdown. Whereas FMCG sales, in general, that remained down in the month of April and also May, Soap sales of evolved hygiene categories such as hand wash, hand sanitizer, and floor cleaners. So many new companies also entered the hand wash and hand sanitizer segment after major demand and also supply gaps arising out of the coronavirus pandemic situation. Dabur, Nykaa, Emami, Nivea, ITC also recently debuted into the manufacturing of sanitizers for both the commercial and charity purposes as well.
Whereas, HUL recently completed the acquisition of GSKCH. The merger comes at a time when clients are increasingly seeking health and immunity-boosting products. “With GSKCH’s strong proposition on nutrition, the current scenario acts as a tailwind for the HFD category,” as the report told. During the pandemic situation, the sales of immunity-boosting products have seen a spike with another FMCG player Dabur reporting 400% sales jump of its chyawanprash range in the last quarter.