At FMCG companies, production crosses pre-Covid for food & hygiene goods

Kolkata | Mumbai: Large consumer goods companies HUL, ITC, Parle Products, Britannia, Marico and Dabur are expanding production capacities beyond pre-Covid levels. In-demand products for FMCG majors are food and hygiene products as consumers continue to stock up, dine in and load up on sanitisers and soaps.

Most of these companies saw their operations restored over the past two months. Now, with production at almost pre-pandemic level, they plan to step up supplies.

“We will have to invest (in capacity) as demand is higher than pre-Covid,” said Varun Berry, MD at Britannia Industries, the maker of Good Day and Bourbon biscuits. “Demand eventually may not sustain entirely, but will remain strong,” he said.


India’s largest food company, Parle Products, said it will expand capacity by 25% over normal. The maker of Parle-G and Hide & Seek biscuits reached pre-Covid production level this week.

With labour shortage a persistent problem, capacity expansion will involve not just adding assembly lines but also running more shifts and introducing automation. Parle Products’ senior category head BK Rao said: “We will run more shifts and make some changes in processes to scale up capacity.”

An ITC spokesperson said capacity is at ‘reasonable’ levels, and the company has seen a surge in demand for FMCG products, including staples, biscuits, instant noodles and snacks.

Dabur India CEO Mohit Malhotra said there was a 400% surge in demand for immunity booster chyawanprash and 80% growth in demand for honey.

Investing in Capacity Expansion
“With these products facing a stock-out in the market, we have already invested in expanding capacity,” Malhotra said.

In an investor update, HUL, the country’s biggest consumer goods company, said it is important to fulfil the surge in demand from consumers for handwash, sanitisers, floor cleaners, and hygiene and nutrition products.

“We are operating with shorter planning cycles, stepping up agility, reducing complexity and working longer shifts to build resilience in our supply chain,” said HUL, which has ramped up production to 90% of normal levels.

Marico is currently clocking more than 90% of the FY20 average monthly sales with robust growth in Saffola edible oil and food products.