Dettol maker sees immense growth even without Covid

India, US and China were the largest contributors to Reckitt Benckiser (RB) Group Plc’s highest-ever growth in calendar year 2020 as consumption for hygiene products surged, global CEO Laxman Narasimhan told ET.“India, the US and China represent nearly half our business now; India alone has grown in double digits last year,” Narasimhan told ET from the British firm’s global headquarters after the hygiene and healthcare giant declared fourth-quarter and full-year earnings.RB’s record sales growth in India was due to galloping demand for hygiene products, led by Dettol, Lizol and Harpic disinfectants with global sales up 11.8% as the company capitalised on pandemic-induced demand. 81201214 ‘Robust Growth Likely’Narasimhan did not divulge specific India growth numbers but said it was a core growth market with immense headroom for growth “with or without Covid.”“Earnings have been ahead of expectations and we are forecasting the growth to continue on the back of a very strong year,” said Narasimhan, who took over the top job at RB in 2019, moving from beverage and snacks maker PepsiCo. Narasimhan, 53, is the second Indian to head RB, having succeeded Rakesh Kapoor, who led the company for eight years.RB, which competes aggressively with Hindustan Unilever Ltd (HUL) in the hygiene space, grew revenue by a record in India last year. Narasimhan said Harpic disinfectant is now used in over 100 million households in India, up by nearly 30 million from 2019, thanks to a focus on “purpose-led campaigns and behaviour change.”Leveraging Swachh BharatThe company has been extensively leveraging the Indian government’s Swachh Bharat campaign, which was followed by the Covid outbreak, both of which have paid off for its hygiene portfolio. “Besides the focus by governments on healthcare, self care is very important,” Narasimhan said. It signed a partnership this year with Treebo Hotels for disinfection at its properties and regular training of staff. Another such pact is a “deliver safe programme” with online grocery retailer Grofers. It equips Grofers teams with Dettol sanitisers and sprays as well as Lizol and Harpic surface disinfectants.In November last year, RB announced it was doubling investments in its Banega Swachh India campaign to £20 million. In the middle of last year, it extended the Harpic ‘mission paani’ campaign, associating the brand with water conservation and hygiene. Last month, it relaunched glass and household cleaner brand Colin with added germ-removal properties.‘Dettol on Top’The company said in its half-yearly statement last year that Dettol soap had become India’s biggest-selling brand by value share, overtaking HUL’s Lifebuoy. “Our performance on Dettol has been very strong, relative to our leading competitor,” Narasimhan said.On a like-for-like net basis, RB reported global sales of £14 billion ($19.8 billion), while ecommerce sales grew by a record 56%-plus and now contributes 12% of the group’s net revenue. Global sales rose 11.8% while it reported net profit of £1.19 billion ($1.68 billion) for the year, compared with a net loss of £3.68 billion in 2019.Declining Covid cases and the vaccine rollout are leading to diminishing demand for hygiene products but the company is looking to maintain the trend.

from Economic Times https://ift.tt/3dWwQ2D