Reckitt Benckiser to step up marketing in India amid 'devastating second Covid wave'

British hygiene and healthcare products maker Reckitt Benckiser is stepping up marketing spends for its India business to amplify messaging of its brands in the country amid the devastating second wave of the coronavirus, it said on Wednesday. “India is reeling under a devastating second wave of the coronavirus.. we are increasing marketing spends around messaging to help rein in the virus,” the company’s global chief executive Laxman Narasimhan said in a post earnings analysts call.
The maker of Dettol handwash and Harpic disinfectant cleaner said its India arm grew in double digits in the March quarter, led by strong underlying demand of Dettol and expansion of disinfectant sprays and laundry sanitisers which more than offset increased competitive pressures.

“Sales of Dettol showed strong growth in India… By geography, we have seen double-digit growth in India, with strong performances in China, UK and Russia,” the company said in an earnings statement.

Reckitt Benckiser (RB) said across markets its healthcare portfolio, which comprises mainly of Dettol, declined 13% year-on-year as vaccination drives escalated. However, the market in India addressed the slide.

“Countries around the world are now at very different stages of the pandemic, with cases in Brazil and India, for example, rising rapidly, while Australia and China have seen the virus largely recede,” the company said.

RB reported higher-than-expected increase in quarterly sales for the January-March quarter, amid sustained consumption of sanitising and hygiene products. The UK-based company reported 4.1% increase in like-for-like sales for the quarter. It retained its forecast for full-year sales growth between flat and upwards of 2%.

In calendar year 2020, India, the US and China were the largest contributors to RB’s growth, with the three markets representing nearly half the company’s overall business.

RB’s record sales growth in India was on account of record surge in 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.