HUL made a step to help the country to become self-reliant by saying no to imports from china
As we all know, There have been calls to boycott Chinese products after a clash on June 15-16 night at Ladakh’s Galwan Valley where 20 Indian soldiers died.
Fast Moving Consumer Goods (FMCG) firm Hindustan Unilever (HUL) has begun discussions on possible alternatives to raw materials the company imports from China. As the company also wants to fulfill their responsibility to help the country become self-reliant.
Government is strictly taking actions against China
In the starting of this week as we all know government give the notice to ban 59 Chinese apps in India. Even the Union Minister, Nitin Gadkari also cancelled all the tenders , projects of roads and highways given to the Chinese firms. He said the Chinese firms are not allowed in joint ventures also.
Also, the manufacturing team of Flipkart and Amazon India was asked to put “origin of product“ on their products.
HUL CMD Sanjiv Mehta on exports and imports from China .
As we all know Hindustan Unilever Limited company , it is a British-Dutch multinational company. And its been so many years since we are using their so many products. There are unlimited number of products of Hindustan Unilever in every house of India.
Yesterday, on the company’s 87th annual general meeting that was held virtually Shareholders comes up with their queries to HUL CMD Sanjiv Mehta about their exports and imports from China.
Raw materials and packaging material are import from China by HUL
In the response to the shareholders, Mr Mehta stated, that they already have initiated discussions on how the company could help the country to become self-reliant.
He mentioned that they do have imports of over Rs 400 crore from China. HUL also imports from a China the raw materials and packaging material for many products.
FMCG companies were also threaten by COVID-19 pandemic
During COVID-19, the company demonstrated a huge degree of toughness. The coronavirus pandemic is threatening the growth of many industries, and HUL, one of the top leading FMCG firm is not immune either.
Here also, the company will partner with different businesses to overcome any risk that might arise due to the geopolitical crisis,”
‘Chartering the unchartered, normalizing the abnormal’: Sanjiv Mehta
Mr Mehta in his speech titled, ‘Chartering the unchartered, normalizing the abnormal’, this states that the COVID-19 pandemic is a warning shot for countries and businesses alike to take a step back and reassess their current models.
He emphasized that although the risk of recession is so remains real and staring everyone in the face, it must not be taken as a foregone conclusion.
He said that the government should keep a close watch on the demand situation and step in unhesitatingly if it does not pick up in the next few months.
Goods from China constitute nearly half of the company’s total imports at around Rs 900 crore in 2019-20.
Mehta highlighted that the company’s exports to China are trivial.
Immediate impact of the national lockdown on severe supply chain constraints.
He also talked about the immediate impact of the national lockdown on severe supply chain constraints. As businesses pulled down shutters, it manifested in empty shelves and shrinking pipelines.
The fear of loss of jobs, desiccate earnings and dissolve investments have made people vigilant with their expenditure. They start thinking wisely with whom, when and where they want to spend their money.
Robust balance sheets, resilient leadership, and hardy institutions were the first demand of investors after this pandemic
The slowdown in the wheels of the economy could lead to a financial crisis in several parts of the world. While some will be able to raise funding or latch on to the lifeline sent by the governments, many businesses will stare at ruin,” said Mehta.
He added that investors will look for robust balance sheets, resilient leadership, and hardy institutions.
Mehta said whether economies can avoid the recession or not, the path back to growth will depend on a on a myriad of factors such as the trajectory of coronavirus, the effectiveness of containment efforts, the reaction and behavior of the firms and consumers, among others.