The News Scroll 03 July 2020  Last Updated at 6:20 pm | Source: PTI

Recovery would be faster; rural, non-metro demand intact: Havells CMD

Recovery would be faster; rural, non-metro demand intact: Havells CMD
New Delhi, Jul 3 (PTI) Demand from non-metros and rural areas is intact and the industry will see a faster recovery than initial estimates, Havells India Chairman and Managing Director Anil Rai Gupta said.

The coronavirus pandemic has spurred digitisation and Havells, which operates mainly in the consumer durables, appliances and electrical goods segment, is witnessing faster adoption of digital methods by its channel partners, he added.

"I believe that May and June have shown the industry that recovery could be faster than what people were expecting it to be in the month of March and April.

"So going forward, we should fulfil what customers need, ensure the availability and accessibility of our products. These will be key factors for any company for the next five to six months," he said at a webinar organised by Workplace Trends India.

Havells, which has a distributor base of around 1.5 lakh, is now receiving around 60 to 70 per cent of its orders from them through its in-house app.

"This app is there for last two years, but no one was interested to place an order through this earlier... now they are doing," he said.

Gupta further said demand from non-metro and rural areas is intact and can fuel the recovery of the industry, which has been badly hit by the COVID-19 outbreak and subsequent lockdowns.

"If the companies remain strong and companies are agile, there will be tremendous opportunities of gaining market share," he added.

"During this crisis, we realised that short-term cost needs to be cut down, rather than long-term costs. Long-term costs which may be the good cost and need to be retained, whether such costs are for R&D or to maintain capex. Because once we come out of the crisis, we could have opportunities to gain market share," said Gupta.

Speaking at the webinar, Somany Ceramics Managing Director Abhishek Somany also said demand from non-metros has been stable.

"We moved our focus from tier I towns to tier III and IV  towns, not even tier-II towns, so much so that even pre-lockdown 70 to 72 per cent of our sales were coming from tier II, III and IV towns, and increasingly after lockdown, we are seeing that focus shifting even further," he said.

Transport Corporation of India MD Vineet Agarwal said the adoption of technology is not a new thing and now companies and startups have to think a step ahead.

"What companies need to concentrate now is on how they can bring in process improvement or any kind of digital transformation that gives them an exponential change in what they are doing, not a 20-30 per cent change in efficiency but a 2X or 3X kind of change in efficiency," he said. PTI KRH ABM ABM

Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
Next Story :
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store