FMCG major HUL has added 30 per cent more capacity in its supply chain, making it more flexible and agile, while adding alternative sources in order to meet the challenges in case of a third wave of Covid-19, its chairman and managing Director Sanjiv Mehta said on Tuesday.

Addressing the company’s 88th annual general meeting virtually, Mehta expressed optimism that the rural markets will continue to be strong despite the second wave of the pandemic impacting the hinterlands.

With commodity prices increasing, the company is keeping a close eye on the situation and going for calibrated price hikes so as to avoid impacting consumers in a big way, he added.

Replying to a shareholder’s query on the preparedness of the company in case of a third wave of the pandemic, Mehta said, “Now we have made the supply chain much more agile, we have taken a number of initiatives to improve efficiency. We have added flexibility in our supply chain by adding 30 per cent more capacity, and we aim to preserve resilience through alternative sourcing.”

“We also continue to invest in technological capabilities, and we have invested in creating a very safe environment for our workforce through tiered protocols,” he added.

HUL’s supply chain is undergoing a massive transformation across the verticals and the company is digitising upstream sourcing network which allows optimisation of cost, Mehta said.