‘Look at the basics of the business’
What was the problem you were grappling with?
Beer was among the most severely impacted consumer categories after the Covid-19 outbreak. Our business was impacted by the uncertainty due to the lockdown, shutting down of bars and restaurants, economic turbulence and increasing levels of taxation by states. Sales had dried up overnight. For a long time, beer wasn’t accessible to consumers. This posed a concern as this could permanently alter consumption habits.
Who did you approach for advice?
I relied a lot on the wisdom of the board and the experience of the leadership team at United Breweries.
What was the advice you received?
The advice I got was to take an honest look at the fundamentals of the business and use the opportunity to redesign the organisation for sustainable growth. After a closer look, we realised that the long-term growth potential of the business was intact, given that India is a hot country with a young population, rapid urbanisation and rising incomes. This gave us the confidence to do the right thing: keep colleagues safe, continue engaging with consumers, manage costs, prepare the organisation to accelerate consumption when the opportunity presented itself and ultimately shape the future of the Indian beer market.
How effective was it in resolving the problem?
Our financial results are a validation of our efforts. From a 75 per cent year-on-year drop in net sales in April-June 2020, we witnessed a solid start to the peak summer season in 2022. The April-June 2022 quarter saw 121 per cent volume growth and 424 per cent PAT growth YoY. Our total volumes exceeded pre-Covid-19 levels.