Cello Group - best known for household products is hoping for improved recoveries as consumer sentiments pick-up.

The group expects turnover to be in the range of 80-85 per cent of pre-Covid levels for FY21.

The group had reported a turnover of ₹1,500 crore for FY20.

E-commerce drives sales

According to Gaurav P Rathod, Director - Cello Group, sales started coming back initially driven by the e-commerce channels, post unlocking. It picked up during the festive season and has continued “with greater momentum” into third quarter.

“There was a business loss for nearly three months, and it is difficult to recover sales of that period. However, with the increased momentum coming in the festive season and continuing in the current period, we hope recoveries will be in the 80-85 per cent range. So 85 per cent of last year’s turnover looks achievable. Sales are already at 80 per cent of pre-Covid levels,” he told BusinessLine .

E-commerce sales have made up for some of the lost business during the lockdown period. And also for the period when shops remained closed because of local level restrictions.

The growth in online sales have been three times of what they were in FY20, and offerings like household cleaning items and kitchen and storage items are driving demand, at present.

As people stayed indoors and there was pantry loading, demand for storage items or kitchen wares went up, Rathod explained. Sale of flagship items like hotpots, tiffin and lunch boxes remain slow.

“We increased online marketing spends, a segment which we were strategising on over the last year. New offerings, like stainless steel items and household wares, are being ramped up as new revenue streams,” he said.

Manufacturing units at Daman, Tamil Nadu, West Bengal and Uttarakhand have resumed operations.

Re-enters stationery business

The company has re-entered the stationery vertical. Five years ago it exited the segment after French major BIC Group acquired Cello Pens, the largest writing instrument-maker in India. New offerings and a line of stationery offerings under a different brand are being worked out.

“With the non-compete clause coming to an end, we are re-entering the stationary business. Plans are being firmed up,” Rathod said.