By Siddharth Cavale
July 28 (Reuters) - Exploiting the strength of Lysol and
Dettol brands, Reckitt Benckiser is seeking bespoke
supply and sanitation deals with travel companies and hotels as
the coronavirus crisis makes hygiene a high priority.
British-based Reckitt signed a deal on Monday with Delta Air
Lines to provide its Lysol cleaning products for toilets
and other high traffic areas.
It has also clinched long-term contracts with Avis Budget
car rentals and Hilton Hotels that it expects will boost
its business once people start to get more comfortable with
traveling, renting cars and staying in hotels again.
Laxman Narasimhan, who became Reckitt's CEO last year, said
on Tuesday he wanted to build the professional hygiene business
as part of a 100 million pounds ($128.6 million) additional
investment announced by the consumer products company in new
areas of growth.
He was speaking after Reckitt reported market beating
first-half results, as households increasingly worried about
health and hygiene stocked up on Lysol sprays, Dettol soap and
Mucinex cough syrup.
Under the newly formed professional service business,
Reckitt works with companies to research and develop new
disinfecting plans for busy areas, such as hotel lobbies and
airports, and also establishes a series of cleaning protocols
and standards.
"On professional, we clearly recognize the fact that our
brands play very well in areas where they need to communicate a
trust mark to our consumers," Narasimhan said, adding that he
was "approaching this business cautiously and building it out
steadily".
The company said it moved with speed with some pivotal
partners, but has been selective with others as the contracts
signed are not short-term, but longer-term projects.
Though the business is yet to contribute to group sales,
Narasimhan said, the unit would ramp up in the second half.
($1 = 0.7775 pounds)
(Reporting by Siddharth Cavale in Bengaluru; Editing by Keith
Weir and Emelia Sithole-Matarise)
