FMCG majors rope in forensic investigators fearing counterfeits being pushed

MUMBAI: Top consumer goods companies are looking to conduct forensic investigations to check if counterfeits of their brands are being pushed to customers during the nationwide lockdown, which has disrupted their supply chains.

While companies such as Hindustan Unilever, Procter & Gamble, Nestle and Marico have traditionally faced the problem of counterfeits, they are now witnessing a spurt in flyby night operators supplying products with names and logos similar to their popular brands, industry trackers said. As the lockdown has hit operations of factories, there is a supply vacuum which these counterfeiters are trying to use, they said.

The consumer goods companies are looking to rope in forensic investigators to monitor supply chain and also check integrity of some of their key suppliers, as they are set to restart production. Companies are worried that the fake products would not only affect their short-term sales, but also impact the goodwill among consumers.

The companies have been collecting market intelligence in the past few weeks, ahead of launching investigations.

“While on-ground investigations are not possible in the current scenario, along with our investigating agencies, we are keeping an eye on the market for information on any counterfeiting or infringing activity of our brands during the Covid-19 period. If any such incident comes to light, we will take appropriate legal action to protect our brand and the consumers,” said an HUL spokesperson.

Other FMCG companies ET contacted didn’t respond to request for comment till press time Thursday.

The companies have got information that counterfeit products from biscuits to jams and detergents to shampoos are being pushed to retailers. Investigators said even some of the key people who are part of the supply chain may have to be investigated in the coming weeks.

The companies have got information that counterfeit products from biscuits to jams and detergents to shampoos are being pushed to retailers. Investigators said even some of the key people who are part of the supply chain may have to be investigated in the coming weeks.

“Many companies will have to continuously monitor their supply chains and even get investigations done. The fear is that some of these disruptions could push counterfeits or fakes through the supply chain network. The integrity of some of the individuals involved may have also have to be checked thoroughly,” EY India partner, forensic & integrity services, Mukul Shrivastava said.

Some of the FMCG majors have devised their strategy on how to go about the investigations. They plan to focus on the market segmentations where they have a large number of consumers and which are in Covid-19 green zones, where activities are partly allowed.

These areas would see the first phase of investigations as the forensic people would be able to hit the ground there first. In other places, the companies will continue to gather market intelligence.