COVID-19 Lockdown: Nestle, HUL, Dabur fear short manpower may stall factories
FMCG companies claim that they are doing their best to meet the demand despite having to work with a skeletal staff
- Mar 26, 2020,
- Updated Mar 26, 2020 12:13 AM IST
Fast-moving consumer goods (FMCG) companies such as Nestle, HUL, P&G, Godrej Consumer, Dabur and Jyothy Laboratories have either cut down or suspended production after Centre's lockdown order. Many of them have notified stock exchanges that while they would continue to produce handwash, sanitisers and essential food items, several of their manufacturing units would be shut down.
At a time when there is a huge surge in demand for essentials and humungous supply-chain issues, won't a slowdown in production lead to further disruption in supplies? FMCG experts say that most companies have 30-60 days of finished goods inventory.
"But the problem is that it is not evenly distributed, so I see a shortage scenario even after 10-14 days. Also, the fact that people are hoarding essential foods, this is leading to further depletion of finished goods pipeline," points out Harsha Razdan, Partner & Head, Life Sciences, Consumer Markets and Internet Business, KPMG India.
Fast-moving consumer goods (FMCG) companies such as Nestle, HUL, P&G, Godrej Consumer, Dabur and Jyothy Laboratories have either cut down or suspended production after Centre's lockdown order. Many of them have notified stock exchanges that while they would continue to produce handwash, sanitisers and essential food items, several of their manufacturing units would be shut down.
At a time when there is a huge surge in demand for essentials and humungous supply-chain issues, won't a slowdown in production lead to further disruption in supplies? FMCG experts say that most companies have 30-60 days of finished goods inventory.
"But the problem is that it is not evenly distributed, so I see a shortage scenario even after 10-14 days. Also, the fact that people are hoarding essential foods, this is leading to further depletion of finished goods pipeline," points out Harsha Razdan, Partner & Head, Life Sciences, Consumer Markets and Internet Business, KPMG India.