Lockdown fear shakes market

There is a lot of learning that has gone in from last year, this time things are far better managed. Companies have learnt how to deal with it. Governments have also learnt what they should be doing when they announce a lockdown

New Delhi: FMCG firms such as ITC, Parle Products, Marico, Emami and CG Corp Global on Wednesday assured uninterrupted supply of their products based on the learnings from the previous year's lockdown, even as surge in Covid-19 cases in India forced Maharashtra to declare a 15-day curfew while other States also impose various restrictions.

Maharashtra on Tuesday announced a State wide curfew from Wednesday, entailing stricter curbs on public activities, to curb spread of corona virus but stopped short of announcing a full-scale lockdown.

"There is a lot of learning that has gone in from last year, this time things are far better managed. Companies have learnt how to deal with it. Governments have also learnt what they should be doing when they announce a lockdown," Parle Products Senior Category Head Mayank Shah said.

Asserting that there is no worry on the supply side, he said, "There is much clarity this time. Things are smooth, even local administration knows and companies are better geared up."

An ITC spokesperson said, "ITC has taken all necessary steps to ensure enhanced availability of products for consumers across all channels. Over the period of the pandemic, we have developed strong operating policies and agile organisational structures for dealing with all types of market constraints and volatility."

The spokesperson further said the company is confident that its robust supply chain system will ensure that all sales channels, including e-commerce are serviced adequately during this time. "We also now have a fully operational ITC e-store in six metro cities which can meet consumer requirements directly."

A Marico spokesperson said the company is better prepared this year and aims to continue its operations safely while employing stringent precautions to ensure both, member health and business continuity. "We have proper systems and processes in place to deal with such scenarios and are adequately equipped to tackle any such challenges."

"During the national lockdown last year, we undertook a few initiatives to ensure the availability of our products to our consumers across the country through our direct-to-consumer portal, 'Saffola Store', as well as last-mile partnerships with national aggregators. We will continue innovating to cater to our consumers," the Marico spokesperson. When reached out for comments, Emami Director Harsha V Agarwal said, "Right now, we don't see any impact but we are keeping a close track."

However, CG Corp Global Managing Director Varun Chaudhary said that due to specific area bases/micro lockdowns and curfew imposed to protect public health, many industries including the FMCG industry continue to grapple with operational challenges during these times.