FMCG companies increase sourcing as coronavirus curbs return

NEW DELHI : Packaged goods companies are once again ramping up supplies and stocking products in retail stores and e-commerce channels as covid restrictions emerge in several large states.

CavinKare, a fast-growing Chennai-based consumer products company, said it is proactively ramping up production and increasing inventory at retail outlets.

“In case there is some kind of peak in the third wave and the resulting blockages, we are increasing our production capacities, ensuring that for the coming quarter, which is normally a good seasonal quarter for FMCG (fast moving consumer goods), especially personal care and beverages, we are able to supply the market on time, ”said Venkatesh Vijayaraghavan, CEO and Director of CavinKare.

The company increased stock levels in all areas, in e-commerce, modern commerce, and general commerce.

Several states have announced nighttime curfews. In Delhi, for example, stores in all markets open on odd or even days, although essential stores in all states remain open.

Parle Products said it is increasing buffer stock at its depots and manufacturing sites across India.

“What we learned from the first two laps, all these learnings are in place. Whether it’s ensuring a buffer at all levels, from the distributor, which is closest to the market, to asking retailers to buy more and stock more as we anticipate increased demand, ”said said Mayank Shah, Category Manager at Parle Biscuit Maker. Some products.

Shah said the company is ensuring a buffer stock of raw materials like packaging materials to avoid any unexpected disruptions in supply and commodities related to the current wave.

Shahrukh Khan, executive director of operations at Dabur India Ltd, the producer of Vatika hair oil and Real juice, said the company has started building the inventory needed to maintain supplies.

CavinKare’s Vijayaraghavan expects the uncertainty of the gap to continue for at least a quarter. So far, the company has not seen any impact from a business perspective.

Companies experienced supply chain and manufacturing constraints that hampered sales in the first half of last year.

ITC Ltd, the maker of Aashirvaad attack, bingo chips and Vivel soaps, said micro-locks should be the norm if restrictions imposed by omicron increase.

A spokesperson for the company said the company is continually providing updates on its operations and monitoring market developments.

Omnichannel presence has become more critical than ever, especially in urban areas. “Apart from the big e-commerce players, most brick-and-mortar retail chains and even modern-format local stores and supermarkets have increased their electronic presence given the reluctance of people to physically visit stores during the peak of covid, “said the ITC spokesperson. added.

Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt. Ltd also expects e-commerce to structurally become a more important channel where consumers are inclined to shop without contact.

On the other hand, traders are impacted by nighttime curfews. “I hope that the blockages will not be very severe, because time retractions, for example, can affect office hours. This can impact sales and footfall by 10-15%, ”said Arvind Mediratta, Managing Director and CEO of Metro Cash and Carry, India. Mediratta said that with the seating restrictions and curfews, the wholesaler is seeing a decline in its hotels, restaurants and cafeteria.

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