Consumer goods companies gear up for the Omicron effect

companies Said that the new version hasn’t had any immediate impact on their business so far, but they continue to dip into past learnings to devise contingency plans in case any restrictions are imposed in the market. Packaged food companies are ensuring that they have adequate stock in the market. Manufacturers of home appliances said they have diversified their supply chains over the past 12 months and are better equipped to handle disruptions related to the pandemic.

Shahrukh Khan, Executive Director, Operations, Dabur India said, “We have started building the inventory required to maintain continuity of our product supply.” Khan, however, denied any “immediate impact” of the new version on the conduct of the fast. Moving consumer goods company. “We are monitoring the situation closely as it develops and reinforcing the already COVID-safe behavior, safety and hygiene norms within our manufacturing operations to keep our employees and workers safe. Our units are also equipped with oxygen concentrators to deal with any emergency in the event of a third wave.”

India reported its first two omicron cases in Karnataka last week. After this, more cases have been reported in Maharashtra and Delhi. However, so far, the variant seems to be less severe, with those infected reporting mild symptoms.

Kamal Nandi, business head and executive vice president of Godrej Appliances and president of industry body CEAMA, said the company is “more cautious. We are monitoring the situation in the supply chain on a daily basis,” he said.

India’s second and worst wave earlier this year cost both lives and livelihoods. For companies, it also brought challenges on the ground, including restrictions on movement, delays in supplies as well as the threat to on-ground workers catching the infection. Meanwhile, companies are also facing a global shortage of raw materials and high freight costs, creating an unstable operating environment.

Nandi said the company has reduced its dependence on raw materials from one country and instead shifted more and more suppliers to different locations. “During COVID Waves 1 and 2, organizations like ours have developed (a pipeline) of alternative suppliers for most components. So, I don’t see complete disruption. But I am certainly facing the intermittent disruptions in supply chains we’ve been experiencing over the past six months, due to the power crisis in China and the global container shortage.

Others in the business have taken similar measures.

Saurabh Baishakhia, President, Appliances, Usha International said that the company has been able to find local suppliers for a range of products from its manufacturers. For 85% to 90% of the components, it now depends on the local supply, he said.

The company today maintains strategic inventory because lead times have increased. “Earlier, we used to work on 30 days of inventory. Currently, we work with 30 to 60 days of local inventory, and work for more than 90 days for whatever we get from outside. This There has been a trend … that’s how we’ve managed demand better,” he said.

Right now, the supply is very stable. “But if there are lockdowns and restrictions going forward, there can be disruption, otherwise most of us are able to create an eco-system that will support real-time supply,” he said.

Manish Aggarwal, Director, Bikano, a packaged food company at Bikanerwala Foods Pvt Ltd, said the company has held meetings to chalk out a strategy to minimize the impact on supply and imports. So far the company has not had any immediate impact on its business. It has also developed strong operational policies and organizational structure over the last 12 months to deal with the supply side crisis.

“With regard to supply, we have ensured a better supply chain and logistics. If the global lockdown is implemented, it will affect our exports as we export our products to many countries. Learned a lot from last year… things have been managed much better this time.”

Meanwhile, it is taking necessary steps to ensure availability of products across all channels.