India Inc prepares to restart operations cautiously
NEW DELHI: Companies are cautiously treading the resumption of operations at the plants, even though the government signaled a gradual opening on Friday and allowed offices in even red areas to work at a third of their capacity.
While companies such as Hyundai and TVS Motor plan to restart operations with a single shift, other auto companies are expected to take more time to finalize the plans. With great uncertainty about parts supply and labor availability, there isn't much room if the entire business ecosystem is not in place, company executives said.
Even if we are able to produce, what will we do with manufactured products if dealerships are not open in large quantities? We are not even sure if trucks will be allowed to go through red zones into green zones to transport or finish parts, ”a senior executive at a leading two-wheeler company in the Delhi-NCR region told TOI.
With restrictions on store openings, companies are concerned. This will not be of much help. Why can't markets be allowed to open in green areas or even periodically open in orange areas? said Sandeep Somany, vice president of.
Another problem is how the standards are implemented. The guidelines are complex and it remains to be seen how the risk profile in green, yellow and red areas and the protocols required for these different areas will really work in practice. With so many major cities classified as red zones, the overall resumption of economic activity will be relatively limited in the short term, said Godrej Consumer Products CEO and CEO Vivek Gambhir.
We will wait and see what happens on the demand side. Based on this evaluation, we will make a call to determine if production should start immediately or within a short time. We need to map supplier conditions, as it was estimated that around 60% of them were in the red zone the last time we checked, said Naveen Soni, senior vice president, Toyota Kirloskar Motors.
Vice-resident B C Datta said the company will seek permission from the Tamil Nadu government to restart a plant, which is located in the red zone.
We are awaiting formal notification from the respective state governments. Once we start, it will take a couple of weeks or a little longer for the entire supply chain to function and reach normal production levels, ”said South American TVS Motor Co, MD Sudarshan.
Large cities in the red light district are also proving difficult for the corporate sector, as most of the sales come from subways. Businesses also find it difficult to find labor to load goods and trucks to transport shipments. A clear interpretation of the Center's guidelines to enable the manufacture of relevant FMCG products at ground level is missing, said Dabur India ED Shahrukh Khan .
Britannia MD said that, except for, most of its factories were operating. In West Bengal, three or four factories are not operating and if we obtain authorizations it will help us to achieve better capacity.
We hope that state governments will allow non-essential products to be sold in independent stores as people in the red zones need them as much as people in the green and orange zones, said Arvind Mediratta, MD and CEO of Metro Cash&carryindia.