Nestle's all plants operational but production scaled down

FMCG major Nestle India on Tuesday said all of its manufacturing plants have become operational but at a scaled down level due to restrictions imposed by local authorities and state governments.

The company said it has received permission to operate all units along with distribution centre, warehouse and suppliers, which are also witnessing scaled down operations.

However, the company said it can not access the impact of the coronavirus pandemic and the lockdown on the company at this time.

"The scaled down operations at various locations are essentially on account of applicable social distancing norms and the lesser deployment of people.

"The scaling up, scaling down or suspension of operations at various locations is dependent on the directions of the Central and State Governments and authorities," Nestle India said in a regulatory filing.

Nestle India, which manufactures popular instant noodles Maggi besides other products as Nescafe coffee, Cereal infant cereal and KitKat chocolate, said the company is "closely monitoring the situation and will take all necessary measures as directed by the Central and State Governments and authorities, from time to time".

"The impact on the operations of the Company cannot be assessed at this point," it added.

Nestle India, a subsidiary of NESTLE SA of Switzerland, operates eight factories in India.

In fresh guidelines issued on last Wednesday for enforcing the second phase of the lockdown to curb spread of coronavirus pandemic the government allowed functioning of industrial units located in rural areas from April 20, while observing strict social distancing norms. It had, however, barred all kinds of public transport and prohibited opening of public places till May 3.