FMCG firms ensure uninterrupted supply, tweak shifts near border areas

FMCG companies adjust factory schedules, push higher stocks and extend credit to distributors in conflict-affected states while ensuring staff safety and compliance

Fast-moving consumer goods (FMCG) companies have reduced shift timings at their manufacturing units, are pushing additional stocks and ensuring that their employees stay safe during the cross-border conflict between India and Pakistan.

 

Some have offered higher credit to their supply chain to make sure that supplies don’t run out, especially in border states like Jammu & Kashmir (J&K), Punjab and Rajasthan.

 

Consumer firms having sales teams near the Pakistan border have asked them to strictly adhere to the government’s advisory.

 

Angshu Mallick, managing director (MD) and chief executive officer (CEO) at AWL Agri Business, told Business Standard that, “We have a basmati rice processing factory in Ferozpur (Punjab) and have made sure that we don’t run night shifts at the unit. Our staff members also stay close by. Packing has been a bit slow, but we have enough basmati rice stocks.”

 

AWL sells essential items like rice, wheat flour (atta), edible oils, sugar and pulses among other items.

 

The company has 15 warehouses in three states, and so far, it has not faced any problems.

 

“We have increased our supplies to these warehouses and are pushing distributors to take more stocks. Distributors typically pick up stocks every 3-4 days. We are asking them to take 7-8 days' stock and give them credit. This is to ensure that essentials are available in these areas,” Mallick added. 

 

The company is also ensuring that additional transport for the stock is available.

 

Two FMCG company executives said they have asked their employees to stay home.

 

“We don’t have any (manufacturing) facilities close to the border. But we have asked our sales staff to stay home and check on them twice a day,” said an executive.

 

The second executive said that its staff in Jammu and Amritsar were home on Saturday as the markets were closed in these areas.

 

“The markets are slowly opening in these two areas from Sunday, but we have asked our employees to follow the government advisory,” the executive said.

 

Parle Products also said it has increased its stocks in J&K, Punjab and Rajasthan by around 15-20 per cent so that there is no shortage.

 

“Most of our employees are locals and we have asked them to follow government protocol and work only during the day,” said Mayank Shah, vice-president, Parle Products.

 

“All our operations and fresh milk market supplies are normal across the border markets — from Srinagar to Bhuj and Kutch,” said Jayen Mehta, MD at Amul. 

 

The operations are done according to local conditions, but all three shifts at the manufacturing plants continue to run smoothly, since dairy is a round-the-clock operation, he added. 

 

“We only have to tweak supply timings depending on the local market conditions. If there is a curfew or a blackout at night, we cannot supply it during that window. We are working closely with the authorities to ensure things operate smoothly,” he added.

 

Mehta reiterated that there is no shortage of long shelf-life milk and milk powder.

 

Dabur India has partly suspended operations at its factory in Jammu.

 

“We suspended operations at our Jammu factory for the night shift. While normal daytime work continued, we decided not to run operations after sunset,” said a spokesperson from Dabur.

 

A leading beverages manufacturing company said it had altered the shift change timings at its plants in Punjab and Gujarat. 

GEARED UP

 

- Firms stocking up warehouses in J&K, Punjab, and Rajasthan to avoid shortages

 

- Companies reduce, change shift timings at manufacturing units near the border

 

- Sales teams near the border asked to strictly follow government advisories

 

- Extended credit offered to distributors to maintain steady supply chains

 

- Some firms have asked their staff to stay home