India Inc on high alert despite tensions with Pakistan under control

Companies unlikely to roll back employee safeguard measures in a hurry

The initial relief following Saturday evening’s understanding between India and Pakistan proved short-lived. With reports of its violations by Islamabad emerging within hours, India Inc held back on updating employee advisories. 

Over the past few days, corporate India has taken several measures to safeguard employees amid rising tensions between the two countries — from altering shifts in sensitive areas and issuing travel advisories to activating crisis management teams. 

While Pakistan’s Foreign Office on Sunday insisted the country remained “committed” to faithfully implementing the understanding, the precautions put in place by Indian companies are unlikely to be rolled back quickly, especially after the events on Saturday night. 

Until Saturday, employees in border states and Union Territories — such as Rajasthan, Gujarat, and Jammu & Kashmir — were advised to stay at home, Rajeev Juneja, vice-chairman and managing director (MD) at Mankind Pharma, told Business Standard. “We have time till Sunday now to see how things are moving,” he said, referring to the de-escalatory efforts between India and Pakistan. “The company will follow whatever advisories are issued by the local administration,” he added. 

Other pharmaceutical firms, too, said they are monitoring the evolving situation closely, particularly with regard to field staff.  Stockists continue to operate as usual, supply chains remain intact, and manufacturing plants across India are functioning. 

“In border areas, doctors are closing their clinics by 6 pm. Therefore, the sales force cannot visit them after that,” said a senior executive at a Gujarat-based firm. Operations at plants in Baddi, Himachal Pradesh, are also continuing. Elsewhere in the country, it’s business as usual. 

Still, many companies are adopting a wait-and-watch approach before rolling back advisories. Aditya Narayan Mishra, MD and chief executive officer, CIEL HR Services, said that while the ceasefire has calmed nerves, uncertainty persists. “A few days of normalcy in geopolitics will be needed for the normalcy in work life to return.” 

The major disruptions have been being felt in regions bordering Pakistan where government directives and blackouts have influenced operations of companies. 

A spokesperson for Dabur said the company had suspended night operations at its Jammu factory to ensure employee safety. “While normal daytime operations continued, we decided not to run operations after sunset.”  

The company has also allowed outstation employees to return to their hometowns to be closer to their families. 

A prominent beverage manufacturer in the northern region said it had altered shift change timings at its plants in Punjab and Gujarat to ensure no movement after 7 pm in case of sudden blackouts. 

Anghus Mallick of AWL Agri Business said: “We are only running morning shifts for 12 hours at our factory and there are no night shifts at our facility in Ferozepur (Punjab).” He added: “Since we are in the business of essentials, our team still remains on ground but only during the day.” 

Travel advisories against non-essential travel are in effect. ITC has advised employees to monitor and follow local guidelines, while Deloitte has postponed all non-essential domestic and international travel. The firm has also asked professionals in border areas to return to their base locations. 

Subburathinam P, chief strategy officer at TeamLease, confirmed that all organisations have issued advisories discouraging travel to conflict-affected areas. He further said that manufacturing activity in Gujarat, Rajasthan and Punjab has slowed down considerably and “it’s almost like what it was during the Covid period”. 

Several firms have formed crisis management teams to monitor developments. A Bengaluru-based company that helps establish global capability centres has assembled a team of senior leaders from facilities, IT, HR and other functions to meet twice daily and assess the situation, according to people in the know. 

Deloitte has launched a nationwide command centre hotline to assist staff. Employees have been instructed to follow government safety protocols and stay alert. 

Information technology (IT) firms that embedded work-from-home models post-Covid have reactivated them. Mishra said most IT companies in North India have already advised employees to work from home (WFH). 

A senior executive at an FMCG firm, speaking anonymously, said the sales team has been asked to WFH, with twice-daily check-ins now in practice. 

For many IT firms, business continuity plans (BCPs) have been activated. “No one is sending a formal advisory as we do not want to create a panic situation,” said a senior executive at a major IT firm. “But senior leaders in the northern region have been briefed to take a call on work-from-home requirements.” He added that flexible WFH arrangements are already in place. 

IT clients have been reaching out to inquire about potential disruptions. “In places where the work is crucial and it requires people onsite, we are asking employees to be in office,” said a senior executive at another leading IT firm. 

On May 7, Tata Consultancy Services (TCS), India’s largest IT services provider, issued an internal advisory in the wake of mock drills planned by the Ministry of Home Affairs (MHA), along with local authorities. 

“We, as individual citizens and as an organisation, are required to comply with these requirements as and when they are laid down,” the company said in an email seen by Business Standard. “Our endeavour is to provide you with relevant information … but it is also recommended that you refer to and align with any direct communication from local authorities.” 

Among the Big Four firms, EY advised its North India employees to work from home on Friday, though no updated guidance has been issued for the coming week. 

Over the next few days, most companies are expected to reassess the situation and decide whether to revise their current advisories. 

Wait-and-watch mode

 

* Companies continue to maintain altered shifts, travel advisories, and crisis response teams

 

* Employees in border states advised to stay home or work only during the day

 

* Shift timings altered by companies in Punjab and Gujarat to avoid movement post 7 PM

 

* Several firms have activated Business Continuity Plans (BCP)

 

* IT firms reactivated work-from-home (WFH) models, especially in North India

 

* Employees being asked to report to office where work requires onsite presence

(Inputs from Sohini Das, Shivani Shinde, Sharleen D’Souza, Avik Das, Akshara Srivastava, Shine Jacob, & Ishita Ayan Dutt)