FMCG majors forced to scale down operations over Covid-19 lockdown

Manpower crunch forces large-scale factory closures; ITC keeps cigarette manufacturing on hold, continues with food and sanitary products

Lack of clarity with regard to operations, owing to the coronavirus (COVID-19) lockdown, and the manpower shortage have disrupted the functioning of FMCG majors like Hindustan Unilever (HUL), ITC and several others. This has resulted in full-fledged factory closures to limited manufacturing of even essential items.

Both HUL and ITC on Friday said functioning has been hit due to the lockdown and joined peers like Marico, Nestle, Dabur, Emami and others to trim operations.

In a regulatory filing with the BSE, HUL said owing to the 21-day lockdown, operations in many of its manufacturing and distribution centres, warehouses and extended supply chain