FMCG supplies may soon get in order; firms look to ramp up production in last week of lockdown

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Updated: April 20, 2020 12:55:16 PM

Supplies of daily essentials may soon get in order as FMCG firms look to ramp up production to 60-65% in the last week of lockdown which starts on 27th April.

The makers of daily use items such as atta, biscuits, shampoo etc also expect an easing of supply chains and operational challenges starting this week.

Supplies of daily essentials may soon get in order as FMCG firms look to ramp up production to 60-65% in the last week of lockdown which starts on 27th April. The makers of daily use items such as atta, biscuits, shampoo etc also expect an easing of supply chains and operational challenges starting this week, CNBC TV-18 reported industry sources as saying, as the government announced softening of some lockdown restrictions in regions where the coronavirus outbreak is not so severe. However, fast-moving consumer goods companies will still take over a month to take supply chains to normal levels even after lockdown positively lifts on 3rd May. 

Also Read: FMCG players to go aggressive on ecommerce; may work with local brands as renewed strategy

While companies are also expecting distribution to pick up in some rural and green zone areas soon, the supply chain and mobility issues remain a sore point for the industry. In fact, a majority of industry leaders had earlier said that they do not expect hurdles to vanish before six months, according to market research company Nielsen. For these companies, manufacturing, shortage of labour along with transportational challenges are big issues. 

In the last few weeks, retailers have reported out-of-stock situations for branded goods as customers could not get their hands on preferred brands in categories like atta, rice, hand sanitisers and ready-to-eat snacks. However, these retailers have also witnessed an increased sales of local and regional brands since products from bigger brands are not readily available. Bigger houses may now look at collaborating with smaller players as a part of revised strategy in the aftermath of coronavirus, Prasun Basu, South Asia Zone President, Nielsen Global Connect had earlier told Financial Express Online. These FMCG players also look to go aggressive on e-commerce in both short term and long term plan.

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