Harley rides in Low Rider S FMCG availability hit by labour, logistics issues

Total invests `3,707 cr in solar venture of Adani

Total SA will invest Rs 3,707 crore in a solar energy joint venture with Adani Green Energy Ltd (AGEL), the third investment the French giant has made in India along with the Adani Group. Total will invest Rs 3,707 crore for a 50 per cent partnership with AGEL in a joint venture that houses 2,148 MW of operating solar projects across 11 states in India, the Adani Group firm said in a statement.

Harley-Davidson on Tuesday introduced its new Harley-Davidson Low Rider S model, a cruiser, in India priced at Rs 14.69 lakh at Delhi showroom. The closest rival to the Low Rider S in India is the Indian Scout Bobber Sixty. The Low Rider S is part of the firm’s ‘Softail' series of motorcycles.

Despite government assuring free movement of essential products, FMCG companies are finding it tough to transport raw materials to production units and finished products to stores. This, coupled with labour shortage, has hindered availability of several daily-use goods.

After the panic buying prior to the lock-down, retail shelves are not getting fully replenished, especially packaged food items, including milk products. The products absent from the shelves are mostly those which need to cross inter-state borders. According to Walmart India, its cash and carry business is facing challenges in securing sufficient supplies due to either production shortages from manufacturers or transportation hurdles in reaching its locations.

Production is limited to select items which the government thinks are essential. Fast moving consumer goods (FMCG) companies have to secure approvals from state government authorities to produce them.

"The company has received approvals from a number of state authorities for the manufacturing of essential commodities. These factories have been operating with restricted number of hours and reduced workforce in line with the approvals received from the local authorities," said an ITC spokesperson.

"We have got the permissions and have commenced in-house production of key essential products, including hand sanitisers, and intend to expand it to multiple factories going forward," said Dabur India's executive director-operations Shahrukh Khan.

FMCG companies also are facing transportation hurdles, though the government has promised smooth movement of essential products throughout the country.

"Even for producing these essentials goods, we are facing issues around free movement of incoming raw materials and packing goods, and outgoing finished products, across states. While the Centre has permitted movement of trucks, there is still a gap in coordination with states, which is impacting seamless movement of raw materials and finished goods across state borders," said Khan.

The supply chain for any single FMCG product typically involves 20-30 components and their seamless movement is essential to ensure continued production and uninterrupted supply of finished products to consumers. "It is extremely important that the guidelines issued by the Centre are properly communicated to authorities across states and to the local police as well. Proper implementation of these guidelines on the ground would ensure seamless movement across states and enable timely delivery of these essential products to end-consumer households across India," Khan added.

Manpower shortage is another big challenge FMCG companies are facing across their different functions. "During my interactions with FMCG companies, have found

I that labour shortage is a big issue. They need labour in their production units, for loading and unloading at the units as well as at the distribution centres," said Pinakiranjan Misra, partner and national leader, consumer products and retail, EY India. Availability of drivers who can carry goods in heavyduty trucks also is a challenge.

Meanwhile, in a bid to ensure supplies to the end consumer, some FMCG companies have partnered with delivery platforms like Dunzo, Swiggy and Domino's Pizza for last mile delivery. Britannia, ITC and Marico have announced such partnerships. But that solves only one part of the supply chain problem.