FMCG businesses look to automation to solve labour shortage issues
As a shortage of workers leads fast moving consumer goods businesses to struggle to keep up with consumer demand, a number of businesses are looking to automation to solve the issue.
Although many FMCG production facilities have reopened, some at limited capacity, there exists a labour shortage as many migrant workers have returned to their homes facing unemployment during lockdown. This situation could accelerate the use of automated services in India’s FMCG manufacturing industry, ET Bureau reported.
A number of FMCG businesses told ET Bureau that they plan to increase automation in their factories in order to be able to continue production with a limited workforce and social distancing regulations. This trend could last long after lockdown ends if workers are reluctant to return to factories and if automation proves efficient.
FMCG firm Dabur India is considering end-of-the-line automation for its production units to mitigate the labour shortage. However, it still needs more workers to keep up with manufacturing targets.
“In cases where we are unable to get local workers, we are seeking permission from local authorities for inter-state movement of labour to fill the need gap arising from migrant workers returning to their hometowns,” Dabur India’s executive director Shahrukh Khan told ET Bureau.
Outsourcing could also increase as FMCG firms need help meeting production target. Godrej Consumer Products, which runs brands including Cinthol and Fair Glow, plans to use outsourcing to increase its production capacity along with automation.
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