Shortage of workers main challenge for FMCG sector: Godrej

By

Isabelle Crossley

Published
May 19, 2020

Fast-moving consumer goods businesses are facing a shortage of workers during lockdown, which could lead to difficulties in maintaining a normal supply of goods if not addressed, according to FMCG firm Godrej.

 
If the issue of a lack of workers is not solved in the coming two to three months, FMCG businesses could have trouble producing enough products to meet consumer demand, Godrej Consumer Products Ltd’s, managing director and CEO, Vivek Gambhir, told the Press Trust of India. The labour shortage is the “highest challenge” the FMCG industry faces, according to Gambhir.
 
The business has asked the Central Government to facilitate bringing migrant workers back to work by providing safe transportation and incentives. Many migrant workers had to return to their villages as work dried up during lockdown.

“The government can run public awareness campaigns to communicate to migrant workers that they are doing a national duty by returning to their jobs,” said Gambhir.
 
Godrej is considering outsourcing some of its manufacturing to third-party businesses to make up for its reduced labour force, which has dropped by around 50% since lockdown began. The business aims to reach 90% of its former production capacity by the end of June. 
 
Gambhir implored the government take further steps to reopen the economy.

“We would expect the government to take the right steps to ease the lockdown and open up the economy,” he said.

“Because the last thing we need in a country is while we are trying to flatten the curve, is to flatten the economy. We do need to calibrate both the risks but we do need to keep open up the economy so that we can balance lives and livelihood.”
 
Godrej has also launched a new charitable initiative through its business Godrej Interio. The company has manufactured and delivered over 4,500 beds, 3,000 mattresses, and other furniture to hospitals in Mumbai, Pune, Delhi, Kolkata and Chennai, Godrej announced on Facebook.

“We remain indebted to our team who continue to put the health and safety of the country above their own,” wrote Godrej on Facebook.