Concerned about Covid wave, but better prepared than last year: Companies

Companies said they are concerned about the current wave of the pandemic, but are better prepared than last year to handle any disruption. They want the governments, both central and state, to protect economic interests when taking steps to contain the infection.

Top industrialists ET spoke to said they have learnt from the experience last year.

Companies have arranged accommodation for workers at factory and work sites and are offering them counselling, to avoid mass exodus of migrant workers as seen during the lockdown last year. They are pushing vaccination among employees, though shortage of vaccines is a concern.

The industrialists, most of whom spoke on the condition of anonymity, said the second wave was expected and the healthcare system should have been ramped up to handle it.

While they acknowledged the central government’s efforts to insulate manufacturing and industrial activity from the restrictions, they are also concerned about the possibility of fresh lockdowns, in some states like Maharashtra if not nationally. They say more restrictions alone would not help break the transmission, but only hurt incomes, push up prices and eventually impact consumption.


“Lockdown essentially means everything else has failed,” Bisleri International chairman Ramesh Chauhan said. “And, how does holding Kumbh Melas and rallies in a health crisis or lockdown make sense? Everyone has to make an effort to tackle the health crisis, the government, the corporate sector and the public in general," he said.

Several businesspeople who spoke to ET sought better coordination between the Centre and states on planning an emergency drive on vaccinations. Authorities should reassure labourers about lockdowns so as to prevent any exodus, they demanded.

"Now more than lockdowns, quicker vaccinations need to be done and healthcare facilities strengthened … Taking care of both health and incomes is critical and there has to be a collaborative effort to achieve this," said the chairman of a leading Indian consumer conglomerate.

The head of another leading metals to appliances conglomerate said there must be better execution of what the governments announce, especially in terms of healthcare.

“Corporates were asked to and are footing the vaccination bill but where are the vaccines for the daily workers and essential staff? There is a mismatch between what is announced and what happens on the ground. A better public-private partnership will help control the crisis,” he said, requesting anonymity.

A top government official ET spoke to said safety and health are a priority for the Centre. Protecting businesses for the moment will have to be also the responsibility of state governments, he said.

"We are pushing to make more vaccines available. The state government should focus on mini lockdowns to control the pandemic, support migrant workers and prevent the crisis from snowballing into a national lockdown," the official added seeking anonymity.

BETTER PREPARED
“The entire ecosystem is better prepared this time. Besides, the government is very clear that manufacturing and industrial activity should not be affected,” said MS Unnikrishnan, chairman of industrial relations at the Confederation of Indian Industry.

While many manufacturers in Maharashtra are facing labour shortage due to the restrictions, the situation is much better elsewhere. Maruti Suzuki, which has plants in Haryana, said it was not facing any production or worker issues. “Production is going on in full swing in all our plants,” chairman RC Bhargava said.

But Unnikrishnan said the next 45 days would be crucial. “We need to bring the infection down as otherwise there will be postponement of impulsive buying which would affect consumption in a big way.”

RPG group finance chief Pramod Menon said the company has a plan B to hold on to costs, protect the supply chain and ensure migrant workers’ safety. “The only major worry is about extended lockdowns,” he said.

"Compared to uncertainty last time, corporates including us today are initiating a number of moves keeping 2020’s experience in mind and are making preparations accordingly,” said Arup Chauhan, director at Parle Products.