Companies face manpower challenge, step up virtual orders

Even though the companies are in better control of production and supplies, the spread of infection has taken its toll on sales staff and other frontline workers (HT)Premium
Even though the companies are in better control of production and supplies, the spread of infection has taken its toll on sales staff and other frontline workers (HT)
 3 min read . Updated: 30 Apr 2021, 07:32 PM IST Suneera Tandon

Companies such as Britannia Industries, Hindustan Unilever Ltd, Parle Products and GCPL, among others said they are keeping a tab on frontline staff entering the field

New Delhi: Fast moving consumer goods makers said they are avoiding sending more sales staff on the street, taking more virtual orders and going easy on expanding their distribution as the virus continues to affect a large number of frontline workers in essential goods sector.

Companies such as Britannia Industries, Hindustan Unilever Ltd, Parle Products and GCPL, among others said they are keeping a tab on frontline staff entering the field.

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“In times like this, we are actually asking our salespeople not to go to the market. So again, we are going to see a down trend as far as our distribution is concerned, there will be a lot more sale on telephone, and there will be a lot more wholesale trade during this time. I think, it's unfortunate, because you build your distribution and then something like this happens and you have no choice but to tread on the side of caution as far as your employees are concerned. This wave just seems to be a very, very vicious wave of covid," Varun Berry, managing director Britannia Industries said in a post earnings call this week.

The ongoing wave has led to India reporting record number of infections daily with death rates climbing too.

Last year's pan-India lockdown marred supplies for all companies including procurement of raw material, production and access to the market. Even though the companies are in better control of production and supplies, the spread of infection has taken its toll on sales staff and other frontline workers.

“As far as salesmen are concerned, yes we are also concerned because there are pockets where despite our very high standards and protocols people have got impacted. Our entire focus has been on how we best look after them," said Sanjiv Mehta, chairman and managing director, Hindustan Unilever Ltd. (HUL). "One of the steps that we are very clear about is that we will facilitate, and if necessary, pay for the vaccination of not just our employees and their families but all the people who are in our ecosystem. Which comes to nearly about 300,000 people which includes the salesmen and all. But yes, we also have our fair share of people who have been infected," he said.

HUL said close to 90% of its eligible employees have been inoculated with the first dose.

“Supplies is an important element given the localized restrictions. Today our capacity available is 1.3x where we were pre-covid. We have initiated multiple models to make sure stocks are available downstream, and therefore closer to the consumers..." said Srinivas Phatak, HUL's chief financial officer in a post earnings call on Thursday.

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Its Shikhar app that allows online ordering has added more retailers over one year. "We have driven the digital agenda hard. And today, more than 500,000 outlets can actually order digitally...We have almost added at the rate of 1,000 outlets, a day in the last one year to create this capacity," he said.

In an earlier interview, Sunil Kataria, CEO, India & SAARC, Godrej Consumer Products Limited said as a precautionary step it has advised its sales teams to not go to market and work from home. Kataria said that over the last year, the company has leveraged technology and built systems to manage different aspects of its sales and engage with partners in the ecosystem which is helping the company ensure stocks reach markets.

Others feel the store supplies may get disrupted if the situation continues. “As far as the frontline sales staff is concerned that is definitely leading to certain disruptions. Say, if the distributor falls sick, then at least for three to four weeks there is a high chance of that area not being serviced 100%," said Krishnarao Buddha, senior category head, Parle Products. “We are making arrangements, deploying distributors from one area to another. But that does not happen overnight," he added.

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