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Regular-article-logo Friday, 26 April 2024

Manpower crisis blights restart plans

Long road ahead for auto firms

Anasuya Basu Calcutta Published 15.04.20, 07:38 PM
Auto makers will take weeks, if not months, to restart production even if the lockdown is completely lifted, said industry sources.

Auto makers will take weeks, if not months, to restart production even if the lockdown is completely lifted, said industry sources. (Shutterstock)

The phased opening up of the economy announced by the government on Wednesday has not addressed the problem of manpower and supply of raw materials given the fact that all transport lines remain snapped with many migrant workers at their homes, industry said. Besides, companies have flagged concerns surrounding the availability of raw materials and components.

The litany of concerns have sprung up across a cross-section of industry, from cars to FMCGs and construction.

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“Although the government has allowed factories to function at 50 per cent of manpower, we are able to function only at 15-20 per cent capacity. Manpower is still a huge challenge,” Krishnarao Buddha, senior category head at Parle Products, said.

Auto makers will take weeks, if not months, to restart production even if the lockdown is completely lifted, said industry sources.

Maruti chairman R.C. Bhargava, in a television interview, said: “Starting our factories will not be good enough. All parts and components have to be available. And for that vendors have to function. Many of the vendors are in the containment zones.”

The other main factor is the operation of dealerships. With all dealerships closed, none of the OEMS are willing to restart production.

“What is the point of restarting production if we cannot take our vehicles to the dealers and on to our consumers,” asked an industry source. Bhargava, too, stressed on starting retail operations before factories can start production.

The construction industry is also wary of the emerging situation. Anuj Puri, chairman of Anarock Property Consultants, said many migrant workers had left for their villages post lockdown.

“We will have to wait and see how many have stayed back to resume work. Migrant workers comprise at least 80 per cent share of the total 44 million workforce in the construction sector now,” he said.

Credai-NCR president Pankaj Bajaj said, “We are awaiting clarity. It seems that in Noida construction may be allowed outside the hotspots. But for that labour has to stay in-house. Most projects are at the finishing stage. At such a stage, labour does not stay in-house.”

“The other problem is supply of raw materials. Large restrictions are still in force for the production of those goods. Nearly 200 different items go into the construction,” Bajaj said.

With inputs from PTI

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