Plants working at 70% capacity, aiming for optimal level soon: Adani Wilmar

Topics FMCGs | Adani Wilmar | Coronavirus

Officials said that supply chain situation has improved in the last few weeks.
Amid supply chain challenges and worker shortage, FMCG major Adani Wilmar Limited has said that its plants are currently operating at 70 per cent capacity even as it aims to reach optimal level at the earliest. 

"Our capacity utilization declined to 50 per cent immediately after the lockdown was announced because of logistical issues, unavailability of raw materials, and worker shortage. We are currently operating at 70 per cent of the capacity, and aim to reach the optimal level at the earliest. These are challenging times, but being a large player in the essential category, we are doing all we can to ensure that there is no shortage of edible oil and food products in the market," said Angshu Mallick, Deputy CEO, Adani Wilmar Limited which is into edible oil, pulses, rice, atta and now sugar.

Keeping all its plants operational to ensure that there is no shortage of edible oil and food products in the market, the company is also adhering strictly to the safety protocols for the safety and well-being of its employees and to prevent the spread of coronavirus.

In view of large-scale migration of workers, Adani Wilmar has been managing its operations with 50-60 per cent of the workforce.

"It may take some time before workers who have migrated to their native states return. We are managing with the remaining workers, and are also hiring workers from other factories," he said.

With institutional sales taking a hit due to closure of hotels and restaurants, among others, Adani Wilmar has seen majority production and sales of smaller quantity stock keeping units (SKUs) of one litre known as consumer packs than 15 litre tin known as bulk packs.  "As against a 60-40 ratio of consumer and bulk packs in normal conditions, currently we are seeing a 85:15," said Mallick.

The company has been ensure supply of edible oil and food products in the market despite almost half of its plants being in COVID-19 hotspots such as in Surat, Khargone in MP, East Godavari, Kurnool, Nellore and southern Karnataka districts. However, social distancing, use of face masks, and temperature checks of all employees have been made mandatory at its plants in Mundra, Krishnapatnam, Haldia, Meda Adraj, Kadi, Mangalore, Kakinada, Mantralayam, Firozpur, Paradip, Vidisha, Bundi, Hazira, Nagpur, Neemuch, and Nimrani.

"Hand sanitization has also been made mandatory at all our plants, while employees’ attendance is marked through ID card punch. We are undertaking sanitization of staff buses, vehicles, and high touch points regularly. Posters on awareness and Good Hygiene Practice (GHP) have been put up at several places across the facilities. Our workers and employees are also being trained in GHP and to strictly adhere to the required compliances," he said further.

Talking about about the current operations and challenges, Mallick said that though the supply chain situation has improved in the last few weeks, availability of truck drivers, raw material and packaging material remain disturbed.

"Our suppliers are also facing the same issues, i.e. shortage of workers, logistics, and raw material availability. However, we are working closely with them to sort out these issues at the earliest," Mallick said.

To tide over some of the logistical issues, Adani Wilmar has increased the transportation of products through trains. The company is using mini rakes with capacity of 1,000 tonnes, instead of the full rakes of 3,000 tonnes capacity. "This is helping us due to limited production and dispatch capacity,” Mallick added.

Meanwhile, at the depot level, Adani Wilmar is also incentivizing workers and drivers with a 15 per cent Covid-19 incentive.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel