As Lockdown 4.0 comes to an end and Unlock 1.0 begins, a majority of manufacturing services throughout various sectors gear up to working under finest ranges. India Inc. awaits a push in demand to escalate up the manufacturing volumes. According to sources, various producers stated, that their operations are still functioning with 100% potential.
Companies involved in consumer durables, auto components, jute and textiles and tyres etc., are operating way below hundred percent of their capacity standards. Shortage of human resources continues to prevail in the companies. However, the sectors which are catering to crucial services, such as Pharmaceuticals and Fast-moving Consumer Goods (FMCG), are performing comparatively better but not utilising the resources to full potential.
Naveen Soni, Senior VP (sales and service) at Toyota Kirloskar said, “We are not building unnecessary inventory, and thus keeping our production levels under check,” said Soni. The company is said to currently employ at 15-20% of its total capacity in factory, as an increase in production will only depend on the market demand.
For the Indian Tobacco Company Limited ”ITC, the sole concern is retail demand. According to sources, capacity application in various segments may vary from 30-35% to 60-70%.
With a majority of manufacturing facilities across sectors still operating below optimum levels, some still seem to struggle.