NEW DELHI: Nestle India on Thursday said the company has resumed operations at all its manufacturing locations and distribution centres as well as its warehouses over two months into India’s lockdown that is finally seeing relaxations.
“The company has resumed operations at all of its manufacturing locations and distribution centres and warehouses and scaling up continues in all area of operations while adopting stringent safety practices and following standard operating procedures for social distancing to ensure the well-being of its employees and other staff in accordance with the directions of the Central and State Governments and authorities," the company said in an update to the BSE on Thursday.
Nestle India has eight manufacturing units in the country.
The maker of KitKat chocolates and Maggi noodles, however, said uncertainty over when covid-19 infections will abate has rendered it difficult for the company to assess any future impact of the pandemic on its business operations.
“Due to unpredictable and fast-changing COVID-19 situation, it is very difficult to assess the future impact of COVID-19 on business operations and it is expected to evolve over a period of time."
Several fast moving consumer goods companies witnessed supply chain disruptions in the initial phase of India’s protracted lockdown, that commenced in March, as they temporarily suspended operations and distributors of their goods remained largely immobile.
On 24 March, Nestle India said operations at some of its locations across manufacturing, distribution centres, warehouses and suppliers were either scaled down or suspended in view of the lockdown.
However, most FMCG companies have continued to scale-up production and also proceeded to improve their supplies in the market.
Moreover, as Indians have continued to stay-at-home, demand for packaged foods has witnessed an uptick.
This is especially true for packaged oil, flour, snacks, noodles, biscuits, among other such categories.
Nestle said the company “continues to witness demand for most of its products and the company’s focus in the immediate period is to make sure that it products are available to consumers while continuing to focus on preventive measures to ensure safety of the people".
Nestle India is in a position to meet its financial commitments, the company said in its update.
“The company does not foresee any specific challenge in terms of its capital or financial resources. We do not expect a significant deviation in profitability basis our current reading of the fast evolving circumstances. The company has a strong cash position and is in a comfortable liquidity position to meet its financial commitments."
Employees at the company’s head office as well as regional offices continue to comply with its ‘work from home’ policy “to minimize the risk and contain the spread of COVID-19".
The company had directed employees to work from home starting 17 March.
