Capital Foods sees rise in demand for essential products

Capital Foods with brands like Ching’s Secrets and Smith & Jones in its portfolio, has reported 50% rise in demand for food essentials such as noodles, schezwan chutney and masalas in select markets of northern and eastern India during the ongoing lockdown, a top executive said.

While the FMCG industry is seen struggling with the distribution challenges, advance preparedness and planning helped the company to ensure smooth supply and distribution across the country.

Besides, amid the lockdown it could resume production with 45% manpower in all except one plant.

“Quick turnaround time, scale of operations and geographical reach have been the key differentiators for us,” Navin Tewari, Chief Executive Officer, Capital Foods P. Ltd.

“Typically flour, pulses & rice are considered as basic food items but noodles, pasta, snacks, schezwan chutney are equally mainstream. Hence we worked actively with Government bodies to clarify that these items fall under essential businesses and this eased up the supplychain,” Mr Tewari said.

During this period the company has seen maximum uptick in the demand for Ching’s Secret noodles, Schezwan chutney, Chinese Masalas and about 70-75% of its total capacity is currently operational.

While for other products under Ching’s Secret and Smith & Jones, 40-60% capacity is operational based on market demand.

Mr Tewari said the company undertook various unconventional steps to deal with this unusual situation.

To ensure limited impact on supply of essential goods and meet rising demand, the company restructured the inventory planning process from monthly to daily basis.

Understanding the challenge of stockists on working capital, the company eased up the inventory stocking norms and made it flexible as per market demand.

In the face of labour shortage due to migration or lack of identity proof, the company’s employees took charge and went for delivery with the distributors also helping with loading and unloading.

For enabling the employees to travel to work the company created digital IDs conveying that they were a part of essential business.

It made arrangements for some of their employees to stay within the factory premises to ensure their safety, the company said.

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Printable version | May 11, 2021 11:07:40 AM |

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