Factory output growth slows down in March:
The IHS Markit's Nikkei Manufacturing PMI declined to a seven-month low of 55.4 in March, from 57.5 in February.
Activity levels have taken a hit as fresh restrictions are imposed to control the virus spread. Apart from that, increased input costs have also dampened the sentiments.
In March, there was a decline in the activity levels. With tighter restrictions in place, manufacturers are set to face a tough challenge in April. The slower pace of the vaccination program is not helping either.
Several international agencies like the IMF and World Bank had predicted India to be the fastest-growing economy in FY22. However, given the rapid spread of the second covid wave, the outlook is now looking bleak.
FMCGs call for better supply-chain management:
With COVID cases increasing, FMCG companies are strengthening their supply chain to tackle any fresh disruption.
The companies are ensuring a quick supply of their products and better inventory management. They are breaking their stock-keeping units into hyperlocal centres. It will help them to be close to the demand centres. In addition, they have increased the quantity and frequency of supplies to impacted areas.
The first lockdown was a great case study for companies in supply chain management. Companies would be looking to utilize that experience to tackle any possibility of fresh lockdown. Only those companies that managed their supply chains better than their competitors performed well during those months.
Pre-packaged insolvency for MSMEs:
The Central Government has amended the ‘Insolvency and Bankruptcy Code 2016’ and promulgated ‘Insolvency and Bankruptcy Code (Amendment) Ordinance 2021’. Under this, the government will be able to notify pre-packaged insolvency processes for MSMEs.
Under this, the government will be able to offer a pre-packaged resolution framework for stressed companies with default below Rs 1 crore.
This will allow companies to prepare for a restructuring plan with their creditors before initiating insolvency proceedings. It will reduce the time and costs of the process.
This will put financial creditors in a commanding position over the defaulting promoters. And ensure the insolvency process to go ahead with minimum business disruption.