Nippon Paint says volumes down 40% as COVID-related curbs hit production
Nippon Paint says volumes down 40% as COVID-related curbs hit production
Stephanie Ho

Nippon Paint India on Friday said restrictions in several states due to the second wave of the coronavirus pandemic is impacting production with volumes down by 40 per cent and there is uncertainty in the market.

The company said availability of manpower is also becoming an issue with worker availability down by up to 40 per cent.

"The current lockdown in six states is having an immediate impact on manufacturing; volume is already down by 40 per cent and there is uncertainty in the market," Nippon Paint India President - Automotive Refinishes and Wood Coatings Sharad Malhotra said in a statement.

Several states including, Delhi, Maharashtra, Uttar Pradesh, Gujarat, Madhya Pradesh, Punjab, Rajasthan, and Chhattisgarh, have announced different forms of restrictions, including a statewide curfew, weekend lockdown, and night curfew, to curb the surge in COVID-19 infections.

India is currently reeling under a devastating second wave of the pandemic and added a record over 3.32 lakh new coronavirus cases in a single day taking the country's tally to 1,62,63,695, while active cases crossed the 24-lakh mark. The death toll increased to 1,86,920 with a record 2,263 new fatalities, according to the Union Health Ministry data updated on Friday.

Malhotra further said, "Also, semi-automated setups that depend on manpower, such as ours, are facing a double whammy as worker availability is down by 30-40 per cent." On the prospects of prolonged restrictions, he said, "We are concerned that if the lockdown continues past the end of the month, it would have a significant effect on the overall supply chain, which is still recovering from last year's shutdown and production loss, and we will have to wait for 6-9 months, if not a year, for it to recover."

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