The Hindu Business Line : India Inc gears up to face truckers' strike

INDIA Inc is preparing contingency plans to counter the impending truckers' strike. While most companies have kept adequate inventory of raw materials to last them for a week to 10 days, they are hoping the strike is called off so that no major revenue losses occur.

The tyre industry, for example, is keeping its fingers crossed for some last-minute miracle since the sector depends largely on commercial vehicles for transport. "If truckers go on strike tyre consumption gets hit, which in turn means loss of revenue. Over 80 per cent of industry turnover comes from commercial vehicles, hence the strike will impact us significantly," said Mr Sunam Sarkar, Director at Apollo Tyres.

The export sector too will be adversely affected. In fact, the last transporters' strike saw several export contracts being cancelled since shipments got stuck in factories. "The export sector would be among the most affected. We are hopeful that the Government will intervene," the Apparel Export Promotion Council (AEPC) Chairman, Mr A. Sakthivel, said.

Last year's strike saw the automobile sector taking a serious hit, including Maruti and Eicher Motors witnessing loss of sales. This time automobile companies have already begun pressuring suppliers to deliver ahead of the strike.

Escorts Ltd, for example, has begun stocking auto components for manufacturing tractors. "The impact will be lesser on the dispatches of tractors as adequate stocks remain and it is not peak season. But the supply of inputs may be hit," Mr Rakesh Chopra, Business Head (Agri Machinery Division), said.

However, the dairy and vegetables sector seems less worried. The Gujarat Cooperative Milk Marketing Federation (GCMMF) Managing Director, Mr B.M. Vyas, said, "truckers have assured that essential commodities will be transported normally. As for raw materials such as furnace oil, coal and packaging material, 15 days' stocks are with us." Mother Dairy officials expected no problems with milk and fresh vegetables supplies.

The pharmaceutical industry too seems unperturbed. "Most companies have sufficient stock with the C&F agents and distributors," said Mr Harinder S. Sikka, Senior President, Corporate Affairs at Nicholas Piramal.

"We were warned about the strike, so we took adequate measures," said ICI Paints' CFO, Mr M.R. Rajaram, as he explained that the company has expedited dispatches to ensure that the pipeline is not impacted.

Similarly, the Marico Chairman, Mr Harsh Mariwala, is assured of enough inventory for finished products and raw materials for at least 10 days.

The textile major Grasim Suitings' Deputy Head Sales, Mr Anil Gulati, said the company could explore the option of using railways to move goods from its plant in Bhiwani (Haryana).

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