India’s nutrition sector navigates lockdown amid airfare issues

29 Apr 2020 --- Accounting for nearly one fifth of the global population, India is home to numerous nutritional players who are feeling the pressure of the government’s extended lockdown, lasting at least until May 3. However, Arjuna Natural and OmniActive Health Technologies have both managed to remain operational as they produce critical health ingredients and products. They tell NutritionInsight about the major supply chain disruptions they are facing, how they are adapting to the critical challenges and how providing relief assistance exceeds business profit expectations.

The Indian government took what Arjuna identifies as “a bold decision” to impose lockdowns, which the company deems have made a “significant impact in reducing the spread.” “The lockdowns are nationwide and coordinated with a very strict 21 days during which all cases were traced and isolated. In the subsequent weeks, some relaxations were allowed in areas marked as less affected, although the restrictions remain in place till May 3, by when it will be reviewed,” says an Arjuna spokesperson.

In terms of business implications, there hasn’t been a single area in OmniActive’s business operations – across its plants in Pune, Hosur, Supa and Hassan – that hasn’t been affected, Brian Appell, Director, Global Communications, OmniActive Health Technologies states. “We are operating with a reduced workforce and appropriate measures have been taken to ensure a safe working environment. Employees are practicing social distancing at the workplace, and those who are not directly involved in plant operations, including our entire US and EU staff, continue to work from home.”

In this space, the company has assembled a Rapid Action Cross-Functional Task Force (RACTF) that works with the local administration, industry associations, local police and the labor department to help its facilities and shipping departments continue to operate smoothly. The RACTF also ensures all protocols for preventing transmission are followed, including proper sanitation of the workplace, screening for illness, minimal contact between people, running only critical facilities and functions and taking care of each employee’s basic needs.

Similarly, the Arjuna spokesperson explains that the company has increased its sanitization measures, including hand-washing measures as well as the frequency of cleaning and sanitizing. Employees’ temperature is taken before entering the factories and only those without any symptoms are allowed to enter. Moreover, the workers receive masks, gloves and BCM-95 supplements to help “develop their defenses better,” Arjuna states. 

Notably, a recent US study found that micronutrient-rich supplements are a safe, effective and inexpensive means of strengthening resistance to infections and protecting the body from respiratory diseases, including COVID-19. 

The Indian government took what Arjuna identifies as “a bold decision” to impose lockdowns, which the company deems have made a “significant impact in reducing the spread.”In terms of moving goods, outward supply chains have been affected, particularly in airfare. “There is more cargo chasing lesser space and fewer schedules. With passenger planes out of skies, the total cargo capacity has dropped drastically. The airlines have been limited by the number of cargo planes to operate more schedules,” says Arjuna.

Appell affirms that although air shipments have resumed, the airfare is almost four times higher than before. Meanwhile, the possibility to schedule a weekly Air India flight for essential industries is being explored. OmniActive is working “proactively and collaboratively” with the Indian government and its authorities to prioritize and expedite customs clearance of essential products. 

Affected Q1 sales
Despite these major supply chain hurdles, both companies have witnessed an increase in sales throughout the first quarter. OmniActive reports “strong” Q1 results that reflect the current upward growth trend of the supplement market in general. Moreover, the company expects this trend to continue as consumers continue to look at industry for health benefit solutions from natural sources. “As our customers further depend on reliable partnerships to help deliver their finished products, our sales will remain strong through the current situation and into the future,” Appell says.

Arjuna echoes this notion, reporting an increased demand for its BCM-95 (Curcugreen) and Shoden, a high-potency ashwagandha extract, in the past weeks. “We have been doing our best to cope with the demand and ensure that our partners are supplied. While it is too early to speak on numbers – as these will vary depending on the availability of supply chain options – we are currently more focused on delivering our products,” the Arjuna spokesperson says.

Unexpected opportunities
Appell views the current coronavirus crisis as both a “very difficult landscape to navigate” and an opportunity to “learn how to better serve [its] customers” by being more proactive in solving “the most complex challenges.”

OmniActive’s Improving Lives Foundation has dedicated its efforts to support those who have stepped up to serve our communities while providing relief for those who are most vulnerable to their effects. These include sanitation kits for frontline workers, including police, airport, port authority and municipal workers, meals for daily-wage laborers through Rotary clubs and funding rations for village councils near plants. 

Continued communication with customers and industry is an additional priority for OmniActive. “We have used a variety of tactics to deliver important, timely and relevant information to keep stakeholders informed. Whether it is a blog or memo or through webinars and e-blasts, we want to deliver valuable information and open a line of dialog with the industry. We intend to remain in continuous contact with industry regulatory bodies and media to ensure that we can assist these channels in remaining current as well,” Appell maintains.

As Arjuna considers itself “relatively better off” due to its business’s portfolio, the company has also pooled its efforts to assist in the provision of essential health equipment. This includes the production of over 2000 L of sanitizers and the distribution of masks to nearby communities. Moreover, Arjuna states it has also reached out to assist government programs to provide food for the needy who are deprived of their livelihood due to the lockdowns. 

In research, Arjuna has also initiated projects focused on natural immunity support. “This would be a concern for the time to come. While doing all this, our efforts to support society and humanity will continue. This is one of the instances where every human being and organization anywhere in the globe will be touched. This goes beyond business,” the Arjuna spokesperson concludes.

To keep readers informed of these rapid developments, NutritionInsight is updating its daily news feed for the coronavirus-related information and insights you need to guide your business through this challenging period.

By Anni Schleicher