Using the lockdown period to create new training materials, the company has now restarted operations to deal with the revised demands of the future, reveals Rohan Rathod, CEO, Delux Bearings (P) Ltd.
Impact on Business and Recovery Strategy
Much like others we have had zero sales between March 25 and April 20 – that’s almost a month. The adversity from this will be perceivable in the next three months. We have used this time to prepare extensive training material – even junior members of the company were involved and asked to provide their inputs. The idea is that when one sits down to prepare a document, select images and lay out information – the person doing so also absorbs much of the subject matter. We have compiled more than 100 such documents and even received 3-5 minute videos from supervisors and operators, providing educational inputs about their own domains of expertise.
This will be useful as a data bank for talent induction and routine re-learning. Managers and senior members have spent time improving production documents such as failure mode and effect analyses, fault trees and standard operating procedures which did not exist earlier. We made available workstations to our engineers to enable them to perform technology centre activities from home as usual. I would say that we have tried our best to remain productive during these four weeks. We resumed operations at the factory on April 20. Surendra Nagar is a green zone and has recorded zero cases. We have safety and social distancing protocol as well as a business revival protocol in place which has been enforced from a day prior to re-opening.
BS VI Transition
It doesn’t impact us directly. We have been ready with new-generation release bearings and supplies of these started before the onslaught of the pandemic in Q4 of 1920 itself.
Expectations from Government
To prevent a negative multiplier, I think the government should help companies directly secure funds to prevent layoffs and terminations. It is one thing about the government requesting companies to avoid layoffs but how will we deal with the costs? It is against the fundamentals of free market capitalism, and if the government wants to play an active role, this must be addressed. It is important because this will be the immediate impact post the lockdown. But to get demand on its feet the government seriously needs to bring in liquidity and get cash into people’s pockets to promote spending and flip the sentiment. Companies don’t need tax breaks, citizens need incentive to spend. Until people don’t walk into showrooms and get a good deal on vehicles, things will continue to look rough.
Outlook: Present and Future
I would say it looks bleak. I think the notion of growth needs to be re-looked at and we would have to revise our perceptions of what is considered ‘good’ growth. Believing that the Indian commercial vehicle industry will post double-digit growth in the near future is far from a possibility and we must prepare ourselves for the same. De-risking and diversifying is the way to go.
Medium to Long Term Impact
It will be mixed. But history is peppered by socio-cultural changes that have stemmed from pandemics and plagues. Entire industries have been reformed post pandemics and it remains a wake-up call to prioritize healthcare above some of the others in our hierarchy of needs. Vehicle purchase, be it for one’s business or for leisure, may lose its position as a status symbol. Social distancing will reduce productivity and efficiency in workplaces, which will lead to rise in costs.
Consumers may opt for personal vehicles instead of mass transit. Roads may need to get re-built or expanded. It may spur construction. We will be dealing with a mixed bag of possibilities that may move any which way. The invisible hand will be continually adjusting. No one can tell. If anyone claims he or she can, socially distance yourself from that person! Companies should diversify and not rely on the automotive sector alone; it’s dangerous! We will be starting high-precision industrial bearing supplies this year to Europe in line with this strategy.