The threat of continuous supply disruption is becoming very real and impacting trade in India due to the Corona virus induced shutdown of factories in India and China. As per UN report, the impact of COVID 19 on trade in India is estimated to be about $348 million due to the slowdown of manufacturing units in China. As you are aware, China has become the fundamental industrial hub of many business players in India and any disruption in China can leave repercussions in India as well. India’s electronics manufacturing community has been hit hard and the trade impact is estimated to be at 12Mn dollars. Due to the extended shutdown of factories and workers staying home to curtail spreading of the virus, it has created a supply gap and may result in prices of PC, laptops, Notebooks etc. going up by March this year. From March onwards, products with increased prices will start coming into the market.
At Acer, we are also facing depletion of our inventories in warehouse but hopefully things will get back to normal soon. We understand the needs of our consumers & are focused on their needs. Owing to this directed approach, we have observed an improvement from late February till now and hope things will recover as COVID-19 depletes. Though, most of the industry players have stock till February and with every passing week, the current inventory is depleting.
– Mr. Chandrahas Panigrahi –
CMO and Consumer Business Head, Acer India
The Indian businesses are going through supply chain disruptions since most organizations are dependent on China for their need of raw material to finished goods. In such scenario, there is a possibility that markets will look creating a sourcing alternate to China and India stands to gain immensely if we are proactive and agile towards supply chain dynamics. I would advise that everyone should work towards efficiency and look at opportunities that can complement their business to maximize profits. I would strongly recommend to avoid new innovation since supply scarcity may erode any new initiatives. Normalcy is expected to come back by end of April’2020 or early May’2020. I would advise all resellers to avoid overstocking and concentrate on clearing all aging inventory.
– Mr. Kapal Pansari –
Director, RP tech India
Covid-19 has been one of the global catastrophes of the 21st Century and has created a major challenge for all IT Brands in India by interrupting the supply chain and inventory constraints. However, since ALOGIC has Manufacturing units in multiple locations apart from China, we were able to reduce the adverse impact on biz for ALOGIC. The hurdle is still there, people are frightened and the economy is still delicately balanced on the tip of a sword. Many consignments are held up or yet to be allocated by factories in China. We are working hard to maintain a steady flow of products and keep the inventory available for our partners in India. On the Humanitarian front, our heart reaches out to all who are individually and collectively affected by the medical, physiological and economical impact of the Covid-19 virus. Human lives come first and we hope the spread can be contained quickly and brought under control. The Country and the people need help and support and hence we urge everyone to take necessary precautions against the spread of Covid-19
– Mr. Suresh Balaji –
Country Manager, Alogic Electronics India Pvt Ltd.