Indian pharma companies are being forced to provide incentives along with assurances of disinfected factories premises in order to bring workers to production lines.
The move comes amid augmented demand for drugs such as hydroxychloroquine, chronic therapy medications in both domestic and offshore markets. In addition to this, companies are also facing issues related to logistics due to the ongoing coronavirus induced lockdown, says a report by The Economic Times.
“We are expecting that our logistics, manpower costs will be going up,” Laurus Labs managing director Satyanarayana Chava said as per the report.
The company witnessed a significant demand in its anti-retroviral drugs in spite of the lockdown. As a result, its profit after tax (PAT) grew by 155 percent for the quarter ending March 31, 2020 and stood at Rs 110 crore, compared to Rs 43 crore for the quarter ending March 2019.
The company is expecting the growth trajectory to continue and is leaving no stone unturned to keep the factory running. In addition to ensuring a safe working environment, the company is also providing extra wages, along with amenities such as private buses to its employees.
“We are giving confidence to our employees that we are maintaining sanitation to the highest standards. If our colleagues do not have confidence to come to workplace, they won’t come,” Chava said.
Although pharma companies are seeing increased demand for its products, the ongoing lockdown situation has put undue stress on their balance sheets. Not only are companies forced to bear additional logistical expenses, it is also paying salaries to employees who are not reporting to work at the moment.
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