‘Covid crisis has taught us how to be better managers in tough times’

WHILE the leather goods industry has been shaken up amid the Covid spread and the following lockdown which dealt heavy blows to the industry. From small to big manufacturing firms producing high-end products, all have faced a raft of problems. Abhishek Chopra, director of the Indo Euro Footwear and founder Churchill Shoes, in an interview with Aparna Banerji enunciates the peculiar set of hardships that keep coming back to haunt the leather industry amid these pandemic times. The 32-year-old, who’s had a stint at the Harvard Summer School and has pursued post-graduation from the Warwick Business School brings out the positive as he feels that the outbreak has taught industry better management. Excerpts:

How has your business been impacted by the pandemic?

Footwear is one of the worst-hit categories of the retail sector and shall reel from the impacts of the pandemic for long. In the short term, people are not looking to invest in the leather goods significantly impacting the high-end brands and the sector at large. Our own business is down by 70 per cent and are operating at a 30 per cent capacity.

Can you expound a bit on the problems you faced in terms of labour?

We have had labour problems initially when the entire industry was also facing it and even now it is an ongoing problem. A lot of them are migrant workers and some still want to move back to their families. Since our unit specialises in luxurious goods, we require skilled labour to sustain the quality of our product. A certain period of time and resources go into training these skilled labourers. During the pandemic, the scarcity of these specialists is one of the biggest issues facing us. We are doing all we can to manage this crucial aspect amidst the pandemic.

How do you go about fixing labour scarcity?

The business is down anyway and the reduction in our capacity is in conjunction with the labour scarcity. But we have to tide through the pandemic. We are conducting on the job training of the people we are bringing in. We are training all the new people. However, we have been fortunate to retain some the skilled labourers who were working with us, they are now providing training to these newbies.

What sort of help does the industry requires to tide through the crisis?

The government has come out with certain schemes in which the interest rates are low. Every company has a different life cycle. Some companies which are heavily under debt have tricky choice to make. So, depending on their current status, companies will have to think whether they need more money, or to cut the costs or whether they can liquidate their product. Some of the firms are left with very tought choices.

What is the silver lining in the entire scenario?

The reset button has been hit. Many people have lost jobs. Businesses are down. What the crisis has taught us largely is how to be better managers. We are slowly managing. We have figured out ways to operate during the pandemic. Our workers are also working in a much more hygienic environment. From that perspective, it’s a new world. It is also a great feeling knowing every class is adjusting and adapting to the new requirements life has amid the outbreak. We now have to make sure every employee is giving their 100 per cent to the job. And we have to keep them mobilised to do so. Even as we toil in the field of hard choices, we are learning to be there for everyone and are getting better at economy.