PETpla.net Insider 05 / 2020

TOP TALK PETplanet Insider Vol. 21 No. 05/20 www.petpla.net 11 in a country that is not particularly affluent. It is also unclear when life in India will return to normal. PETplanet Insider: To what extent could coronavirus affect indus- trial relations with India, particularly between Europe and India? Rajesh Nath: Border closures, production shutdowns and lockdowns will all have an impact on both supply and demand. However, the Indian economy has an advantage given its relative isolation and the fact that it is not so deeply embedded within global supply chains with limited exports going to world markets. PETplanet Insider: What steps can the Government take to ensure the survival of small companies in India, particularly the PET packaging industry such as converters and bot- tlers? Rajesh Nath: India is putting together an economic stimulus pack- age worth US$ 19.6 billion to address the impacts of the economic downturn which is expected to be agreed by the end of March. The Reserve Bank of India is also following the example of other global central banks by announc- ing a cut in interest rates in order to provide liquidity to the markets. These measures will certainly help the PET consumer industry. PETplanet Insider: Could there really be a shortage of PET for pack- aged drinks and food if supply chains were interrupted? Rajesh Nath: We have heard nothing so far which would suggest that. However, it can be assumed that there will be a strong demand for these items as people who are staying indoors to follow lockdown and quar- antine regulations are increasingly consuming food packaged in PET. PETplanet Insider: The Indian market is renowned for its ingenuity. What good could or will come out of this global crisis? For example, we are seeing a stronger shift in many countries to online transactions during and after lockdowns. During the demonetisation of the Indian currency at the end of 2016, there was hardly any cash available at times, with huge numbers of people queueing outside banks. As a result, many large and small shops were quickly able to pay digitally using the Paytm money transfer app, a kind of PayPal for the local market which, in the end, made cash virtu- ally irrelevant. In fact, apps for vari- ous services are in use everywhere. Rajesh Nath: That’s right. India, particularly in the large conurbations, is an excellent example of how everyday life can be made easier with the use of apps. For example, you can now do your shopping, order a taxi or grocer- ies by simply using your mobile. It does not really matter if you are in a supermarket or at a street food stand. However, the coronavirus will inevita- bly result in an increased shift towards online outlets. In the B2C sector, this will mainly involve restaurant orders, food deliveries from supermarkets and traditional online trading. The corona- virus can, of course, offer opportuni- ties by enhancing our ability to quickly assess problems and come up with effective solutions. The Indian Govern- ment has an additional interest in sup- porting the economy’s resourcefulness. Labs are being established and invita- tions for tenders issued, with smaller bars, hotels and restaurants now switching to supplying services on the ground, e.g. from meals to alcoholic drinks, as a result of the lockdown. The ability to react quickly to events is certainly there. Where all this will lead, however, remains to be seen. PETplanet Insider: How can and will the VDMA support its mem- bers in India? Rajesh Nath: We offer support by providing them with the latest news on political developments and indi- vidual business sectors, both from India and Germany. Furthermore, the VDMA, as it has done previ- ously but particularly so now, offers special added value for its members through its close networking activities with political decision-makers and in individual sectors. It is important, especially during such times of sepa- ration and isolation, to have a central point of contact acting as a conduit for providing members with a flow of valuable information despite current working difficulties. PETplanet Insider: How much longer do you think the coronavirus will preoccupy India and the rest of the world? Rajesh Nath: This is a ques- tion which has been occupying the thoughts of experts all around the world. However, I think it is unhelpful to put any timescale on when the crisis might end. Current thinking would sug- gest at least six months. PETplanet Insider: Looking ahead to the DTI event in Mumbai, what real impact or opportunities do you see coming out of the exhibition or from other trade fairs and conferences where the industry will be represented? Rajesh Nath: We are assuming that all the events will take place as usual. Business difficulties often result in new ways of thinking coming to the fore. The very fact that people and companies are having to limit their activities worldwide enables innova- tive solutions to pressing issues of the day to be discussed at trade fairs. The DTI exhibition will also offer opportuni- ties for attendees to meet experts from their own industries after lengthy peri- ods of working restrictions. PETplanet Insider: Finally, I would like to ask what personal protection measures you and your family are taking and how real your everyday life is. What is the mood among friends, from the economy – what positive developments are you seeing? Rajesh Nath: Everyday life here is similar to that in other countries. People only leave their homes to go shopping, or alternatively, you can have food delivered to your home. However, you have to get used to lengthy delivery times which are typi- cally 4-5 days. VDMA India staff are currently home-working, with issues that normally require face-to-face meetings being discussed using video-conferencing. Support is being provided within local communities and food shared during the crisis. PETplanet Insider: Thank you very much for talking to us and sharing your thoughts, Rajesh. We wish you and your family continued good health and wellbeing during these difficult times! www.vdma.org