Due to the disruptions caused by the nationwide lockdown, India’s beer startup industry is in dismay. It could take a while for the sector to maintain the logistics after being battered by COVID-19. The biggest challenge faced by beer startups is the management of working capital and finances involved. Given the current situation, each business holder needs finances to sustain their business and manage cash flow.The pressure building up in the credit lifecycle is becoming strenuous with each stakeholder holding tight in the situation. To stabilize the low liquidity or cash flow government should supportstartups withan easy availability of funds by extending loan against bill discounting to recapitulate business and ride this wave. Small initiatives and favorable policies will help these startups to persist.
The lockdown has taken a heavy toll on the beer startups and other summer essentials as we look forward to this season as a major contributor of sales for the year, accounting to approx. 25% (Incase markets are operational from 30th of April). The sales have been less by a huge percentage in March as compared to the previous months and not expected to revive in April given the current scenario. Many companies will witness loss due to expiration of stock in April, the stock keep units will have to be destroyed, in such scenario if government extends support & forgo duties, and companies can take a sigh of relief. The adverse impact of this crisis is expected to last for months and this will hamper the growth of the startups. Investing in online advertisement and strategic presence over the web, engaging audiences by running effective social media campaigns, will help the startups on a longer run. Rightly reinforcing the brand in consumer’s mind and expecting loyalty to play in is the need of the hour.
We understand that this is an unprecedented situation for all of us to manage and we at, Kimaya Himalayan Beverage LLP will be happy to extend support in the best of our capacities for any sort of assistance to our customers, colleagues, friends, acquaintances and their loved ones.
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