Mamta Janak Gore, CFO, 3M IndiaBy Aniket Dharmadhikari & Vartika Rawat
The conglomerate and makers of N95 mask and the household hygiene product like Scotch Brite, 3M India’s CFO Mamta Janak Gore discussed her priorities and investment plans for FY22. Gore will also be continuing as Non-Executive Non-Independent Director on the Board of 3M India with effect from June 1, 2021.
The subsidiary of a Minnesota-based company, more than three decades old in India, is concerned considers pandemic a catalyst for the adoption of digital transformation and e-commerce, globally. Edited excerpts.
As a CFO, what are your five major priorities in FY22?
Mamta Janak Gore (MJG):
1) Safety of the 3M team
2) Continue investing for growth
3) Strong Cash Position
4) Effective Working Capital Management
5) Leveraging Fintech products to enhance productivity
How is the second wave of Covid-19 pandemic impacting the business?
MJG: With lockdowns being imposed in several states, we are seeing a slowdown in manufacturing activities as well as supply chain disruptions. In line with government regulations, we obtained approvals for manufacturing of our essential items like masks, respirators, sanitizers and cleaning materials, for our Ranjangaon plant, to ensure there are no shortages. 3M India has been relatively quick to adapt to the new normal and we believe we are well prepared to face the challenges.
What major challenges did 3M face w.r.t supply chain/logistics issues? What challenges Indian businesses like you are facing on this front?
Demand recovery towards the end of calendar 2020 into the first quarter of this calendar year, unfortunately, coincided with global supply disruptions caused due to winter storms, lack of container availability and other such issues. Our supply chains were not impervious to these factors, and we were also affected.~
Our teams have worked hard, collaborating both with our domestic and global supply partners to ensure we maintain service levels to our customers, as best as possible.
How do different business segments see the way forward when the pandemic is over?
MJG: The pandemic has been a catalyst for the adoption of digital transformation and e-commerce, globally. Our consumer business transitioned very quickly to the e-commerce space as an additional platform on top of the existing channels. Our healthcare business teams have been very actively involved in training healthcare providers like lab technicians, nurses as well as ASHA workers who work at the frontlines.
Are you planning to invest in FY22? What are your plans?
MJG: Our investments are based on the timing of opportunities and market demand.
Investment in sectors such as safety and health care are continuing towards capacity enhancements in order to ensure the continued supply of essential commodities in the current scenario. In the automotive sector also we will ramp up in order to meet the growing demands.~
We have recently announced the consolidation of our manufacturing facilities in Pune to gain benefits in capacity utilisation, supply chain processes, cost savings, and operational efficiencies.