Chennai, India – Indian polyol producer Manali, said that 'rampant dumping' of products by multinational companies could affect its ability to recover as India's coronavirus lockdowns ease.
In a statement to the Bombay Stock Exchange dated 18 July 2020, the company said sales of its medical grade propylene glycol had not been affected by the shutdown. However, it said, demand for polyols and related products have remained dormant in view of the shutdown of end-user operations in the light of lockdowns.
'The prospects for revival of demand for the company's products would depend on the general economic condition and consumer spend,' it said.
However, the company warned that its business recovery is not a foregone conclusion. 'Even if the user industries reopen and scale up, there could be challenges due to rampant dumping of products,' it said.
Manali added that it has restarted the disposal of by-products from polyol production. '[This has] also been a tough task, which in turn affects production plans,' it said.
The company said that it had to wait for imported raw materials to clear customs, but these were sorted out with minimal cost implications. Furthermore, it said, there have been no contractual problems with its major vendors or customers.