Business shines under the shadow of gun in J'khand

Mandarins in the home ministry may be having sleepless nights as violence brews in the Naxal-infested state of Jharkhand, but it is a different story for business here.

Demand is rising in the state for fast-moving consumer goods, consumer durables and two-wheelers. This has ensured that dealers and distributors of these goods remain in the black, even as the state's logistics network is frequently disrupted by strike calls and lockdowns enforced by the rebels.

"The market for motorcycles here has been growing over 20 per cent year-on-year. There has been a sudden spurt in demand, too. As a result, the average waiting period is now a month. Sometimes, though, consumers have to wait up to two months to get delivery of their bikes," said Gaurav Ahuja of Union Bikes, a Hero Honda dealership in Jamshedpur.

Sales have been soaring across the rural and urban regions of the state. While two-wheeler outlets declared the rush of consumers has become hard to meet, FMCG major Hindustan Unilever representatives claimed sales have registered double-digit growth. The real uptake, however, has been in the sale of consumer durables as the mercury has steadily risen in the Chotanagpur plateau. Dealers of refrigerators, air-conditioners and air-coolers have seen inordinately good business over the last month.

"If a household has about Rs 10,000 to spend, they will buy a fridge or an air-conditioner, rather than a television set. As a result, the demand for other appliances has reduced," said a distributor.

With the power situation in the countryside at less than optimum, air-coolers rather than air-conditioners are the appliances of choice.

"I am out of stock right now," said an air-cooler dealer. "If more (air) coolers come, they will be sold within days."

While that is good news, it's not all hunky dory either. Businesses here are cognisant that they are living under the shadow of Naxalites.

"Obviously, doing business here is different from Gujarat, for instance. Not only do we have to be careful about who we interact with, but certain people must be kept happy and favours must be made. Otherwise, small issues can grow into large complications," said a local businessman.

Sales would have been better, but for the Naxalite propensity for paralysing key roadways in this part of the country. A distributor of consumer durables for East and West Singhbhum districts of Jharkhand asserts that they "don't take risks" when there is a call for a lockdown in the area. "If there is a bandh, I can't deliver the products, or take any delivery. The risk is not worth it," he added.

A local HUL official, too, said it is the company's directive that no movement of goods is to be undertaken when there is a strike or a bandh.

The administration, however, realises that the steel city is only an isolated pocket. "There is no impact within the city. The Naxalites have a strong influence on the semi-rural areas on the outskirts. Each time they call for a strike, vehicular movement on National Highway (NH) 33 is paralysed," a senior official, who did not want to be named, told Business Standard.

The 352-km NH-33 runs entirely through Jharkhand.

Also, there are certain loopholes that may well be facilitating the sale of products to the insurgents. Even as there are reports of Naxalites procuring two-wheelers via proxies in neighbouring Chhattisgarh, motorcycle dealerships in Jharkhand claim it is difficult to track the end-users.

"Once I have sold the bikes, I can't tell who will eventually ride it. But we ensure that the paperwork is adhered to," a dealer here said.

On closer scrutiny, though, it emerged that an address proof or an identity proof is all it takes to purchase a two-wheeler. "There used to be the requirement for a photo identity proof, but even that is not needed now," the dealer added.