Page 23 - CIJ Sept 2025- Digital Edition

COVER STORY

Post-COVID, hygiene and ESG compliance in
warehouses have shifted from operational
checklists to critical factors influencing
contracts and investor confidence. Across
industries like Pharma, FMCG, Food,
e-commerce, retail and electronics, corporates
now insist on clean, audited and safe
facilities before signing long-term contracts.
Multinational clients often require certifications
such as ISO 14001, LEED and IGBC, making
hygiene a non-negotiable criterion.

“Whether it is our own facilities or leased
warehouses, we ensure hygiene standards
meet international certifications and client
expectations,” says Turbosu Mitra, AVP (3PL)
– BD & Operations, ARMSIPL, highlighting the
operational rigor now demanded by clients.

“Elevating hygiene For instance, large-
to a governance-level scale recalls in FMCG or
priority ensures our Pharma can cost ₹5-25
ESG commitments are crore, while rejected
operational realities, not containers may result
just paperwork,” says in ₹40-80 lakh in lost
Turbosu Mitra. revenue. Insurance
penalties can spike
The Financial premiums by 15-25% and
Stakes regulatory fines can range
from ₹50 lakh to ₹5 crore.
The cost of a hygiene
lapse is significant, Indirect losses may include
extending far beyond lost clients, suspended
contracts, export bans,
immediate operational
disruption. Losses operational shutdowns
can include rejected and long-term reputational
consignments, product damage affecting investor
recalls and export confidence and ESG
cancellations. Insurance ratings.
penalties, regulatory fines “For 3PL providers,
and reputational damage investing in preventive
amplify the impact. In hygiene systems is far
sectors like Pharma, more economical than
FMCG and Food, even a bearing compounded
single lapse can lead to financial and reputational
regulatory action and loss losses,” notes Turbosu
of customer confidence. Mitra.

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