Coronavirus Impact: During the era of Coronavirus, some industry turned disaster into an opportunity.
Coronavirus Impact on Industries: Coronavirus The global pandemic has had a profound impact on the world economy. India’s economy was also not untouched by this and due to the long lockdown, India’s growth rate went into negative. There was a long period of uncertainty due to the lockdown, which continues till now. Due to this lockdown, many sectors went into recession, but there are some sectors which have found opportunity in this disaster. Healthcare sector, IT sector are also included in these, in which there has been a significant growth during the last 6 to 7 months. On the other hand, sectors like real estate, auto, consumer, retail and tourism have suffered heavily. Major sectors like Agri and Metal have suffered partial loss.
Lockdown spoils economy
India’s economy is now officially hit by recession due to the lockdown. In the first quarter of the current financial year, the gross domestic product (GDP) registered a historic decline of 23.9 percent. At the same time, the Indian economy also recorded a contraction in the second quarter. India had a negative growth of 7.5% in the second quarter of GDP. However, the positive is that the decline in GDP in the second quarter was expected to be close to 10 percent. Rating agencies have improved estimates for the future. It is believed that this pace of decline will slow down further in the current quarter and the growth rate may be positive in the fourth quarter i.e. January to March 2021.
Healthcare sector has seen good growth during the corona virus epidemic. Pharma companies have turned this disaster into an opportunity. People became more aware of their health due to the epidemic. People consulted doctor on cold, cough or virus and took medicines. Along with medicines, health supplements, face masks, sanitizers, immunity enhancing products, hygiene-related products were in high demand. During this period, the supply of online medicines also increased. At the same time, private hospitals have also benefited during this period due to better facilities of lab and testing.
The business of this industry continued to grow due to exemption from lockdown. Bhavesh Gandhi, lead analyst at Yes Securities, believes that there will be demand for drugs in 2021 as well, but will remain focused on vaccine manufacturing and its distribution. Especially if 30-40 percent of the population has to be vaccinated. In such a situation, companies like Dr. Reddy’s, Aurobindo Pharma, Cadila, Serum and Wockhardt are expected to get more benefits.
The tourism sector has been affected the most, including India, due to the corona virus epidemic. This includes the entire tourism value chain including airlines, hotels, tour operators, tourism destination restaurants, tourist transportation, tourist guides. Most of the segments remained closed for a long time and business was affected. Recently, UN Secretary-General Antonio Guterres has said that the epidemic has caused a loss of $ 32 million million exports to the tourism industry globally in the first 5 months of the financial year. 120 million jobs in the tourism industry are in danger. In India also, the contribution of tourism sector in employment and revenue is around 12 to 13 percent.
In the early phase of the Corona Wars epidemic, it seemed that the IT sector could be hit badly. Initially it showed its impact, but later the IT sector also turned this disaster into an opportunity. IT companies adopted the digital model in a better way. ITBlow companies also implemented the work from model, which did not deteriorate their business. During this time, they reduced their expenses by one time, on the other hand increasing their clients continuously. Their orderbooks in Lockdignown continued to be strong. In lockdown, the entire world came under the trust of Infotech, which benefited the sector. Demand from cyber security also played a role in this.
The real estate sector has also fallen due to Corona virus epidemic. This year the demand for houses has come down drastically. Even after all the offers and discounts, selling the unit has become difficult. According to rating agency India Ratings, in FY 2021, residential demand may fall by more than 40 percent on an annual basis. Affordable housing segment has been the worst affected due to the slowdown due to Corona virus. There is uncertainty in credit availability. At the same time people’s income has also been affected. Due to this, people are avoiding taking loans.
People’s dependence on e-commerce companies increased during the COVID 19 era. Shops and showrooms remained closed for a long time, creating huge opportunities for online grocery and e-retail shops. After the exemption of e-commerce during the lockdown, these companies have worked to strengthen their network. He handled the lack of manpower well. However, initially there were some problems due to blockage in the supply chain, blockage of goods movement and staff shortage. But in the following months, e-commerce companies made recovery.
Auto companies already facing recession have suffered heavily due to lockdown due to COVID 19. During the lockdown, zero sales also came, due to which the profits of the companies have dropped. Let us know that there was a slowdown in the auto sector during 2019 also. Passenger vehicle sales were down by around 79 per cent during the April-June quarter. There is still pressure in the auto sector, Jog will continue for the next one to two quarters. The auto component sector has also suffered. Due to the lockdown, demand was very weak, while the supply chain was also stalled at the import level.
Apart from these, FMCG companies, auto ancillaries and oil and gas companies, which manufacture food items, got partial profit. At the same time, partial loss to metal, banks, NBFCs and Agri companies.
(Note: This report has been made on the basis of the report of different agencies, experts and brokerage houses. It has mentioned partial to far more losses and losses. It is worth noting that since the lockdown has been removed, most of the industry is now I have started growing.)