Bajaj Auto manufactures vehicles for exports at a facility in the district’s Waluj industrial area. At present, 1,700-1,800 employees work at the Waluj factory where the company is operating at half the capacity in two shifts. It restarted operations at the plant on April 23.
Coronavirus lockdown took a massive toll on the wedding industry in Gujarat’s Vadodara. Marriage decorators are facing hardships to revive their businesses in market. They are suffering loss due to COVID-19 outbreak. There are 12,905 confirmed cases of coronavirus in Gujarat. According to the Ministry of Health and Family Welfare, the total number of COVID-19 active cases are 66,330 and 3583 deaths in India.Covid-19 impact: Lockdown takes toll on wedding industry in Vadodara
India has become the key foreign market for Zyfra with more than 500 CNC machines connected to its MDCplus real-time machine monitoring and manufacturing data collection system in 2019.
COVID-19 led to supply chain disruptions and production halt in the latter half of March 2020.
The phases of lockdown announced by the government witnessed a revenue shortfall of more than 60 per cent for the sector, creating an unprecedented crisis to the industry.
The company is expected to undertake cash preservation measures such as reduced capital expenditure (capex) and limited dividend payout in FY21, which shall support liquidity. Additionally, to preserve liquidity, Vedanta has availed moratorium on its term debt obligation as per RBI guidelines after approval from respective banks.
People may travel less now that they have discovered how much they can get done from home. Or they may commute more by car to avoid jostling with others on crowded buses and trains.
Women bear the brunt of Covid outbreak at the workplace, more likely to be furloughed and lose jobs as compared to men
School closures during lockdown have exacerbated the situation because more women than men tend to care for children.
Carmakers, phone firms are set to begin production with output less than the usual level.
Boeing is cutting more than 12,000 jobs through layoffs and buyouts as the coronavirus pandemic seizes the travel industry, and more cuts are coming.Covid-19 impact: Boeing slashes 12,000 jobs as virus seizes travel industry
The domestic automotive industry is likely to witness a prolonged U-shape recovery.
Since April 20, 2020, onshore operations have been restarted and are near normal at present.
While about 9 per cent of the company's natural gas output was impacted by inability of customers to take supplies due to the coronavirus lockdown, lower oil and gas prices had impacted its revenues, the company said.
When will travellers return? Decimated by Covid-19, travel and hospitality recovery will be a long stretch
The travel industry is bracing itself for the new changes that will have to be factored in post lockdown.
Export orders worth $4-5 billion at stake, estimated revenue loss of over Rs 1 lakh crore and shortfall in the GST collection of about Rs 28,000 crore. Add to that loss of Rs 14,000 crore in other state levies. The 45-day coronavirus-induced factory shutdown has hit the automotive sector hard. ET's Nehal Chaliawala explains why India needs to keep the wheels of the industry - which amounts to 0.5% of the country's GDP - moving. Watch now.Coronavirus shutdown: Why auto industry needs to get its wheel spinning
While the government is set to allow more flights, airlines have not been able to utilise the existing approvals. Data available with ET shows that airlines together operated 749 flights on Tuesday, much lower than the approved figure of 1,200 flights.
Domestic steel demand in FY21 is likely to drop by around 12-15 per cent year-on-year with end-use industries being closed down and limited demand growth expected over the near term.
Industry leaders aren’t expecting much improvement in sales next month as well.
The country’s largest carmaker Maruti Suzuki reported zero sales last month with factories shut in compliance with government orders to prevent the check of the coronavirus pandemic.Lockdown impact: India’s largest carmaker Maruti Suzuki reports zero sales in April
Coronavirus may hurt demand for two to three quarters this fiscal, will have to use all marketing lessons: Rahul Bajaj
While all three of the company’s manufacturing facilities at Chakan (Pune), Waluj (Aurangabad) and Pantnagar (Uttarakhand) had resumed production, albeit at partial capacity, “it would be almost foolhardy” to believe that demand will not be affected for at least the first two, if not three, quarters of FY2021, Bajaj said.
Some marquee brands are looking at moving back to streets from malls because of Covid-19.
The anticipated applications and integration of robotic technology will require leaders of the future to carefully consider the balance between the roles of service robots and human employees in the guest experience, according to the paper published in the International Journal of Contemporary Hospitality Management.
Honda Cars India Ltd (HCIL) Senior Vice President and Director, Marketing and Sales, Rajesh Goel said that considering people will be extra careful against COVID-19, personal mobility will gain much more significance than shared mobility or public transport, and hence can contribute to sales.
Auto makers including TVS and Ceat have announced capex cuts. Ceat has announced a 33% or Rs 250-crore cut in capex to Rs 500 crore, while TVS Motor has announced a capex of Rs 300 crore down 58% from the Rs 719 crore spent last year. Others like Hero MotoCorp have announced they will defer capacity expansion and other investment plans.
Bajaj Auto, TVS Motor have already resolved to cut salaries, Tata Motors may also do so shortly.
The movie industry's biggest night is currently scheduled for February 28.
India’s automotive market is resilient and likely to recover faster than others, Hyundai Motor India managing director SS Kim told Sharmistha Mukherjee. There will be a revival near the festive season, although demand will be return to pre-Covid-19 levels only early next year.
The Indian pharma industry has been a world leader in generics both globally and in domestic markets.
Based on assessments made by different analysts and industry body Ficci, here is an impact analysis in healthcare sector.
The next few months for the insurance industry will be difficult in returning to the high speed market growth highways they are used to for long, and they have to find innovative solutions to stay profitable and resilient.
Despite the lockdown drying out cash flows, Renault India Private Limited (RIPL) has gone ahead with promotions of over 30 executives and a raise for 250 employees effective August of 2020. Riding on Triber MPV's success and a small SUV lined up for the festive season, the company wants to ensure the morale of its staff is high to sustain the momentum.
As per the current assessment, there is no significant impact on the company's capital and financial resources and other assets, it said.
Automobile dealers' body FADA fears that the coronavirus pandemic could result in job losses in dealerships which could be worse than what was experienced last year when over two lakh jobs were lost due to a prolonged slowdown in the automobile industry, according to a top federation official.
The Nifty Auto index has fallen 26.9 per cent this year to date.
The company, which manufactures both diesel and petrol three-wheelers along with electric two and three-wheelers, is also gearing up to resume operations partially although its supply chain is not functional, as two of its suppliers are based out of Maharashtra, which is badly hit by COVID-19.
Aviation minister says sector will recover quickly as the country has a huge captive market.
TCS is expected to see revenue drop by 6%, Infosys by 5% and Tech Mahindra by 9%.
Industry body Bus & Car Operators Confederation of India (BOCI), which claims to represent 20,000 operators with 15 lakh buses and maxi-cabs and 11 lakh tourist taxis providing direct employment to 1 crore people, said these private operators need government support in the form of waiver of taxes and interest on loans as many of them are facing closure.
Both auto and two-wheeler manufacturers reported higher sales in June over May on the back of pent-up demand and revival of economic activities following unlock 1.0, with some of them even logging growth almost to the pre-Covid level.
According to the Automotive Component Manufacturers Association of India (ACMA) import consignments from China were being subjected to one-hundred per cent manual inspection resulting in inordinate delays in clearance.
Companies expect loss of about 750,000 units in production in March alone due to covid outbreak.
Highlighting the industry’s pro-active role in reinforcing critical public messaging in its plea to the government, IOAA has recommended a few measures to ease the financial burden on the Indian OOH industry.
The prolonged lockdown along with rain and hailstorm in many regions has heightened rural distress, pushing anxious villagers to moneylenders — a situation which farm leaders say can trigger agitations and suicides unless farmers get quick relief.
Most luxury brands feel that the negative impact of the outbreak will linger even after the lockdown is lifted, it said in the ‘Impact of Coronavirus on Luxury Industry’ study. “Around 79% of the respondents feel that customers are in a wait-and-watch mode since they are unsure of the likely turnout of events,” Luxury Connect said.
Today, the need of the hour is to prepare to resume operations, but in a responsible manner.
RBI Governor Shaktikanta Das predicted a big global recession and said India will not be immune. It all depends how India responds to the situation, he said. Global slowdown could make things difficult for India too, despite some help from falling crude prices, Das said, adding food prices may soften even further on record crop production.
Butschek said that the operating location of an executive doesn’t matter as much these days, with the company focused on executing the “transformation” roadmap set out four years ago to turn around the business.
"The auto industry in India has started to de-risk itself and is working on deep-localisation, ACMA Director General Vinnie Mehta told.
CII has suggested a bouquet of measures to help businesses battling the 21-day shutdown
"Rural demand is little better than urban right now. In Maruti, the rural share has gone up to 40 per cent in June which is 1 per cent increase over the last fiscal," MSI Executive Director Marketing and Sales Shashank Srivastava told .
The war against Covid-19 has also opened a battlefront elsewhere. The unprecedented 21-day lockdown has unsettled lives, halted the economy and pushed India Inc deeper into crisis even as pain on the employment front looks inevitable. These difficulties are only dwarfed by the hardships and devastation faced by millions of migrant workers and daily-wage labourers.
Kerala govt report estimates a loss of about Rs 80,000 crore in GVA to the Kerala economy in Q1 (Apr-Jun) of 2020. For March, the shortfall in GVA could have been roughly Rs 29,000 crore. The direct and indirect losses in gross state value addition (GSVA), based on an input-output model, is estimated to be 10% in 2019-20 and 20% in 2020-21.
Ashok Khanna, former group head for vehicle loans at HDFC Bank, said that in the post-lockdown era, inventory control will require carmakers to assess demand more rigorously and not flood the dealerships to help reach monthly sales targets.
However, the revenue and profitability of auto ancillaries focused on domestic markets are likely to fare better due to higher content per vehicle on the back of evolving regulatory norms including BS-VI applicable from April 1, 2020, as per the report.
Thousands of organisations across a range of sectors including the performing arts and theatres, heritage, historic palaces, museums, galleries, live music and independent cinema will be able to access the funding boost put in place on Sunday night.
TCS, Infosys and HCL will be hit by the reduced technology spending by clients in the US and Europe.
Covid represents a source of immense opportunity for India’s $190 billion software services industry.
The government on Friday extended the suspension of scheduled international flights till July 30. It, however, said that some international scheduled routes may be permitted on a case-to-case basis.
The Department of Heavy Industries (DHI) has sought feedback from auto industry groups on the initial proposal, which suggests giving incentives over five years to increase local production and procurement for export, the sources said.
ET has learnt from interactions with big producers and trade analysts that the losses because of postponing of release of the films or shooting of under-production films could be in the range of Rs 200-250 crore for the next two-three months.
Last week, Ford moved to hoard cash, drawing down $15.4 billion from two credit lines and suspending its dividend. It has also abandoned its 2020 financial forecast and said the cash would be used to deal with a squeeze on capital caused by shutdowns in production.
CII has suggested instituting a Government spending package equivalent to 3 per cent of GDP which would add Rs 6 lakh crore to the available firepower. Enhanced debt to GDP ratio can be a way out for adding fiscal space at a time when the debt to GDP ratio is modest in India.
Emkay Global says the fall in crude prices and moderating agri-input prices should drive margin gains for most staples.
Rajesh Jaggi, vice-chairman (real estate) of Everstone Group, said this year could be a complete "washout" for the warehousing sector due to challenges posed by the coronavirus pandemic in both demand and supply sides. Jaggi is managing partner of Everstone-backed IndoSpace, which is into the warehousing and industrial space segment.
COVID-19 impact : Food and fashion retail will take a year to revive, predict top industry associations
In a webinar, organised by Trust for Retailers & Retail Associates of India (TRRAIN), the three associations jointly anticipated a 25-30% impact on business with multiplier effect on subsidiary industries and lasting job losses. A survival plan is the need of the hour, they said.
With the Supreme Court having given a 10- day breather to sell 10% of unsold BS4 inventory and BS6 emission vehicles set to come in from April 1, auto makers have no other choice but to increase their digital footprint.
Passenger vehicles' sales were affected by the COVID-19 outbreak and the subsequent nationwide lockdown, Tata Motors Passenger Vehicles Business Unit President Mayank Pareek said. Similarly, TKM said its domestic sales declined 45 per cent to 7,023 units last month as compared to 12,818 units in March 2019.
An increasing number of Indian firms are staring at write-downs in their business this fiscal.
There are currently about 15,000 auto dealerships (includes 2,3 and 4 wheelers) across India. It is expected that there will be closures of at least 8-10% of these dealerships in the next six months. A year back, around 275 plus dealerships were forced to shut shop citing unviability of the business when a slowdown choked sales.
Amidst the Covid-19 outbreak and the subsequent lockdown, compensating for, or finding alternatives to China’s production capabilities to supply raw materials and capital goods will not be easy for the Indian chemical industry.
Autotech is trying to pandemic-proof its portfolio as it prepares to deploy $150 million in a funding round announced this week.
The Bengaluru-based infrastructure major has presence in roads and highways, energy and airport sectors.
The move, which comes against the backdrop of the Centre allowing malls to reopen, is expected to help retailers — from Future Group and Arvind Brands to Lenskart and Bata — tide over nine to 12 months of less-thanusual footfalls.
Workforce shortage is biting. Wages will have to be increased to keep migrants from leaving for villages.
A vehicle scrappage policy is in the works for some time now. The policy aims to put a cap on the life of vehicles in terms of years run. Last week, Union Minister Nitin Gadkari had said that the scheme is likely to be finalised soon to boost the automobile sector.
The sector, which hardly depends on imports from China as localisation levels of critical parts such as sheet metal, engines and transmission gear are close to 95%, seems to have, for a start, escaped the debilitating effect of the Covid-19 pandemic.
The ministry is set to start working at full strength from Monday, with all officials told to report to office, taking adequate precautions like wearing of masks and maintaining social distancing.
Auto industry should focus on value instead of volume; autonomous, connected & electric key tech: Nissan COO Ashwani Gupta
Nissan Chief Operating Officer Ashwani Gupta and ETAuto.com Editor Nabeel A. Khan talk COVID-19's impact on the auto industry, learnings and the way forward in this virtual ETAuto TownHall. Watch now.Auto industry should focus on value instead of volume; autonomous, connected & electric key tech: Nissan COO Ashwani Gupta
Lockdown across the country to curb the spread of coronavirus is resulting in drugs and medical devices not reaching the hospitals and consumers despite them being exempted by the government, industry players said on Wednesday.
Dentsu Aegis Network APAC CEO and India chairman Ashish Bhasin said business has improved month-on-month since May. “The business was down by almost 65% in April as compared to the same month last year. There has been a gradual improvement every month
Production cuts will be most in premium portfolio as consumers curb discretionary spending.
If you’re in an industry directly hit by the virus, think about how your experience would be applicable to fields that have solid long-term prospects, like cybersecurity, robotics and artificial intelligence. These sectors aren’t just for coders and engineers; they need accountants, compliance officers, HR managers and communications teams.
Indian auto industry to be negatively impacted, supply chain disrupted if Coronavirus persists: ICRA
China accounts for 27 per cent of India's auto component imports valued at USD 4.8 billion and, the impact is estimated to be higher for high value-add and customised components, while commoditised products could shift to alternative suppliers.
Shares of the company were up more than 8% at $870 in extended trade.
With unit sales and revenue forecast "significantly below" 2019 levels, VW "expects operating profit for 2020 to be severely below the prior year, but still to remain positive," it said in a statement. In final first quarter figures released Monday, net profit at the sprawling 12-brand group fell 83 percent year-on-year, to 517 million euros ($561 million).
"We have gone through the decisions of various state governments throughout the day and have adopted a strategy best suited for Telangana. India has to go back to work and move forward.” Rao told the media late on Monday night after a meeting of the state cabinet.
The rating agency expects two-wheeler sales to decline by 20-22 per cent, PV by 22-26 per cent, light commercial vehicle (LCV) by 26-30 per cent and MHCV by 35-45 per cent year-on-year in 2020-21. Also, monthly sales volume may not return to the pre-COVID levels before mid-2021-22, Ind-Ra said.
"The crisis is “much worse from an economic impact” point of view compared to 2008 meltdown," Gurnani said.
Prime Minister Narendra Modi on Monday interacted with industry representatives through video conference on measures to curb and mitigate the economic impact of the coronavirus pandemic on the Indian economy. The discussion involved specific issues being faced by sectors like banking, finance, hospitality, tourism, infrastructure and requested for help to overcome these challenges through financial and fiscal assistance. Industry representatives also appreciated the importance of instituting a lockdown, irrespective of economic losses, to prevent the spread of the virus, said the statement. "PM will discuss the points raised at the meeting and will come back on same soon", says Pawan Goenka, the Managing Director of Mahindra and Mahindra Limited.Economic impact of COVID-19: Industry offered full support to PM Modi, says Pawan Goenka
Going ahead, occupancy in India is going to be very low. So hotels will have to either shutdown or run in a very limited manner, a hotel owner said. The government has also requested industries to not lay off staff and cut salary, where in liquidity is a problem. Under this situation, the industry is going to go sick very fast unless you have the external source of capital, like holding company.
Discretionary spending is almost non-existent as online consumers defer high-cost purchases in the wake of uncertainty caused by the spread of Covid-19, said the sources who fear the economic contagion will also spread to metropolitan areas that account for two-thirds of India’s online commerce.
The aviation industry is facing its biggest-ever crisis due to the outbreak, with airlines worldwide laying off huge numbers of staff while some have already gone out of business.
Zyfra also called upon the companies to jointly develop industrial digitalization technologies and share best practices to minimise the negative consequences of the COVID-19 pandemic on their businesses and the supply chain.
The benchmark index ended below its 200-day moving average, an indicator of long-term momentum.
Elaborating on domestic operations, the company said it has now received approvals to start production at all manufacturing plants with capacity utilisation in the range of 10-20 per cent.
"We are having an industry meeting on February 6 and we may discuss this and take it forward," said CEAMA President Kamal Nandi. Nandi, who is also Godrej Appliances Business Head & Executive Vice President, further said that its Chinese suppliers has informed that they are going to open from February 10.
Chinese suppliers have prioritized shipments to large Indian automakers, industry sources said.
Aviation is among the worst-affected sectors amidst the Covid-19 crisis.
Apart from reduction in the bank interest rate and extension of soft loans, the industry body has asked for a moratorium for repayment of principal and interest amount to the banks for four quarters. The textile and clothing Industry employs over 105 million people and also earn around US $ 40 billion forex, apart from substantial revenue under GST and other taxes.
Purab Kohli and his family contracted Covid-19, says tried home remedies to manage coronavirus impact
The actor's daughter was the first to contract mild Covid-19 with cough and cold for two days.