THE COVID-19 PANDEMIC IMPACT ON MANUFACTURING AND MINING SECTOR – AN EVALUATIVE STUDY ON THE PERFORMANCE OF SELECT COMPANIES

Author Name: 1. Dr. V. Krishnamohan1, 2. N. Srinivas

Volume/Issue: 01/12

Country: India

DOI NO.: 08.2020-25662434 DOI Link: http://www.doi-ds.org/doilink/05.2021-64547741/UIJIR

Affiliation:

1. M.Com, MBA, Ph.D., FDPM (IIM-A), Professor, Dept of Commerce and Management Studies,Andhra University, Visakhapatnam, Andhra Pradesh
2. M.Com, ACA, ACMA, ACS, Research Scholar (FT), Dept of Commerce and Management Studies, AndhraUniversity, Visakhapatnam, Andhra Pradesh

ABSTRACT

The Covid-19 pandemic situation has an adverse impact on the Indian economy very dearly. The manufacturing industry saw a 39.30 percent drop in Q-1 while mining industry reported a decline of 23.30 percent. Lockdown has been imposed in the first quarter of 2020-21 to prevent the spread of this contagious disease. Though it helped in giving time to the health systems in the country to gear up to meet the challenge, there was a lot of negative impact on the economy. However, in Q-2 manufacturing industry rose by 0.60 percent but mining sector declined by 9.10 percent. The purpose of this study is to analyse the performance of manufacturing and mining companies in Q-1 and Q-2 of 2020-21 versus corresponding period in last financial year to understand the impact of Covid- 19 pandemic on manufacturing companies and their response to manage the challenges posed by the pandemic situation. In this paper, the turnover and profitability of eight companies from four sectors—automobile, FMCG, mining and fertiliser, are analysed to measure performance. It is observed that the performance of the companies declined enormously in the first quarter but they did bounce back in the second quarter. The unlock process in second quarter coupled with boost from measures like Aatma Nirbhar Bharat Abhiyaan helped the companies to report revival of their performance in the second quarter. The companies are suggested to focus on cost management and also stimulate demand for their products by resorting to sales promotion strategies to attract customers to boost sales to enhance performance. The Companies can also utilize the benefits available under Aatma Nirbhar Bharat Abhiyaan and attract investments through Joint Ventures, etc. from Western countries and Japan who are now planning to move their production facilities out of China.

Key words: Covid-19, turnover, profitability, financial year, cost management, FMCG.