Specific reform measures have to be announced for the manufacturing sector.

Kirby India is planning to overcome the loss and maintain its growth by increasing the production.

- D Raju, Managing Director, Kirby Building Systems & Structures India

How do you assess the impact of the pandemic on the PEB sector?

Corona virus has impacted the global economy including India with almost each and every sector feeling the effects of the current pandemic. Pre-Engineered Steel Buildings (PEB) sector is a part of both manufacturing and construction industry segments as it is involved both in fabrication of steel and installation at site. Currently, the fabrication and construction of industrial projects is closed as per the government guidelines and the sector is definitely feeling the impact as the complete economy is in standstill mode. The extent of impact on the PEB sector can only be assessed once the lockdown is lifted. The economy will slowly get back to normalcy which might take some time based on how this situation enfolds. 

What are the factors that will help the revival?

Going forward and the initiatives taken by the Indian government to revive the economy depend especially consumer confidence and consumption. Some other factors which will also play a role include the global economic conditions, growth of developed countries, companies planning to reduce their dependency on China, Indian government's preparedness to attract these companies, etc.    

What is the impact of the crisis on Kirby?

Kirby along with other PEB companies have also felt the impact of this corona virus as the country was in complete lockdown mode without any major activity except some essential services. The company has lost more than a month's revenue since the lockdown was implemented.               

Till now there is clearance on resumption of manufacturing only with some very minimal staff and activities as per the guidelines laid down by the government. PEB sector as a whole is definitely facing many challenges with respect to both manufacturing and construction. Manufacturing requires both staff and workmen as it involves coordination between various departments within the company and the customer and cannot be carried out by working from home. Construction at sites which are spread across India also requires labour for various types of activities where the availability of workforce is a major challenge with most of the labour already moved out of the sites to their respective destinations since the implementation of lockdown.   

Tell us the steps initiated to overcome and sustain growth?

Kirby India is planning to overcome this loss and maintain its growth by increasing the production based on complete 100% resumption of our manufacturing facilities as per the government guidelines and customer clearances which is further based on covid-19 situation taking shape going forward.

What policies and reforms do you expect from the government?

Indian government has recently announced some reforms in the form of slashing repo rate, reverse repo rate, cash reserve ratio, etc. thereby inducing liquidity to the tune of more than Rs.4 lakh crore. This will enable banks with additional capital to lend to the industry and individuals. Other various measures have also been initiated by the government in the form of direct cash transfers to poor and needy, food security measures, free ration, etc. There are various other policy and reform initiatives taken such as 3 month loan moratorium, relaxation in NPA classification, etc. However, more reform measures have to be announced by the government especially for the manufacturing sector.   

The above set of reforms may not be sufficient to revive the economy post covid-19 in the short term as consumption is one of the most crucial factors to drive manufacturing growth thereby enabling various industry segments to increase their capex spending.

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