A KPMG report also stated that India’s real estate sector is estimated to face losses of as much as Rs 1 lakh crore by the end of the current financial year (2020-21) due to the COVID-19 pandemic. The pandemic will dampen real estate activity in the next 6-12 months and things are likely to look up only after 18-24 months.
With state resources focused on fighting Covid-19 and issues of labour availability, order execution or receivable collections are likely to be impacted, adding to working capital pressure, said in a recent CRISIL report. Extended impact would hit construction primarily led by non-availability of people and lockdown.
According to Mr. Himanshu Jindal, Chief Financial Officer, Orient Bell Limited, Indians are remarkably resilient and they will bounce back. However, this is the first time, in decades that demand has decreased. For the tile industry, 80% of production is domestic, including new construction and replacement demand. The construction activities have slowed down and are affecting the demand.
Non-availability of labour on construction sites too, may impact deliveries of ceramic products.
However we are hearing stories of migrant labours returning. And if the government takes steps to improve & build customer confidence, the market is there.
About Orient Bell Limited:
Orient Bell Limited (OBL) was established in 1977, with its base in New Delhi. The company is widely respected in the industry circles as a trusted & professional manufacturer of wall & floor tiles. It has a chain of signature showrooms to display its complete product range and is privileged to be associated with the premier architects and builders of the country. It has in the recent past seen an influx of new talent & leadership that’s bringing a breath of fresh air in the building & construction industry. It’s a player to watch out for.