BUILDING ON CORONA

How healthcare, FMCG, pharma, petrochemical and It companies will turn the capabilities acquired during the coronavirus crisis into new businesses in India and abroad

- P.B. Jayakumar

“What’s true of all the evils in the world is true of plague as well. It helps men to rise above themselves”

Albert camus, The Plague

Unusual misfortunes create unexpected business opportunities. R.C. Mansuhkani, Chairman of Man Industries – which makes special steel pipes for oil & gas and hydrocarbon sectors, is keen to restart his factory at Anjar in Kutch, Gujarat. So far, Corona has not reached Kutch. The 2,000-plus workforce, mostly migrant workers, is idling in dwellings provided by the company. This ₹2,200 crore-plus company, the largest supplier of such specialised pipes, has a near ₹2,000-crore order book, half of which is for exports. Raw material (steel) prices are cooling and supplies, even from China, Japan and South Korea, have not been hit so far. Crude oil prices are also falling and his clients like IOC, BPCL, ONGC and oil exploration and production companies abroad are unlikely to freeze refinery expansion or repair work. “There can be only two-three week delay in supplies. I don’t see many issues for us in both near and long term, compared to many other sectors,” says Mansuhkani, who is worrying more about high working capital loan rates that can negate his competitiveness on a global level.

Mansuhkhani is raring to go post-lockdown and so are several of India’s healthcare, pharmaceuticals, FMCG, vaccine, chemicals, hospitality and IT companies, which are gearing up to turn the capabilities acquired during the coronavirus crisis into new businesses in India and abroad.