The coronavirus lockdowns and the resultant disruptions in demand and supply will see the consumer sector degrowing by 2-4 per cent this fiscal, says a report. However, the impact will be much larger, to the tune of 30-40 per cent, if the lockdowns continue beyond the first quarter, Crisil said in its report. It added that the crippling impact of the pandemic will trigger a rush by private equity players who will be keen to take over the most distressed companies, given the changing consumer priorities to health and wellness. “The disruption in demand, production and supply chain caused by the extended nationwide lockdown to contain the COVID-19 pandemic will knock back revenue growth by 2-4 per cent for the consumer essentials sector, and 16-30 per cent across discretionary manufacturing and consumer services this fiscal,” the report said.

(Economic Times)