Oxygen diversion to have limited impact on manufacturing sector: Analysts

Revenues of small and mid-sized companies into metal fabrication, automotive components, shipbreaking, paper, and engineering may get impacted temporarily, says CRISIL.

The diversion of oxygen from industrial units to hospitals may pose a near-term challenge for select industries, say analysts, who say the disruption is unlikely to cause a long lasting damage in revenues of the impacted companies. However, a prolonged and intense second wave that curtails oxygen supply to industries for a longer period than expected will exacerbate downside risk in affected sectors, they say.

“The disruption in the supply of oxygen for industrial use would temporarily impact the revenues of small and mid-sized companies into metal fabrication, automotive components, shipbreaking, paper, and engineering. These typically do not have captive