UNIVERSITY OF MUMBAI

SUMMER INTERNSHIP PROJECT REPORT

“Impact of COVID-19 on Textile,

Tourism & Pharma Industry”

Submitted By
Deepali Khimji Patel
Finance Specialization
Roll No.-94
Academic Year: 2019-2020

Under the Guidance of

Prof. Dr. Meera Hirpurkar

Faculty Guide

NCRD’s Sterling Institute of Management Studies

Plot No. 93/93A, Sector 19, Near Seawoods Darave

Railway Station
Nerul (E), Navi Mumbai – 400706
 NCRD’s Sterling Institute of Management Studies
Plot No. 93/93A, Sector 19, Near Seawoods Darave Railway Station
Nerul (E), Navi Mumbai - 400706

Institute Certificate

This is to certify that Ms. Deepali Khimji Patel MMS SEM III Roll No. 94 in

Finance Specialization, studying in this institute has completed the Summer

Internship Project titled as “Impact of COVID-19 on Textile, Tourism &

Pharma Industry” under our guidance.

Prof. Dr. Meera Hirpurka Dr. Prashant Gundawar

Faculty Guide Director

Place: Nerul, Navi Mumbai

Date:
 ACKNOWLEDGEMENTS

I am very thankful to my project guide Prof. Dr. Meera Hirpurkar for her inspirational
support and for initiating diligent efforts and expert guidance in course of my study and
completion of the project. I am very thankful to my project guide for giving me timely and
concrete guidance for making this project successful.
I am also thankful to Dr. Prashant Gundawar (Director of the college), and all faculty
members, sterling institute of management studies, Nerul, Navi Mumbai for their constant
encouragement and support and I am indebted to all those individuals who directly or
indirectly help me very well for completion of my project.
Also, my sincere thanks to the respondents who gave me valuable time to fulfill and complete
this project.
Last, but not least, my sincere thanks to my parents and friends who have helped me directly
or indirectly to complete this project
 NCRD’s Sterling Institute of Management Studies
Plot No. 93/93A, Sector 19, Near Seawoods Darave Railway Station
Nerul (E), Navi Mumbai - 400706

DECLARATION

I, Deepali Khimji Patel hereby declare that the project work titled as “Impact of
COVID-19 on Textile, Tourism & Pharma Industry” is the original work
done by me under the guidance of Prof. Dr. Meera Hirpurkar of NCRD’s
Sterling Institute of Management Studies.

Deepali Khimji Patel

Finance Specialization
Roll No.-94
Year: 2019-2020
Index
 Introduction
Textile Industry

India’s textiles sector is one of the oldest industries in the Indian economy,
dating back to several centuries.

The industry is extremely varied, with hand-spun and hand-woven textiles sectors at
one end of the spectrum, while the capital-intensive sophisticated mills sector on the
other end. The decentralised power looms/ hosiery and knitting sector forms the
largest component in the textiles sector. The close linkage of textiles industry to
agriculture (for raw materials such as cotton) and the ancient culture and traditions of
the country in terms of textiles makes it unique in comparison to other industries in
the country. India’s textiles industry has a capacity to produce wide variety of
products suitable for different market segments, both within India and across the
world.

Market Size

India’s textiles industry contributed 7% of the industry output (in value terms) in
FY19. It contributed 2% to the GDP of India and employed more than 45 million
people in FY19. The sector contributed 15% to India’s export earnings in FY19.

Textiles industry has around 4.5 crore employed workers including 35.22 lakh
handloom workers across the country.

The domestic textiles and apparel market stood at an estimated US$ 100 billion in
FY19.

The production of raw cotton in India is estimated to have reached 36.04 million
bales in FY20^. During FY19, production of fibre in India stood at 1.44 million tonnes
(MT) and reached 1.60 MT in FY20 (till January 2020), while that for yarn, the
production stood at 4,762 million kgs during same period.

Investment

The textiles sector has witnessed a spurt in investment during the last five years.
The industry (including dyed and printed) attracted Foreign Direct Investment (FDI)
worth US$ 3.44 billion from April 2000 to March 2020.

Government Initiatives

Indian government has come up with a number of export promotion policies for the
textiles sector. It has also allowed 100% FDI in the sector under the automatic route.

Initiatives taken by Government of India are:

 On September 2, 2020, the Union Cabinet approved signing an MOU between textile committee, India
and M/s Nissenken Quality Evaluation Centre, Japan, for improving quality and testing Indian textiles
and clothing for the Japanese market. This India–Japan pact on cooperation in textiles will facilitate
Indian exporters to meet the requirements of Japanese importers as per the latter’s technical regulations
 Under Union Budget 2020–21, a National Technical Textiles Mission is proposed for a period from
2020–21 to 2023–24 at an estimated outlay of Rs 1,480 crore (US$ 211.76 million).
 In 2020, New Textiles Policy 2020 is expected to be released by the Ministry of Textiles.
 CCEA approved mandatory packaging of foodgrains and sugar in jute material for the Jute Year 2019–
20.
 In September 2019, textiles export witnessed a 6.2% increase post GST as compared to the period pre-
GST.
 The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the
Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry - readymade
garments and made-ups - from 2% to 4%.
 The Government announced a special package of US$ 31 billion to boost export, create one crore job
opportunity and attract investment worth Rs 80,000 crore (US$ 11.93 billion) during 2018–2020. As of
August 2018, it generated additional investments worth Rs 25,345 crore (US$ 3.78 billion) and exports
worth Rs 57.28 billion (US$ 854.42 million).
 The Government of India has taken several measures including Amended Technology Up-gradation
Fund Scheme (A-TUFS), estimated to create employment for 35 lakh people and enable investment
worth Rs 95,000 crore (US$ 14.17 billion) by 2022.
 Integrated Wool Development Programme (IWDP) was approved by Government of India to provide
support to the wool sector, starting from wool rearer to end consumer, with an aim to enhance quality
and increase production during 2017–18 and 2019–20.
 The Cabinet Committee on Economic Affairs (CCEA), Government of India approved a new skill
development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an outlay of
Rs 1,300 crore (US$ 202.9 million) from 2017–18 to 2019–20. As of August 2019, 16 states signed
pacts with the Ministry of Textiles to partner with it for skilling about four lakh workers under the scheme.
 Tourism Industry

Introduction

The Indian tourism and hospitality industry has emerged as one of the key drivers of
growth among the services sector in India. Tourism in India has significant potential
considering the rich cultural and historical heritage, variety in ecology, terrains and
places of natural beauty spread across the country. Tourism is also a potentially
large employment generator besides being a significant source of foreign exchange
for the country. In FY20, 39 million jobs were created in the tourism sector in India;
this accounted for 8.0% of the total employment in the country. The number is
expected to rise by two% annum to 52.3 million jobs by 2028.

According to WTTC, India ranked 10th among 185 countries in terms of travel &
tourism’s total contribution to GDP in 2019. During 2019, contribution of travel &
tourism to GDP was 6.8% of the total economy, ~ Rs 13,68,100 crore (US$ 194.30
billion).

Market Size

India is the most digitally advanced traveller nation in terms of digital tools being
used for planning, booking, and experiencing a journey. India’s rising middle class
and increasing disposable income has supported the growth of domestic and
outbound tourism.

During 2019, foreign tourist arrivals (FTAs) in India stood at 10.89 million, achieving
a growth rate of 3.20% y-o-y. During 2019, FEEs from tourism increased 4.8% y-o-y
to Rs 1,94,881 crore (US$ 29.96 billion). In 2019, arrivals through e-Tourist Visa
increased by 23.6% y-o-y to 2.9 million.

International hotel chains are increasing their presence in the country, and it will
account for around 47% share in the tourism and hospitality sector of India by 2020
and 50% by 2022

Investments

India was globally the third largest in terms of investment in travel and tourism with
an inflow of US$ 45.7 billion in 2018, accounting for 5.9% of the total investment in
the country.

Hotel and Tourism sector received cumulative FDI inflow of US$ 15.28 billion
between April 2000 and March 2020.

Government Initiatives

The Indian Government has realised the country’s potential in the tourism industry
and has taken several steps to make India a global tourism hub.
Some of the major initiatives planned by the Government of India to boost the
tourism and hospitality sector of India are as follows:

 Ministry of Tourism launched Dekho Apna Desh webinar series to provide information on many
destinations and sheer depth and expanse on the culture and heritage of India. 
 Ministry of Tourism launched Audio Guide facility App called Audio Odigos for 12 sites in India (including
iconic sites).
 Prime Minister, Mr Narendra Modi urged people to visit 15 domestic tourist destinations in
India by 2022.
 Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity’, was inaugurated in October 2018. It
is the highest standing statue in the world at a height of 182 metre. It is expected to boost the tourism
sector in the country and put it on the world tourism map.
 Government of India is working to achieve one% share in world's international tourist arrivals by 2020
and 2% share by 2025.
 Under Budget 2020–21, the Government of India has allotted Rs 1,200 crore (US$ 171.70 million) for
development of tourist circuits under Swadesh Darshan for eight Northeast states.
 Under Budget 2020–21, the Government of India has allotted Rs 207.55 crore (US$ 29.70 million) for
development of tourist circuits under PRASHAD scheme.
 In 2019, Government reduced GST on hotel rooms with tariffs of Rs 1,001 (US$ 14.32) to Rs 7,500
(US$ 107.31) per night to 12% and those above Rs 7,501 (US$ 107.32) to 18% to increase India’s
competitiveness as a tourism destination.

In September 2019, Japan joined a band of Asian countries, including Taiwan and Korea among others, to enter
India’s tourism markAchil
 Pharmaceutical Industry

Introduction

India is the largest provider of generic drugs globally. Indian pharmaceutical sector
supplies over 50% of global demand for various vaccines, 40% of generic demand in
the US and 25% of all medicine in the UK.

India enjoys an important position in the global pharmaceuticals sector. The country
also has a large pool of scientists and engineers with a potential to steer the industry
ahead to greater heights. Presently, over 80% of the antiretroviral drugs used
globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by
Indian pharmaceutical firms.

Market Size

Indian pharmaceutical sector is expected to grow to US$ 100 billion, while medical
device market is expected to grow US$ 25 billion by 2025. Pharmaceuticals export
from India stood at US$ 20.70 billion in FY20. Pharmaceutical export includes bulk
drugs, intermediates, drug formulations, biologicals, Ayush and herbal products and
surgical.

India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-

agriculture, bio-industry, and bioinformatics is expected grow at an average growth
rate of around 30% a y-o-y to reach US$ 100 billion by 2025.

India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$
20.03 billion) in 2019, up 9.8% y-o-y from Rs 129,015 crore (US$ 18.12 billion) in
2018.

Investments and Recent Developments

The Union Cabinet has given its nod for the amendment of existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to
100% under the automatic route for manufacturing of medical devices subject to
certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$
16.50 billion between April 2000 and March 2020 according to the data released by
Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent developments/investments in the In Janaushadhi dian

pharmaceutical sector are as follows:

 In May 2020, Jubilant Generics Ltd entered into a non-exclusive licencing agreement with US-based
Gilead Sciences Inc to manufacture and sell the potential COVID-19 drug Remdesivir in 127 countries,
including India.
  Affordable medicines under Pradhan Mantri Bhartiya Pariyojana (PMBJP) achieved record sales
turnover of Rs 52 crore (US$ 7.38 million) in the month of April 2020.
 During December 2019, on moving annual total (MAT) basis, industry growth was at 9.8%, with price
growth at 5.3%, new product growth at 2.7%, while volume growth at 2% y-o-y.
 In October 2019, Telangana Government proposed Hyderabad Pharma City with financial assistance
from the Central government of Rs 3,418 crore (US$ 489 million).
 As on August 2019, the moving annual turnover (MAT) for biosimilar molecules sold in the domestic
market stood at Rs 1,498 crore (US$ 214.31 million).
 Healthcare sector witnessed private equity of total US$ 1.1 billion with 27 deals in H12019.
 Indian pharmaceutical industry’s export to the US will get a boost as branded drugs worth US$ 55 billion
will become off-patent during 2017 2019.

Government Initiatives

Some of the initiatives taken by the Government to promote the pharmaceutical

sector in India are as follows:

 India plans to set up a nearly Rs 1 lakh crore (US$ 1.3 billion) fund to provide boost to companies to
manufacture pharmaceutical ingredients domestically by 2023.
 In November 2019, the Cabinet approved extension/renewal of extant Pharmaceuticals Purchase Policy
(PPP) with the same terms and conditions while adding one additional product namely, Alcoholic Hand
Disinfectant (AHD) to the existing list of 103 medicines till the final closure/strategic disinvestment of
Pharma CPSUs.
 Under Budget 2020–21, Rs 65,012 crore (US$ 9.30 billion) has been allocated to the Ministry of Health
and Family Welfare is. The Government has allocated Rs 34,115 crore (US$ 4.88 billion) towards the
National Health Mission under which rural and urban people will get benefited.
 Rs 6,400 crore (US$ 915.72 million) has been allocated to health insurance scheme Ayushman Bharat
– Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
 As per Economic Survey 2019–20, Government expenditure (as a percentage of GDP) increased to
1.6% in FY20 from 1.2% in FY15 on health.
 The National Health Protection Scheme is the largest Government funded healthcare programme in the
world, which is expected to benefit 100 million poor families in the country by providing a cover of up to
Rs 5 lakh (US$ 7,723.2) per family per year for secondary and tertiary care hospitalisation. The
programme was announced in Union Budget 2018–19.
 The Government of India is planning to set up an electronic platform to regulate online pharmacies
under a new policy to stop any misuse due to easy availability.
 Government of India unveiled 'Pharma Vision 2020' to make India a global leader in end-to-end drug
manufacture. Approval time for new facilities has been reduced to boost investment.
 Government of India has offered Rs 6,940 crore (US$ 942.8 million) production linked incentives
between 5–20% for incremental sales and plans to set up three mega drug parks to drive sustainable
cost competitiveness
 Profile of company

Textile sector 1
Tourism Industries 1
2
 Pharmaceutical Industries

Cipla Limited

Cipla Limited, incorporated on August 17, 1935, is a holding company. The Company is a pharmaceutical
company. The Company's strategic business units include Active Pharmaceutical Ingredients (APIs), Respiratory
and Cipla Global Access. The Company's geographical segments include India, USA, South Africa and Rest of
the World. The Company offers its products for the therapeutic areas, including cardiovascular, children's health,
dermatology and cosmetology, diabetes, human immunodeficiency virus/acquired immuno deficiency syndrome
(HIV/AIDS), infectious diseases and critical care, malaria, neurosciences, oncology, ophthalmology,
osteoporosis, respiratory, urology and women's health. Its manufacturing facilities are located in Goa, Bengaluru,
Baddi, Indore, Kurkumbh, Patalganga and Sikkim.

The Company manufactures over 200 generic and complex APIs. The Company has a total API manufacturing
capacity of approximately 1,000 metric tons. Its respiratory products are available in over 100 countries. The
Company offers a portfolio of inhalation products, with over 30 molecules and combinations across a range of
devices, to suit individual patient needs. The Company manufactures metered dose inhalers, dry powder
inhalers, nasal sprays, nebulizers and a range of inhaled accessory devices. The Revolizer is a dry powder
inhaler. Cipla Global Access is a tender-based institutional business that concentrates on approximately four
therapy areas: HIV/AIDS, malaria, multi drug-resistant tuberculosis and reproductive health. The Company caters
to over 300,000 patients around the world in the reproductive health and family planning segment. Cipla Global
Access also provides medications for infections caused by helminths, schistosomiasis and kala azar.

Cipla Vet is the Company's animal health division. It offers veterinary products in the categories, including
companion care, equine, livestock, poultry, swine and aqua products. The Company's product range covers
therapeutic segments, such as anti-infectives, anti-inflammatories, anti-thyroids, immunosuppressants,
parasiticides, nutraceuticals and feed additives. Cipla Vet develops and manufactures various dosage forms,
such as Spot-on, Oral Paste, Oral Powder, Sterile Injection, Beta Lactam oral formulation, Immunosuppressant
Soft Gel Capsule and External Spray. It supplies animal health products in various markets, including the United
States, Europe, Australia, New Zealand, South Africa, Hong Kong, Turkey, Korea, Brazil and Mexico.
Swot
Sun Pharmaceutical
Industries Limited
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat, with five
products to treat psychiatry ailments. Cardiology products were introduced in 1987 followed by
gastroenterology products in 1989.

Today, it is the largest chronic prescription company in India and a market leader in psychiatry,
neurology, cardiology, orthopedics, ophthalmology, gastroenterology and nephrology

- The 2014 acquisition of Ranbaxy made Sun the largest pharma company in India, the largest Indian
pharma company in the US, and the 5th largest speciality generic company globally.

- Over 72% of Sun Pharma sales are from markets outside India, primarily in the United States. The
US is the single largest market, accounting for about 50% turnover; in all, formulations or finished
dosage forms, account for 93% of the turnover. Manufacturing is across 26 locations, including
plants in the US, Canada, Brazil, Mexico and Israel. In the United States, the company markets a large
basket of generics, with a strong pipeline awaiting approval from the U.S. Food and Drug
Administration

- These manufacturing units are located in India, the US, Brazil, Canada, Egypt, Hungary, Israel,
Bangladesh, Mexico, Romania, Ireland, Morocco, Nigeria, South Africa and Malaysia. Our units
ensure that we are able to provide best-in-class products to patients across 150 countries
worldwide.
SWOT
Literature Review
 Objectives

1. To know about Textile , Tourism & Pharma Industry ?

2. Impact of COVID-19 on 3 Industry ?
3. How the company is affected ?
4. Why they impacted and what kind of strategies they adopt to reduce losses ?
Conceptual Frame Work

COVID-19 Impact on
COVID-19 Impact on Cipla
Biblography

1. https://www.mbaskool.com/brandguide/pharmaceuticals-and-healthcare/3322-cipla.html
2. https://www.capitalmarket.com/Company-Information/Information/About-Company/Cipla-
Ltd/114#:~:text=Cipla%20Ltd%20is%20one%20of,wide%20range%20of%20therapeutic
%20categories.
3. https://www.ibef.org/industry/textiles.aspx
4.