Firms with rural exposure feel buoyant as IMD predicts normal monsoon

A third of FMCG sales and half of motorcycle sales come from the hinterlands

The forecast of a normal monsoon this year has brought cheer to firms that have significant exposure to rural areas.

This includes auto, fast-moving consumer goods (FMCG), durables and seed majors. A third of FMCG sales come from the hinterlands, while one in every two motorcycles sold in India is in the countryside. In the case of durables, 20-25 per cent of sales for companies comes from rural, while tractor and seed majors depend completely on the farm sector.

Ajay S Shriram, chairman & senior MD of fertiliser major DCM Shriram, said, "Good rabi output for 2016-17 has led to an improvement