June this year is one of the driest months since 1951, giving farmers and planners sleepless nights.
While some are worried stiff, there are others who are looking at the bright side of a bad monsoon. There are a number of companies that are likely to register higher sales if monsoon go off the point from its regular path.
According to India Meteorological Department, the country has received a mere 92.4 millimeters of rainfall during the last months, which are 43% less than the average seen between 1951 and 2000. If rainfall fall short or continues to be the same, then sales of companies involved in making inverters, cooling solutions and ice creams are likely to soar.
A few such companies that could benefit from a sub-par monsoon:
Voltas: A market leader in the air conditioner space in India, the company will benefit from higher sales of air-conditioners as the soaring temperatures are likely to extend further than their usual months.
19.8% market share in the air-conditioner segment is retaining by the Tata Group Company. The cooling business division contributed about 39% to its total sales in FY14.
The heat wave across the country will help it push its cooling solutions. So, the Blue Star Headquartered in Mumbai is planning to increase its market share in the air-conditioner segment by up to 9% in FY15. The cooling product division of the company contributed about 41% to its total sales in the fourth quarter of FY14, with profits from air-conditioners being accounted for this segment.
Exide Inds: A battery manufacturer for inverters and automobiles, it is likely to post higher battery sales meant for the home inverter segment. According to analysts believe, in case of a higher power deficit due to rainfall shortage, the battery volumes are likely to see an uptick and that home inverter battery contributes nearly 20% to its sales.
Symphony: An air-cooler is a market leader in the air cooler space. Historically, this company has recorded higher sales during the scorching summer months. It enjoys a market share of nearly 40% in an organized market worth Rs. 3,000 crore.
Vadilal Enterprises This Company derived 96% of its income from the ice cream/frozen dessert segment, as per the FY13 annual report.
Ice cream sales are expected to pick up because of the heat which, in turn, will enhance the profitability of the company.