Emami's high dependence on rural sales may prove to be a boon this year

Firm says improvement in wages, direct benefit schemes, loan waivers and MSPs will lead to higher disposable income for rural households.

Considered as Emami’s bane last year, the company’s high dependence on rural sales may prove to be a boon this year. Rural sales of the fast-moving consumer goods (FMCG) major count for more than 50 per cent of its top line, the highest compared to its peers like HUL, Dabur and Marico, among others.

Abneesh Roy, a research analyst with Edelweiss Securities, says the growth in rural India will be higher than that in urban areas, and companies like Emami will stand to gain the most from this.

“It is natural that when the growth in the rural economy outpaces