Here are the worst-affected industries in flood-wrecked Kerala

Over the past week, Kerala has been in the grip of a massive, unprecedented flood following heavy monsoon rains, causing huge loss to life and property, and crippling the tourism and services-heavy economy.  According to estimates, one in five BSE500 companies has direct or indirect exposure to Kerala and the impact of the floods is likely to show up in their second-quarter results. A look at the affected sectors and companies
Tyre and rubber

Kerala is the largest producer of rubber. The output of natural rubber, the principal raw material in tyre production, is likely to take a hit this year. Rubber is a key input used to manufacture tyres. Decline in domestic availability of natural rubber will hurt production at tyre companies, such as Apollo Tyres, CEAT and MRF. The development comes just ahead of the peak producing months - September and October. Since August 1, the Apollo Tyres stock price has fallen 11%. From 291.60 level, the stock has fallen to 259 level currently.


Tea

India is the second largest producer of tea with an annual output of 1,275 million kg, or around 24% of the world's tea production. Kerala is the fourth largest producer of tea in the country. Industry players feel the tea trend in South India is "bleakÔ?? as July and August production is expected to be very low because of rains in most of the growing regions of Kerala, Karnataka and the Anamalais.

Rice

Rice is the most important food crop grown in Kerala. It occupies 7.46% of the total cropped area. Paddy production is expected to fall by 50,000 tonnes in the coming harvesting season. Around 40,000 hectares of agricultural land has reportedly been destroyed in the floods.
Spices and others

According to the Economic Survey of Kerala, the cropping pattern in the state is dominated by cash crops constituting 63% of the total cropped area. Total spices export from India stood at 1.08 billion kg in 2017-18. The top two spices produced in the country are black pepper and cardamom, both produced in Kerala. The drop in production will come as a rude shock to the industry just ahead of the peak growing months - September and October. The sector is already battling low prices and was looking to recover from last year's drought.
Tourism

Kerala is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The state's unique heritage and cultural diversity have helped attract tourists from world over. Tourism industry, the backbone of Kerala's economy, was badly hit by the floods. With the closure of the Cochin International Airport, which caters to most outstation arrivals, tourist destinations saw over 95% cancellations.
 

Banking

A few banks and non-banking finance companies are likely to feel the after-effects of Kerala floods. For banks, non-performing assets (NPAs) will increase. For NBFCs, the main impact could be in the form of accretion in fresh slippages and rise in credit cost, especially for small businesses.
 

Coffee

Kerala is the second largest coffee producing state in India, contributing over one-fifth of the country's total production. While Kerala accounts for 20.8% of India's coffee production, Wayanad district in the north-eastern part of the state produces its largest share. Arabica and Robusta are the most common varieties, and about 80% of the produce is exported. Wayanad, Travancore and Nelliampathi have high concentration of coffee plantations. They are also among the areas affected by the Kerala floods and the resulting landslides.

FMCG companies

Higher levels of literacy and an aspirational middle class have made Kerala a key market for FMCG companies. Products such as Parachute Hair Oil from Marico can see some disruptions as manufacturing will depend on copra procurement in Kerala. It is also the biggest market for coconut hair oil and disruptions will be visible in the coming quarters.

Insurance covers

Insurance companies expect that the flood-affected people may claim over Rs 1,000 crore. The claims will be largely from losses in motor, property, animal husbandry and crop cover. Insurance Regulatory and Development Authority of India has asked insurance companies to settle claims of flood victims in Kerala quickly and with minimal paperwork.