Monopolies, Duopolies, and Oligopolies

Question is based on four listed entities. All part of Duopolies. Rating agencies CARE and Crisil and the Depository Participants, CDSL and NDSL. Care and Crisil enjoys premium on the basis of ‘halwa’ WALA business. Institutional ownership, high moat, thriving business etc. But the same cannot be said about CDSL. What could be the possible reasons? Next, what are the other Duopolies and Olugopolies in India. I believe Asian Paints and Berger Paints could be considered one. Avanti, Watermark and Apex frozen foods will be in shrimp sector. What are the other polies that are worth looking for?

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Thirumalai Chemicals and IG Petrochemicals -Manufacturers of Phthalic Anhydride -Duopoly

Balkrishna Tyres -Off Highway Tire Manufacturers- Monopoly

Harita Seats and Bharat Seats -Manufacturers of Seat for Automobiles -Duopoly

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If we are considering in terms of business then may be the MOAT or monopoly is not true but if we see with respect to being the only listed Paperboard Mono Carton Producer. TCPL Packaging can be considered.
Uflex is the only indian company in Aseptic Packaging(Earlier 90% market was with Tetrapak)

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y u said that ? CDSL cannot raise prices etc . regulator control everything on the other hand rating agencies r bit more independent.

A very nice topic…

OCCL is stock which enjoys virtually monopoly in the market… OCCL manufactures Insoluble sulfur (IS), which is used in the manufacturing of the radial tyres. It gives strength to tyre. All the major tyre companies like MRF, CEAT, JK Tyre, Apollo tyre, etc are client of OCCL. As of now, globally there are only three major players who manufactures IS. Eastman in USA and Shikoku in Japan. OCCL is the third largest manufacturer in world and only manufacturer of IS in India. OCCL has also a strong moat here. Their new capacities start to work at optimal capacity within 1 year of setup. This shows the high demand… Plus, they have formula based pricing for their clients… this passes on any price hike to their clients… so even if it is commodity based play, it has no charactaristics of it… it could be the exception… better availability of RM… formula based pricing, huge client base, Strong margins, strong moat, virtual monopoly, all this makes it an attractive game…

Why it is expected to enjoy virtual monopoly…
• The Industry has strong entry barriers as the industry is closely guarded by technological knowhow and it takes at least 3-4 years for any new entrant to actually start production due to environmental approvals and plant setup.
• Thereafter it takes another 2 years to tie-up with the tyre manufacturers. Existing users of IS do not easily switch to the new entrants due to their relation with current players and lack of quality assurance.
• Insoluble sulphur cost 1% to 2% of total cost of tyre manufacturing which makes them more conscious about quality than price and make new player difficult to enter the market.

better availability of RM… formula based pricing, huge client base, Strong margins, strong moat, virtual monopoly, all this makes it an attractive game…

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BEPL and Ineos Styrosolution is duopoly for SAN & ABS production

I was looking for ceramic companies kajaria and cera were best and also in basmati companies krbl ltfoods and chamanlal setia can be considered in list of only few listed players

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I think balaji amines and alkyl amines are duopolies
Although both are now expanding production so there will be oversupply, a typical characteristics of commodity business
Ie, “business does good, collects excess cash and then invests it into the business to do more of what they are already doing, creating overcapacity which gets sold at discounts leading to some closure of capacity which again increases prices” or versions thereoff

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Aia engineering in grinding media
OCCL in insoluble sulphur
Vinati organics in niche chemicals
Garware in a few value added segment has no competition
Alkyl amines/Balaji Amines
P I Industries business has no substitute in India
Balkrishna Industries- only Alliance tyre from India
Gmm Pfaudler and Hle (oligopoly)
Divi’s in few of the drugs
IRCTC
Indiamart
Infoedge (Naukri,zomato,99acres,policybazaar)
Hester Bio (only3-4 competitiors)

Go either where competition is weak or dumb. Most of these companies have been multibaggers.

Disclosure- invested in AIA,ALKYL,P I , DIVIS and Hle

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Add to the list is Fine Organic Ind (No competitor in India for their several of Oleo based products and proprietary technology) and one of the top global leaders. Proxy to FMCG too.

Off Highway tyres are manufactured by other companies too

not just BKT

Varun Beverages - Sole bottler for Pepsi in India and Africa
Mishra Dhatu - MIDHANI - Specialty steel used by Defense and ISRO
IRCTC - Govt. owned train services operator
CCL Products - Duopoly in Instant coffee manufacturing with Tata Coffee (There are other manufacturers around the world in Coffee though in Vietnam and Brazil)
Sheela Foam - Parent of Sleepwell mattress. In branded mattress play has duopoly with Kurlon.

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Duopolies --> CAMS and K-Fintech (formerly Karvy) …

my view is market is more skewed to CAMS due to its financial strength and 70 % of RTA market share …

This is from a whatsapp message I received a few weeks ago:

IEX >90% market share in power trading.

Zydus wellness >90% market share in sugar free product.

Eicher motors >85% market share in 250cc bikes category.

MCX >85% market share in commodity trading.

ITC >75% market share in cigrattes.

Honda Siel >75% in portable power generators.

Asahi India Glass >70% market share in automotive glass.

Pidilite >65% market share in adhesives.

Exide >60% market share in lead batteries.

Vst Tillers >50% market share in
Power tillers.

Vinati Organics >50% market share in IBB

OCCL >50% market share in IS.

LMW >50% market share in textile machinery.

Bajaj consumer >50% market share in almond hair oil.

Asian paints >50% market share in decorative paints.

Colgate >50% market share in oral care.

Symphony >50% market share in
coolers.

PGHH >50% market share female care & vaporub.

La Opala Rg >50% market share in opalware.

Maruti suzuki >50% market share in passenger cars.

GMM pfaudler >50% market share in glass lined equipment.

Marico >40% market share in hair oil (coconut) & edible oil.

HUL >40% market share in soaps, household products.

Nestle >40% market share in Instant noodles. >95% in infant nutrition.

Blue dart >40% market share in air express courier service.

VIP >40% market share in luggage.

USL >40% market share in spirits/whisky.

UBL >40% market share in beer.

Sundram fasteners >40% market share in fasteners.

Nocil <40% market share in rubber chemicals.

Gillette <40% market share in razors & blades.

TTK Prestige <40% market share in pressure cookers.

Hero Motocorp <35% market share in 2 wheelers.

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Hello all.any one tracking monopoly duopoly or even sector with very few player with less competition and they are undiscovered and are still microcap companies.This type of companies could be very small when compared to large players but they grow faster then large players. They can be competing no 1 player but no 1 player dont cares so much or takes them seriously because of there tiny size.This type of companies would be the stocks which can change fortune.mostly we find them in our daily life activities or business or jobs either directly or indirectly.

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Do you have an example or this is your personalised wish list ?

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Nestle India Market share in Segment it Operates

Noodles Market – 60%
Infant Cereals – 96%
Instant Pasta – 65%
Chocolates – 60%
Instant Coffee – 50%

ITC Market Share in Segment it Operates

Cigarette - 84.27 - Gold Flake, Classic, Wills, Flake and Navy Cut
Packaged Wheat – 30% - Aashirvaad
Cream Biscuits – 25% - Sunfeast
Chips market – 30% - Bingo
Notebooks market – 25% - Classmate

HUL Market Share in Segment it Operates

Oral market care – 15%
Soaps market – 40%
Laundry care – 40%
Shampoo market – 50%
Cosmetics – 20%
Branded Tea – 20%

Godrej Consumer Products Market Share in Segment it Operates

Household Insecticides – 50%
Hair Color Segment – 30%
Soaps – 10%

Marico Market Share in Segment it Operates

Coconut oil – 59%
Premium Edible oils – 73%
Oats – 25%
Hair gels and creams – 60%

Dabur Market Share in Segment it Operates

Toothpaste – 10%
Honey – 50%
Ayurveda tonics – 60%
Juices – 45%
Digestives – 50%
Amla Hair Oil - 60%

Procter and Gamble Market Share in Segment it Operates

More than 50% market share in diaper, sanitary napkins and shaving razor market
25% market share in Shampoo
20% in Laundry Care

Britannia Market Share in Segment it Operates

Biscuits - 38%

United Spirits Market Share in Segment it Operates

Hard Alcoholic drinks - >50%

United Breweries Market Share in Segment it Operates

Beer - >50%

Maruti Suzuki Market Share in Segment it Operates

Passenger Cars - 50%

Pidilite Market Share in Segment it Operates

Adhesives - 70%

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Around 2 years back, I was interested in studying companies that were market Leaders.
Balaji Amines was one of them, it was among few Amine manufacturing companies in India (Kind of oligopoly here) at that time price was around Rs 300.

At that time on the valuepickr forum I read that since the company entered into the Hotel segment, the market was punishing it for poor capital allocation decision.
Now after 2 years the Price today is Rs 3,419.20 (all time high 5,200 +)
EPS is Rs 92.84

Similarly many market leaders such as IEX, IRCTC, Divis lab, etc have performed very well.
This made me interested in Market leading companies, it would be nice if we could take benefit of such opportunities.

I have compiled data in the google Sheet for 109 such companies with the following attributes.
Company name,
Business segment which the company Dominates
Share price,
Market Capitalization,
P/E ratio
52 Week high/lows
Company website link.

This sheet is made to be used as a watchlist for these market leading companies.

I have gathered data from various sources,
Those are post of @long_list above, Quora and from blog named interviewbubble.com

Notes:
Cases such as in:
In pharma sector, we would get many companies that have specializes in either one drug or another.
Example: Pfizer is leader in Becosules capsules, multivitamin tablet.

  • Modison metal is a small cap company which is market leader is electrical contacts, which are used in switchgear, which in turn are used in electrical equipment’s.
  • Lactose India, it’s another small cap company claiming to be leader in lactose production in India
    So many such companies do exist, but the list does not cover all of them.

(please do your own research, I have just compiled the data from various sources)

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