ABS (Acrylonitrile Butadiene Styrene)
Only three company in this segment.
Supreme Petrochem Ltd
New entry with 77k TPA capacity recently commenced.
Bhansali Engineering Polymers Ltd
Company recorded highest ever production of ABS and SAN aggregating to 75152 TPA (as against the installed capacity of 75000 TPA). Co. enhancing ABS production capacity from 75000 TPA to 200000 TPA at Company’s existing plants at Abu Road and Satnoor.
Styrenix Performance Materials Ltd
Current Combined Capacity: ~200,000 tons for FY26 (ABS + PS) in India and Capacity: ~120–125KT (ABS, SAN, rubber, compounding) in Thailand.
ABS Capacity Expansion: 50KT new ABS capacity to be commissioned towards end of CY26
2 Oligopoly leaders with great moats that I have come across recently are
Indus Towers: The tower infrastructure industry consolidated after the telecom disruption following Jio’s entry in 2016. High capex requirements, technical expertise, regulatory hurdles, and network effects act as barriers to entry, creating an oligopolistic market structure. Currently, there is only one major competitor: Altius Telecom Infrastructure Trust, which operates as an InvIT.
Indus Towers holds a structural business advantage over the long term, as InvITs are required to distribute at least 90% of their net distributable cash flows. This forces Altius to fund its growth primarily through debt, which is unsustainable over time.
In addition, Indus Towers has delivered normalized ROIC and PAT margins of over 20% over the past five years. The stock is currently undervalued due to uncertainty surrounding Vodafone Idea. I have attached my investment thesis on the company below. Indus Towers Ltd - An Investment Thesis.pdf (2.7 MB)
International Gemmological Institute (IGI): IGI is the second-largest diamond certification company globally and the only listed player in the sector. With over 50 years of operating history, it was the first to issue certifications for lab-grown diamonds, establishing an early lead in this segment. Lab-grown diamonds now contribute over 60% of its revenue.
The company’s brand name, technical expertise, network effects, and first-mover advantage create significant barriers to entry, resulting in an oligopolistic market structure similar to that of credit rating agencies. Its financial profile also resembles that of a credit rating agency, with an ROIC of 175% and a PAT margin of 46%.
Its main competitor is GIA, which remains the gold standard for natural diamond certification. This positions IGI second in natural diamond certification and leader in lab grown diamond certification. The company IPO’d in December, 2024 and currently, the valuation seems a bit steep.
