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Companies operating with wide margins

Companies that operate with such a high share of industry profits that their nearest competitors end up playing nothing more than second fiddle to them

Companies operating with wide margins

Then there are companies that operate with such a high share of industry profits that their nearest competitors end up playing nothing more than second fiddle to them.

Switzerland-headquartered dyes and pigments manufacturer Clariant Chemicals gulps away 74 per cent profits of the organised industry. Its closest competitor Bodal Chemicals takes only 7 per cent of industry profits.

Asian Paints rules the organised paint industry and has done so for many years now. There has been a slew of international paint manufacturers that have tried their luck in the country but none has been able to shake off Asian Paints' hold in the industry. The company takes away 66 per cent of industry profits, while the closest competitor, Kansai Nerolac, has to contend with only 7 per cent.

The oil-exploration giant ONGC drills 70 per cent of all exploration profits in the country. Cairn India, its closest competitor, gets only 18 per cent of the profits.

In the refinery business, ad-hoc subsidy policies of successive governments, which have resulted in losses for the state-run refiners, have allowed Reliance Industries to corner 65 per cent of all sector profits to itself. Beleaguered state refiner BPCL gets only 14 per cent of industry profits.

In the engineering space, there is really no competition to L&T, whose scale and size ensure that it takes 72 per cent of the sector profits.

In the household and personal products space, HUL shows who the king is. Its control over the Indian demography is so complete that it cleans up 50 per cent of the entire industry profits.

Similarly, Bata India, the largest shoe retailer in the country, despite going in and out of fashion, still jogs away with 42 per cent of the organised footwear profits in a sector that is populated with unlisted and unorganised sector players.

CRISIL rules the ratings business, with 57 per cent of industry profits, while the closest competitor CARE corners 28 per cent of the industry profits.

In the technology space, TCS, the country's largest software company, takes away one-third of sector profits alone while the erstwhile market favourite Infosys still controls 21 per cent of the industry profits.

Banking industry behemoth State Bank of India counts away 42 per cent of all public-sector bank profits. Its closest competitor, Bank of Baroda, has to be content with only 9 per cent of industry profits.

Sun Pharma shows it is the boss in the domestic pharma space. Despite integration issues with Ranbaxy, Sun corners 22 per cent of the organised pharma sector profits in the country.

Here are some more companies that operate with a wide margin of industry profit share.

WIDE MARGINS: 60-90 per cent of industry profits taken by single company

Industry/companyRevenue
(₹cr)
Revenue
share (%)
Net profit
(₹cr)
Net profit
share (%)
Aluminium1148051661
NALCO72626.33132279.57
Manaksia11080.971046.25
Diesel engines105191150
Cummins India440641.8978668.33
Kirloskar Oil Engines250723.8314312.45
Lubricants6990822
Castrol India336248.0952163.37
Tide Water Oil103714.8415919.29
Banks: Public68849341984
State Bank Of India20797430.211751741.72
Bank Of Baroda449156.5238339.13
Engineering: Industrial equip266861187
Inox Wind270310.1329624.96
Thermax539620.2214812.47
Dyes & pigments54791272
Clariant Chemicals96017.5193973.79
Bodal Chemicals103618.9927.21
Fertilisers776572442
Tata Chemicals1720322.1580733.06
Coromandel International1130614.5640216.45
Paints256082167
Asian Paints1502358.66142765.86
Kansai Nerolac Paints358714.0127512.7
Pesticides & agrochemicals271072452
UPL1209144.6116647.57
Bayer CropScience361513.3438315.62
Ceramics / sanitaryware9558498
Kajaria Ceramics*222323.2519338.69
HSIL194220.328517.17
Oil exploration18805525302
ONGC15907584.591767369.85
Cairn India146467.79448017.7
Refineries136549336608
Reliance Industries37543527.492364064.58
BPCL24241917.75508213.88
Diamond & jewellery904212209
Titan Company1191313.1881636.96
Rajesh Exports**4352748.1450923.06
Electronic components134711528
Bharat Electronics689551.19119778.35
Honeywell Automation199614.82895.8
Household & personal products669618789
Hindustan Unilever3197247.75437649.78
Dabur India782711.69106812.16
Leather10438449
Bata India219721.0519242.67
Relaxo Footwears147314.1110322.93
Gas transmission / marketing654743924
GAIL6051592.43307178.27
Indraprastha Gas36705.6143811.15
Hospital & healthcare services6750419
Apollo Hospitals517876.7132577.63
Kovai Medical Center4015.95399.19
Pharmaceuticals & drugs15606023958
Sun Pharmaceutical2728717.48548922.91
Piramal Enterprises51233.28269011.23
Engineering construction1440966892
Larsen & Toubro9200563.85493471.59
IRB Infrastructure38472.675427.87
Steel & iron products970583442
JSW Steel5297254.58172049.96
Tube Investments Of India96989.9968419.86
IT software31448758227
TCS*9820531.232019634.68
Infosys5331916.951237321.25
Logistics256471901
Container Corporation of India614923.98105455.45
Allcargo Logistics562921.9524713
Ratings1860460
CRISIL*127668.6126357.21
CARE*26314.1313128.53
* Financial data as of June 2015.
** Financial data as of December 2014. Rest of the data as of March 2015.


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