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Companies that club industry profits

Here are companies that form a group to take out the entire industry's profits

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This is a category of the companies that form a group to take out the entire industry profits.

Take the mining sector. This is the domain of public-sector enterprises. Two companies, Coal India and NMDC, together take away 95 per cent of the industry's profits. Given Coal India's monopoly, it is not surprising that the company takes away 65 per cent of the sector's profits.

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There are really no comparable quality alternatives to Exide and Amara Raja when it comes to automotive batteries. These two together take away 90 per cent of the organised battery-market profits in the country.

There are also instances where three or four companies together take away the entire sector's profits.

In the ratings game, CRISIL, CARE and ICRA own the profits. In paints, Asian Paints, Kansai Nerolac and Berger together take away 90 per cent of the organised industry profits. In air conditioners, Voltas, Lloyd and Hitachi freeze 86 per cent of the organised-sector profits.

Of course, this study takes into account only listed companies that have public data available. Every industry has unlisted players, sometimes a significant player, like Honda in two-wheelers or Samsung or LG in domestic appliances. We have tried to make a note of such unlisted major private players wherever possible.

Phenomenally, the big four of IT industry - TCS, Infosys, Wipro and HCL Tech (excluding Cognizant) take away 84 per cent of listed company profits for the sector. This is from a list of 133 software companies under consideration.

In sanitaryware, the organised industry is dominated by three players, Kajaria, HSIL and Cera, with industry leader Kajaria cornering twice the profit share of its closest competitor.

The following table shows the main Club Profits companies.

CLUB PROFITS: Two or three companies take away the majority of industry profits

share (%)
Net profit
Net profit
share (%)
Carborundum Universal205058.7113851.53
Grindwell Norton113532.5110438.84
Kaveri Seed116137.4930168.62
Air Conditioners13411643
Lloyd Electric & Engineering217316.28813.75
Hitachi Home & Life157311.737812.1
Automobiles: Passenger cars1212446383
Maruti Suzuki4929540.66379159.38
Mahindra & Mahindra7194959.34259340.62
Bajaj Auto2161436.1281250.33
Hero MotoCorp2730345.6234942.03
Exide Industries953556.4261654.18
Amara Raja Batteries421124.9241136.12
SKF India238139.1620539.05
FAG Bearings*166627.3916832.03
Ceramics / sanitaryware9558498
Kajaria Ceramics*222323.2519338.69
Cera Sanitaryware*8548.937014.01
Diesel engines105191150
Cummins India440641.8978668.33
Kirloskar Oil Engines250723.8314312.45
IT software31448758227
HCL Technologies3570911.35730612.55
Tide Water Oil103714.8415919.29
Mining & minerals9030020999
Coal India7201579.751372765.37
Oil exploration18805525302
Cairn India146467.79448017.7
Asian Paints1502358.66142765.86
Kansai Nerolac Paints358714.0127512.7
Berger Paints India432216.8826512.21
Pesticides & agrochemicals271072452
Bayer CropScience361513.3438315.62
PI Industries19377.1524610.03
Reliance Industries37543527.492364064.58
Great Eastern Shipping343829.7174845.13
Essar Ports165414.2939323.69
Shipping Corporation of India415435.920112.12
Travel services6532217
Thomas Cook273941.9310448.13
Cox & Kings255639.139041.69
*Financial data as of June 2015. Rest of the data as of March 2015.

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