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Sectors with fragmented profits

Sectors where it is difficult for a single company to corner a significant share of industry profits


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Finally, there are industries that are so fragmented, localised or have so much unorganised-sector participation that it becomes difficult for a single company to corner a significant share of industry profits. The following sectors see sector leaders gaining industry profit share numbers only in their teens.

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The textile sector is a classic example. With so many unorganised and unlisted private players, it is no surprise that Welspun, the sector leader, takes in only 17 per cent of listed-sector profits. If unlisted and private players are taken into consideration, Welspun's profit share could fall much lower.

Construction is a similar sector. Among listed realty players, Unitech is the largest profit-share taker. However, the sector is loaded with unlisted private players.

Plastics is another example. The proliferation of small- and medium-scale enterprises in the sector that largely operate on a localised basis means Sintex, the largest profit taker of the sector, can walk away with only 19 per cent of industry profits.

FRAGMENTED: No single company takes significant portion of sector profits

Industry/companyRevenue
(Rcr)
Revenue
share (%)
Net profit
(Rcr)
Net profit
share (%)
Plastic products676012722
Sintex Industries*713410.5553419.62
Supreme Industries42066.2231210.58
Construction: Real estate511265143
Unitech34316.7182816.1
DLF764914.964699.12
Finance - NBFC626838650
Shriram Transport Finance917714.64102811.89
M&M Financial Services60219.6192510.69
Textile983893538
Welspun India*49285.0160717.14
Arvind78517.983389.54
* Financial data as of June 2015; Rest all data as of March 2015

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