10 Companies which have more than 75% Monopoly in their Sector

Top 10 Companies having more than 75% Monopoly in their Sector

What number of Indian companies would you be able to name that are monopolies? Let's identify one of Warren Buffets' favorite categories 'monopolies'.

What is Monopoly?

Monopoly refers to the category of companies which are market leaders and having major competitive advantage in their respective industry.

As India is a growing economy, it is very difficult for any company to build up its monopoly in its respective sector since tough competition and government restrictions than however there are certain companies which can't state clearly as a monopoly yet having a major market share in their own sector.

All these companies have made their monopoly in their sector not on the basis of their market capitalization but for their presence in the respective sectors for more than 100 years, accepting technology, ease of transformation/modernization, R&D, Economic Moat, and so forth.

In this way, here are some of the public/private sector companies having monopoly of more than 75% in their respective fields/sectors.

So, Lets's begin.

1. Indian Railways Catering and Tourism Corporation (IRCTC)

• IRCTC is a Public Sector Corporation that serves in ticketing, catering, and tourism in the Indian Railways.

• IRCTC is a Government owned entity and the only company in the India that operate in the sector.

• This makes it a monopoly as consumers have no other alternatives.

• The company was founded in the year 1845. From 1845 it is having monopoly and serving till now.

• It is probably the largest railways in the world and is one of the world's largest employers too.

• Rail networks are generally considered as Natural Monopolies as one train can utilize the track at a given time.

• In 2018, it was completely owned by the Government of India yet in 2019 Indian Ministry of Railways sold some percentage of shares to public.

• It is the market leader in the Railway sector with market share of almost 100%.

• Current Market Price: ₹ 1409

2. Hindustan Aeronautics Limited (HAL)

• The company was set up in 1940 by Walchand Hirachand and the Government of Mysore, with the aim of manufacturing Aircraft in India.

• The Hindustan Aeronautics Ltd. represents the Indian Aviation Industry and plays a very important role in the Defense Sector of India.

• HAL is an Aerospace and Defense Company owned by Government of India and is headquartered in Bangalore, India.

• It is governed and administered by the Ministry of Defense.

• It is the market leader in the Defense sector with market share of 100%.

• Current Market Price: ₹ 845

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3. Cerelac

• Cerelac is a brand of cereal created by Nestle.

• The cereal is made for babies of a half year and more considered as a alternative to breast milk, at this point the only item in a baby's nutrition.

• Cerelac is considered as an alternative for breast milk, encouraged to continue breast feeding or infant formula along with Cerelac.

• Nestle is one of the universes leading nutrition, health, and wellness company which was set up in 1866 in Switzerland.

• It is the market leader in the Cerelac sector with market share of approx 96%, regardless of working in an open to all industry.

• Current Market Price: ₹ 18560

4. Coal India Limited

• Coal India Limited is a Kolkata based public sector company for coal mining and refining.

• It is owned by the Central government and is managed by the Ministry of Coal.

• The company contributes around 82% to the absolute coal production in India.

• It is the Largest coal-producing company on the planet.

• It was just this year that the government reported that the coal sector would now be opening up for commercial mining conceivably finishing its imposing business model later on.

• It is the major market player in the Mining sector with market share of around 82%.

• Current Market Price: ₹ 135

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5. Hindustan Zinc Limited (HZL)

• Hindustan Zinc Limited is a mining company and resources producer of Zinc, Lead, Silver and Cadmium.

• The company was incorporated as Metal Corporation of India in 1966 as a Public Sector Undertaking.

• It is a subsidiary of Vedanta Limited which holds 64.9% stake in HZL.

• HZL is the World's Second Largest zinc producer.

• It is the market leader in the Zinc Mining sector with market share of approx 78%.

• Current Market Price: ₹ 242

6. India Tobacco Company Limited (ITC)

• ITC Limited is an Indian Multinational Conglomerate Company founded in Kolkata, West Bengal.

• Set up in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.

• ITC has a broadened presence across industries, for example, Cigarettes, FMCG, Hotels, Packaging, Paperboards and Specialty Papers and Agribusiness.

• It is the market leader in the Tobacco area with market portion of approx 77%.

• Current Market Price: ₹ 210

7. Marico

• Marico Limited is one of the leading companies providing consumer products and services in India.

• It has brands in various sectors like hair care, skin care, edible oils, health foods, male grooming, and fabric care etc.

• Marico is one of the notable FMCG companies in India however the majority of its success lies in its two brands Saffola and Parachute.

• Saffola which competes in the premium refined Edible Oil Segment has maintained its market leadership with a portion of 73% and Parachute then again holds a market portion of 59%. These likewise form up to 90% of their income.

• It is the market leader in the Edible Oil Segment with market portion of approx 73%.

• Current Market Price: ₹ 402

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8. Pidilite Industries Limited

• Pidilite Industries Limited is an Indian Adhesives Manufacturer.

• It additionally sells art material, construction chemicals and other industrial chemicals.

• Pidilite's product range incorporates adhesives and sealants (Fevicol and M-seal), construction and paint chemicals (Dr. Fixit), automotive chemicals, industrial adhesives, and industrial and textile resins.

• It is the market leader in the Adhesives area with market portion of approx 70%.

• Current Market Price: ₹ 1732

9. Asian Paints Limited

• Asian Paints Limited is an Indian origin multinational paint company.

• Asian Paints is India's largest and third largest paint company in all over Asia.

• The company is in the business of manufacturing, selling and distribution of paints, coatings, products identified with home decor, bath fittings and giving of related services.

• It is the market leader in the Paint with approx 70% market share.

• Current Market Price: ₹ 2650

10. Container Corporation of India Limited (CONCOR)

• Container Corporation of India Limited is 'Navratna' awarded Public Sector corporation administered by the Ministry of Railways.

• Set up in March 1988 under the Companies Act, CONCOR initiated operations in November 1989 assuming control over a current network of seven Inland Container Depots (ICDs) from Indian Railways.

• CONCOR's center businesses incorporate that of cargo carrier; terminal operator, warehouse operator and MMLP operation.

• It is the market leader in the Cargo sector with market share of approx 70%.

• Current Market Price: ₹ 395

Conclusion

For a value investor, a monopoly or huge Moat stock is like a gold mine.

This is since, in such a case that one can locate a suitable Moat stock to put resources into they give significant returns in the long turn.

However, investors should keep an eye out as these stocks much the same as other Blue Chip companies are by and large overvalued and can prompt lower returns or misfortunes.