Market leader refers to a company holding the largest market share in an Industry. Those market leader companies will enjoy the highest profitability margin as well.
Market leaders frequently benefit from first-mover advantage in new markets and they frequently introduce new products that may redefine the consumer experience in terms of product quality, lifespan, simplicity of use, etc.
Here are three companies with market shares of up to 65% in their respective sector.
Laxmi Organic Industries Ltd
Laxmi Organic Industries Ltd a significant producer of Acetyl Intermediates and Specialty Intermediates, has been India’s biggest exporter of ethyl acetate, accounting for around 30% of the Indian ethyl acetate market.
With a market share of around 55% and one of the largest portfolios of diketene products in India, the Company is the only maker of diketene derivatives.
Laxmi Organic Industries Ltd shares closed Friday at Rs 252.95 a share, down 0.94 percent, with a market capitalization of Rs 6,717 crores.
Laxmi Organic has entered Fluoro Speciality Intermediates industry by acquiring the assets of an Italian company.By this it has helped the firm de-risk and diversify its operations while also allowing it to enter the innovative pharma, agriculture, and specialty chemicals industries.
In fiscal year 22-23, revenue fell 10% year on year to Rs 2,693 crore, while net profit fell 42% to Rs 134 crore.
Indiamart Intermesh Ltd
Indiamart is the largest online B2B marketplace in India, connecting customers and providers. The company is focusing on integrating Small and Medium-Sized Enterprises (SMEs) into the new paradigm.
The company controls over 60% of the online B2B classified market, making it the industry’s top player. It has 7.3 million supplier storefronts and 160 million registered buyers in its portfolio.
The company has been diversifying its presence, and currently metro cities account for 32% of total purchasers, tier-2 cities account for 25%, and the rest of India contributes for 43%.
On Friday, Indiamart Intermesh Ltd shares closed at Rs 3,151 a share, up 8.64 percent, with a market capitalization of Rs 19,293 crores.
Customers’ collections have increased at a CAGR of 20% over the previous seven years, reaching INR 264 crores in the second quarter of FY23.
Company’s sales climbed by 31% year on year to Rs 985 crore in FY 22-23, while net profit increased by 4% to Rs 321 crore.
VST Tillers Tractors Ltd
V.S.T.Tillers Tractors Ltd is a joint venture with Mitsubishi Heavy Industries Ltd, Japan.The company manufactures engine components for both power tillers and tractors.
The company is the largest Indian manufacturer of tillers and 4WD Compact Tractors, as well as a prominent maker of other Tractors, Engines, and Transmissions. VST is the market leader in the sector, with a market share of more than 65% in the country.
On Friday, VST Tillers Tractors Ltd shares closed at Rs 3,009.15 a share, down 1.44 percent, with a market capitalization of Rs 2,599 crores.
In addition, the firm expected to reach its revenue target of Rs 1,000 crore in the tractor industry by 2025 with aggressive development into northern regions and launch of new products in the higher HP class.
In FY 22-23, the company sold 38,247 Power Tillers, a 20.36 percent increase over the previous year, and 6,875 tractors, a 14 percent decrease over the previous year.
In FY 22-23, VST Tillers sales increased by 18 percent year on year to Rs 1,006 crore, while net profit decreased by 7 percent to Rs 92 crore.
Written by Omkar Chitnis
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