A market leader is a company that has the largest market share in a specific industry. A market leader is a product, brand, company, organization, or group name that has the highest percentage of total sales revenue in a certain market.
Market leaders exert market dominance by influencing customer loyalty, distribution, and pricing, among other things. In a new market, the market leader typically enjoys a first-mover advantage.
Here are three companies that have a market share of 65 percent in the Indian Market.
NRB Bearings Ltd
NRB has pioneered the leading edge of bearing technology. The Company is engaged in the business of manufacturing ball and roller bearings having its applications in the automotive sector as well as across all mobility applications. The company claims that 90% of vehicles on Indian roads are run on NBR parts.
The company belongs to the Small-cap category with a market capitalization of Rs 2,720 crores. On September 28, company shares were trading at Rs 280.30 apiece.
NRB Bearings is a recognized leader in needle roller With an estimated market share of 60% in the industry in India, with a strong presence in the cylindrical roller, special tapered roller, and special ball bearings segments.
Exports of the company have been a key growth driver and its share is gradually increasing accounting for 28% in FY22 against 26% in FY21.
The company revenue climbed by 15 percent year on year, from Rs 236 crore in Q1FY23 to Rs 2,026 crore in Q1FY24. During the same period, the company’s net profit decreased by 25 percent, from Rs 24 crore to Rs 18 crore.
In FY22, 56% of its sales were of Needle Roller Bushes and Cages, 29% were from Ball and Roller bearings and 15% were from Automobile components. NRB derives nearly 65-70% of its revenues from domestic automobile original equipment manufacturers.
Suprajit Engineering Ltd.
Suprajit is one of the largest manufacturers of mechanical control cables with a presence in both automotive and nonautomotive segments, primarily engaged in the manufacture of speedo cables, auto lighting, and other components for automobiles.
Suprajit Engineering has developed to become one of the leading producers of mechanical cables for the domestic 2-wheeler category, with a market share of over 65%.
The company belongs to the Small-cap category with a market capitalization of Rs 5,661 crores. On September 28, company shares were trading at Rs 410.30 apiece.
The company revenue climbed by 5 percent year on year, from Rs 645 crore in Q1FY23 to Rs 679 crore in Q1FY24. During the same period, the company’s net profit increased by 22 percent, from Rs 27 crore to Rs 33 crore.
The medium-term margin range guidance has been maintained at 13% -15%, however, the management-guided EBITDA margin range for FY24 is 12% to 14% due to muted growth expectations in LDC business.
The company has been receiving a healthy order book across the segment and new orders are assumed to be coming with a better margin profile than historical orders. Suprajit Group plans to divide its business into 4 key divisions such as Suprajit Control Division, Domestic Cable Division, Phoenix Lamps Division, and Electronic Division.
GMM Pfaudler Ltd
The company manufactures and sells a variety of structural steel works, industrial machinery, and glass-coated chemical containers and storage tanks in both horizontal and vertical designs.
GMM Pfaudler is a leading participant in the glass-lined equipment sector, with more than 50% market share.
The company belongs to the Small-cap category with a market capitalization of Rs 8,448 crores. On September 28, company shares were trading at Rs 1,879.15 apiece.
The company revenue climbed by 23 percent year on year, from Rs 739 crore in Q1FY23 to Rs 912 crore in Q1FY24. During the same period, the company’s net profit decreased by 11 percent, from Rs 61 crore to Rs 54 crore.
GMM Pfaudler is the largest manufacturer of glass-lined equipment in India. The company manufactures corrosion-resistant glass-lined equipment.
Written by Omkar Chitnis
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