List Of Top Monopoly Companies In India

List Of Top Monopoly Companies In India
List Of Top Monopoly Companies In India

A market is a place where two parties deal for some product or service. One party who buys is the buyer and the other is the seller. There are different types of markets that exist in an economy like oligopoly, monopoly, auction market, black market, financial market, etc.

A monopoly is a marketplace where there is a single seller dealing with a particular commodity. The seller of that commodity possesses full control over the supply of that commodity.

When they possess full control, the seller gets the power in the market to set the price of that particular product or service.

Features Of Monopoly Companies

  • There is one producer with ‘n’ number of buyers.
  • There is no possibility of any substitute close to that product sold.
  • It is difficult for the entry of new producers.
  • The monopoly market is considered as the price maker because the producer of a particular industry possesses full control over the world.
  • There is a price discrimination i.e. the producer can change the price as well as the supply of the product or the commodity.

There Are Different Types Of Monopoly

  • Perfect monopoly: it is also known as an absolute monopoly. In this type of monopoly, there is only one producer or the seller. In this type of monopoly, there is zero competition i.e. zero probability of entering of new producer or seller.
  • Imperfect monopoly: it is also known as a relative monopoly. In this type of market, there is a probability of substitute i.e. there is the remote possibility of entering the new seller and also a probability of competition.
  • Private monopoly: in this type of monopoly, the product or the commodity is controlled or owned by either a private body or a private organization.
  • Public monopoly: when a monopoly is possessed by the government itself, it is known as a public monopoly. It is a government monopoly.
  • Simple monopoly: this type of monopoly is known as a single-price monopoly
  • Discriminating monopoly: in this type of monopoly, there are different prices to different customers for the same commodity or services.
  • Legal monopoly: this type of monopoly is legally protected from the competition of the market.
  • Natural monopoly: the utility industries are the good example of natural monopoly i.e. gas, power, water.
  • Technological monopoly: the example of these monopolies are the software industry, automobile industry, etc.
  • Joint monopoly: it is a monopoly which is a result of two or more monopolies like by way of amalgamation, syndicates, etc.

Top Monopoly Companies In India

1. Hindustan Aeronautics Limited: it was established in 1940. This aerospace and defense company is a government-owned company with a total stake of 75% in the company. The headquarters of this company is situated in Bangalore, India.

This company is today associated with designing and assembling the parts of jet engines, aircraft, and helicopters.

2. IRCTC: IRCTC stands for Indian Railway Catering & Tourism Corporation. It was founded in 1845. Headquarter is situated in New Delhi, India.

It is a public type of industry. It is one of the largest railway industries in the world. Recently, the Indian government has announced to privatize the railway industry. The main services provided by this industry are catering, tourism, hospitality services, and online ticketing.

3. Nestle Cerelac: it was found in 1866 as Anglo-Swiss condensed milk Company. Its founder was Henri Nestle. In 1905, it established as Nestle & Anglo-Swiss Condensed Milk Company. It is a food processing industry. It is a public type of company.

This industry possesses a 96.5% market share in Indian Market. Nestle is the most valuable brand of food globally in the domain of infant nutrition and milk substitute product. The main products are baby food, coffee, cereals, confectionery, pet food, dairy products, etc.

4. Coal India Ltd: it was found by the Government of India itself. Headquarter is in Kolkata. It is the largest coal-producing industry. The Indian government has a shareholding of 66.13% in this industry. This is a public undertaking and its business is to refine and mine the coal.

5. Hindustan Zinc Ltd: this company was found in 1966 having its headquarter in Udaipur, Rajasthan. It is a public undertaking. The products which are dealt with in this industry are zinc, lead, silver, and cadmium. The business involved in this industry is mining and smelting. the Government of India holds a 29.5% stake.

6. ITC Ltd: it was found in 1910 as Imperial Tobacco Company of India limited as of now, it has renamed as Indian Tobacco Limited. It is a public undertaking. The products are cigarettes and other consumer goods.

7. Marico (oil products): it was established in 1990. It is a public type of company. This industry has the worldwide area serving. The products are personal care, skincare, and convenience foods. One of its most famous and competing products is saffola which is refined oil. This product leads the market with a share of 73%.

8. Pidilite Industries: it was established in 1959 by Balwant Parekh. It is a public type of company. It is a chemical industry as its main products are adhesives, construction chemicals to arts, sealants, waterproofing solutions, etc. this company possesses a market share of around 70%.

9. CONCOR: it was established in 1988. It is a transport industry. CONCOR stands for Container Corporation of India. It is a subsidiary of the Indian Railway. The ministry of Railways manages it. The core business is done by this industry warehouse operating, cargo carrier. It possesses a market share of around 68.52%.

10. BHEL: BHEL stands for Bharat Heavy Electricals Limited. It was found in 1964. It serves the area worldwide. It is a government-owned industry. This industry is the country’s largest power generation equipment manufacturer.

At present, the Indian government has ownership of 63.17% in this industry. The main products are gas & steam turbines, boilers, electric motors, generators, heat exchangers, etc.

Also Read: How To Do Fundamental Analysis Of Stocks

Conclusion

We have seen the monopoly companies in India. For an investor, investing in any of these companies may be profitable because these companies have a MOAT that every investor looking for, but the share price of monopoly companies may be higher than their actual price.

Therefore it is suggested to do a complete analysis of stocks before investing.

FAQ

Q. Is Nestle a monopoly?

Ans. Nestle has the monopoly in cerelac segment, Nestle has the highest market share by value in Baby Foods, Dairy Whitener, and Sweetened Condensed Milk.

Q. Is ONGC a monopoly?

Ans. Yes ONGC is the largest crude oil and natural gas company in India, contributing 75% of Indian domestic production.

Q. What are 4 types of monopolies?

Ans. Private monopoly: In this type of monopoly, the product or the commodity is controlled or owned by either a private body or a private organization.

Public monopoly: When a monopoly is possessed by the government itself, it is known as a public monopoly. Technological monopoly: The example of these monopolies are the software industry, automobile industry, etc.

Joint monopoly: It is a monopoly that is a result of two or more monopolies Example Coca-Cola, Pepsi, Visa, And Mastercard.

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