1. Introduction 1 Market Structure and Competition in Competitive Industries 3


Table 2. Consumer Non-Durable Goods Industry



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Table 2. Consumer Non-Durable Goods Industry:

Changes in HH Index of Concentration in Selected Industries: 1993-94 and 2002-03





Industry

1993-94

2002-03

1

Biscuits

500

1660

2

Soaps

500

370

3

Synthetic Detergents

1500

2690

4

Lamps & Tubes

1400*

1850

5

Infant foods

3000

3830

6

Malted milk foods

4000

4030

Note: * 1995-96

Source: Market Size and Shares, August 1999 and July 2004,CMIE




The market structure in many consumer durables industries is characterised by oligopoly. The estimates of HH index for selected industries, for two years, are shown in table 3. Concentration levels show a marked increase in five industries, namely automobile tyres, audio systems, mopeds, motorcycles, and bicycles. All five industries have one major firm with a high market share: MRF (Market share 24 percent) in automobile tyres, Hero Honda (Market share 50 percent) in Motorcycles, TVS Motor (Market share 46 percent) in mopeds, and Hero Cycles (Market share 40 percent) in Bicycles. In the Audio-equipment industry, Videocon International Ltd has emerged as a dominant firm. In the auto-rickshaw industry, Bajaj Auto is a dominant player, with a market share of 75 percent.

Table 3.
Consumer Durable Goods Industry:
Changes in H-H index of concentration: 1993-04 and 2002-03







1993-94

2002-03


1

Automobile Tyres

1090

1900

2

Air-Coolers

6730

5690

3

Air Conditioners

2030

950

4

Electrical Fans

1430

1530

5

Washing Machines

3610

3190

6

Refrigerator

3490

1690

7

Audio Systems

3550

5690

8

Scooters

3670

3150

9

3-Wheelers (auto-rickshaws)

8500

5340

10

Mopeds

2320

3770

11

Motor Cycles

2520

2920

12

Bicycles

2330

2840

13

Passenger Cars

4750

2730

14

Watches & Clocks

2950

2920

Source: CMIE Market Size and Shares August 1999 and July 2004




  • Intermediate Goods

Two industries belonging to the industry category ‘textile fibre intermediates’, namely, Polyester Staple Fibre (PSF) and Viscose Staple Fibre (VSF), have a substantial increase in concentration levels. In the PSF industry, Reliance is the dominant player with a market share of 54 percent. It is reported to be the world’s fifth largest producer of PSF. In the VSF industry, Grasim is the dominant player, with a market share of 91 percent (almost a pure monopoly). The other two industries that have experienced increased levels of concentration are Paints &Varnishes and Storage batteries. In Paints & Varnishes, three firms have more than 63 percent of the total market. They are Asian Paints, Goodlass Nerolac and Berger Paints. In storage batteries, Exide Batteries has achieved dominance with a market share of 62 percent. Its market share increased from 53 percent after it acquired Standard Batteries in 1998.


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