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.
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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
|
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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