The shift was largely because of two reasons. First, some of the small and mid-sized players, especially in the unorganised sector, shut down due to the lack of adequate liquidity to sustain operations. Two: there was a heightened need among consumers to prefer trusted, well-known brands and companies.
This worked in favour of large companies with a strong balance sheet, brand power and quality services. For investors, it will be a worthwhile exercise to identify such companies that have gained market share. These companies are likely to perform better than their peers during times of economic uncertainty. ETIG presents five prominent companies.
InterGlobe Aviation: Lack of adequate working capital to meet daily expenses, high debt, ban on air travel due to the pandemic, and a rising cost structure due to firm crude oil prices impacted most airlines. But the story of InterGlobe Aviation, which runs IndiGo, is different. A lean cost structure and relatively higher cash on the books than peers helped the airline during testing times. Its market share improved to 56.2% at the end of September 2022 from 47.9% at the end of February 2020. This offers a clear edge to the airline at a time when competition is intensifying from new entrants amid improving travel demand.
Britannia Industries: The market share of Britannia Industries, one of the largest FMCG companies in the country, has expanded by 2-3% to 40% over the past few years. The company has consistently gained market share in the past 38 quarters, taking its portion of the biscuit segment to a 15-year high. A widening chain of dealers, broader distribution networks and new product launches in the biscuit segment were the major factors that improved market share.
Hindustan Unilever: India’s largest FMCG company
has gained market share in 90% of its product portfolio. According to the company, this is the highest in more than a decade. HUL is a market leader in the ice-cream, coffee and oral care segments. Besides, the company has a market share of 61% in shampoo, close to 75% in conditioners and more than 50% in soaps and skin creams. Some of the factors contributing to the market share gain include changing product strategies to suit customer demand and innovation in design and packaging.
TVS Motor Company: One of the leading two-wheeler manufacturers in India, TVS Motor has benefited from new launches across segments, which have boosted market share. Its share of the two-wheeler and scooter segments jumped to 17.5% and 21.5%, respectively, in the September quarter from 14.8% and 18.3%, respectively, at the end of March 2020.
PVR: After the merger of PVR and , the combined entity will have over 1,546 screens. This amounts to over 16% of the total screen capacity (single screen and multiplex) of the industry and 57% of multiplex screen capacity. Besides, the combined revenue share of these two entities in the Hollywood and Hindi film markets provides the combine with an edge over its peers. According to the industry’s estimates, the combined entity will have over 40% market share of box office collections in India.