A monopoly is a Domination set by a company in a sector, by which a single company becomes large enough to nearly own all of the markets.
Monopoly may be formed due to government interference, the complexity of the sector, etc.
Monopoly companies have a very high market share, very high demand, and a wide network.
These companies less likely to be bankrupt or unprofitable.
These Characteristics make those companies best for investment, also, investing in these companies is risk-free, which makes these companies best for value investing.
let’s see one by one.
Indian Railway Catering and Tourism Corporation (IRCTC) is a fully owned subsidiary company of Indian Railways that provides services like ticketing, tourism services, and catering to the Indian Railways.
It was initially fully owned by the Government of India and operated under the Indian Ministry of Railways but since 2019 it has been listed on the National Stock Exchange, with the Government continuing to own the majority ownership.
Market capitalization: 28,076 cr INR
Hindustan Aeronautics Limited is an Indian-owned aerospace and defense company.
Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defense manufacturers in the world. HAL began aircraft manufacturing as early as 1942 with licensed production of Harlow PC-5, Curtiss P-36 Hawk, and Vultee A-31 Vengeance for the Royal Indian Air Force. HAL currently has 11 dedicated Research and development (R&D) centers and 21 manufacturing divisions under 4 production units spread across India.
The Board of Directors managed the HAL is appointed by the President of India through the Ministry of Defence Government of India.
HAL is currently involved in designing and manufacturing fighter jets, helicopters, jet engines, and marine gas turbine engines, avionics, software development, spare supply, overhauling, and up-gradation of Indian Military aircraft.
Market capitalization: 33,060.89 cr INR
Coal India (Coal Mines)
Coal India Limited (CIL) is an Indian government undertaking and coal mining and refining entity under the ownership of the Ministry of Coal.
It is the largest coal-producing company in the world and comes under public sector undertaking.
Coal India contributes and controls around 82% of the total coal production in India.
Coal India Ltd is majorly owned by the Union Government of India who controls its operations through the Ministry of Coal.
As of 14 October 2015, CIL’s market capitalization stood at 2.11 lakh crore INR (US$30 billion) making it India’s 8th most valuable company.
CIL has 8th rank among the top 20 firms responsible for a third of all global carbon emissions.
Market capitalization: 95,244.97 cr INR
ITC Limited is a fully-owned subsidiary of British American Tobacco Plc.
ITC has a diversified product presence across different industries such as Cigarettes, FMCG, Hotels, Packaging, Paperboards & Specialty Papers, and Agribusiness.
Aashirvaad, Sunfeast, Bingo, yippee, Classmate, Gold Flake.
Market capitalization: 2,52,515.94 cr INR
Pidilite (adhesives and sealants).
Pidilite Industries Limited is an adhesives manufacturing company in India.
It also produces and sells art materials, construction chemicals, and other industrial chemicals, etc.
It manufactures and sells consumer products segment products such as art materials & stationery, publications, fabric care, Car products, food, and adhesives & sealants, companies specialty products are industrial adhesives, industrial pigments, textile resins, and leather chemicals.
Pidilite dominate markets by its Fevicol range of adhesives.
Pidilite also has other brands such as FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron, etc.
Market capitalization: 94,008.38 cr INR
Hindustan Zinc (Zinc-lead)
Hindustan Zinc Limited (HZL) was a Public Sector Undertaking, an Indian mining company, and the majority producer of zinc, cadmium, and lead-silver.
It was sold by the Government of India to Vedanta Limited when Atal Bihari Vajpayee and Bharatiya Janta Party Government was in power in the year 2003.
It is now a subsidiary of Vedanta Limited. HZL is the world’s second-largest zinc producer.
Its FY2018 revenues stood at 22,084 crores INR.
HZL is one of the world’s largest and major producers of zinc and is among the Top global lead and silver producers.
As part of the Government’s disinvestment program of loss-making Public Sector Undertaking, in 2001 the company was put up for sale.
Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for the acquisition of shares of the Hindustan Zinc Limited.
In April 2002. HZL runs the world’s third-largest open-pit mine, and also World’s largest Zinc Mine in Rajasthan.
Other mines with HZL are located in Rajpura and Dariba, Sindesar Khurd, Kayar, and Zawar, all are in Rajasthan.
HZL is one of the low-cost zinc producers in the world.
Market capitalization: 1,33,182.05 cr INR
IEX (Power trading)
The Indian Energy Exchange (IEX) is an system-based power trading exchange handle and regulated by the CERC (Central Electricity Regulatory Commission) in India.
IEX started its operations on June 27, 2008.
Indian Energy Exchange pioneered the development of power trading in India and provide its services to other various participants also, in the power market in India.
It has over 6600 official Registered clients, and a total of 500 private generators, and it also has more than 3,200 industrial electricity consumers.
Market capitalization: 11,896.89 cr INR
Concor (Container cargo transport)
Container Corporation of India Limited (CONCOR) is a fully-owned subsidiary of Indian Railways. established in March 1988, CONCOR started its operations from 1989 taking over an existing network of seven inland container depots from Indian Railways.
CONCOR concentrated on three core businesses in the cargo carrier such as terminal operator, warehouse operator & MMLP operation.
Market capitalization: 37,974.27 cr INR
MCX (Commodity trading)
Multi Commodity Exchange of India Ltd (MCX) is an independent Indian government-owned commodity exchange based in India.
MCX comes under the Ministry of Finance, Government of India.
It was established in 2003 by the Government of India as a Commodity Exchange.
It is India’s largest commodity derivatives exchange.
The average daily turnover of commodity futures are increased by 26%, it was 32,424 crores INR during FY2019-20, as against 25,648 crores INR in FY2018-19.
The total turnover of commodity futures traded on the Exchange stood at 83.98 lakh crore INR in FY2019-20.
MCX provides options trading in gold and also futures trading in non-ferrous metals, bullion, energy, and a number of agricultural commodities (mentha oil, cardamom, crude palm oil, cotton, etc).
Market capitalization: 8,177.08 cr INR
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