#Instant Noodles Making Machine Manufacturer in India

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What are the Steps of Noodles Making Machines?

Instant noodle making machines are sophisticated pieces of equipment designed to automate the entire noodle production process. From mixing the dough to packaging the final product, these machines handle it all with precision and efficiency. Here’s a closer look at how they work:

1. Dough Preparation

The process begins with the preparation of the noodle dough. Ingredients such as wheat flour, water, and seasoning are mixed together in a dough mixer. Modern machines are equipped with advanced mixers that ensure the dough is consistently blended, achieving the right texture and elasticity for noodle production.

2. Dough Kneading and Rolling

Once mixed, the dough is kneaded to develop its gluten structure, which is crucial for the noodles’ texture. The kneading process is followed by rolling the dough into thin sheets. High-quality machines use rollers and sheeters to ensure uniform thickness, which is essential for even cooking and consistency.

3. Cutting and Shaping

The rolled dough is then cut into noodle strands. Machines can be adjusted to produce various noodle shapes and sizes, from traditional ramen to instant udon. Some machines are even capable of creating specialty shapes, catering to diverse consumer preferences.

4. Pre-Cooking

To make the noodles instant, they need to be pre-cooked. This is usually done through steaming or boiling. The pre-cooking process ensures that the noodles are partially cooked so they can be quickly prepared by consumers with just a short boiling time.

5. Drying or Frying

After pre-cooking, the noodles are either fried or air-dried. Fried noodles have a distinct texture and flavor, while air-dried noodles are considered a healthier option. The choice of method affects the final product’s quality and shelf life.

6. Packaging

Finally, the cooked and dried noodles are packaged. Instant noodle making machines come with automated packaging systems that fill, seal, and label the packages. This step is crucial for maintaining product freshness and ensuring the noodles reach consumers in optimal condition.

Benefits of Modern Instant Noodle Making Machines

1. Efficiency and Speed

Modern machines significantly speed up the noodle production process. Automation reduces the need for manual labor, leading to faster production times and lower costs. This efficiency allows manufacturers to meet high demand and maintain consistent quality.

2. Consistency and Quality

Advanced technology ensures that every batch of noodles is uniform in texture and flavor. Consistency is key in maintaining consumer satisfaction and brand reliability.

3. Flexibility and Customization

Many machines offer customization options, allowing manufacturers to produce different noodle shapes and sizes or adapt to varying recipes. This flexibility is crucial for catering to diverse markets and consumer preferences.

4. Cost-Effectiveness

While the initial investment in high-quality machines can be significant, the long-term savings on labor and production costs often outweigh the expense. Automated systems also reduce the risk of human error, leading to fewer defects and waste.

Conclusion

Instant noodle making machines Manufacturer are a marvel of modern engineering, playing a crucial role in delivering this global culinary staple to millions of homes. By automating the production process, these machines not only enhance efficiency but also ensure that every noodle is made to perfection. As technology continues to advance, we can expect even more innovations in noodle production, further revolutionizing the convenience food industry.

For more information

Visit our Website :- www.gulabsinghandco.com

Contact us :- +91–9953108079, +91–9313119875

[instant-noodle-making-machine]

Are you Looking for Instant Noodle Making Machine Manufacturer in India? Gulab Singh and Company

We are one of the leading Instant Noodle Making Machine Manufacturer, Suppliers in India. Instant noodles have become a staple food in many households globally, and the demand for efficient noodle-making machines is ever-increasing. Gulab Singh and Company cater to this demand with their cutting-edge instant noodle making machines.

Significance of Automated Noodle Making Machine

Automated noodle-making machines offer numerous benefits, including increased production efficiency, consistent product quality, and reduced labor costs. These machines streamline the noodle-making process, ensuring fast and reliable production.

Overview of Gulab Singh and Company

Gulab Singh and Company are pioneers in the manufacturing of instant noodle making machines, with years of experience and expertise in the industry. They are known for their commitment to quality, innovation, and customer satisfaction.

Key Features of Instant Noodle Making Machines

Gulab Singh and Company's machines boast advanced features such as precise dough mixing, customizable noodle thickness, automatic cutting, and packaging capabilities. These features ensure optimal performance and consistent results.

Types of Machines Offered

They offer a range of noodle-making machines to suit various production needs, including semi-automatic and fully automatic models. Semi-automatic machines provide flexibility and control, while fully automatic machines offer higher efficiency and productivity.

Advantages of Choosing Gulab Singh and Company

Clients benefit from Gulab Singh and Company's machines due to their reliability, durability, and user-friendly operation. Their machines are designed to meet stringent quality standards and deliver exceptional performance.

Customization Options Available

Gulab Singh and Company understand that each client's requirements are unique. They offer customization options to tailor machines according to specific production needs, ensuring maximum efficiency and productivity.

Installation and Training Services

They provide comprehensive installation and training services to ensure smooth operation and optimal performance of their machines. Their expert technicians guide clients through the setup process and provide training on machine operation and maintenance.

Conclusion

Gulab Singh and Company stand out as a trusted manufacturer of instant noodle making machines, offering innovative solutions to meet the evolving needs of the food processing industry. With their commitment to quality, reliability, and customer satisfaction, they continue to lead the market.

FAQs

1. Question: Do Gulab Singh and Company's machines require specialized maintenance? Answer: Their machines are designed for easy maintenance and come with user manuals detailing maintenance procedures.

2. Question: Can their machines produce different types of noodles? Answer: Yes, their machines can be customized to produce various types of noodles, including ramen, spaghetti, and udon.

3. Question: Do they offer technical support after the purchase? Answer: Yes, they provide ongoing technical support to address any issues or queries clients may have.

4. Question: What is the typical lead time for delivery of their machines? Answer: The lead time varies depending on the model and customization requirements, but they strive to deliver machines promptly.

5. Question: Are Gulab Singh and Company's machines energy-efficient? Answer: Absolutely, their machines are designed with energy-saving features to minimize energy consumption and operational costs.

Contact us right away, if you want to learn more about our wide range of instant noodle making machine products. Call us at +91–9953108079 or send an email to gulaabsinghcomp@gmail.com, we are India’s largest instant noodle making machine manufacturers and suppliers.

[aryaindustry]

Noodles-Making Machines in Patna: Arya Industries

In the evolving landscape of the food industry, noodles have emerged as a staple across India, catering to the growing demand for convenient, quick, and delicious meals. Noodles manufacturing has thus become a lucrative business, attracting entrepreneurs and small-scale manufacturers looking to capitalize on this trend. For those interested in entering this market, having the right equipment is crucial. In Patna, one name stands out as a trusted provider of high-quality noodles-making machines: Arya Industries.

Why Choose Arya Industries for Noodles-Making Machines?

Arya Industries has established itself as the leading provider of noodles-making machines in Patna due to its commitment to quality, customer service, and technological innovation. Here’s why Arya Industries remains the top choice for businesses looking to invest in noodles manufacturing:

1. Unmatched Quality and Durability

Arya Industries prides itself on delivering machines that are robust, durable, and efficient. The noodles-making machines are constructed using high-quality materials that ensure longevity and consistent performance. Whether you are running a small or large-scale operation, Arya Industries’ machines are designed to handle continuous production without compromising the quality of the output.

2. Wide Range of Noodles-Making Machines

Arya Industries offers a variety of noodles-making machines tailored to meet the specific needs of different businesses. Whether you are just starting out or scaling up, you can find the perfect machine with Arya Industries. The company provides machines in different capacities, from small units suitable for home-based businesses to industrial-grade machines capable of mass production. Each machine is engineered to produce noodles with a consistent texture, taste, and quality.

3. Advanced Technology and Customization

One of the reasons Arya Industries leads the market is its focus on incorporating advanced technology into its machines. The noodles-making machines come with user-friendly controls, allowing operators to easily manage the production process. Arya Industries also offers customization options, enabling customers to choose machines that cater specifically to their production requirements. The flexibility to customize settings ensures that businesses can produce a variety of noodle types, including instant noodles, ramen, and more.

4. Affordable Pricing and Value for Money

Arya Industries is committed to making high-quality machines accessible to all businesses by offering competitive pricing. The machines are designed to offer maximum output while minimizing production costs, ensuring that businesses get a high return on investment. This balance of quality and affordability is a key factor in why Arya Industries is trusted by entrepreneurs across Patna and beyond.

5. Comprehensive Support and Service

Beyond providing top-notch machinery, Arya Industries distinguishes itself through its exceptional customer service. From the initial consultation to post-purchase support, the company is dedicated to ensuring that clients have a seamless experience. The team at Arya Industries provides detailed guidance on installation, operation, and maintenance, allowing businesses to get the most out of their investment. Additionally, the availability of spare parts and prompt service ensures minimal downtime and uninterrupted production.

6. Local Expertise and Industry Reputation

Operating in Patna for years, Arya Industries has deep insights into the local market’s needs. The company has built a solid reputation for reliability and integrity, becoming the go-to choice for entrepreneurs and established businesses alike. Arya Industries understands the unique challenges faced by manufacturers in the region and provides solutions that are tailored to overcome these obstacles.

7. Sustainable and Hygienic Production

Arya Industries is committed to promoting sustainable manufacturing practices. The noodles-making machines are designed to minimize waste and optimize energy efficiency. Furthermore, hygiene is a top priority in food production. Arya Industries’ machines are equipped with features that ensure the entire production process is hygienic, meeting industry standards and regulations.

Conclusion

Arya Industries has cemented its position as the top provider of noodles-making machines in Patna through a combination of quality, technology, and customer-centric services. Whether you’re a new entrepreneur looking to enter the noodles manufacturing business or an established company seeking to upgrade your equipment, Arya Industries offers a range of solutions that cater to every need. With a focus on quality, durability, and efficiency, the machines provided by Arya Industries are designed to deliver superior performance and excellent value for money.

For businesses aiming to tap into the lucrative noodles market, partnering with Arya Industries is a step in the right direction. With its proven track record, comprehensive support, and industry expertise, Arya Industries remains the best choice for noodles-making machines in Patna.

Visit: https://www.aryaindustries.co/index.php

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BEST CHOOSE OF FOOD MACHINE MANUFACTURE-SHANDONG LOYAL INDUSTRY CO.LTD

Since its establishment, Shandong Loyal Industrial Co.,Ltd. has provided feasible solutions for every customer with 18 years of experience in the field of food machinery, from food raw material processing to finished product packaging (from A to B food making production line). Our factory is located in Jinan Shandong Province, covering an area of approximately 6000 square meters.

 With many years of production experience, at present, the machinery and equipment developed by Shandong Loyal Industrial Co., Ltd. are mainly used in breakfast cereals production line, instant/nutritious rice production line, grain nutrient powder production line, modified starch making machine, food extruder, industrial microwave system, biscuit production line, instant noodle production line, puff snacks processing line, breakfast cereal corn flakes  production line, fortified rice production line, soy protein (TSP) food, pet food and fish feed production line, packaging machine and other fields. The various types of food machinery and equipment developed by our company are sold to domestic provinces, cities, autonomous regions and other places. Our products are also exported to more than 50 countries and regions, including Germany, South Korea, Russia, Singapore, the United States, Indonesia, Vietnam, Thailand, Cambodia, Nigeria, Pakistan, Zimbabwe, the Philippines, South Africa, Central Asia, and India. Shandong Loyal Industrial Co.,Ltd. adheres to the corporate tenet of "Technology Innovation, Honest Management"; based on the principle of mutual benefit and common development, based on a high starting point, large investment, and high operation; adheres to standard and refined production standards, In order to ensure that every production link is well grasped, to create a safe and good brand.

 Quality: Quality is the foundation of a company's brand, and optimizing product quality is the company's goal of sustainable development. Shandong Loyal Industrial Co., Ltd. enjoys a high reputation in the global and domestic markets, and has passed ISO system, ISO900I certification, SGS certification, and has obtained 10 CE certificates and 25 technical patents. Shandong Loyal Industrial Co.,Ltd. has been recognized by more than 50 countries and regions. It has been rated as a trustworthy enterprise, a well-known trademark enterprise in Shandong Province, a governing unit of the Shandong Electronic Commerce Association, a sample enterprise of China's foreign trade export, and a vice-chairman unit of the Jinan Foreign Trade Enterprise Association. For example, at the 13th China International E-Commerce Conference, Shandong Loyal Industrial Co., Ltd. won the 2019 China E-Commerce Integrity Enterprise Award. At the same time, Shandong Loyal Industrial Co., Ltd. is also a cooperative enterprise unit of Shandong University of Technology and Linyi University, and a training base and practice base for technical personnel. Therefore, we will continue to move forward, do a good job of strict quality control, new technology development and provide better customer service.

 Innovation: Continuous innovation is the prerequisite for the survival and development of an enterprise. Shandong Loyal Industrial Co., Ltd. will continue to develop new products and services to ensure the company's competitiveness and a deep understanding of the growing needs of customers.

  Honesty: Insist on honest management is the foundation of business. Shandong Loyal Industrial Co., Ltd. has always been customer-oriented, providing perfect and efficient after-sales service, understanding the real needs of customers, and establishing long-term, mutual respect and mutual cooperation with customers. As always, we will provide customers with reliable products and perfect services, so as to seek common development and create good results.

 Shandong Loyal Industrial Co., Ltd. has a series of technicians, engineers, and sales and after-sales service personnel, forming a high-quality, young and innovative team, which has laid a solid foundation for the manufacture of excellent food machinery and equipment. Foundation. At the same time, Shandong Loyal Industrial Co., Ltd. has also established a complete after-sales service system to provide customers with convenient services such as installation and commissioning, operation training, maintenance and upgrading, and replacement of spare parts. Shandong Loyal Industrial Co., Ltd. will also continue to optimize the company’s management philosophy, product structure, and constantly improve the company’s organizational structure, business processes, management system, and corporate culture, to create a new image, create corporate competitiveness, and strive to achieve the vision of "creating value for every customer"! "SINCERITY IS THE SOUL OF LOYAL" This also inspires us-inspires us-to do what we do. Shandong Loyal Industrial Co.,Ltd. will continue to develop and forge ahead, and create value for customers with excellent products and services!

[cuetpreparation]

Noodles Making business project Report

Introduction:

Noodles are life! #life Noodle supremacy is such that 4 out of 5 people might have a fancy ramen bowl or instant cup noodles to instantly feed their taste buds. India has a variety of options when it comes to street food or a range of good ‘Instant food’. Noodle is a soul-satisfying of the majority of the youth at present. Noodle is widely enjoyed worldwide and it is one of the staple food of many Asian countries Profitability and Scope: As in profitability, the estimate for small-scale noodle manufacturing would least be around 33%, whereas if we take medium and large-scale industries the margin is somewhat around 47%. 

The scope for noodle manufacturing industry is relatively high as compared to other instant food products. The consumption of noodle is getting high every year, the forecast is that it would be increasing by 5% every year. In today's fast growing world, the market potential of noodles is high due to their instant and quick cooking  properties. As such, there is excellent market potential in  the following areas: urban and rural areas. The market level is increasing day by day due to the increasing number of consumers.

Process:

Let’s us try and understand what is the process of making Noodles in the factory:  

Dry mixes have an average moisture content of 10-11%. First, mix the three ingredients of maida, starch and baking soda in a vertical blender. You also need to mix food coloring.

With just boiling water, you can make a satisfying batter with the above mixture, and that's where the gelatinous starch is. After that, knead the ingredients in a kneader for about 12-15 minutes. 

Then put the kneaded dough into the pasta machine. From here you can make an extrusion of the desired shape and length. But you have to use the right kind of dice. Adjust the distance between the colored surface and the cutting blade.

The cut noodles are then dropped from the cutting machine onto wooden trays. The product should be dry to the surface  and  hard enough to handle without sticking or crumbling. The moisture content of the pre-dried product is approximately 29.5%.

Currently, the moisture content of the product is 17%. The final stage is steaming. After proper vaping, you can get a quality product with a longer shelf life.The moisture content of the steamed and dried product is around 10%. 

Market Size: Quoting the market research by: https://www.marketresearch.com/ “According to the World Instant Noodles Association, India is the fourth-largest instant noodles market, globally, and accounted for 5.4 Bn servings in 2017. Consistent growth, and an ever-growing consumer acceptance have made this market a lucrative option for various players. The instant noodles market in India was valued at INR 93.66 Bn in 2017, and is expected to expand at a compound annual growth rate (CAGR) of ~5.6% during 2018-2023. Among the various companies operating in the market, Nestle enjoys the highest market share (~60%), followed by ITC. Owing to its high rate of market penetration, Nestle could retain its popularity even after the ban on the marketing and sales of Maggi, because of the presence of excessive levels of lead, by the Indian government, in 2015. Following this, most companies focused on launching healthier versions of noodles using vegetables, atta, and oats. The market is infested with several players, including Nestle India Ltd. (Maggi), ITC Ltd. (Sunfeast Yippee Noodles), Hindustan Unilever Ltd. (Knorr Soupy Noodles), GSK Consumer Healthcare Ltd. India (Foodles), Indo Nissin Ltd. (Top Ramen), and CG Foods India Pvt. Ltd. (Wai Wai), among others.” “The overall demand of the instant noodles saw an uptake during COVID-19 as people sat at home looking for easy to consume food options. Maggi sales shot up by 25%. By 2035, the market is likely to grow by more than 4 times its current size, according to Sharekhan.” Conclusion: Undoubtedly, pasta making is a very profitable business that brings huge profits. Limited noodle production is a worthwhile endeavor in India. Since noodles are a food product, it is necessary to first raise brand awareness, then conduct promotional activities, and then establish appropriate distribution channels. Undoubtedly, the noodle industry is a highly profitable business that generates huge profits. Pictures:

[gulabsinghcompany]

Instant Noodle Making Machine 

Are You Looking for Instant Noodle Making Machine Manufacturer in India ? Gulab Singh and Co. is a leading manufacturer and supplier of Instant Noodle Making Machines in India. Their machines are designed for high efficiency, offering automated processes for mixing, steaming, cutting, and drying noodles. Ideal for commercial production, they ensure consistent quality and output with minimal labor. For more details Contact us@+91-9953108079, +91-9313119875

[sunshineweb]

India’s Market Leaders: My 10 Key Observations

This issue of Outside the Box newsletter is authored by Jatin Khemani. Jatin shares his key observations from analyzing market leaders across industries in India.

One common advice I find veteran investors passing on to next-generation investors is to look for companies dominating their industry and enjoying entry barriers ensuring their profit pool share is protected.

Now, ideally, we may think that the top 3-4 players by market share in any category should be qualified as ‘dominant players’ even if their respective market share is in single digit. However, for the purpose of this research, I have restricted my analysis to only those companies that enjoy at least a 35% share in their respective categories.

You must be thinking that it is quite a stringent filter and there would only be a handful of companies that will make it to the list – after all, we are a free economy with enormous capital chasing opportunities on one side and ever-tightening regulations in the form of competition commission etc., on the other.

But you would be surprised to learn that having spent just a couple of days and recollecting about all the companies I have studied or read about over the last decade, I could actually pin down a list of 60 listed companies that enjoy a market share of 35% or higher.

I am sure I must have missed out on many other listed companies and so the list may get longer and even more if one were to include a few unlisted businesses like NSE, a virtual monopoly, or Amul, which boasts of a 40% share of the cheese and other value-add dairy products market.

You would see the complete list at the end of this article. But before that, let me share the top 10 observations while analyzing this distinct sub-set of dominant businesses –

India’s Market Leaders: 10 Key Observations

18 companies have sales of less than Rs 1,000 crore (Cr) despite having a lion’s share of the addressable market. This implies that these categories are small in size with limited profit pool. For companies operating in such a tiny pool but with such high market share, it is almost impossible to grow any faster than the category growth. This implies, at best, they would grow in line with the industry. And if we want to see them growing revenues at 15-20% CAGR over the next several years, we must be able to either make a case for similar growth at the industry level or they strategically increasing their addressable market. For instance, La Opala which operates in the opal ware segment has an addressable market of only Rs 500 Cr. and it has already garnered a 50% share. From here on, the category growth is extremely important to support the company’s growth. Further, if at all, the category saturates at these levels, the competitive intensity among incumbents could only increase and in fact dent margins while peers chase growth or attempt to protect market share, which is a double whammy – no topline growth with margin compression. To make it worse, markets often de-rate such stocks and investors end up losing a significant chunk of capital. Same applies for Triton Valves – annual revenues of merely Rs 227 Cr. with a market share of 65%. In the case of Zydus Wellness, whose brand Sugar-Free has a 94% market share in sugar substitute category, the company is practically the category itself but the annual revenue is only Rs 500 Cr.

Second key observation is that most of these companies are pioneers – Nestle created the instant noodle category in India with its Maggie noodles, and so did Colgate in a country where otherwise everybody was using ‘daatun’ (neem sticks). Marico in the 1980s and 90s created premium edible oils category with its Saffola brand which is now being leveraged to seed newer categories like healthy breakfast (oats). To seed a new category is an extremely long and painstaking process (even loss-making initially) with little odds of success. But when successful, it is very rewarding. Pidilite Industries’ brands have been so strong for generations now, that they literally define the category – users know the product (adhesives) by the brand name (Fevicol, Fevistik, Fevikwik, Dr. Fixit), thanks to those memorable advertisements backed by the widest possible distribution. Asian Paints pioneered the involvement of households in choosing decorative paints while slowly eliminating the painters from being the decision maker. While they have been the market leader since the 1960s, the tinting machines (paint dispensers) which they installed at stores in the 1990s was perhaps the inflection point in getting dealer loyalty as well as offering far more variety to consumers.

Average age of these 60 companies is about 60 years. Moreover, 18 businesses have been in existence from the pre-independence era. The oldest of the lot is United Spirits (McDowell’s) which is 193 years old, followed by United Breweries (Kingfisher) which is 162 years old. This shows that it takes an enormous amount of time for any business to scale up and attain leadership and that there is simply no shortcut. There are only three businesses that came into existence in the 21st century – MCX (2002), IEX (2006) and Interglobe Aviation (2006). The first two are exchanges which pioneered their respective segments creating virtual monopolies given winner-takes-all characteristic of the business. The unusual name, however, is Interglobe, an airline (Indigo) which came into existence just 13 years ago and today four out of 10 domestic passengers fly Indigo – this might be the only airline globally to have achieved this kind of market share and that too in such a short span of time. It surely did benefit from big incumbents going bust but it also had the ability to dream big and make sizable bets which were followed by remarkable execution.

Barring a few like HUL and M&M (acquired Swaraj), most of these businesses have grown organically. It is no wonder that given the poor base rate of successful M&As, that the leaders shown in the list have earned and sustained this position through decades and centuries of effort rather than buying market share.

Few of the segments are winner-takes-all kind of market: MCX (Commodity Exchange), IEX (Power Exchange) and NSE (Stock Exchange) are virtual monopolies given in this business, liquidity attracts liquidity which becomes a virtuous cycle. Some of the auto incumbents also enjoy network effects and scale advantage like Maruti (4W), Bajaj (3W) and Hero (2W) from an ecosystem of ancillaries, sales dealership, service centers and availability of spares – all culminating into trust and reliability.

There are four companies from so called ‘sin’ sectors (no surprise here) – tobacco (ITC) and liquor (United Spirits, United Breweries and Radico Khaitan) where regulations make it extremely difficult for new entrants to make inroads letting incumbents enjoy high market share from customers who are addicted to their brand.

In cases like Wabco and Bosch, it is the perhaps the advanced, and in some cases even patented technology which has led to such high market share.

For all the companies the market shares mentioned are domestic, except Vinati Organics. It is one of the lowest-cost producer of ATBS (a highly versatile molecule used to make polymers) in the world which is why it enjoyed 40% market share globally until recently, a rare feat for any Indian manufacturing company. And then in 2018, it got lucky – Lubrizol, a key competitor with 25% global share decided to exit the industry. This has helped the company increase its market share further. Two more chemical companies make it to the list – Oriental Carbon and NOCIL, both make products that are largely used in tire manufacturing.

The only PSU to appear in this list, Coal India, is a monopoly created by the Indian government as ownership of all of the country’s coal mines (India has world’s largest coal reserves) are with this entity. Also in some cases, it is very difficult to fathom the true reason behind market dominance. Take for instance Jamna Auto or Setco. Why would they command 70-80% market share in an industry with little to no entry barriers? I think it could simply be a favorable competitive scenario; a lack of interest from any major group to enter and the inability of smaller/unorganized guys to compete, may be due to the relatively small size of opportunity or the associated cyclicality as both supply to Commercial Vehicle OEMs like Tata and Ashok Leyland.

Over 75% of these businesses are consumer-facing entities, enjoying some sort of brand loyalty and/or distribution advantage. Further, barring six businesses which are service and retail-oriented, rest all of them (90%) are into manufacturing. Lastly, there is no point of having only sales leadership if that doesn’t translate into above-average return on capital employed (ROCE) for the shareholders. So how has this set of companies fared on that metric? To avoid any extremes/one-offs instead of FY18, I pulled FY16-18 average ROCE for each of these businesses. The 3-year average ROCE for the entire set of these companies is an impressive 33.6%.

Overall, I believe, it is an interesting set of companies (click here to download the list) that should find a place on your watch list, which must be carefully watched for any investment opportunities that their stocks may provide going forward.

Note: Annual Revenues are segmental. Where segmental data is not available, consolidated revenues are shown with (C) to indicate the same. Market shares are estimated and sourced from annual reports, industry bodies, credit rating agencies and/or our research. Market share is based on the size of the organized market only.

Disclaimer: This is not a recommendation to Buy/Sell stocks. Rather, the sole purpose is education and information. The author and his colleagues and clients may have investments in stocks discussed.   About the Author: Jatin is the founder and CEO of Stalwart Advisors, a SEBI registered investment advisor.

The post India’s Market Leaders: My 10 Key Observations appeared first on Safal Niveshak.

India’s Market Leaders: My 10 Key Observations published first on https://mbploans.tumblr.com/

[gulabsinghcompany]

Instant Noodle Making Machine Manufacturer in India

Gulab Singh and Company is a renowned manufacturer of high-quality Instant Noodle Making Machines in India, catering to the growing demand for convenient food solutions. With a commitment to innovation and excellence, the company specializes in designing and producing state-of-the-art machinery that ensures efficient and consistent noodle production. Their machines are engineered to handle various types of noodle formulations, from classic to innovative flavors, while maintaining the highest standards of quality and hygiene. Equipped with advanced technology, Gulab Singh and Company's instant noodle making machines offer features such as automatic mixing, cooking, and drying, ensuring a streamlined production process. The machinery is designed for easy operation and maintenance, making it ideal for both small-scale enterprises and large-scale production facilities. The company’s dedication to customer satisfaction is reflected in their robust after-sales support and tailored solutions, making them a trusted partner in the instant noodle manufacturing industry. For more information Visit our Website :- www.gulabsinghandco.com Contact us :- +91-9953108079, +91-9313119875

[gulabsinghcompany]

Are you Looking for Instant Noodle Making Machine Manufacturer in India?

Introduction: In the bustling culinary landscape of India, where flavors dance and aromas tantalize, one essential staple stands out: noodles. Whether it’s the beloved street food favorite, instant noodles, or the gourmet delicacy of handcrafted artisanal noodles, the demand for quality noodles is ever-present. Enter Gulab Singh & Co., a leading manufacturer and supplier of noodle making machines in India. In this blog, we’ll delve into the world of noodle making machines and explore why Gulab Singh & Co. stands at the forefront of this industry.

Unveiling Gulab Singh & Co.:

Gulab Singh & Co. is a renowned name in the realm of food processing machinery, with a rich legacy spanning decades. Specializing in the design, development, and manufacturing of noodle making machines, the company has earned a reputation for excellence, innovation, and reliability. With a commitment to quality craftsmanship and customer satisfaction, Gulab Singh & Co. has emerged as a trusted partner for businesses and entrepreneurs seeking to venture into the world of noodle production.

The Importance of Instant Noodle Making Machines:

Instant Noodle making machines play a pivotal role in the food industry, offering a cost-effective and efficient solution for producing noodles on a large scale. These machines automate the labor-intensive process of noodle production, from mixing and kneading the dough to extruding and cutting the noodles into desired shapes and sizes. By streamlining production and ensuring consistency, noodle making machines empower manufacturers to meet the growing demand for noodles while maintaining high standards of quality.

Why Choose Gulab Singh & Co.?

1. Quality Assurance: Gulab Singh & Co. prioritizes quality at every stage of the manufacturing process, utilizing premium-grade materials and precision engineering to ensure durability, performance, and longevity of their noodle making machines.

2. Customization Options: Recognizing the diverse needs of their clients, Gulab Singh & Co. offers a range of customization options, allowing businesses to tailor their noodle making machines to suit specific requirements, such as capacity, noodle type, and production speed.

3. Technical Expertise: Backed by a team of skilled engineers and technicians, Gulab Singh & Co. provides comprehensive technical support, installation services, and training programs to ensure seamless integration and operation of their machines.

4. Commitment to Innovation: With a finger on the pulse of technological advancements, Gulab Singh & Co. continually strives to innovate and improve their products, incorporating the latest features and advancements to enhance efficiency, productivity, and user experience.

5. Customer Satisfaction: Above all, Gulab Singh & Co. is dedicated to exceeding customer expectations, fostering long-term partnerships built on trust, transparency, and mutual success.

Conclusion:

In a rapidly evolving food industry landscape, Gulab Singh & Co. stands as a beacon of excellence and innovation in the field of noodle making machines. With a legacy of quality craftsmanship, commitment to customer satisfaction, and a passion for pushing the boundaries of possibility, Gulab Singh & Co. continues to lead the way, shaping the future of noodle production in India and beyond. Whether you’re a seasoned manufacturer or a budding entrepreneur, partnering with Gulab Singh & Co. ensures that your noodle-making endeavors are met with success, reliability, and unmatched quality.

Best Instant Noodle Making Machine Manufacturer in India

If you are looking for a Best Instant Noodle Making Machine Manufacturer in India, look no further than Gulab Singh and CO., Gulab Singh and CO. is a leading manufacturer and supplier of Test Chamber in India.

For more details, Please Contact us!

Website — https://www.gulabsinghandco.com/

Contact No. — +91–9953108079, +91–9313119875

Email —Vishal@gulabsinghandco.com, gulaabsinghcomp@gmail.com

[gulabsinghcompany]

Instant Noodle Making Machine

Instant noodles are a staple in many households around the world. They offer a quick and easy meal solution, perfect for busy individuals and college students. Have you ever wondered about the fascinating process that turns simple ingredients into those convenient and tasty noodle blocks? It's all thanks to the ingenious machinery of instant noodle making machines. In this blog, we'll explore the intriguing world of these machines and how they create our beloved instant noodles.

The Basics of Instant Noodle Production

Instant noodle making machines are the heart and soul of the instant noodle industry. They take basic ingredients like wheat flour, water, salt, and other flavorings and transform them into the familiar brick-shaped noodles we know so well. Here's how it's done:

1. Mixing the Dough: The process starts with creating a dough mixture. Wheat flour, water, and salt are mixed together to form a consistent dough. This dough provides the noodle's structure and texture.

2. Kneading and Rolling: The dough is then kneaded and rolled out into thin sheets. This step is crucial for achieving the desired thickness and texture of the noodles.

3. Cutting and Folding: The thin sheets of dough are cut into long, flat strips. The length and width can vary depending on the desired noodle shape. These strips are then folded to create multiple layers.

4. Steaming: The folded dough is steamed to cook and set the noodles. This process is essential for giving instant noodles their distinctive texture.

5. Cutting into Blocks: After steaming, the dough is cut into smaller blocks, which will eventually become individual servings of instant noodles.

6. Drying: The noodle blocks are then carefully dried to remove moisture. This step is vital for ensuring a long shelf life and the "instant" nature of the product.

7. Flavoring: Once dried, the plain noodles are ready for flavoring. This is where the magic happens. A mixture of seasonings, oils, and flavorings are applied to the noodles, giving them the delicious taste we associate with instant noodles. This step varies greatly depending on the specific flavor profile of the noodles being produced.

8. Packaging: Finally, the flavored noodles are packaged into their iconic wrappers or cups, ready to be shipped to consumers around the world.

The Role of Instant Noodle Making Machines

The above process may seem simple, but it's a highly precise and efficient operation, thanks to the instant noodle making machines. These machines streamline the entire production, ensuring consistency and high output. Here are some key features and roles of these machines:

Kneading and Rolling: Instant noodle making machines have specialized rollers and kneaders that ensure the dough is rolled out to the exact thickness required for consistent noodles.

Cutting Precision: These machines cut the dough into strips and blocks with incredible precision, ensuring that each noodle is of uniform size and shape.

Steaming Control: The machines provide controlled steaming, which is crucial for creating the desired texture in the noodles.

Drying Efficiency: They efficiently remove moisture from the noodles during the drying process, ensuring a long shelf life.

Flavor Application: Instant noodle making machines have mechanisms for applying the exact amount of flavorings to each noodle block, maintaining the intended taste.

High Production Capacity: These machines can produce a large quantity of instant noodles in a short amount of time, making them economically viable for large-scale production.

The Future of Instant Noodle Making Machines

As consumer preferences evolve, so too do instant noodle making machines. Manufacturers are constantly researching and implementing new technologies to create healthier, more nutritious, and more environmentally friendly instant noodles. Some recent developments include using whole grains, reducing sodium content, and exploring biodegradable packaging options.

In conclusion, the humble instant noodle has come a long way since its invention, and instant noodle making machines play a central role in their production. These machines have helped make these affordable, quick-to-prepare meals accessible to people all around the globe. As they continue to evolve and adapt to changing consumer demands, we can expect even more exciting innovations in the world of instant noodles. So, the next time you enjoy a steaming bowl of instant noodles, you'll have a deeper appreciation for the sophisticated machinery that makes it all possible.

If you are looking for a Best Instant Noodle Making Machine in India then your search ends with Gulab Singh and Co., We Stand out as a leading manufacturer and supplier in India, for more details, please contact us!

[sunshineweb]

India’s Market Leaders: My 10 Key Observations

This issue of Outside the Box newsletter is authored by Jatin Khemani. Jatin shares his key observations from analyzing market leaders across industries in India.

One common advice I find veteran investors passing on to next-generation investors is to look for companies dominating their industry and enjoying entry barriers ensuring their profit pool share is protected.

Now, ideally, we may think that the top 3-4 players by market share in any category should be qualified as ‘dominant players’ even if their respective market share is in single digit. However, for the purpose of this research, I have restricted my analysis to only those companies that enjoy at least a 35% share in their respective categories.

You must be thinking that it is quite a stringent filter and there would only be a handful of companies that will make it to the list – after all, we are a free economy with enormous capital chasing opportunities on one side and ever-tightening regulations in the form of competition commission etc., on the other.

But you would be surprised to learn that having spent just a couple of days and recollecting about all the companies I have studied or read about over the last decade, I could actually pin down a list of 60 listed companies that enjoy a market share of 35% or higher.

I am sure I must have missed out on many other listed companies and so the list may get longer and even more if one were to include a few unlisted businesses like NSE, a virtual monopoly, or Amul, which boasts of a 40% share of the cheese and other value-add dairy products market.

You would see the complete list at the end of this article. But before that, let me share the top 10 observations while analyzing this distinct sub-set of dominant businesses –

India’s Market Leaders: 10 Key Observations

18 companies have sales of less than Rs 1,000 crore (Cr) despite having a lion’s share of the addressable market. This implies that these categories are small in size with limited profit pool. For companies operating in such a tiny pool but with such high market share, it is almost impossible to grow any faster than the category growth. This implies, at best, they would grow in line with the industry. And if we want to see them growing revenues at 15-20% CAGR over the next several years, we must be able to either make a case for similar growth at the industry level or they strategically increasing their addressable market. For instance, La Opala which operates in the opal ware segment has an addressable market of only Rs 500 Cr. and it has already garnered a 50% share. From here on, the category growth is extremely important to support the company’s growth. Further, if at all, the category saturates at these levels, the competitive intensity among incumbents could only increase and in fact dent margins while peers chase growth or attempt to protect market share, which is a double whammy – no topline growth with margin compression. To make it worse, markets often de-rate such stocks and investors end up losing a significant chunk of capital. Same applies for Triton Valves – annual revenues of merely Rs 227 Cr. with a market share of 65%. In the case of Zydus Wellness, whose brand Sugar-Free has a 94% market share in sugar substitute category, the company is practically the category itself but the annual revenue is only Rs 500 Cr.

Second key observation is that most of these companies are pioneers – Nestle created the instant noodle category in India with its Maggie noodles, and so did Colgate in a country where otherwise everybody was using ‘daatun’ (neem sticks). Marico in the 1980s and 90s created premium edible oils category with its Saffola brand which is now being leveraged to seed newer categories like healthy breakfast (oats). To seed a new category is an extremely long and painstaking process (even loss-making initially) with little odds of success. But when successful, it is very rewarding. Pidilite Industries’ brands have been so strong for generations now, that they literally define the category – users know the product (adhesives) by the brand name (Fevicol, Fevistik, Fevikwik, Dr. Fixit), thanks to those memorable advertisements backed by the widest possible distribution. Asian Paints pioneered the involvement of households in choosing decorative paints while slowly eliminating the painters from being the decision maker. While they have been the market leader since the 1960s, the tinting machines (paint dispensers) which they installed at stores in the 1990s was perhaps the inflection point in getting dealer loyalty as well as offering far more variety to consumers.

Average age of these 60 companies is about 60 years. Moreover, 18 businesses have been in existence from the pre-independence era. The oldest of the lot is United Spirits (McDowell’s) which is 193 years old, followed by United Breweries (Kingfisher) which is 162 years old. This shows that it takes an enormous amount of time for any business to scale up and attain leadership and that there is simply no shortcut. There are only three businesses that came into existence in the 21st century – MCX (2002), IEX (2006) and Interglobe Aviation (2006). The first two are exchanges which pioneered their respective segments creating virtual monopolies given winner-takes-all characteristic of the business. The unusual name, however, is Interglobe, an airline (Indigo) which came into existence just 13 years ago and today four out of 10 domestic passengers fly Indigo – this might be the only airline globally to have achieved this kind of market share and that too in such a short span of time. It surely did benefit from big incumbents going bust but it also had the ability to dream big and make sizable bets which were followed by remarkable execution.

Barring a few like HUL and M&M (acquired Swaraj), most of these businesses have grown organically. It is no wonder that given the poor base rate of successful M&As, that the leaders shown in the list have earned and sustained this position through decades and centuries of effort rather than buying market share.

Few of the segments are winner-takes-all kind of market: MCX (Commodity Exchange), IEX (Power Exchange) and NSE (Stock Exchange) are virtual monopolies given in this business, liquidity attracts liquidity which becomes a virtuous cycle. Some of the auto incumbents also enjoy network effects and scale advantage like Maruti (4W), Bajaj (3W) and Hero (2W) from an ecosystem of ancillaries, sales dealership, service centers and availability of spares – all culminating into trust and reliability.

There are four companies from so called ‘sin’ sectors (no surprise here) – tobacco (ITC) and liquor (United Spirits, United Breweries and Radico Khaitan) where regulations make it extremely difficult for new entrants to make inroads letting incumbents enjoy high market share from customers who are addicted to their brand.

In cases like Wabco and Bosch, it is the perhaps the advanced, and in some cases even patented technology which has led to such high market share.

For all the companies the market shares mentioned are domestic, except Vinati Organics. It is one of the lowest-cost producer of ATBS (a highly versatile molecule used to make polymers) in the world which is why it enjoyed 40% market share globally until recently, a rare feat for any Indian manufacturing company. And then in 2018, it got lucky – Lubrizol, a key competitor with 25% global share decided to exit the industry. This has helped the company increase its market share further. Two more chemical companies make it to the list – Oriental Carbon and NOCIL, both make products that are largely used in tire manufacturing.

The only PSU to appear in this list, Coal India, is a monopoly created by the Indian government as ownership of all of the country’s coal mines (India has world’s largest coal reserves) are with this entity. Also in some cases, it is very difficult to fathom the true reason behind market dominance. Take for instance Jamna Auto or Setco. Why would they command 70-80% market share in an industry with little to no entry barriers? I think it could simply be a favorable competitive scenario; a lack of interest from any major group to enter and the inability of smaller/unorganized guys to compete, may be due to the relatively small size of opportunity or the associated cyclicality as both supply to Commercial Vehicle OEMs like Tata and Ashok Leyland.

Over 75% of these businesses are consumer-facing entities, enjoying some sort of brand loyalty and/or distribution advantage. Further, barring six businesses which are service and retail-oriented, rest all of them (90%) are into manufacturing. Lastly, there is no point of having only sales leadership if that doesn’t translate into above-average return on capital employed (ROCE) for the shareholders. So how has this set of companies fared on that metric? To avoid any extremes/one-offs instead of FY18, I pulled FY16-18 average ROCE for each of these businesses. The 3-year average ROCE for the entire set of these companies is an impressive 33.6%.

Overall, I believe, it is an interesting set of companies (click here to download the list) that should find a place on your watch list, which must be carefully watched for any investment opportunities that their stocks may provide going forward.

Note: Annual Revenues are segmental. Where segmental data is not available, consolidated revenues are shown with (C) to indicate the same. Market shares are estimated and sourced from annual reports, industry bodies, credit rating agencies and/or our research. Market share is based on the size of the organized market only.

Disclaimer: This is not a recommendation to Buy/Sell stocks. Rather, the sole purpose is education and information. The author and his colleagues and clients may have investments in stocks discussed.   About the Author: Jatin is the founder and CEO of Stalwart Advisors, a SEBI registered investment advisor.

The post India’s Market Leaders: My 10 Key Observations appeared first on Safal Niveshak.

India’s Market Leaders: My 10 Key Observations published first on https://mbploans.tumblr.com/

[sunshineweb]

India’s Market Leaders: My 10 Key Observations

This issue of Outside the Box newsletter is authored by Jatin Khemani. Jatin shares his key observations from analyzing market leaders across industries in India.

One common advice I find veteran investors passing on to next-generation investors is to look for companies dominating their industry and enjoying entry barriers ensuring their profit pool share is protected.

Now, ideally, we may think that the top 3-4 players by market share in any category should be qualified as ‘dominant players’ even if their respective market share is in single digit. However, for the purpose of this research, I have restricted my analysis to only those companies that enjoy at least a 35% share in their respective categories.

You must be thinking that it is quite a stringent filter and there would only be a handful of companies that will make it to the list – after all, we are a free economy with enormous capital chasing opportunities on one side and ever-tightening regulations in the form of competition commission etc., on the other.

But you would be surprised to learn that having spent just a couple of days and recollecting about all the companies I have studied or read about over the last decade, I could actually pin down a list of 60 listed companies that enjoy a market share of 35% or higher.

I am sure I must have missed out on many other listed companies and so the list may get longer and even more if one were to include a few unlisted businesses like NSE, a virtual monopoly, or Amul, which boasts of a 40% share of the cheese and other value-add dairy products market.

You would see the complete list at the end of this article. But before that, let me share the top 10 observations while analyzing this distinct sub-set of dominant businesses –

India’s Market Leaders: 10 Key Observations

18 companies have sales of less than Rs 1,000 crore (Cr) despite having a lion’s share of the addressable market. This implies that these categories are small in size with limited profit pool. For companies operating in such a tiny pool but with such high market share, it is almost impossible to grow any faster than the category growth. This implies, at best, they would grow in line with the industry. And if we want to see them growing revenues at 15-20% CAGR over the next several years, we must be able to either make a case for similar growth at the industry level or they strategically increasing their addressable market. For instance, La Opala which operates in the opal ware segment has an addressable market of only Rs 500 Cr. and it has already garnered a 50% share. From here on, the category growth is extremely important to support the company’s growth. Further, if at all, the category saturates at these levels, the competitive intensity among incumbents could only increase and in fact dent margins while peers chase growth or attempt to protect market share, which is a double whammy – no topline growth with margin compression. To make it worse, markets often de-rate such stocks and investors end up losing a significant chunk of capital. Same applies for Triton Valves – annual revenues of merely Rs 227 Cr. with a market share of 65%. In the case of Zydus Wellness, whose brand Sugar-Free has a 94% market share in sugar substitute category, the company is practically the category itself but the annual revenue is only Rs 500 Cr.

Second key observation is that most of these companies are pioneers – Nestle created the instant noodle category in India with its Maggie noodles, and so did Colgate in a country where otherwise everybody was using ‘daatun’ (neem sticks). Marico in the 1980s and 90s created premium edible oils category with its Saffola brand which is now being leveraged to seed newer categories like healthy breakfast (oats). To seed a new category is an extremely long and painstaking process (even loss-making initially) with little odds of success. But when successful, it is very rewarding. Pidilite Industries’ brands have been so strong for generations now, that they literally define the category – users know the product (adhesives) by the brand name (Fevicol, Fevistik, Fevikwik, Dr. Fixit), thanks to those memorable advertisements backed by the widest possible distribution. Asian Paints pioneered the involvement of households in choosing decorative paints while slowly eliminating the painters from being the decision maker. While they have been the market leader since the 1960s, the tinting machines (paint dispensers) which they installed at stores in the 1990s was perhaps the inflection point in getting dealer loyalty as well as offering far more variety to consumers.

Average age of these 60 companies is about 60 years. Moreover, 18 businesses have been in existence from the pre-independence era. The oldest of the lot is United Spirits (McDowell’s) which is 193 years old, followed by United Breweries (Kingfisher) which is 162 years old. This shows that it takes an enormous amount of time for any business to scale up and attain leadership and that there is simply no shortcut. There are only three businesses that came into existence in the 21st century – MCX (2002), IEX (2006) and Interglobe Aviation (2006). The first two are exchanges which pioneered their respective segments creating virtual monopolies given winner-takes-all characteristic of the business. The unusual name, however, is Interglobe, an airline (Indigo) which came into existence just 13 years ago and today four out of 10 domestic passengers fly Indigo – this might be the only airline globally to have achieved this kind of market share and that too in such a short span of time. It surely did benefit from big incumbents going bust but it also had the ability to dream big and make sizable bets which were followed by remarkable execution.

Barring a few like HUL and M&M (acquired Swaraj), most of these businesses have grown organically. It is no wonder that given the poor base rate of successful M&As, that the leaders shown in the list have earned and sustained this position through decades and centuries of effort rather than buying market share.

Few of the segments are winner-takes-all kind of market: MCX (Commodity Exchange), IEX (Power Exchange) and NSE (Stock Exchange) are virtual monopolies given in this business, liquidity attracts liquidity which becomes a virtuous cycle. Some of the auto incumbents also enjoy network effects and scale advantage like Maruti (4W), Bajaj (3W) and Hero (2W) from an ecosystem of ancillaries, sales dealership, service centers and availability of spares – all culminating into trust and reliability.

There are four companies from so called ‘sin’ sectors (no surprise here) – tobacco (ITC) and liquor (United Spirits, United Breweries and Radico Khaitan) where regulations make it extremely difficult for new entrants to make inroads letting incumbents enjoy high market share from customers who are addicted to their brand.

In cases like Wabco and Bosch, it is the perhaps the advanced, and in some cases even patented technology which has led to such high market share.

For all the companies the market shares mentioned are domestic, except Vinati Organics. It is one of the lowest-cost producer of ATBS (a highly versatile molecule used to make polymers) in the world which is why it enjoyed 40% market share globally until recently, a rare feat for any Indian manufacturing company. And then in 2018, it got lucky – Lubrizol, a key competitor with 25% global share decided to exit the industry. This has helped the company increase its market share further. Two more chemical companies make it to the list – Oriental Carbon and NOCIL, both make products that are largely used in tire manufacturing.

The only PSU to appear in this list, Coal India, is a monopoly created by the Indian government as ownership of all of the country’s coal mines (India has world’s largest coal reserves) are with this entity. Also in some cases, it is very difficult to fathom the true reason behind market dominance. Take for instance Jamna Auto or Setco. Why would they command 70-80% market share in an industry with little to no entry barriers? I think it could simply be a favorable competitive scenario; a lack of interest from any major group to enter and the inability of smaller/unorganized guys to compete, may be due to the relatively small size of opportunity or the associated cyclicality as both supply to Commercial Vehicle OEMs like Tata and Ashok Leyland.

Over 75% of these businesses are consumer-facing entities, enjoying some sort of brand loyalty and/or distribution advantage. Further, barring six businesses which are service and retail-oriented, rest all of them (90%) are into manufacturing. Lastly, there is no point of having only sales leadership if that doesn’t translate into above-average return on capital employed (ROCE) for the shareholders. So how has this set of companies fared on that metric? To avoid any extremes/one-offs instead of FY18, I pulled FY16-18 average ROCE for each of these businesses. The 3-year average ROCE for the entire set of these companies is an impressive 33.6%.

Overall, I believe, it is an interesting set of companies (click here to download the list) that should find a place on your watch list, which must be carefully watched for any investment opportunities that their stocks may provide going forward.

Note: Annual Revenues are segmental. Where segmental data is not available, consolidated revenues are shown with (C) to indicate the same. Market shares are estimated and sourced from annual reports, industry bodies, credit rating agencies and/or our research. Market share is based on the size of the organized market only.

Disclaimer: This is not a recommendation to Buy/Sell stocks. Rather, the sole purpose is education and information. The author and his colleagues and clients may have investments in stocks discussed.   About the Author: Jatin is the founder and CEO of Stalwart Advisors, a SEBI registered investment advisor.

The post India’s Market Leaders: My 10 Key Observations appeared first on Safal Niveshak.

India’s Market Leaders: My 10 Key Observations published first on https://mbploans.tumblr.com/

[sunshineweb]

India’s Market Leaders: My 10 Key Observations

This issue of Outside the Box newsletter is authored by Jatin Khemani. Jatin shares his key observations from analyzing market leaders across industries in India.

One common advice I find veteran investors passing on to next-generation investors is to look for companies dominating their industry and enjoying entry barriers ensuring their profit pool share is protected.

Now, ideally, we may think that the top 3-4 players by market share in any category should be qualified as ‘dominant players’ even if their respective market share is in single digit. However, for the purpose of this research, I have restricted my analysis to only those companies that enjoy at least a 35% share in their respective categories.

You must be thinking that it is quite a stringent filter and there would only be a handful of companies that will make it to the list – after all, we are a free economy with enormous capital chasing opportunities on one side and ever-tightening regulations in the form of competition commission etc., on the other.

But you would be surprised to learn that having spent just a couple of days and recollecting about all the companies I have studied or read about over the last decade, I could actually pin down a list of 60 listed companies that enjoy a market share of 35% or higher.

I am sure I must have missed out on many other listed companies and so the list may get longer and even more if one were to include a few unlisted businesses like NSE, a virtual monopoly, or Amul, which boasts of a 40% share of the cheese and other value-add dairy products market.

You would see the complete list at the end of this article. But before that, let me share the top 10 observations while analyzing this distinct sub-set of dominant businesses –

India’s Market Leaders: 10 Key Observations

18 companies have sales of less than Rs 1,000 crore (Cr) despite having a lion’s share of the addressable market. This implies that these categories are small in size with limited profit pool. For companies operating in such a tiny pool but with such high market share, it is almost impossible to grow any faster than the category growth. This implies, at best, they would grow in line with the industry. And if we want to see them growing revenues at 15-20% CAGR over the next several years, we must be able to either make a case for similar growth at the industry level or they strategically increasing their addressable market. For instance, La Opala which operates in the opal ware segment has an addressable market of only Rs 500 Cr. and it has already garnered a 50% share. From here on, the category growth is extremely important to support the company’s growth. Further, if at all, the category saturates at these levels, the competitive intensity among incumbents could only increase and in fact dent margins while peers chase growth or attempt to protect market share, which is a double whammy – no topline growth with margin compression. To make it worse, markets often de-rate such stocks and investors end up losing a significant chunk of capital. Same applies for Triton Valves – annual revenues of merely Rs 227 Cr. with a market share of 65%. In the case of Zydus Wellness, whose brand Sugar-Free has a 94% market share in sugar substitute category, the company is practically the category itself but the annual revenue is only Rs 500 Cr.

Second key observation is that most of these companies are pioneers – Nestle created the instant noodle category in India with its Maggie noodles, and so did Colgate in a country where otherwise everybody was using ‘daatun’ (neem sticks). Marico in the 1980s and 90s created premium edible oils category with its Saffola brand which is now being leveraged to seed newer categories like healthy breakfast (oats). To seed a new category is an extremely long and painstaking process (even loss-making initially) with little odds of success. But when successful, it is very rewarding. Pidilite Industries’ brands have been so strong for generations now, that they literally define the category – users know the product (adhesives) by the brand name (Fevicol, Fevistik, Fevikwik, Dr. Fixit), thanks to those memorable advertisements backed by the widest possible distribution. Asian Paints pioneered the involvement of households in choosing decorative paints while slowly eliminating the painters from being the decision maker. While they have been the market leader since the 1960s, the tinting machines (paint dispensers) which they installed at stores in the 1990s was perhaps the inflection point in getting dealer loyalty as well as offering far more variety to consumers.

Average age of these 60 companies is about 60 years. Moreover, 18 businesses have been in existence from the pre-independence era. The oldest of the lot is United Spirits (McDowell’s) which is 193 years old, followed by United Breweries (Kingfisher) which is 162 years old. This shows that it takes an enormous amount of time for any business to scale up and attain leadership and that there is simply no shortcut. There are only three businesses that came into existence in the 21st century – MCX (2002), IEX (2006) and Interglobe Aviation (2006). The first two are exchanges which pioneered their respective segments creating virtual monopolies given winner-takes-all characteristic of the business. The unusual name, however, is Interglobe, an airline (Indigo) which came into existence just 13 years ago and today four out of 10 domestic passengers fly Indigo – this might be the only airline globally to have achieved this kind of market share and that too in such a short span of time. It surely did benefit from big incumbents going bust but it also had the ability to dream big and make sizable bets which were followed by remarkable execution.

Barring a few like HUL and M&M (acquired Swaraj), most of these businesses have grown organically. It is no wonder that given the poor base rate of successful M&As, that the leaders shown in the list have earned and sustained this position through decades and centuries of effort rather than buying market share.

Few of the segments are winner-takes-all kind of market: MCX (Commodity Exchange), IEX (Power Exchange) and NSE (Stock Exchange) are virtual monopolies given in this business, liquidity attracts liquidity which becomes a virtuous cycle. Some of the auto incumbents also enjoy network effects and scale advantage like Maruti (4W), Bajaj (3W) and Hero (2W) from an ecosystem of ancillaries, sales dealership, service centers and availability of spares – all culminating into trust and reliability.

There are four companies from so called ‘sin’ sectors (no surprise here) – tobacco (ITC) and liquor (United Spirits, United Breweries and Radico Khaitan) where regulations make it extremely difficult for new entrants to make inroads letting incumbents enjoy high market share from customers who are addicted to their brand.

In cases like Wabco and Bosch, it is the perhaps the advanced, and in some cases even patented technology which has led to such high market share.

For all the companies the market shares mentioned are domestic, except Vinati Organics. It is one of the lowest-cost producer of ATBS (a highly versatile molecule used to make polymers) in the world which is why it enjoyed 40% market share globally until recently, a rare feat for any Indian manufacturing company. And then in 2018, it got lucky – Lubrizol, a key competitor with 25% global share decided to exit the industry. This has helped the company increase its market share further. Two more chemical companies make it to the list – Oriental Carbon and NOCIL, both make products that are largely used in tire manufacturing.

The only PSU to appear in this list, Coal India, is a monopoly created by the Indian government as ownership of all of the country’s coal mines (India has world’s largest coal reserves) are with this entity. Also in some cases, it is very difficult to fathom the true reason behind market dominance. Take for instance Jamna Auto or Setco. Why would they command 70-80% market share in an industry with little to no entry barriers? I think it could simply be a favorable competitive scenario; a lack of interest from any major group to enter and the inability of smaller/unorganized guys to compete, may be due to the relatively small size of opportunity or the associated cyclicality as both supply to Commercial Vehicle OEMs like Tata and Ashok Leyland.

Over 75% of these businesses are consumer-facing entities, enjoying some sort of brand loyalty and/or distribution advantage. Further, barring six businesses which are service and retail-oriented, rest all of them (90%) are into manufacturing. Lastly, there is no point of having only sales leadership if that doesn’t translate into above-average return on capital employed (ROCE) for the shareholders. So how has this set of companies fared on that metric? To avoid any extremes/one-offs instead of FY18, I pulled FY16-18 average ROCE for each of these businesses. The 3-year average ROCE for the entire set of these companies is an impressive 33.6%.

Overall, I believe, it is an interesting set of companies (click here to download the list) that should find a place on your watch list, which must be carefully watched for any investment opportunities that their stocks may provide going forward.

Note: Annual Revenues are segmental. Where segmental data is not available, consolidated revenues are shown with (C) to indicate the same. Market shares are estimated and sourced from annual reports, industry bodies, credit rating agencies and/or our research. Market share is based on the size of the organized market only.

Disclaimer: This is not a recommendation to Buy/Sell stocks. Rather, the sole purpose is education and information. The author and his colleagues and clients may have investments in stocks discussed.   About the Author: Jatin is the founder and CEO of Stalwart Advisors, a SEBI registered investment advisor.

The post India’s Market Leaders: My 10 Key Observations appeared first on Safal Niveshak.

India’s Market Leaders: My 10 Key Observations published first on https://mbploans.tumblr.com/