IBP (merged Subsidiary of Indian Oil) - Competitors

Competitors

Over the years, the number of competitors in India grew from only two in the beginning to more than forty today, adversely affecting the market share in Industrial explosives of IBP from a high of around 30% down to 18%. Though the installed capacity of the company is more than 1,25,000 tons, the capacity utilization is only around 60% due to current price sensitive market and intense competition from private players. Presently, IBP is the only central public sector company servicing the market for industrial explosives. The business group experienced very high profits in the beginning when there were only two competitors (IEL and IDL) and progressively incurred losses from the late ninetees. However, a turnaround is expected in the business during the current year owing much to the reorganization of the marketing department and the required thrust planned and given by this department. This included significant volumes and price from Coal India Limited besides the thrust in the non-coal mining sector of the country that resulted in threefold increase in volumes.