With two large players looking to grab market share, I assume somewhere down the line, all these investments will have to make sense from an RoIC level. What one can clearly interpret from the situation on ground is that there might be a vested interest to keep prices so low so that the smaller players face financial duress and hence, pull the plug on capex/or even look to get acquired (Penna for ex, some others in progres.) Once the industry is consolidated to a fair degree (infact the top 2 players are now nearing 40% of industry capacity) , pricing discipline would ensue, much like the Telecom cycle played out?
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