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INTRODUCTION
In economics, a monopoly (from Greek monos / (alone or single) + polein (to sell)) exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it.Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.The verb "monopolize" refers to the process by which a firm gains persistently greater market share than what is expected under perfect competition. A monopoly must be distinguished from monopsony, in which there is only one buyer of a product or service ; a monopoly may also have monopsony control of a sector of a market. Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies can form naturally or through vertical or horizontal mergers. A monopoly is said to be coercive when the monopoly firm actively prohibits competitors from entering the field. In many jurisdictions, competition laws place specific restrictions on monopolies. Holding a dominant position or a monopoly in the market is not illegal in itself, however certain categories of behaviour can, when a business is dominant, be considered abusive and therefore be met with legal sanctions. A government-granted monopoly or legal monopoly, by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic constituency. The government may also reserve the venture for itself, thus forming a government monopoly.

Economic analysis
In economics, the study of market structures under imperfect competition begins with the analysis of Monopoly.
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If there is a single seller in a certain industry and there are no close substitutes for the goods being produced, then the market structure is that of a "pure monopoly". Sometimes, there are many sellers in an industry and/or there exist many close substitutes for the goods being produced, but nevertheless firms retain some market power. This is called monopolistic competition, whereas oligopoly refers to the case where the main theoretical framework revolves around firm's strategic interactions.
Basic market structures

There are four basic types of market structures under traditional economic analysis, perfect competition, monopolistic competition, oligopoly and monopoly. A Monopoly is a market structure is which a single supplier produces and sells the product.

Characteristics of a monopoly
Single Seller: In a monopoly there is one seller of the monopolized good who produces all the output. The firm and industry are identical. In a PC market there are an infinite number of sellers each producing an infinitesimally small quantity of output. Market Power: Market Power is the ability to affect the terms and conditions of exchange. It is the ability to set your own price. Although a monopoly's market power is high it is not absolute. A monopoly faces a negatively sloped demand curve not a perfectly inelastic curve. Consequently, any price increase will result in the loss of some customers. The monopoly's objective is to maximize profits. High Barriers to Entry and Competition: Monopolies derive their market power from barriers to entry - circumstances that prevent or greatly impede a potential competitor's entry into the market or ability to compete in the market. There are

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three major types of barriers to entry; economic, legal and deliberate. Economic Barriers:Economic barriers include economies of scale, capital requirements, cost advantages and technological superiority.

Economies of scale: Monopolies are characterized by declining costs over a relatively large range of production.Declining costs coupled with large start up costs give monopolies an advantage over would be competitors. Monopolies are often in a position to cut prices below a new entrant's operating costs and drive them out of the industry.Further the size of the industry relative to the minimum efficient scale may limit the number of firms that can effectively compete within the industry. If for example the industry is large enough to support one firm of minimum efficient scale then other firms entering the industry will operate at a size that is less than MES meaning that these firms cannot produce at an average cost that is competitive with the dominant industry. Capital requirements: Production processes that require large investments of capital, or large research and development costs or substantial sunk costs limit the number of firms in an industry.Large fixed costs also make it difficult for a small firm to enter an industry and expand. Technological Superiority: A monopoly may be better able to acquire, integrate and use the best possible technology in producing its goods while entrants do not have the size or fiscal muscle to use the best available technology. In plain English one large firm can sometimes produce goods cheaper than several small firms.

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No Substitute Goods:A monopoly sells a good for which there is no close substitutes. The absence of substitutes makes the demand for the good relatively inelastic enabling monopolies to extract positive profits. Control of Natural Resources: A prime source of monopoly power is the control of resources that are critical to the production of a final good. Legal Barriers: Legal rights can provide opportunity to monopolize the market in a good. Intellectual property rights, including patents and copyrights, give a monopolist exclusive control over the production and selling of certain goods. Property rights may give a firm the exclusive control over the materials necessary to produce a good. Deliberate Actions: A firm wanting to monopolize a

market may engage in various types of deliberate action to exclude competitors or eliminate competition. Such actions include collusion, lobbying governmental authorities, and force.

In addition to barriers to entry and competition, barriers to exit may be a source of market power. Barriers to exit are market conditions that make it difficult or expensive for a firm to leave the market. High liquidation costs are a primary barrier to exit.[12] Market exit and shutdown are separate events. The decision whether to shut down or operate is not affected by exit barriers. A firm will shut down if price falls below minimum average variable costs.

Advantages Of Monopoly
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Research and Development. Supernormal Profit can be used to fund high cost capital investment spending. Successful research can be used for improved products and lower costs in the long term. E.g. Telecommunications and Pharmaceuticals. Economies of scale. Increased output will lead to a decrease in average costs of production. These can be passed on to consumers in the form of lower prices. See: Economies of Scale

If a monopoly produces at output Q2, average costs (AC2) are much lower than if a competitive market had firms producing at Q1.

International Competitiveness. A domestic firm may have Monopoly power in the domestic country but face effective competition in global markets. E.g. British Steel A firm may become a monopoly through being efficient and dynamic. A monopoly is thus a sign of success not inefficiency. For example - Google Government regulation of monopolies means annual price increases can be controlled
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Some of the monopolies profits may be used to invest in research and development This expenditure on innovation and invention could lead to efficiency gains in the market

Disadvantages of Monopolies
It is argued that monopolies producer at a lower output with higher prices than a producer in a competitive market would This leads to a reduction in the consumer surplus and an increase in producer surplus Supernormal profits are earned by the monopoly at the expensive of allocative efficiency The lack of any competition in the market can increase inefficiency as customers are stripped of the ability to choose Dynamic efficiency may be lost if monopolist limits consumer choice and innovates less

Summary
A monopoly is where there is one producer who dominates the market In a monopoly the monopolist sets prices as they have market power Monopolists can benefit from economies of scale which may be passed onto consumers in the form of lower prices Monopolists may conduct more research and development Monopolies produce less at higher prices reducing the consumer surplus Economists view monopolies as market failure Monopolies dont allocate resources in the most effective way

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Monopoly and efficiency

According to the standard model, in which a monopolist sets a single price for all consumers, the monopolist will sell a lower quantity of goods at a higher price than would firms under perfect competition. Because the monopolist ultimately forgoes transactions with consumers who value the product or service more than its cost, monopoly pricing creates a deadweight loss referring to potential gains that went neither to the monopolist or to consumers. Given the presence of this deadweight loss, the combined surplus (or wealth) for the monopolist and consumers is necessarily less than the total surplus obtained by consumers under perfect competition. Where efficiency is defined by the total gains from trade, the monopoly setting is less efficient than perfect competition. It is often argued that monopolies tend to become less efficient and innovative over time, becoming "complacent giants", because they do not have to be efficient or innovative to compete in the marketplace. Sometimes this very loss of psychological efficiency can raise a potential competitor's value enough to overcome market entry barriers, or provide incentive for research and investment into new alternatives The theory of contestable markets argues that in some circumstances (private) monopolies are forced to behave as if there were competition because of the risk of losing their monopoly to new entrants. This is likely to happen where a market's barriers to entry are low. It might also be because of the availability in the longer term of substitutes in other markets. For example, a canal monopoly, while worth a great deal in the late eighteenth century United Kingdom, was worth much less in the late nineteenth century because of the introduction of railways as a substitute.

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Surpluses and deadweight loss created by monopoly price setting.

Price Discrimination
A seller of a product in a competitive industry (i.e., one characterized by many competing sellers of a good or service) generally can only charge a single price (i.e., the price that its competitors are charging) to all of its customers. However, monopolists not only have the ability to charge a higher price than would competitive firms supplying the same product, but they also have the ability to charge significantly different prices to different customers for the same product. Monopolists are invariably well aware both of this ability and of the fact that by taking advantage of it they can often gain much greater profits than they could by just charging a single price to all customers. That is, a monopolist can maximize its profits by charging a separate profitmaximizing price for each type or group of customers (e.g., different income levels, professions, education levels, geographic locations or ethnicities) rather than by charging one profit maximizing price to all customers taken as a whole, because of the differences that generally exist among
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the different types or groups of customers with respect to their ability and willingness4 to pay. This behavior is termed price discrimination. The ability to engage successfully in price discrimination depends on the degree of separation of markets, that is, how difficult or costly it is for buyers to transfer the product among themselves. For example, small, easily transportable items (e.g., those that come in a small box or that can be delivered via the Internet) are generally easier to transfer among buyers than are large, heavy products (e.g., hydroelectric generators and steel beams), customized products (e.g., consulting services or dental work) or products that make extensive use of a local language (e.g., books and some computer software). If a product is easy for buyers to resell, then businesses or individuals who can buy it at lower prices would have a profit incentive to resell it to others who would be charged a higher price by the monopolist. Monopolists generally are strongly opposed to such transferring of their products among buyers, and they tend to devote considerable effort to attempting to stop or minimize it. Among the many tactics used by monopolists to attempt to separate their markets are the use of warranties that are only valid in the country of purchase and labeling a product and manuals for it only in the local language for each country or region. For example, a software developer could charge a relatively low price for its product in Thailand (a relatively low income country) and discourage its transfer to Singapore or Japan (relatively high income countries) for resale there in competition with the higher prices it charges in those countries by having the software operate only in the Thai language, which is generally not understood by people outside of Thailand, rather than having it be adjustable by the user to operate in any of a number of languages. Region codes for computer games and DVDs (digital versatile disks) are also an attempt at price discrimination.
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These are codes that incorporated into the games and disks as well as into the players for them. They are designed to allow any game or disk to play only in the region in which it was sold, thereby allowing the sellers to control release dates and charge the profit maximizing price for each region. However, this is not always effective because some countries have outlawed the practice and required that players sold in their country be able to play games or disks from any region. Also, some users have been able to circumvent such regional lockout by modifying their players so that they can play games or disks from any region. Another common example is student discounts, which are often available for some products, such as computer software, because suppliers of such products are well aware that the profit maximizing price for this class of customers is lower than that for people who work full time. Sale of the products at the special student prices is restricted through the requirement of student identification at the time of purchase, and subsequent resale is discouraged through such means as identification checks in order to use warranties and obtain upgrades. Lower prices on some products are likewise often available for senior citizens, because, as is the case with students, the profit maximizing price is lower for them as a group due to their lower average income. Such recipients of lower prices will, of course, feel happy and feel as if they are receiving something special. This will help make a monopolist seem benevolent and can create goodwill for it. However, what is often being overlooked is the fact that this is not necessarily just benevolence (although it might be in some cases), but it is definitely profit maximizing behavior. In any event, the recipients of the lower prices will still likely be paying much more than the actual cost of providing the product. Airlines are very efficient at separating their markets. This can be seen by the fact that tickets to any given destination are typically sold for a wide range of prices (generally with
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little relationship to the cost of providing the trip), even for adjacent seats on the same airplane. For example, a number of techniques are used to charge higher fares for business travelers (who are typically more concerned about convenience and time saving than about fares) than for leisure travelers (who are usually on tighter budgets), including by charging higher fares for people not making reservations far in advance or not willing to stay at a destination through a weekend (both of which business travelers often prefer not to do). The airlines are able to prevent the reselling of their tickets (and thereby maintain their separation of markets) through the use of identification checks at check-in and boarding times5.

Types of Monopoly Natural monopoly

In economics, a natural monopoly occurs when, due to the economies of scale of a particular industry, the maximum efficiency of production and distribution is realized through a single supplier, but in some cases inefficiency may take place. Natural monopolies arise where the largest supplier in an industry, often the first supplier in a market, has an overwhelming cost advantage over other actual or potential competitors. This tends to be the case in industries where capital costs predominate, creating economies of scale
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which are large in relation to the size of the market, and hence high barriers to entry; examples include water services and electricity. It is very expensive to build transmission networks (water/gas pipelines, electricity and telephone lines), therefore it is unlikely that a potential competitor would be willing to make the capital investment needed to even enter the monopolist's market. It may also depend on control of a particular natural resource. Companies that grow to take advantage of economies of scale often run into problems of bureaucracy; these factors interact to produce an "ideal" size for a company, at which the company's average cost of production is minimized. If that ideal size is large enough to supply the whole market, then that market is a natural monopoly. Some free-market-oriented economists argue that natural monopolies exist only in theory, and not in practice, or that they exist only as transient states.

Legal monopoly
A legal monopoly, statutory monopoly, or de jure monopoly is a monopoly that is protected by law from competition. A statutory monopoly may take the form of a government monopoly where the state owns the particular means of production or government-granted monopoly where a private interest is protected from competition such as being granted exclusive rights to offer a particular service in a specific region while agreeing to have their policies and prices regulated. [1] This type of monopoly is usually contrasted with de facto monopoly which is a broad category for monopolies that are not created by government. Local monopoly A local monopoly is a monopoly of a market in a particular area, usually a town or even a smaller locality: the term is

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used to differentiate a monopoly that is geographically limited within a country, as the default assumption is that a monopoly covers the entire industry in a given country. This may include the ability to charge (to some extent) monopoly pricing, for example in the case of the only gas station on an expressway rest stop, which will serve a certain number of motorists who lack fuel to reach the next station and must pay whatever is charged.

Pure Monopoly:
a market structure in which:

one firm sells a unique product - no substitutes entry is blocked o the single firm (control over product price) o However, still needs to deal with customers o They have considerable (not whole) control over price. o nonprice competition

Government monopoly
In economics, a gov. monopoly (or public monopoly) is a form of coercive monopoly in which a government agency is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created by the government. [1] It is usually distinguished from a government-granted monopoly, where the government grants a monopoly to a private individual or company. A government monopoly may be run by any level of government - national, regional, local; for levels below the national, it is a local monopoly. The term state monopoly usually means a government monopoly run by the national government, although it may also refer to monopolies run by regional entities called "states" (notably the U.S. states).

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Bilateral monopoly
In a bilateral monopoly there is both a monopoly (a single seller) and monopsony (a single buyer) in the same market. In such, market price and output will be determined by the non economic forces like bargaining power of both buyer and seller. A bilateral monopoly model is often used in situations where the switching costs of both sides are prohibitively high. Bilateral monopoly situations are commonly analyzed using the theory of Nash bargaining games. An example of a bilateral monopoly would be when a labor union and a monopolist negotiate.

Causes of Monopoly
Monopolies have existed throughout much of human history. This is because powerful forces exist both for the creation and maintenance of monopolies6. At the root of these forces is the natural human desire for wealth and power together with the fact that monopolies can be immensely profitable and provide their owners with tremendous financial, political and social power. Monopolistic power existed even in primitive societies because limited technical knowledge, poor transportation and small, scattered populations left little room for the emergence of numerous, competitive suppliers for some goods and services. In medieval Europe, guilds arose as transportation improved, economies grew and competition increased. Guilds were cartels formed by artisans and merchants for the purpose of controlling output, setting

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prices and establishing restrictions on new producers and sellers. When nation-states began to emerge in the late Renaissance, monopolies proved to be a useful device for their leaders to acquire the resources to maintain large armies and extravagant life styles. Major European nations also granted monopoly powers to private trading companies in order to stimulate the exploration and exploitation of new lands in the Americas, Asia, Africa, etc. Monopolies can arise in some circumstances as the result of normal business practices that are characteristic of firms in a highly competitive industry. Or they can arise as a consequence of what economists term anti-competitive practices, that is, behavior that is intended to destroy competition through means other than competing on the basis on price and quality (including the quality of services associated with the product). More specifically, monopolies can arise in any of the following, non-mutually exclusive, ways: (1) By developing or acquiring control over a unique product that is difficult or costly for other companies to copy. This can occur as a result of a purchase, merger or research and development. An example is pharmaceuticals, which can be extremely expensive and risky to develop (and which are also protected by patents), thereby locking out all but a few large, well funded companies with ample talent. Closely related to this is control over a unique input for a product, such as a unique natural resource. (2) By having a lower production cost than competitors. This can result from having a more efficient (i.e., more output per unit of input) production technique or from having access to a unique source of low cost inputs (e.g., a mine containing exceptionally high grade ore). In some cases, a greater efficiency is the result of economies of scale, which means that the production cost per unit of product declines as the
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volume of output increases due to the ability to use some resource more intensively (e.g., a steel mill or railroad with lots of excess capacity). This category includes natural monopolies. A natural monopoly exists for a product for which there are sufficient economies of scale such that the product can be produced or supplied by a single company at lower cost than by multiple, competing companies. Examples include utilities such as railroads, pipelines, electric power transmission systems and wired telephone systems. It is often wasteful (for consumers and the economy) to have more than one such supplier in a region because of the high costs of duplicating the infrastructure (e.g., parallel railroad networks in a region or two sets of telephone wires to every house). (3) By using various legal and/or illegal tactics, often referred to as predatory tactics, aimed specifically at eliminating existing or potential competition, such as (a) buying out or merging with competitors, (b) temporarily charging prices below cost to drive competitors out of business (often referred to as predatory pricing or dumping), (c) using a monopoly in one product to create a monopoly with regard to another product (sometimes referred to as the bundling or tying of products), (d) taking control of suppliers of inputs required by competitors or conspiring with them to raise their prices (or lower their quality of service, etc.) to competitors (e) taking control of, or conspiring with, suppliers of other products used by competitors' customers, (f) threatening costly litigation (e.g., regarding allegations of patent or copyright infringements regardless of the legal merits of such claims), which large companies can easily afford but small companies often cannot and (g) using blackmail or threats of violence. Horizontal integration is the gaining of control by one company over other producers or sellers of the same product. The acquired companies can appear to be quite diverse. Often the acquisition of control is not publicized, and
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sometimes different branding is used to create the illusion of competition. For example, a broadcasting company might acquire various radio and/or television channels each with a different focus in order to gain control of most of the entire listener or viewer market in a region and thereby prevent the emergence of competitors. Such seeming diversity can also offer offer other benefits to a monopolist. In particular, it can be valuable in separating markets, thereby allowing the monopolist to charge separate, profit maximizing prices in each. It can also make the existence of a monopoly less conspicuous and less of a target for public criticism, government intervention and the emergence of new competitors. (4) By controlling a platform and using vendor lock-in. A platform is a standardized specification for a product that allows its providers and users and their products to interoperate without special arrangement. This reduces the overall costs of conducting transactions by removing some of the costs of matching up products with buyers. Lock-in is the practice of designing a product that cannot interoperate with products made by other companies in order to make it difficult and/or costly for users to switch to competing systems. Lock-in is also used so that replacement parts or add-on enhancements must be purchased from the same manufacturer. Examples would include a computer operating system or a portable music storage/replay device that is controlled by a single company. (5) By receiving a government grant of monopoly status, i.e., becoming a government-granted monopoly. Today this is usually accomplished through the acquisition of a license, patent, copyright, trademark or franchise. Common examples include a franchise for cable television for a certain city or region, a trademark for a popular brand, copyrights on certain cartoon characters or a patent for a unique product or production technique.

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As governments usually have the final authority regarding the creation, maintenance and extension of monopolies, public relations, particularly lobbying and advertising, are important tools for monopolists for convincing politicians to ignore, approve or even bless anti-competitive acquisitions, mergers, etc. Among the arguments typically made by monopolists are that such acquisition or merger is in the public interest because it would allow them to (1) spend more money on research and development in order to develop new and improved products, (2) standardize what would otherwise be a chaotic market (i.e., vigorous competition) and (3) reduce costs, and thus prices, through (a) the reduction of redundant production facilities and employees, (b) concentrating production at the most efficient production facilities and (c) obtaining greater economies of scale. Monopolists also frequently support such requests with the claim that they are model corporate citizens and that they are great contributors to charitable and educational causes. The term barriers to entry is used by economists to refer to obstacles to businesses or to individuals wanting to enter a given field. Some of these barriers occur naturally, whereas others are erected or strengthened by monopolies in order to maintain or enhance their monopoly positions. Examples include the extremely high cost of developing new drugs, limited sources for a low cost input, a dominant platform for software or other products, patent protection of a low cost production technique, the difficulty of trying to compete with famous brands and air transport agreements that make it difficult for new airlines to obtain landing slots at popular airports. In economics, a firm is said to reap monopoly profits when a lack of viable market competition allows it to set its prices above the equilibrium price for a good or service without losing profits to competitors. Monopoly profit is a type of economic profit, that is, it is a profit greater than the normal

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profit that is typical in a perfectly competitive industry. The resulting price is known as the monopoly price. In a perfectly competitive market, firms are said to be price takers: since a customer can buy widgets from one producer as easily as another, any widget producer on the market faces a horizontal demand curve at the equilibrium price: if the firm tries to sell widgets above the equilibrium price, customers will simply buy their widgets elsewhere and the firm will lose all of their business. (In actual markets, of course, there is never a situation where exactly comparable goods are available just as easily from one firm as from another the theory of perfect competition is a useful idealized model rather than a naturalistic description.) By contrast, lack of competition in a market creates a downward sloping demand curve for a monopolist or oligopolist: although they will lose some business by raising prices, they will not lose it all, and it may be more profitable in most situations to sell at a higher price. This does not mean that monopolists are not price takers. It only says that they have the option of being either a "price taker" (at a level of output of their own choosing), or a "quantity taker" (at a price of their own choosing). They can set their own price and accept a level of output determined by the market, or they can set their output quantity and accept the price determined by the market. They cannot set both price and output. A firm with monopoly power setting prices will typically set price at the profit maximizing level. The most profitable price that they can set (the monopoly price) is where the optimum output level (where marginal cost (MC) equals marginal revenue (MR) as seen on the diagram below) meets the demand curve. Under normal market conditions for a monopolist, this price will be higher than the equilibrium price (which is the price at which marginal cost for the producer equals marginal benefit for the consumer). In the chart below the shaded area represents the profits of the
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monopolist. The lower half represents the normal profits that would go to a competitive firm (ignoring output losses). The upper half represent the additional economic profit going to the monopolist.

Profit Maximization
Recall that the objective of a business is to maximize profits. As such, a company should produce where profit is at a maximum. In marginal terms, 1. If MC < MR, producing 1 more unit will add more to TR than to TC, so the monopoly should increase quantity. 2. If MC > MR, producing 1 more unit will add more to TC than to TR, so the monopoly should decrease quantity. 3. Only when MR = MC (and MC cuts MR from below) is profit maximized. A monopolist will generally produce less than a socially efficient level of output, and charge too high a price. Are the above normal profits of monopoly a social cost? Not usually, since profit is still part of surplus but has been transferred from consumers to producers. Social cost arises from

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inefficiently low output which leads to the dead weight loss. However, if the monopolist uses some of its normal profits to lobby in order to maintain a monopoly (rent seeking), then this can be a welfare cost to society.

Price Discrimination
Price discrimination is selling the same good to different customers/markets at different prices. Examples include movie tickets, airline tickets, and discount coupons. In order to practice price discrimination, there must be easy to separate customer into groups. These groups are determined based on their elasticities to demand. The company must also be able to prevent resales between groups, as well as arbitrage, which is buying where a good is cheap and selling where it is expensive. Price Discrimination can increase the profit of monopolies, since they can charge a higher price to those with less elastic demand, and a lower price to those with more elastic demand. In this manner, a business does not have to lower prices to all buyers in order to sell more goods.

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Supplier of Choice aims to stimulate growth in diamond demand and close this opportunity gap.

I have selected and listed these companies using some selection criterias. As the first, companies listed here have one or more product that is into the monopolistic position in Indian market and merely impossible to beat their position by others. Secondly, these companies have efficient

management with innovative ideas and strong network across India. Finally, these companies have very few or no debt and registering year to year yearning growth.

1. Britannia Industries
Go to any shop, whether it is small or large mall, anywhere in India, whether it is a metropolitan city or remote village, you are able to find Britannia biscuits. Such strong brand
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along with extra ordinary sales network, bring this company as one of the gem in India. 2. ITC There is only one name in India for cigarettes. ITC. Through its wide presence to each and every corner in India, efficient management, innovative ideas, ITC able to reward its investors to the utmost. It has strong brand like Wills, Gold Flakes that no one can beat in India market. ITC already operating to the FMCG sector and its brand started its strong presents all over India.

3. Nestle
No name in India other than Nestle in the Child food sector. Nestle left no room for its competitors in this segment for decades. Also, there is no name in India market, famous than Maggi in the noodles segment. Along with above 2 strong monopolistic brands, Nestle manufacturing and

marketing biscuits and confectionaries too. Nestle have real monopolistic business that each and every value investor looking for. 4. HUL No need to say anything about Hindustan Unilever. People in India cannot survive without HUL products. It is operating into the FMCG sector with vast list of products where, most
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of them have clear monopolistic position in Indian market. Some of them are Surf Excel, Lux, Lifebouy, sunsilk, ponds are some but very few in their list. To identify the power of HUL product, try to find a shop or a corner where any of the HUL product have no presence. 5. United Spirits Spirit is one of the most profitable business in the world. In India, spirit business providing maximum income to most of the states. It is difficult to find an adult in India who has not heard about McDowells or any of its variants. That is United Spirits. Presence in each and every corner of India, and being the 4th largest spirit company in the world, McDowell put its signature among other Indian companies as one of the best to invest. An only difference from others in this list is, United Spirit have debt but simply manageable. Buy this stock when the prices are down, hold it and see how your wealth zooming. 6. Glaxo Consumer Care Can any one beat Horlicks or Boost in India? or Crocin? Impossible. Both of these three are the unbeaten brands from GSK consumer Healthcare for decades and will remain as stronger for next decades too. If the company has such solid brand names with monopolistic position, there are no
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points of thinking to invest on the stocks of this company. Wait to get the stock in the minimum price, that very rarely happening, and invest maximum. 7. P&G Did you ever hear the products Vicks and Whisper? funny right. In India it is difficult to find a person who never used Vicks and difficult to find a women who not aware about Whisper. Vicks brand is a clear monopoly and even whisper too. P&G has special focus to feminine care which leads them to have one of the most admired feminine brands along with its long trusted monopolistic brand Vicks. Yes, these two brands are sufficient to select this company with confidence, to invest and zoom your wealth.

8. ICICI bank
ICICI bank has large number of branches across India with second largest bank in India status. Their credit card division is the best in India in the sense of services and products. ICICI direct is the most favored online trading platform for several years. Bank has efficient management and sales team with huge marketing network across India. This stock will be better to hold for long term and can consider as wealth zoomer. High volatility is the only drawback with this stock but recovery will be faster. Consider to have this stock
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in the portfolio for long term by carefully buying when the prices are down to the maximum. 9. Asian Paints Asian paints are Indias most favorite decorative paint company with posh huge decorative paint collections. Anywhere in India, Asian paints are the well known name between big companies to small home makers. This is a classic good stock to generate long term wealth by taking advantage from its monopolistic position in the paint industry and most innovative ideas time to time. 10. Bluestar You may feel wonder why I have added Bluestar with the above Indian Germs. There are reasons. Drastic changes in Indian climate which being hotter and hotter. Bluestar is the makers of Air conditioners and yes, it has the monopolistic business in India. In the coming years, requirements for air conditioners in offices as well as home, going to up and that add value to Bluestars business. A future based pick of this stock certainly add value to your portfolio as well as wealth too. When selecting stocks, give preference to companies have at least one product in market that have monopolistic position. Remember to avoid sick commodity based
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{K.J Somaiya college of Sci&Comm}

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companies by considering huge competitors in the same business, less earning and inability to meet inflation adjusted price to its products. Such business certainly have huge debt base and well organized labor force. Airline industry is the best example for organized labor, which can affect their operation in case of any are with strikes the the happening. example above for Steel sick,

manufacturing commodity reasons.

industries business

type

mentioned

All the above listed companies are able to adjust their price to beat inflation in a great way. Due to their monopolistic position in the market, they never loose the customers in case of any hike in price required due to inflation. As they dont have any competitors, their customers will be with them. This is a wonder which help investors to zoom wealth to a great extend.

{K.J Somaiya college of Sci&Comm}

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