The shipping ropes industry is highly fragmented and is dominated by South Korean companies
Responsive Industries Ltd, which had increased its shipping ropes manufacturing capacity to 40,000 tons per annum from 33,000 tons per annum in 2009-10, has established its position in this segment by achieving a market share of 60%.
According to rating agency Crisil, Responsive Industries, through its subsidiary Axiom Cordages, is one of the largest players in the global shipping ropes industry competing with DSR Wires (Korea) and Garware Wall Ropes.
The shipping ropes segment contributes 32% of the total revenue of Responsive Industries. “While the demand for shipping ropes from developed countries has been flat, we expect strong demand from the developing Asian nations. The company, with its extensive B2B distribution and lower cost of production, is expected to meet this demand and increase its market share,” the Crisil report said.
Based at Palghar in Maharashtra, the company already has large shipping companies as its customers such as MSC Lines, APL, Hyundai and companies catering to defence, navy and offshore oil and gas sectors.
The shipping ropes industry is highly fragmented and is dominated by South Korean companies. According to industry sources, the estimated size of the shipping ropes market is around $3-3.5 billion.
Most of the players in this industry have capacities in the range of 2,000 tons per annum to 3,000 tons per annum and fail to meet the quality requirements of the reputed shipping companies, the report said.
Responsive Industries has also entered into tie-ups with existing shipping rope players to manufacture products for them. This has helped the company open up an additional revenue stream and provide an upper hand over competitors by gaining access to their customer base, the report said.
The company, which has global presence in 70 countries through its network of 300 distributors, apart from shipping ropes, is a manufacturer of vinyl flooring, soft sheeting, rigid polyvinyl chloride and leather cloth. It relies heavily on crude oil derivatives and is exposed to fluctuation in raw material prices due to adverse movement in international crude oil prices.
According to rating agency Crisil, Responsive Industries, through its subsidiary Axiom Cordages, is one of the largest players in the global shipping ropes industry competing with DSR Wires (Korea) and Garware Wall Ropes.
The shipping ropes segment contributes 32% of the total revenue of Responsive Industries. “While the demand for shipping ropes from developed countries has been flat, we expect strong demand from the developing Asian nations. The company, with its extensive B2B distribution and lower cost of production, is expected to meet this demand and increase its market share,” the Crisil report said.
Based at Palghar in Maharashtra, the company already has large shipping companies as its customers such as MSC Lines, APL, Hyundai and companies catering to defence, navy and offshore oil and gas sectors.
The shipping ropes industry is highly fragmented and is dominated by South Korean companies. According to industry sources, the estimated size of the shipping ropes market is around $3-3.5 billion.
Most of the players in this industry have capacities in the range of 2,000 tons per annum to 3,000 tons per annum and fail to meet the quality requirements of the reputed shipping companies, the report said.
Responsive Industries has also entered into tie-ups with existing shipping rope players to manufacture products for them. This has helped the company open up an additional revenue stream and provide an upper hand over competitors by gaining access to their customer base, the report said.
The company, which has global presence in 70 countries through its network of 300 distributors, apart from shipping ropes, is a manufacturer of vinyl flooring, soft sheeting, rigid polyvinyl chloride and leather cloth. It relies heavily on crude oil derivatives and is exposed to fluctuation in raw material prices due to adverse movement in international crude oil prices.
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