Changing Government Regulations Fueling a Hidden Opportunity in a Fast-Growing Sector

Recently implemented Gov regulations set to benefit domestic companies in a sector which is largely dominated by international players currently.

We continuously seek sectors poised for significant growth and transformation, especially where government regulations promise to disrupt nearly 90% of the current market landscape. One such market, currently valued at around 8000 to 9000 Cr and growing at an impressive 15-18% annually, is dominated by overseas players, particularly from China, with domestic companies having minimal penetration. This creates substantial room for local players to capture market share, driven by supportive regulatory frameworks.

Interestingly, the listed space in this sector has only two domestic companies. One is a pureplay while the other is just getting into it with manufacturing started this year.

However, on the other hand, numerous unlisted domestic companies have started announcing substantial capital expenditures, signaling confidence in future market expansion and eventual journeys toward public listing.

Having extensively analyzed the regulations, engaged in-depth with both listed and unlisted entities, we believe this is a sustainable trend set to benefit domestic companies significantly over the coming years. We have identified one actionable investment opportunity already and are closely monitoring another promising candidate, awaiting a more attractive entry price.

Given that few market participants are currently focused here, we anticipate being among the early movers in this lucrative space.

The detailed research, including regulatory breakdowns and the specific investment ideas we are pursuing, is reserved for our clients who receive full access to our sector deep-dives and actionable opportunities. If you wish to receive this note, please email at gaurav.a@nineonecapital.in