Study on Indian Chemical Industry: Market Concentration, Diversification and Firm's Performance

This study examines how market diversification and concentration affect businesses' success in the context of the Indian chemical sector. The results show that market concentration and performance as evaluated by profitability and productivity are positively correlated. Diversification, however, has a favourable effect on a company's profitability but a negative effect on its productivity. The analysis also shows that, for the Indian chemical sector, market concentration worked better than diversification.