RPG is diversified into 5 major sectors and holds substantial position in in only 2

of them. Ceat tyres has a market share of 11% which makes it the 4 th largest
company in the industry. CESC accounts for 15% market share of private power
industry making It the 3rd largest company in the sector. In the power sector,
private players account for very small percentage of total power production and
distribution services. Although RPG is accorded as a major player in these
industries, it accounts for relatively small market share.
RPG claims to have created full backward integration in the tyre manufacturing
by acquiring Phillips Carbon Black for chemicals and Harrison Malyalam for
rubber. But Exhibit 5, which gives the financial relationship between the
companies, shows that there is no receivable between these group companies.
Similarly, power production and distribution companies show no receivable from
the group companies. Hence, it can be observed that RPG is missing out on its
full potential of backward integration.