P yrolysis industry is new industry in India, it is in the introduction stage of the industry cycle or as of now the industry is in its infancy. It is currently concerned about the development of a new product, from the time it is initially conceptualized to the point it is introduced in the market. The firm having an innovative idea first always gets a period of monopoly, until competitors start to copy and / or improve on the product.
Whereas right now in the pyrolysis industry in India there are quite a few manufacturers of the pyrolysis oil using the same technology, which therefore leaves no scope of any firm creating a monopoly.
There was significant risk to investors during the initial introduction stage as the companies at that time needed a significant amount of buyers to sell their products which was a new concept in all, so earning buyer’s confidence to sell their products at that time was a big challenge.
The principal points of risk at this stage are: technical problems in manufacturing, storage & supply of insufficient production capacity – inability to meet demand, obstacles in creating permanent customer their resistance to pyrolysis products and reluctance to change consumption habits of the industry people.