Coal India can become a major market player the international coal market.

Background:

Coal india is the biggest producer of coal in the world  and biggest supplier of coal in India. It captures the 90 % market of Indian demand. But it has no influence on International market as of now. It is striving hard for international foray. It has big financial muscle power and expertise of running big coal mines. It also enjoys govt backing as it is a Govt company.

Advantages:

But it cannot influence the coal prices domestically to the existing customers as it's domestic prices are not directly linked to international prices and is influenced by Ministry of coal.

But for the part of international production it may be allowed to sell at market prices which will give it an edge. So, accordingly it has the potential to become big global player in the coal market.

It is a big giant but slow moving and already it has got some coal assets in Mozambique Indonesia, so in years to come it will have sizable tradable coal production and can be able to influence the market internationally.

It has big pocket, skilled human resources, technical expertise and can invest in the assets having long gestation period too which gives it an edge over other players like BHP, rio, CVRD etc which are in seaborne coal market.

It can also import to India for indian customer and can derive benefits. The demand -supply gap which is likely to be over 100 MT in next few years will be meted out to some extent with this effort.

Limitations:

Coal india has not been able to augment the production level in india as per the market needs and the productivity levels are low.

In totality, it will not have much influence in Indian market however it will give key competition in seaborne thermal coal market.