Multiproduct firms in India tend to enter industries that use similar inputs to what they already have. This suggests that the types of materials a company uses influence which industries it expands into. When barriers to entering new markets based on input availability were removed, firms were more likely to enter industries that matched their existing input mix. This shows that having the right input capabilities can make a company 5-15% more likely to produce in a certain industry. Barriers to entering new markets based on input availability were like having a 10.5% tariff on those inputs.