Cement price cartelisation allegations trigger CCI raids
Cement

Cement price cartelisation allegations trigger CCI raids

Competition Commission of India (CCI), India’s antitrust body, conducted raids this week at offices of UltraTech Cement and two subsidiaries of LafargeHolcim. Simultaneous search operations were also conducted at multiple locations in India.

Swiss-based LafargeHolcim confirmed in a statement that officials visited the Mumbai offices of ACC and Ambuja Cement, and stated that the companies were fully cooperating with the authorities.

Media reports also say via sources that searches were conducted at Indian company Shree Cement Ltd. None of the Indian cement companies were willing to comment.

Following the news of the raids, shares of major cement companies were down between 3% and 5% in intra-day trading on Thursday.

So far, there has been no comment from CCI regarding the matter. No details are updated about ongoing public raids or cartel cases. Commerce Minister Piyush Goyal had announced in the parliament last year that the CCI was examining complaints of cartelisation by cement companies. CCI had imposed a heavy penalty of $1.1 billion on several cement companies in 2012. They were accused of using their plants to create a shortage of cement. An appeal is still pending for that decision.

CCI, in recent years, has also raided offices of other foreign companies such as Carlsberg and Glencore on allegations of price collusion in their industry.

India is the second-largest cement producer in the world. The country accounted for 8% of global installed capacity in 2019. During 2019-2020, the cement sales in India stood at $9 billion.

Competition Commission of India (CCI), India’s antitrust body, conducted raids this week at offices of UltraTech Cement and two subsidiaries of LafargeHolcim. Simultaneous search operations were also conducted at multiple locations in India. Swiss-based LafargeHolcim confirmed in a statement that officials visited the Mumbai offices of ACC and Ambuja Cement, and stated that the companies were fully cooperating with the authorities. Media reports also say via sources that searches were conducted at Indian company Shree Cement Ltd. None of the Indian cement companies were willing to comment. Following the news of the raids, shares of major cement companies were down between 3% and 5% in intra-day trading on Thursday. So far, there has been no comment from CCI regarding the matter. No details are updated about ongoing public raids or cartel cases. Commerce Minister Piyush Goyal had announced in the parliament last year that the CCI was examining complaints of cartelisation by cement companies. CCI had imposed a heavy penalty of $1.1 billion on several cement companies in 2012. They were accused of using their plants to create a shortage of cement. An appeal is still pending for that decision. CCI, in recent years, has also raided offices of other foreign companies such as Carlsberg and Glencore on allegations of price collusion in their industry. India is the second-largest cement producer in the world. The country accounted for 8% of global installed capacity in 2019. During 2019-2020, the cement sales in India stood at $9 billion.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Hexalog Appoints Vishal Shukla as Chief Transformation Officer

Hexalog, a cross-border supply chain and logistics company, has appointed Vishal Shukla as Chief Transformation Officer (CTO) to lead its operational transformation, technology adoption and expansion into new international markets.In his new role, Shukla will oversee the company's transformation strategy across operations, technology, product development and business expansion. His responsibilities include standardising processes, developing scalable operating models, strengthening existing trade corridors and introducing new fulfilment solutions for cross-border businesses.Shukla brings nearl..

Next Story
Real Estate

Dhuleva Group Awards 80-Storey Tower Contract to Eversendai

Dhuleva Group has awarded the core and shell structural construction contract for Dhuleva One50, an upcoming 80-storey ultra-luxury residential tower in South Mumbai, to Malaysia-based engineering and construction company Eversendai.Located near the Babulnath district, the development is planned as a high-rise residential landmark offering panoramic views of the Arabian Sea and Mumbai's skyline. The project will combine contemporary architecture with advanced engineering and premium residential facilities.Eversendai will undertake the structural construction works, drawing on its experience in..

Next Story
Building Material

Nuvoco Marks 10 Years, Targets 35 MMTPA Capacity by FY28

Nuvoco Vistas Corporation Limited is celebrating a decade of operations under the theme ‘Dus Saal Bemisaal’, highlighting its expansion in India's building materials sector. The company has grown from a single cement manufacturing facility into a diversified organisation operating across cement, ready-mix concrete (RMC) and modern building materials.The company's journey began in 2014 when its parent, Nirma Group, commissioned a 2 million metric tonnes per annum (MMTPA) greenfield cement plant at Nimbol, Rajasthan. A major milestone followed in October 2016 with the acquisition of Lafarge ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code