The C Factor: Cement Industry in India Unhealthy Oligopoly & Controls

Code : ECC0059

Year :
2018

Industry :Cement/Construction

Region : India

Teaching Note: Available

Structured Assignment : Not Available

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CEMENT INDUSTRY IN INDIA:

Cement is a mixture of compounds consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum oxide, and iron oxide. It is considered a preferred building material and is used worldwide for all construction works such as housing and industrial construction, as well as for the creation of infrastructure like ports, roads, power plants, etc. The demand for cement depends primarily on the pace of activities in the business, financial, real estate, and infrastructure sectors of the economy.


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CARTELIZATION:

India had transitioned from state-based and licensed companies to competitive markets during the 1990s. De-licensing created a competitive market and determined price and output as per the market forces of demand and supply. .

ANTITRUST LAWS IN INDIA:

CCI was established on October 14, 2003, and it became fully functional in May 2009. The Act prohibited anticompetitive agreements and the abuse of dominant market positions, restricting the production of goods, or denying market access to competitors.

COMPETITION APPELLATE TRIBUNAL:

The Competition Appellate Tribunal (CAT) was established under the provisions of the Competition Act, 2002. It heard and disposed of appeals against any direction issued or decision made or order passed by the CCI under sub-sections (2) and (6) of sections 26, 27, 28, 31, 32, 33, 38, 39, 43, 43A, 44, 45, or section 46 of the Competition Act, 2002.

 

EXHIBITS: Exhibit 1: Sales Value of 7 Cement Companies and the Total Sales Value of the Cement Industry,

Exhibit 2 Market Share of 7 Cement Companies during 1995 2017


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