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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INTRODUCTION:

On March 9, 2018, the Union Minister for Industries, Nitin Gadkari, warned the Cement and Steel Companies cartels which had created unwarranted price increase, when all other costs remained same as well as Technology was helping to reduce cost of production.

In January 2017, the CCI levied a penalty of nearly Rs. 2.06 billion on seven major cement companies on charges of cartelization A penalty of 0.3% on the turnover of the preceding 3 financial years was levied on these companies Shree Cement Ltd., UltraTech Cement Ltd. (Birla Group), Jaiprakash Associates Ltd. (JP Gaur Group), J.K. Cement Ltd. (Singhanias Group), Ambuja Cements Ltd. (Lafarge Group), ACC Ltd. (Lafarge Group), and J.K. Lakshmi Cement Ltd. (Singhanias Group).


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