CCI, The Cement Cartel of India

The cement cartel, according to the Competition Commission of India

Published: Jul 18, 2012

While the Competition Commission of India’s stunning penalty of Rs 6,307 crore on 10 top cement companies might have put other sectors including tyre and steel on high alert, it also provides an interesting insight into the cement industry

THE CEMENT INDUSTRY IN INDIA

  • 183 large cement plants and more than 360 mini cement plants
  • 330 million tonnes a year installed capacity
  • 97% of the installed capacity is accounted for by large producers, around 40 in number
  • 21 top companies control 90% of the market
  • 40% of the market is controlled by two groups, Holcim and Aditya Birla Group

mg_65954_india_cement_280x210.jpg

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WHAT THE COMPETITION COMMISSION OF INDIA FOUND AMISS

1. Creating artifi cial scarcity Alleged that these top producers—10 companies named—have colluded to lower capacity utilisation every year from 2008 to 2011, even though installed capacity increased.






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(This story appears in the 20 July, 2012 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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