Report: Cement firms colluded to raise prices
SWISS giant Holcim's India units and more than a dozen other cement manufacturers colluded to raise prices and restrict supplies for years, which included regularly inspecting one another to ensure there was no breach of the agreements, according to a federal antitrust probe.
The investigations arm of the Competition Commission of India (CCI) has held top leadership - CEOs or Managing Directors - of Holcim units ACC and Ambuja, market leader UltraTech and 17 other firms such as Shree Cement and Dalmia Cement liable for antitrust violations.
The investigation report, issued last month and seen by Reuters, is the penultimate but most significant stage of the CCI probe that started in 2019. The report, which is not public, will now be reviewed by CCI's top three officials who have powers to impose fines and will give companies a last chance to defend themselves.
Potentially, the cement giants could be fined millions of dollars. Together, the 20 companies control more than three-quarters of the over 500 million tonne installed cement capacity in India, the world's second-largest producer after China.
The report said executives of the companies discussed coordinated price hikes in Zoom calls and in-person meetings at company guest houses, with some officials using personal mail to communicate with rivals. WhatsApp messaging was also extensively used.
One company official's WhatsApp message cited in the report said a ‘forum' of companies had agreed to gradually raise cement prices in some regions by 5-10 rupees (6-12 U.S. cents).
Senior executives, including from Holcim's ACC and UltraTech, were assigned as the ‘coordinator‘ for various states.
‘Price will go up in each week by equal amount,' the message said.
The message did not give details but typically, cement is sold in 50 kg (110 lb) bags to retail consumers, and the cost is between $4-$6 per bag depending on the location and grade of cement.
CCI did not respond to a request for comment.
India's Adani Group, which entered into a proposed $10.5bn deal with Holcim in May to acquire its India businesses, also did not respond.