A senior CCI member, said, ''There will be 2 to 3 meetings of the members. So far, there had been no sittings. It will take at least 2 weeks for us to prepare the final report. Allegations of cartelisation were there against about 40 cement makers, both large & small. This would be improper"
Indian cement industry comprises of 183 large cement plants & above 360 small cement plants.
Large producers, around 40 of them, contribute 97% to the installed capacity which now stands at about 33 crore tonne per year.
Cement cartelisation..!
Cartels are arrangements between firms not to compete on price & product and are aimed at raising the price above the competitive levels. For consumers, cement cartelisation results in higher prices, poor quality & less or no choices of goods.
CCI is probing the cement cartelisation issue on various fronts like retail sales price of the building materials & creation of the artificial shortage scenario by producing less than their capacity.
The watchdog CCI is also looking into the supply shortage issue and found that cement companies were running far below than their plant capacity at about 70%.
Indian cement companies were making higher profits by selling cement bags at higher prices and "circumstantial evidences" found that their return on capital is higher than that of the other industries, where it varies between 14 to 16%. This is cartel.
Src: PTI
CCI is probing the cement cartelisation issue on various fronts like retail sales price of the building materials & creation of the artificial shortage scenario by producing less than their capacity.
The watchdog CCI is also looking into the supply shortage issue and found that cement companies were running far below than their plant capacity at about 70%.
Indian cement companies were making higher profits by selling cement bags at higher prices and "circumstantial evidences" found that their return on capital is higher than that of the other industries, where it varies between 14 to 16%. This is cartel.
Src: PTI
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