Competition Commission Impact: Indian Cement Companies Stop Disclosing Monthly Sales Data


Indian cement companies have stopped sharing their sales statistics with the industry body, CMA (Cement Manufacturers' Association), as an immediate implication of the CCI (Competition Commission of India) order of a mega fine of Rs. 6,300 crore last June (2012) month.

Sources told Business Standard that Aditya Birla group's UltraTech, Jaiprakash Associates, Shree Cements, India Cements & Madras Cements among others have not yet provided their production and dispatches number for June, 2012.

Usually, by 10th of every month CMA publishes cement sector's monthly numbers on its website but this time it has not.

All those companies whose name emerged in the CCI order have abstained from sharing their monthly statistics & others too have followed the same.

Swiss major Holcim's Indian companies - ACC & Ambuja Cements, were the first one to disassociate themselves from CMA back in 2009. Since then, they have been providing their statistics to the stock exchanges. Interestingly, both these companies were also in CCI's defaulters' list.

In its 20th June (2012) order, CCI had said that the cement makers should 'cease and desist' from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market. Further, it had stated,  CMA should disengage &  disassociate itself from collecting wholesale & retail prices through the member cement companies and also from circulating the details on production & dispatches of cement companies to its members.

Quarterly Basis..!

The spokesperson of Aditya Birla group said, '' The management has decided not to disclose the monthly cement numbers. The company will share statistics on a quarterly (three month) basis now onwards."

Now, our country's cement sector has an overall capacity of 33 crore tonne per year.  ACC, UltraTech, Ambuja, Jaiprakash, India Cements& Shree Cement control more than 50% of the cement market. 
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