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Indian Concrete League Amma cement at 190; but ‘Ayyo’ cement at 430...
 
Indian Concrete League
The Cement Manufacturers Association of India, aka the Indian Concrete League, wields enormous power in our real estate economy, namely the infrastructure sector. The members of this organisation, comprising top cement manufacturing companies, have a stranglehold over the infrastructure sector by controlling production and pricing of cement and trigger inflation.

A few members of CMA can stall any large development project of national importance, increase manifold the cost of construction of bridges, dams, residential and commercial complexes with a few strokes of pen. The recent order of the Competition Commission levying a penalty on leading cement companies for cartelisation is a wake-up call. But we are getting ahead of the story.


They are a cartel...

By now it is an open secret that cement companies in India work like ‘one body and one mind.’  As per documents obtained from the Competition Commission, it is clear that the companies fix prices in advance, decide each other’s production capacities with meticulous ease and monitor distribution of cement in each other’s plants.  They even divide  sales territories amongst themselves to ensure maximum profitability; all forms of competition are nipped in the bud.  

While the cement companies vociferously claim that they are fiercely competitive, the Competition Commission finds the opposite to be true.  The Commission notes: “the act and conduct of the cement companies establish that they are a cartel. The Commission holds that the cement companies’ acting as a cartel have controlled and also attempted to control the production and price of cement in the market in India (Para 178 of CCI order).”

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