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India’s Competition Commission rejects charges against UltraTech

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World Cement,

According to local press reports, the Competition Commission of India (CCI) has rejected allegations that UltraTech Cement, a member of the Aditya Birla Group, has been involved in unfair business practices in the cement wholesale market.

A complaint filed by an individual cement retailer claimed that UltraTech had violated competition norms by imposing unfair terms in the stockist agreement. The retailer, which previously sold UltraTech cement products, made the decision to sell other cement brands (alongside UltraTech) in 2011. As a result of this, the cement manufacturer allegedly imposed various restrictions on the retailer, which including limiting the sale of other cement brands.

The CCI responded to these allegations with an order released on 9 October 2014. Reports quote the regulator stating that it was of the prima facie opinion that no case of contravention of any of the provisions... of the (Competition) Act is made out against the opposite party (UltraTech Cement), and that, due to the existence of competitive forces at the manufacturers and the stockists level, the stockist agreement did not seem to cause any appreciable adverse effect on competition in India.

Edited from various sources by Rosalie Starling


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