Shares of cement makers are under pressure in opening deals after the competition watchdog, Competition Commission of India, (CCI) imposed a hefty penalty of about Rs 6,300 crore on eleven leading cement companies for price cartelisation.
ACC, Ambuja Cements, Ultratech Cements, JK Cement, India Cements, Madras Cements and Century Textiles are trading lower by more than 3% each on the Bombay Stock Exchange.
The CCI has found that the cement companies have not utilised the available capacity so that there are reduced supplies in the market and they can raise prices in times of higher demand. The firms in violation of the competitive laws have been directed to deposit the penalty within 90 days. The penalty is equivalent to 50 per cent of their profit for 2009-10 and 2010-11,” the report suggests.
Meanwhile, UltraTech Cement has penalised for Rs 1,175 crore by CCI, said in a regulatory filing that the company will take appropriate action after having fully examined the order.
Ambuja Cements has fined for Rs 1,163 crore, while for ACC the amount works out to Rs 1147.59 crore.
