Abstract

The case “The Indian Cement Industry Cartelization: A Bumpy Ride Ahead?” discusses the possibility of the existence of a cartel in the Indian cement industry and its impact on not only the real estate sector, but the entire Indian economy as well. The case starts out by mentioning the latest allegations of cartelization by the Builders Association of India (BAI), who then filed a case with the Competition Commission of India (CCI), against the Cement Manufacturers’ Association (CMA) and 11 Indian cement manufacturing companies. The case provides a glimpse into the structure of the Indian cement industry and gives an overview of its importance in the Indian economy. The case also presents the point of view of the cement companies. The Indian Government’s take on the entire cartelization issue is also described. So, is there a cartel at work in the Indian cement industry that could de-rail the country’s ambitious economic dreams?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand perfect and imperfect competition
• Analyze oligopoly and the conditions that form cartels
• Recognize the characteristics of cartel formation in an industry
• Examine market-sharing cartels and their adverse impact
• Scrutinize the measures taken to restrict unfair trade practices in an industry

Keywords

Indian economy; Cartel; Oligopoly; Monopolistic trade practices; Imperfect competition; Regulation; Developing Countries; Price Collusion; Market Supply; Market Sharing; Economic Development; Output Restriction; Cement Industry; Real Estate Industry; B2B Marketing