The Indian Cement Industry Cartelization: A Bumpy Ride Ahead?
| Case Code: ECON096
Case Length: 9 Pages
Pub Date: 2021
Teaching Note: Available
| Price: Rs.300
Organization : Builders Association of India
Industry :Real Estate
Countries : India
Themes: B2B Marketing, Government & Economy, Competitive Environment,Economic Analysis
Abstract Case Intro 1 Excerpts
In November 2020, the Builders Association of India (BAI) urged the Indian Prime Minister (PM), Narendra Modi (Modi), to establish a cement regulatory authority for the sector to restrain cartelization and undue profiteering by producers. In a letter to the PM, Mu. Moahan (Moahan), President of BAI, stated that such an authority would stop manufacturers from indulging in unethical trade practices, which had been causing severe damage to the country’s economic growth and hurting the interests of the construction industry.
The letter by BAI mentioned that cement companies had reported production levels that were much less than capacity since 2017. The letter further said, “This shows that the cement manufacturers are deliberately not utilizing the installed capacity of cement production with the purpose of creating an artificial shortage of availability of cement in the market to control the prices.”
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