While Indian cement consumption is recovering, the INR67bn (US$1.1bn) cartel fine imposed by the Competition Commission of India (CCI) on the industry provided an eventful start to the country’s 12th Five-Year Plan. In this report, ICR explores the impact of the CCI’s order on the sector as well as providing a review of cement market activity in the 1QFY12-13.
After successfully achieving its targets during the 11th Five-Year Plan (2007-12), India’s cement sector started the 12th plan (2012-17) on a smooth note. Cement consumption continued to recover in the first quarter of FY12-13 (April-June 2012) and the industry commanded relatively higher prices during the period. However, the unprecedented penalty of INR67bn (US$1.1bn) on the country’s top cement makers by the Competition Commission of India (CCI) announced near the end of the first quarter came as a real shock to the sector but is a charge that the producers in question strongly refute.
