Shree Cement to challenge CCI allegation

In an interview with CNBC-TV18, HM Bangur, Shree Cement’s managing director, said the company will challenge the fine imposed by India’s Competition Commission (CCI).

Last month, the CCI gave Shree Cement a INR4000m (US$72.19m) fine for alleged involvement in a price-fixing cartel. In total, 12 Indian cement producers were fined by the CCI.

Mr Bangur said, the company was given no chance of a defence. "No questions were asked; suddenly we find a fine on us. Our name was not there, so we will definitely challenge it in the court then [the] judiciary will decide what to do."

He also spoke about the financial performance of the company in 1QFY13. He said the company’s volumes grew 30 per cent in the first quarter and capacity utilisation for the last two quarters is more than 100 per cent. "We are able to sell whatever we are producing," he added. 

Cement prices in northern India fell INR10-15 on an average in the first quarter due to adverse weather conditions.

"Prices in the last two quarters were very good, in fact they were the peak prices. But, in this quarter because of drought conditions earlier and heavy rains now, prices have slipped," he added.