Cement stocks under pressure after CCI initiates probe into cartelisation

MUMBAI: Shares of cement companies were under pressure in trade on Thursday after fair trade regulator Competition Commission of India (CCI) initiated a probe into possible cartelisation by the firms.

Shares of Ramco Cements, Dalmia Bharat, Deccan Cements, UltraTech Cement, India Cements, JK Cement, Ambuja Cement, Shree Cement, ACC, JK Lakshmi Cement, and Heidelbergcement India fell 1.3-4.2%.

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"The Competition Commission of India (CCI) has initiated an investigation against cement companies in India including ACC regarding alleged anti-competitive behaviour," ACC Ltd said in an exchange filing on Thursday.

ACC said it is of the firm view that it has acted and continues to act in compliance with competition laws and are cooperating with the investigation and providing all necessary information to the authorities.

"ACC has a long-standing commitment to fair competition as reflected in its Code of Business Conduct," the company added.

In a separate filing, Ambuja Cements, said also acknowledged the probe and added that, "Ambuja Cements Limited has a long-standing commitment to fair competition as reflected in its Code of Business Conduct and Ethics."

In the past three months, most cement companies have outperformed the benchmarks, rising as much as 50% against an 18% rise in the BSE Sensex.