The Competition Commission is probing alleged cartelisation in the market for asbestos cement sheets, which is mainly used in rural areas for low cost houses and warehouses.
The fair trade regulator has said that various factors including high concentration in the market, product homogeneity and “active association of manufacturers” led to the decision of investigating anti-competitive practices in that industry.
Competition Commission of India’s investigation arm — Director General (DG) — is looking into the matter.
“The role of the Asbestos Cement Products Manufacturers Association (ACPMA) is under scanner for facilitating the cartel and controlling production volumes and sale prices.
“The Commission has taken suo motu cognizance of alleged anti-competitive conduct of ACPMA,” CCI said in its latest quarterly newsletter.
It noted that asbestos cement sheets are widely used for roofs in low cost houses, sheds and warehouses.
“The market of asbestos cement sheets consists of 20 big firms and 68 manufacturing units, of which top six players hold 87 per cent of the market share,” CCI added.
It said the probe was triggered after a reference from the Serious Fraud Investigation Office (SFIO).
CCI keeps a tab on anti competitive practices across sectors.