CCI launches Market Study on Cement Sector in India

The Competition Commission of India (CCI) is launching a pan-India Market Study on the Cement sector.

Cement is a critical input in crucial sectors of the economy such as housing and infrastructure. These sectors have well-known forward and backward linkages with a range of other industries, thereby having the potential to influence the overall growth trajectory of the economy.

Given the criticality of cement for many vital sectors, well-functioning and competitive cement market is of utmost importance.  In view of the same and given the structural features of cement market that make it susceptible to collusion, the market study will be a fact-finding exercise to develop comprehensive understanding of the functioning of cement market across regions in India, and the state of competition therein.

The market study is independent of any case proceedings before the Commission pertaining to the cement sector. The objectives of the study are the following –

1. To examine the evolving market structure in the cement sector across regions including inter alia market concentration, entry/exit and consolidation.
2. To study the market trends including inter alia trends/movements in cement price, cost, production, capacity, capacity utilisation and profitability.
3. To understand cement pricing in trade and non-trade segments including an in-depth analysis of the determinants of movements in cement price.
4. To reach out to all relevant stakeholders for a holistic understanding of the sector and identify impediments to competition, if any.
5. To ascertain enforcement and advocacy priorities for the Commission in the cement sector.

The study will be a combination of secondary research and stakeholder consultation. Qualitative and quantitative information will be collected from secondary and primary sources. Designed by the Commission, the study will be implemented by a study team at the Commission with the assistance of an external agency to be engaged for the purpose. The study team will hold consultation with stakeholders throughout the country.