While Aditya Birla Group’s cement business is under regulatory scrutiny, its paints venture has taken an aggressive legal stance against a market leader. The conglomerate now finds itself on both sides of the Competition Commission of India (CCI)’s radar.
On one side, UltraTech Cement—Aditya Birla’s flagship cement company and now the promoter of India Cements Ltd (ICL)—is facing an antitrust probe linked to alleged bid-rigging in tenders floated by ONGC.
On the other, Grasim’ Birla Opus, the Group’s new entrant in the paints segment, has filed a formal complaint with the CCI accusing Asian Paints of abusing its dominant market position.
Earlier this week, the CCI ordered an investigation into Asian Paints based on Birla Opus’ complaint, citing potential violations of fair competition norms in the manufacturing and sale of decorative paints.
In the bid-rigging case involving UltraTech’s subsidiary India Cements, the CCI may soon allow access to a “confidential” version of its investigation report so the accused parties can file formal responses. The Commission has also directed senior executives to submit detailed financial and income tax records spanning the past ten years.
Sources suggest that a hearing may take place in the second half of 2025, once the companies comply with the information requests.
The probe was initiated after a complaint from ONGC, alleging cartel-like behavior in its tendering process. Acting on this, the CCI ordered an investigation on November 18, 2020.
The Director General (DG) submitted the findings on February 18, 2025, concluding that India Cements, Dalmia Bharat, and Shree Digvijay Cement had engaged in anti-competitive conduct, allegedly in coordination with a middleman named Umakant Agarwal.
On May 26, 2025, the Commission reviewed the DG’s report and issued a four-page order directing the involved companies to disclose income earned from sales linked to the alleged misconduct. The order also warned that failure to submit accurate financial details could trigger penalties under Section 45 of the Competition Act.
UltraTech Cement has clarified that while its subsidiary India Cements is named in the ONGC cartelisation case (Case No. 35 of 2020), the company itself is not under direct investigation and has not received any formal communication from the CCI. UltraTech, which became the promoter of India Cements after acquiring a 32.72% stake from its promoters in December 2024 (in addition to a prior 22.77% market stake), is currently exploring legal options.
Meanwhile, the CCI has asked Dalmia Bharat and Shree Digvijay Cements to submit audited financial statements—including balance sheets and profit and loss accounts—for the years FY2011 to FY2019. UltraTech has been directed to provide India Cements’ financial records for FY2015 to FY2019.
Dalmia Bharat, in a regulatory filing, stated that it has not yet been heard in the matter nor received a formal order from the Commission, but affirmed full cooperation with the investigation.
Cement Cartel Case: A Recurring Antitrust Concern
CCI has launched a fresh investigation into cement companies in 2019 following reports from multiple sources about unusual spikes in cement prices across the country. It was alleged that several companies were working together to manipulate prices by colluding.
This marks the second major probe by the CCI into suspected cartelisation in the cement sector. Back in 2012, the regulator had slapped fines totaling $1.1 billion on a group of cement firms, accusing them of deliberately operating below capacity to create a false shortage and drive up prices. That case remains under appeal.
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