Tata, JSW, SAIL And 25 Other Steel Makers Colluded to Fix Prices, Finds CCI

India’s antitrust regulator, the Competition Commission of India (CCI), has reportedly found that a group of 28 steel manufacturers colluded to fix steel selling prices, breaching competition law. The finding is part of an unpublished order dated December 6.

According to Reuters, which first reported the order, it will now be shared with senior CCI officials, the companies concerned and their executives for review and submission of objections, after which it will be made public along with details of any penalties imposed on those accused.

The news agency said the CCI has also held 56 top executives of the companies liable for the alleged price collusion, which relates to the period between 2015 and 2023. The list includes high-profile industry figures such as JSW’s billionaire managing director Sajjan Jindal, Tata Steel CEO T.V. Narendran, and four former SAIL chairpersons.

The case dates back to 2021, when a regional builders’ group, the Coimbatore Corporation Contractors Welfare Association, filed a case in the Madras High Court alleging that steel companies had hiked prices by 55% over a six-month period up to March 11 that year.

The court later forwarded the case to the antitrust regulator to take “appropriate action”.

As per the report, the regulator found “the conduct of the parties to be in contravention” of antitrust law and said “certain individuals have also been held liable”.

Other companies found liable in the CCI order include state-owned Rashtriya Ispat Nigam and Shyam Steel Industries.

Reuters reported that CCI officials uncovered WhatsApp exchanges between regional industry groups of steel product makers that suggested wrongdoing.

India is the world’s second-largest producer of crude steel. JSW Steel holds a 17.5% share of the domestic market, followed by Tata Steel at 13.3% and SAIL at 10%, according to data from commodities consultancy BigMint. The CCI can impose penalties of up to three times a company’s profit or 10% of its turnover, whichever is higher, for each year of alleged wrongdoing. Individual executives may also face fines.