CCI imposes Rs 302 cr penalty on Grasim Industries, Retail News, ET Retail

CCI imposes Rs 302 cr penalty on Grasim Industries New Delhi: The Opposition Commission has slapped a penalty of Rs 302 crore on Grasim Industries for abusing its dominant posture with regard to provide of a certain staple fibre to spinners.

Aside from, the business has been directed to “cease and desist” from indulging in anti-competitive techniques as perfectly as put in location a transparent “discount policy” for all the market participants.

In a sixty-web page buy, the Opposition Commission of India (CCI) reported the business has abused its dominant posture in the market for provide of VSF to spinners in India by charging discriminatory charges to its consumers, other than imposing supplementary obligations on them.

These are in violation of opposition norms, it included.

VSF is Viscose Staple Fibre (VSF) and is made as perfectly as offered by Grasim Industries.

“Whilst the business is but to acquire the buy of the CCI, it thinks that on merits it has ample grounds for an enchantment,” the business reported in a submitting to the inventory exchanges on Monday.

The CCI has directed the business to “refrain from adopting unfair/discriminatory pricing techniques and also refrain from trying to get the consumption specifics of VSF from the purchasers”.

Even more, the watchdog has questioned Grasim Industries to put in location a discount policy which is transparent and non-discriminatory to all the market participants, and to make it simply and publicly obtainable/accessible.

“It is built crystal clear that OP-two (Grasim Industries) shall not location any finish-use restriction on the purchasers of VSF and it would be open to them to use the identical for spinning or trading or any other intent, as permissible beneath law,” the buy reported.

A penalty of Rs 301.61 crore has been imposed on the business, an quantity that is equal to 5 for each cent of its typical turnover from the relevant market from 2014-15 to 2016-seventeen. The market for provide of VSF to spinners in India is the relevant one particular.

A complaint alleging unfair business techniques was submitted versus Association of Gentleman Built Fibre Market of India, Grasim Industries, Thai Rayon and Indo Bharat Rayon. The 3 corporations are section of the Aditya Birla Group.

In accordance to the Commission, Grasim Industries imposed supplementary obligations on the spinners which by their very character or in accordance to business utilization, have no relationship with the matter of these kinds of contracts.

“… the Commission has no hesitation in holding that OP-two has abused its dominant posture in the relevant market as a substitute of behaving as a liable company citizen which is predicted to comply with the exclusive and differential obligations of a dominant enterprise,” it noted.