India’s competition watchdog has uncovered evidence suggesting that several major cement companies may have coordinated bids and pricing strategies in tenders issued by Oil and Natural Gas Corporation (ONGC), according to findings from a long-running investigation.
A confidential investigation report prepared by the Competition Commission of India (CCI) reportedly details a 12-year period of alleged collusion involving multiple cement suppliers participating in ONGC tenders for oil well cement. The probe, which examined bidding patterns between 2007 and 2018, highlights suspected price coordination, volume allocation and attempts to limit foreign participation in public procurement contracts.
Identical Bids Triggered the Investigation
The case originated after ONGC noticed unusual similarities in bids submitted during several tenders. In one notable instance in 2018, bids submitted by competing suppliers for a 170,000-ton cement contract were all quoted at the same price of ₹7,000 per metric tonne.
The identical pricing raised concerns within the state-run energy company, prompting officials to question the bidders. According to details cited in the investigation, a representative from one of the companies reportedly attributed the figure to a “lucky number,” a response that further strengthened suspicions.
Following the irregularities, ONGC filed a complaint that eventually led to a formal antitrust investigation.
Companies Named in the Investigation
The CCI report indicates that the alleged cartel involved several cement manufacturers over different periods.
Companies cited in the investigation include:
Dalmia Bharat (through its subsidiary Dalmia Cement (Bharat))
Shree Digvijay Cement Company
India Cements
According to the findings, Dalmia Cement (Bharat) and Shree Digvijay were allegedly involved throughout much of the period under review, while India Cements was linked to the alleged cartel during the later phase between 2017 and 2018.
The investigation was initiated after complaints from Oil and Natural Gas Corporation (ONGC), India’s largest oil and gas explorer.
Alleged Coordination in Bidding and Supply
Investigators claim that the companies coordinated bidding strategies to minimise competition in ONGC tenders.
Evidence cited in the report reportedly includes internal communications, meeting records, emails and witness testimony. According to the investigation, executives from the companies discussed supply volumes and calculated logistics costs such as rail freight distances from cement plants to delivery points.
The aim, investigators allege, was to submit bids in a way that allowed companies to divide contracts and maintain comparable revenue shares while avoiding aggressive price competition.
Internal spreadsheets comparing transportation distances and supply zones were also reportedly used to determine how volumes could be distributed among participating firms.
Executives Named in the Report
The report attributes potential responsibility to several senior executives linked to the companies involved. Among those referenced are senior leadership figures from the participating firms.
The investigation reportedly cites testimony from a senior executive at Shree Digvijay stating that identical pricing was intended to ensure that volumes and revenues were distributed evenly among the companies.
Authorities also examined communication records that suggested coordination in preparing tender submissions.
Attempts to Challenge Foreign Competitors
The investigation also points to attempts by domestic firms to challenge foreign bidders participating in ONGC tenders.
According to the findings, complaints were raised with government authorities regarding certification requirements and regulatory compliance of foreign suppliers. These objections were allegedly used to discourage participation from overseas companies.
Foreign bidders mentioned in the report include global oilfield services firms and international chemical suppliers involved in oil well cement supply.
Investigators concluded that the companies also considered restricting cement supply to ONGC at one point in order to pressure the organisation into cancelling bids from foreign competitors.
Next Steps in the CCI Proceedings
The CCI has shared the investigation findings with the companies involved and has asked them to submit formal responses before a final decision is made.
The competition watchdog has the authority to either dismiss the findings or impose penalties if violations of antitrust law are confirmed. Under Indian competition law, fines can reach up to 10% of a company’s turnover or three times its profit for each year of proven wrongdoing.
Financial data cited in the report indicates that in the fiscal year 2024-25, Dalmia Bharat reported revenues of approximately $1.5 billion, while India Cements and Shree Digvijay reported revenues of around $444 million and $79 million respectively.
Increased Scrutiny of Domestic Industry
The case reflects the growing focus of India’s antitrust regulator on potential collusion in large procurement contracts, particularly in sectors such as infrastructure, cement and steel that play a critical role in national development.
Legal experts say the investigation highlights a broader regulatory effort to strengthen competition oversight in public procurement and ensure transparent bidding processes across government projects.
The CCI is expected to issue its final ruling after reviewing responses from the companies involved.
