New Delhi: India’s antitrust watchdog is reviewing a case against Compagnie de Saint-Gobain that says the French group forced some partners to buy glass from it exclusively or risk being excluded from supplies altogether, documents seen by Reuters showed.
The case against Saint-Gobain and its local unit was filed to the Competition Commission of India (CCI) in May by a retired glass industry executive, whose name was redacted in the documents as the person sought confidentiality.
They have been accused of abusing their market position in so-called clear float glass, a smoothened variant often used in windows, doors or facades, and coated glass variants. Saint-Gobain has a 44% share of the float glass market in India and a 19% share of the coated one, according to the documents.
Saint-Gobain said in a statement to Reuters it was not aware of and nor had it been served any complaint, notice or document. The group and its India unit, Saint-Gobain India Private Limited, “conduct their activities in compliance with laws”, in particular competition law, it said.
The CCI did not respond to a request for comment. It does not, as per policy, disclose details of cases filed or under review.
The May 25 case documents allege Saint-Gobain entered into agreements with glass processors, forcing them to “exclusively” purchase glass from the company or face stopped supplies if that obligation is not fulfilled.
They also claimed the company, in some instances, directly fixed prices with large customers such as Indian real estate giant DLF, and then asked distributors to supply at those rates, thereby imposing unfair anti-competitive conditions. DLF declined to comment.
The filing is the second such case against Saint-Gobain in recent years. In 2011, an Indian firm filed an antitrust case against it and an investigation was ordered, but the CCI ruled two years later the company was not abusing its market position and nor was it indulging in exclusionary practices.
Saint-Gobain counts India as a key market. Its CEO Benoit Bazin said in February “India is flying”, saying the South Asian nation was its number three market in terms of operating income, and the company was the number one player in glass in India.
The case filing also alleged Saint-Gobain offered “significant discounts” on products if a glass processor or distributor purchased exclusively from the company, and also did not supply to those dealing with rivals, hurting competition, the documents showed.
The CCI is currently in the initial stages of reviewing the allegations, two sources familiar with the proceedings said.
As per rules, the CCI has powers to throw out the case if it finds no merit in it, seek inputs from the company or – as the complainant is pleading – order a full-blown probe by the investigations unit. Typically, the regulator takes up to three months to reach its initial decision.
Saint-Gobain sales in India stood at 123.6 billion rupees ($1.51 billion) in 2022, and it has 76 manufacturing sites, sales offices and a widespread network of distributors in the country, its website says.
(Reporting by Aditya Kalra; Editing by Muralikumar Anantharaman)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.
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