-
ALSO READ
CCI penalises beer companies for cartelisation
Heineken takes control of United Breweries
Amara Raja Batteries resumes operations at its plants in Andhra Pradesh
Adani Ports gains on concluding acquisition of 10.4% stake of Gangavaram Port
Competition Commission passes order against Grasim Industries
-
United Breweries fell 3.84% to Rs 1544.85 after the Competition Commission of India (CCI) fined the company about Rs 750 crore for indulging in cartelisation in the sale and supply of beer.
CCI on Friday (24 September) imposed penalties on three beer makers as well as their trade association All India Brewers' Association (AIBA) for cartelisation.CCI passed a final order against UBL, SABMiller India (now known as Anheuser Busch InBev India) and Carlsberg India for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India.
As AIBA was found to be actively involved in facilitating such cartelisation, CCI also held AIBA to be in contravention of the provisions of Competition Act, 2002 (the 'Act').
The period of cartel was held to be from 2009 to at least 10 October 2018, with Carlsberg India joining in from 2012. AIBA served as a platform for facilitating such cartelisation since 2013.
"Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to Carlsberg India and its individuals," the release said.
The CCI directed UBL and Carlsberg India to pay penalties of approximately Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.
Based on evidences, CCI found that the three companies engaged in price co-ordination in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry.
The firms were collectively restricting beer supply in Maharashtra, Odisha and West Bengal. The companies were sharing market in Maharashtra and co-ordinating beer supply to premium institutions in Bengaluru.
Further, the fair trade regulator also found co-ordination among UBL and AB InBev for purchase of second-hand bottles.
"We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law," United Breweries said in a clarification on Friday (24 September).
On a consolidated basis, United Breweries reported a net profit of Rs 30.89 crore in Q1 FY22 as against a net loss of Rs 114.40 crore in Q1 FY21. Net revenue from operations rose 120.6% to Rs 1,119.47 crore in the first quarter as compared with the same period las year.
United Breweries is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU