SHREDIGCEM

March 13 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• EXECUTES FACILITY AGREEMENT WITH ICICI BANK AND AXIS BANK

• TOTAL BORROWINGS AMOUNT TO 4.88 BILLION RUPEES

Source text: ID:nNSEbGB3Tm

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Adds share reaction in paragraph 12

By Aditya Kalra

NEW DELHI, March 9 (Reuters) - When India's largest oil explorer opened a tender for a cement order in 2018, it sensed something was off by the competing bids coming in: all of them were exactly 7,000 rupees per metric ton.

Oil and Natural Gas Corporation ONGC.NS queried the bids and got a wry reply from an executive at India Cements. Seven was his "lucky number", he explained.

Suspicious, ONGC quietly lodged an antitrust case against three Indian cement companies.

The details of the case were outlined in a confidential investigation report and evidence that were shared with the companies in January and reviewed by Reuters, following a five-year probe that found a decade of price collusion targeting state-run ONGC.

The Competition Commission of India (CCI) report said the "cartel period" ran 12 years between 2007 and 2018 for Dalmia Cement (Bharat), a unit of India's fourth-largest cement maker Dalmia Bharat DALB.NS, and rival Shree Digvijay SRDC.NS. India Cements ICMN.NS was part of the cartel for 2017-18.

The report identified thinly concealed attempts at collusion by Indian companies, signalling a growing willingness by the regulator to scrutinise domestic firms after months of high-profile investigations into foreign giants.

The Indian cement firms' bid rigging, discussions of supply patterns and efforts to oust foreign bidders were "substantiated from strong evidences in form of communication, meetings, emails, admission," said the 90-page report.

Local media outlet Zee Business reported the basic finding of wrongdoing last year, but Reuters is the first to report the detailed tactics and evidence that underpin CCI's investigation findings.

Dalmia Bharat declined to comment citing pendency of the matter before the CCI, but has previously said it is cooperating with the authorities. India Cements, which was acquired by No. 1 player UltraTech ULTC.NS in 2024, did not respond, and neither did Shree Digvijay, ONGC or the CCI.

The cement companies have been asked to respond to the report and the watchdog will then issue a final order within months. It has powers to drop any of the investigation findings, but fines can go as high as three times the companies' profit or 10% of their turnover for each year of wrongdoing.

In fiscal year 2024-25, Dalmia Bharat recorded annual revenues of $1.5 billion, Shree Digvijay $79 million and India Cements $444 million.

After the Reuters story, shares of Shree Digvijay extended losses to fall as much as 5.4%, while India Cements was down 4.4% and Dalmia Bharat down 3.5%.

'SUPPORTED BY THE NUMEROLOGY FACTOR OF 7'

While Apple, Amazon and other foreign firms have faced intense antitrust scrutiny, the cement case highlights CCI's focus on big Indian firms from key economic sectors.

"Tech cases have been a growing focus for CCI but there is increased cognizance within the government to tackle breaches at state-run firms and in public procurement," said Gautam Shahi, a competition law partner at Indian law firm Dua Associates.

In January, Reuters reported an antitrust investigation found four major Indian steelmakers, including Tata Steel and JSW Steel, colluded on prices.

Before filing the case in 2020, ONGC noticed bids had come in at the exact same or very similar pricing in four tenders for oil well cement.

For example, the 2018 tender for 170,000 tons of cement saw all three companies quoting a price of 7,000 rupees, or 7,350 rupees per ton with taxes, for different states.

That prompted ONGC to issue a warning in late 2019, with a notice to India Cements, contained in the report, saying the identically priced bids suggested violation of competition law.

India Cements defended its bid in a written submission on its letterhead to ONGC that year, citing global trends as well as the "lucky number".

"The financial bid was also supported by the numerology factor of 7", the company letter stated.

SUBMITTING BIDS TOGETHER

The CCI's investigation puts the onus of breaches on eight top executives including former managing director of Shree Digvijay, Rajeev Nambiar; billionaire chairman of Dalmia Bharat, Y.H. Dalmia; and former managing director of India Cements, N. Srinivasan, who is also one of India's high-profile business figures. None of the executives responded to Reuters queries.

The CCI also cited Shree Digvijay senior vice president Prem R. Singh, whose testimony said "the prime objective for quoting the identical price was to allocate almost equal volumes and revenue amongst companies".

Singh visited rival Dalmia's office for "directly assisting" them in their tender filing in 2018, the CCI report said, citing messages sent by Singh to Nambiar, his then managing director. Singh did not respond to requests for comment.

Shree Digvijay and Dalmia were "actively involved" in calculating the rail freight distance of their factories from ONGC cement delivery destinations. They then bid accordingly to avoid competition and divided territories amongst themselves.

Excel sheets were also made comparing distances to decide "volume sharing" among rivals, the report showed.

TARGETING FOREIGN FIRMS

Shree Digvijay and Dalmia also targeted foreign firms who bid by flagging "prickly issues", said the report.

They repeatedly filed complaints with the Indian government about foreign bidders' lack of certification and how New Delhi should promote domestic firms over foreign ones.

Foreign bidders included Texas-based Schlumberger, the world's largest oilfield services provider now known as SLB SLB.N, UAE-based Classic Oil Field Chemicals, and Bell Weather, the report showed. The three companies did not respond to queries.

The investigators concluded that the companies tried at least once to pressure ONGC to cancel foreign bids by deciding to "restrict supply" of cement to the oil explorer, which breaches antitrust laws.

In 2019, one executive wrote to another: "Need your support in making them (ONGC) understand that they cannot throw Indian parties in bath tub."

The companies could "not digest the fact that a foreign bidder" can be awarded a tender, the CCI said.

(Reporting by Aditya Kalra; Editing by Sam Holmes)

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Sept 4 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• SHREE DIGVIJAY CEMENT CO LTD - TRUE NORTH FUND VI LLP ENTERS SHARE PURCHASE AGREEMENT

• SHREE DIGVIJAY CEMENT CO LTD - DEAL FOR SALE OF 50.10% EQUITY SHARES OF CO

• SHREE DIGVIJAY CEMENT CO LTD - PURCHASERS TO MAKE MANDATORY TENDER OFFER

• SHREE DIGVIJAY CEMENT - TO ENTER DISTRIBUTION AGREEMENT WITH HI-BOND CEMENT, WITH OPTION TO BUY HI-BOND CEMENT

• SHREE DIGVIJAY CEMENT CO - VALUE OF DISTRIBUTION AGREEMENT TO BE 6 BILLION RUPEES PER ANNUM

Source text: ID:nBSEbQSMl2

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Aug 25 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• SHREE DIGVIJAY CEMENT CO LTD - NOT AWARE OF ADANI GROUP'S INTEREST IN PLANT AND PORT ASSETS

Source text: ID:nBSE9cDbsp

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March 11 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• SHREE DIGVIJAY CEMENT - CO IN PROCESS OF INITIATING ARBITRATION AGAINST CGESDC

• SHREE DIGVIJAY CEMENT- CLAIMS FILED BY CGESDC FRIVOLOUS, UNSUBSTANTIATED

Source text: ID:nNSE4Klc43

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Dec 1 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• KK RAJEEV NAMBIAR RESIGNS AS CEO AND MANAGING DIRECTOR

• RAMANUJAN KRISHNAKUMAR APPOINTED AS CEO AND MD

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Oct 27 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• SEPT-QUARTER PROFIT 73.9 MILLION RUPEES VERSUS PROFIT 59.6 MILLION RUPEES

• SEPT-QUARTER REVENUE FROM OPERATIONS 1.83 BILLION RUPEES VERSUS 1.62 BILLION RUPEES

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July 27 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• JUNE-QUARTER CONSOL NET PROFIT 172.5 MILLION RUPEES VERSUS PROFIT 171.4 MILLION RUPEES

• JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 1.93 BILLION RUPEES VERSUS 1.61 BILLION RUPEES

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June 16 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• OPERATIONS AT CEMENT PLANT AT DIGVIJAYGRAM JAMNAGAR WAS SUSPENDED FOR ONE DAY DUE TO CYCLONE BIPORJOY

• RESUMING OPERATION AT PLANT FROM TONIGHT UPON RESTORATION OF NORMAL CONDITIONS

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April 27 (Reuters) - Shree Digvijay Cement Co Ltd SRDC.NS:

• COAL PRICES EXPECTED TO SOFTEN FURTHER, WHICH WILL REDUCE COST OF PRODUCTION

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