Grasim alleged by over unfair pricing of VSF in the relevant market

YarnsandFibers News Bureau 2016-12-06 14:00:00 – New Delhi

Aditya Birla group firm, Grasim Industries a dominant player in the Viscose Staple Fibre (VSF) market has been alleged for discriminatory pricing ways in the sale of viscose staple fibre (VSF). It is said that the company offered different discounts to different customers for the sale of viscose staple fibre.

The Competition Commission has called for a detailed probe by the Director General (DG) – its investigation arm against the Grasim Industries after prima facie finding evidence of competiton norms violations.

The regulator said that it is of the prima facie view that OP 2 (Grasim Industries) appears to be imposing unfair and discriminatory pricing on the informant and certain other textile manufacturers and leveraging its dominant position in the relevant market of VSF in the downstream market of textile products.

Apart from allegations of the company selling VSF at higher rates to domestic customers compared to foreign ones, it has also been alleged that Grasim Industries controlled volume of VSF production in the local market as well as arbitrarily cut down production to increase prices.

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