Grasim Industries slip 3 per cent post CCI penalty

The share price of Grasim Industries Limited slipped three per cent in the early morning trade session on Tuesday after CCI imposed a penalty on the company.

The flagship company of Aditya Birla Group, Grasim Industries Limited, was levied a penalty of Rs 301.61 crore by Competition Commission of India (CCI) in respect to its domestic man-made fibre turnover.

The 60-page order, released on CCI’s website, is passed under Section 4 of Competition Act 2002 dated March 16, 2020. The order levied the penalty to the company for allegedly “abusing its dominant position in the market” for supply of Viscose Staple Fibre (VSF) to spinners in India.  

The order states that the company violated the norms of the commission by charging discriminatory prices to its customers apart from imposing supplementary obligations on them. The commission has asked Grasim Industries to put in place a discounted and non-discriminatory policy and make VSF, a man-made biodegradable fibre used in apparels, easily accessible for all the market participants.

Meanwhile, in a BSE filing released on Monday after market hours, Grasim Industries informed that they have not received the order yet. The company further added they have sufficient grounds for appeal which they can do on the basis of merits.

At 2.45 pm on Tuesday, the stock of Grasim Industries Ltd is trading at Rs 562.25, down by 2.48 per cent against its previous close of Rs 576.55. Its 52-week high is Rs 958.55 while, its 52-week low is 507.35 on BSE.