As Adani expands cement empire, Congress warns against monopolies

The Congress on 15 June said it is the government's responsibility to ensure that competition among corporates is not stifled, oligopolies or monopolies do not emerge, and corporate takeovers are free and fair.

Party MP and general-secretary (communications) Jairam Ramesh said it is also the government's responsibility to ensure that undue advantage arising from access to political power is not exercised.

His comments came after the Adani Group acquired Penna Cements, strengthening its share in the cement sector in southern India.

"Aap chronology samajhiye (understand the chronology): September 2022: Adani acquires Ambuja Cements and ACC, to become country's second largest cement player. August 2023: Adani acquires Sanghi Industries, India's largest single-location cement unit. June 2024: Adani acquires Penna Cements, giving it substantial market share even in the last remaining region of South India." Ramesh said in a post on X.

"Upcoming: Adani is exploring the acquisition of Saurashtra Cement, Vadraj Cement, and the cement business of Jaiprakash Associates," Ramesh claimed.

Quoting former Reserve Bank of India deputy governor Viral Acharya, Ramesh said the noted financial economist had established that the five big conglomerates, including the Adani Group, are building monopolies in 40 sectors, including the cement sector.

"This growing monopolisation is linked to India's shaky economic growth, unemployment crisis, and high inflation. In 2015, when a common man used to spend Rs 100 on goods, Rs 18 would go as profit to the business owner — in 2021, the owner now gets Rs 36 in profits," Ramesh claimed.

"Firms must grow. Companies must expand. But at the same time, the government has a responsibility to ensure competition is not stifled, oligopolies or monopolies do not emerge, takeovers are free and fair, and undue advantage arising out of access to political power is not exercised," the Congress leader said in his post.