Competition Commission of India

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Assessing the State Of Competition in Indian Manufacturing Sector: Case Study of the Paints and Tyre Industry

The study was commissioned to Jawaharlal Nehru University, New Delhi with an objective to understand the structure of the Tyre and Paint sectors to gauge the state of competition in these sectors. The basic premise of the study was that the information obtained would serve as a guide to the CCI in terms of the quantification of parameters that could be used to assess anti-competitive behavior. In addition, the study would also serve as a guide to the state of competition in these sectors. Since there was some indication of anti-competitive behaviour in the Tyre industry, a limited survey of tyre dealers was carried out to see what anti-competitive practices are used by manufacturers. While the survey is limited, there are indications that manufacturers use resale price fixing, exclusive supply arrangements and tie-in arrangements to bind dealers to their conditions. 

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