A day after the Competition Commission of India raided the
premises of tyre companies, including Apollo Tyres, in an alleged case of
breach of law violation and cartelization, the company Thursday released a
statement saying that it is fully cooperating with the investigation.

“We would like to reiterate that the company follows the
highest level of governance practices and operates within the letter and by the
spirit of the law,” Apollo Tyres said in an exchange filing.

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India’s antitrust body on Wednesday conducted raids on the
premises of four major tyre companies, including MRF and Apollo Tyres. The CCI
also raided the offices of Ceat and Germany’s Continental AG, the manufacturer
of Continental Tyres.

“We are fully cooperating with the antitrust regulator’s
investigation and have provided all the details required,” said Apollo Tyres.
The company added that it has acted and will continue to act in compliance with
the competition laws.

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Another tyre manufacturer, Ceat, had also confirmed a visit
by the officials of the CCI for a ‘routine enquiry’ but denied any wrongdoing
in the conduct of its business.

According to a Reuters report, the case was related to an investigation
into the use of unfair trade practices and rigging of bids while supplying
tyres for public transport vehicles in Haryana.

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Reuters reported in 2020 that the CCI was conducting broad
investigations covering many tyre companies following a report from the Haryana
government. The CCI said at the time: “There appears to be some
arrangement or understanding amongst the tyre manufacturers”.

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In February, the CCI charged five tyre companies and a tyre
makers’ association with indulging in cartelization. According to a CNBC-TV18
report, it imposed a penalty of Rs 425.53 crore on Apollo Tyres, Rs 622.09
crore on MRF, Rs 252.16 crore on CEAT, Rs 309.95 crore on JK Tyre and Rs 178.33
crore on Birla Tyres. The five tyre companies control over 90% of tyre
production in India.

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The CCI had directed the companies to cease unfair business
practices. It also imposed a fine of Rs 8.4 lakh on the Automotive Tyre
Manufacturers’ Association (ATMA).