The Competition Commission of India (CCI) has initiated an investigation into Asian Paints over allegations of anti-competitive practices, based on a complaint filed by Grasim Industries, part of the Aditya Birla Group.
The CCI has ordered the Director General to investigate and submit a report within the 90 days, mentioning there was no need to invite Asian paints defence at this early stage. The order emphasised that the order is not clear and instructed the DG to conduct an impartial investigation.
Asian Paints stated that it is currently reviewing the CCI order and considering potential legal options. In a stock exchange filing, the company affirmed its commitment to fully cooperate with the investigation. Meanwhile, Grasim has accused Asian Paints of leveraging its dominant market position by offering incentives such as discounts and foreign trips to secure exclusivity. The complaint also alleges that Asian Paints imposed higher sales targets on dealers handling Birla products, making it harder for them to promote rival offerings.
The order accused Asian Pints of limiting suppliers, pressuring landlords, C&F agents and transporters to exclude rivals like Grasim, hindering market entry and limiting competition. Asian paints, holding a 53 percent share of India’s paint capacity and a strong presence across 74,000 dealers in the 80,000 – 90,000 crore market, saw rising rival Birla Opus gain 7 percent market share since its Feb 2024 debut.
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In September 2022, CCI found no merit in JSW paints, allegations against Asian Paints and by restricting market access through dealers’ pressures over JSW products.
