CCI Orders Probe Against Asian Paints Over Alleged Dominant-Position Abuse

The Competition Commission of India launched a formal investigation against Asian Paints Ltd. on Tuesday after allegations of abuse of its dominant position in the decorative paints markets.

The development comes following a complaint by the Birla Opus Paints division of Grasim Industries Ltd., the flagship company of the Aditya Birla conglomerate, the CCI said in a release on its website.

In its 16-page order, the commission said it found prima facie evidence that Asian Paints might have violated Sections 4(2)(a)(i), 4(2)(c), and 4(2)(d) of the Competition Act, including unfair trade practices, denial of market access and imposition of supplementary obligations on dealers.

NDTV had earlier reported that the CCI would initiate investigation into Asian Paints for alleged anti-competitive practices by the country's largest paint manufacturer.

The CCI directed the director general to conduct an investigation into the matter and submit a report within 90 days.

The complaint alleged that the company pressured dealers not to stock rival products, especially those of Birla Opus, which also claimed that Asian Paints was threatening the suppliers, too, from providing raw materials to Birla Paints.

Responding to the CCI order, Asian Paints said that it was currently reviewing the order and would take appropriate legal recourse. "The company remains committed to fully cooperating with the CCI during the course of the investigation," it said in a statement to the stock exchanges.

Grasim, a recent entrant into the decorative paints sector, has already cornered a 10% revenue market share in FY25, making it a serious player in the market.