CCI May Widen Probe Into Asian Paints Over Anti-Competitive Allegations By Birla Opus, Sources Say

The Competition Commission of India may initiate a detailed investigation into Asian Paints after Aditya Birla Group’s paint unit, Birla Opus, alleged anti-competitive practices by the country’s largest paint manufacturer, according to people familiar with the matter.

Birla Opus filed a confidential complaint with the CCI in November 2024, accusing Asian Paints of using its market position to limit competition, the people said, adding that the CCI has completed its preliminary enquiry and is reviewing Asian Paints’ responses before deciding on a formal probe.

Asian Paints controls about 53% of India’s decorative paints capacity as of the financial year ending March 2024 and operates through a network of approximately 1.6 lakh retail touchpoints and over 74,000 dealers, sources said.

The complaint alleges that the company pressured dealers not to stock rival products, especially those of Birla Opus, according to complaint and sources close to the matter.

The allegations also include restricted access to tinting machines, which are essential for customising colours at the retail level. Limiting these tools reportedly affects the ability of competitors to sell products effectively.

“The CCI has examined Asian Paints’ responses to the allegations and is now assessing whether a detailed investigation should be initiated. If a formal probe is launched, it would involve a deeper examination of Asian Paints’ market practices and their impact on competition within the paint industry,” one of the source quoted above said.

The allegations fall under multiple sections of the Competition Act, specifically Sections 4(2)(a)(i), 4(2)(a)(ii), 4(2)(c), and 4(2)(d), read with Section 4(1), which deal with abuse of dominant position, denial of market access, and unfair pricing.