Strokes of Suspicion: Asian Paints Faces Antitrust Heat After Birla Brushes Up a Complaint

 

India’s Competition Commission (CCI) has ordered a formal antitrust investigation into Asian Paints, the country’s market leader, following explosive allegations from Birla Opus Paints, the Aditya Birla Group’s paints division. The probe, announced July 1, 2025, marks a significant escalation in the battle for dominance in India’s ₹80,000-90,000 crore paint market.

 

Key Highlights:

 

Allegations of Abuse: Birla Opus, a new entrant with a fast-growing 7% market share, accuses Asian Paints (holding over 50% share) of abusing its dominance by offering exclusive discounts and incentives—including foreign trips—to dealers, in exchange for not stocking rival products.

 

Restrictive Practices: The complaint details pressure tactics, such as raising sales targets for dealers carrying Birla products and allegedly coercing suppliers, landlords, and transporters to avoid working with Birla Opus.

 

CCI’s Initial Findings: The CCI’s preliminary review found prima facie evidence that Asian Paints imposed unfair conditions on dealers, potentially stifling competition and creating barriers for new entrants.

 

Investigation Timeline: The CCI has directed its Director General to submit a comprehensive report within 90 days, emphasizing the impartiality and seriousness of the process.

 

Outlook:

This high-stakes probe could reshape the competitive landscape of India’s paint industry. If wrongdoing is confirmed, Asian Paints may face regulatory penalties and be forced to alter its dealer practices, potentially opening doors for new players and greater market competition.

 

Sources: Reuters, Economic Times, Business Today