Asian Paints Under CCI Scanner for Alleged Unfair Trade Practices Amid Rising Competition

The Competition Commission of India (CCI) has initiated a probe into Asian Paints Ltd by an allegation asserting anti-competitive behavior to stifle competition and retain dominance within the market. The complainant is Grasim Industries, which recently entered into the decorative paints segment under the brand Birla Opus.

Grasim alleges that Asian Paints has been providing exclusive incentives to dealers, including additional discounts, trips abroad, and special credit terms on sales, with the condition that they refrain from selling rival products. Such actions, according to them, create entry barriers and give undue advantage to rival brands. Accordingly, it is claimed that dealers carrying competing products receive reduced credit support and set higher sales targets which discourage them from stocking diversified inventories.

Based on preliminary analysis, the CCI found prima facie no merits to warrant further inquiry. A Director General was appointed to investigate the case with a time limit of 90 days for findings to be submitted.The Commission, however, clarified that this move is not a final judgment and the investigation will remain impartial.

“Nothing stated in the present order shall be tantamount to a final expression of opinion,” the CCI said, adding that the DG’s probe will be independent of any early observations.

Further, Grasim has accused Asian Paints of pressuring suppliers to restrict raw material access to Birla Paints. In one instance, Asian Paints allegedly convened a vendor meeting in October 2023 at ITC Maratha, Mumbai, attended by over 150 top suppliers, raising concerns of coordinated exclusion.

The investigation comes at a time when India’s ₹50,000-crore decorative paints sector is witnessing heightened competition, with new players like Birla Opus aiming to break the long-standing dominance of Asian Paints.

According to CMIE data, Asian Paints commanded a 39.05% market share in FY23, followed by Berger Paints (12.13%), Kansai Nerolac and Akzo Nobel India with shares below 10% each.

As the market heats up, the CCI’s findings could reshape competitive dynamics in the industry — reinforcing regulatory intent to preserve a level playing field.