Asian Paints is contesting an antitrust inquiry by the Competition Commission of India (CCI), arguing that the proceedings have been mishandled and have "created confusion in the market". The inquiry was launched following a complaint from Birla Opus, the paints division of Aditya Birla Group, alleging that Asian Paints engaged in anti-competitive practices to maintain its dominant market position.
The core of Birla Opus's complaint revolves around accusations that Asian Paints incentivized dealers with perks like foreign travel and discounts in exchange for exclusivity, preventing them from stocking or promoting rival products. Furthermore, Birla Opus claims that Asian Paints increased sales targets for dealers associated with Birla Opus and pressured landlords and logistics providers to avoid doing business with the new entrant. These actions, according to Birla Opus, constitute unfair business conduct that restricts competition and creates barriers for new players in the market. Grasim Industries alleges that Asian Paints is pressuring suppliers to withhold raw materials from Birla Paints.
The CCI's initial review found merit in these claims, stating that Asian Paints' conduct appeared to "impose unfair conditions" on market participants and may amount to "exploitative conduct". The regulator also expressed concern that such actions could partially close the market to competitors and reduce consumer choice. As a result, the CCI has instructed its investigative arm to examine the matter in detail and submit its findings within 90 days. The Director General has been given 90 days to submit a report. The investigation will focus on the decorative paints sector in India.
Asian Paints, however, is strongly contesting the investigation. In a court challenge, the company argues that the CCI undermined the integrity of the proceedings by publishing and then deleting allegations against its CEO, Amit Syngle, from the investigation order. According to Asian Paints, the CCI's initial order contained an allegation that its CEO warned raw material suppliers that they would receive less business from the company if they dealt with Birla. While this reference was deleted within 24 hours and a modified order was issued, Asian Paints argues that the concurrent existence of two different orders online has damaged its reputation and created confusion in the market. "The contents of the first impugned order have also caused grave reputational damage to the petitioner and to its CEO," the company stated in its high court filing.
Asian Paints has stated that it is reviewing the order and will take appropriate legal recourse. "The company remains committed to fully cooperating with the CCI during the course of the investigation," it added.
The Indian paints and coatings sector is projected to experience significant growth, with estimates suggesting a market size of $16.37 billion by 2030, up from $10.46 billion in 2025. This growth is fueled by infrastructure and real estate development across the country. Asian Paints currently holds a dominant market share of 52%. However, Birla Opus, which entered the market in February 2024, has rapidly grown to claim a near 7% market share by March 2025. 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. This increasing competition may be a factor in the current antitrust scrutiny.
This is not the first time Asian Paints has faced antitrust allegations. In 2022, the CCI dismissed a complaint filed by JSW Paints, which had just entered the decorative paints market, alleging abuse of market dominance. The CCI did not find evidence of wrongdoing in that case.
