CCI Orders Probe Into Asian Paints’ Market Conduct
Paint

CCI Orders Probe Into Asian Paints’ Market Conduct

India’s Competition Commission has directed its investigations unit to examine whether Asian Paints has abused its dominant position, following a complaint by Kumar Mangalam Birla’s paints venture, Birla Opus. In its prima facie view, the regulator said Asian Paints appears to have imposed unfair conditions on dealers by offering discounts, incentives and foreign trips in exchange for exclusivity, and by raising sales targets for those stocking Birla products.

Birla Opus also alleges the market leader discouraged landlords and transporters from working with the new entrant. The CCI noted that such practices could create barriers to entry and partially foreclose competition. Asian Paints, which holds about 52 per cent share of India’s paint market, has seen its dominance eroded since Birla Opus launched in February 2024 and quickly captured nearly 7 per cent of the sector.

Asian Paints said it is reviewing the order and will take appropriate legal steps while fully cooperating with the investigation. The Indian paint and coatings market is forecast to expand from USD 10.46 billion in 2025 to USD 16.37 billion by 2030, driven by rapid infrastructure and real estate development, underscoring the stakes in the ongoing enquiry.


India’s Competition Commission has directed its investigations unit to examine whether Asian Paints has abused its dominant position, following a complaint by Kumar Mangalam Birla’s paints venture, Birla Opus. In its prima facie view, the regulator said Asian Paints appears to have imposed unfair conditions on dealers by offering discounts, incentives and foreign trips in exchange for exclusivity, and by raising sales targets for those stocking Birla products.Birla Opus also alleges the market leader discouraged landlords and transporters from working with the new entrant. The CCI noted that such practices could create barriers to entry and partially foreclose competition. Asian Paints, which holds about 52 per cent share of India’s paint market, has seen its dominance eroded since Birla Opus launched in February 2024 and quickly captured nearly 7 per cent of the sector.Asian Paints said it is reviewing the order and will take appropriate legal steps while fully cooperating with the investigation. The Indian paint and coatings market is forecast to expand from USD 10.46 billion in 2025 to USD 16.37 billion by 2030, driven by rapid infrastructure and real estate development, underscoring the stakes in the ongoing enquiry.

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