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Kumar Mangalam Birla's paints unit takes on Asian Paints in antitrust battle
Birla’s Grasim Industries (Birla Opus) has reportedly accused market leader Asian Paints of abusing its dominance by arm-twisting dealers.
In February 2024, the Aditya Birla Group entered into the paint industry with the launch of Birla Opus. The company plans to establish six manufacturing facilities nationwide by 2025.
Aditya Birla Group's Indian paints venture has initiated a high-stakes antitrust battle against India’s leading paint manufacturer, Asian Paints, accusing the Rs 2.8 lakh crore giant of abusing its dominant market position, according to a Reuters report.
The report mentioned that Birla Opus has approached the Competition Commission of India (CCI), alleging that Asian Paints has been pressuring dealers not to stock or sell products from its newly launched paints business.
The watchdog is in process of reviewing the confidential complaint filed by Birla Opus alleging abuse of its position by Asian Paints. The CCI is yet to decide if the complaint holds merit and needs a broader probe by its investigations unit, or should be dismissed, the report added.
Grasim Industries, a subsidiary of the Aditya Birla Group, launched its Birla Opus paints brand in 2023 with ambitious goals to become the second-largest player in India's Rs 80,000 crore decorative paints market by FY26. The group, led by billionarie Kumar Mangalam Birla, invested over Rs 10,000 crore, making it one of the Aditya Birla Group's largest non-cement investments. This aggressive move aims to disrupt the existing paint market, where Asian Paints currently dominates.
In its defence, Asian Paints has written to the CCI, strongly denying the accusations. The company claims that Grasim’s rapid ramp-up in operations, dealer network expansion, and early market share gains undermine any suggestion of anti-competitive behaviour, the report added. "The rapid and substantial growth of Birla Opus demonstrated the absence of any significant barriers to entry or anti-competitive conduct by existing players," Asian Paints letter to the CCI stated.
The case comes at a time when the Indian paints industry is heating up, with new entrants like JSW Paints and Grasim challenging incumbents with aggressive pricing, deep-pocketed marketing, and differentiated dealer incentives. For decades, Asian Paints has held a lion’s share of the market, estimated at over 50%, giving it unmatched distribution clout and brand equity.
It is to be noted that in 2018, JSW Paints also filed a similar complaint, prompting a preliminary CCI investigation that was eventually closed.
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