Birla Opus vs. Asian Paints: Paint wars intensify as CCI set to probe market practices
The probe stems from a complaint filed by Grasim Industries in November 2024. The complaint accuses Asian Paints of abusing its dominant market position to block fair competition by coercing dealers against engaging with Grasim’s paints division.
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The Indian paints industry is bracing for a regulatory shake-up as the Competition Commission of India (CCI) is likely to launch a probe into market leader Asian Paints following allegations of anti-competitive behavior by new entrant Birla Opus Paints, a unit of Aditya Birla Group.
According to a CNBC-TV18 report citing sources, the probe stems from a complaint filed by Grasim Industries in November 2024. The complaint accuses Asian Paints of abusing its dominant market position to block fair competition by coercing dealers against engaging with Grasim’s paints division.
With over 53% of the country’s installed paint manufacturing capacity and a distribution muscle spanning more than 74,000 dealers and 1.6 lakh touchpoints, Asian Paints is alleged to have threatened to reduce dealer credit limits and cancel contracts if they stocked or sold Birla Opus products.
The development signals growing tensions in India's Rs 60,000 crore decorative paints industry, where Asian Paints has long held a near-monopoly. But with deep-pocketed conglomerates like Aditya Birla Group entering the fray, competition is heating up, both in the market and now in the regulatory corridors.
If CCI moves ahead with a formal investigation, it would mark a significant moment in India’s paints sector, spotlighting long-standing concerns around distribution control, channel exclusivity, and dominance in traditional industries facing disruption from new players.
