CCI orders probe against Asian Paints for alleged abuse of dominant position
India’s competition watchdog has reportedly ordered an investigation into anti-competitive practices by Asian Paints amid accusations of market obstruction and dealer-level coercion.
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In a major regulatory development, the Competition Commission of India (CCI) has ordered an investigation against Asian Paints Ltd. for alleged abuse of its dominant market position, potentially violating provisions of the Competition Act, 2002, according to Moneycontrol.
It is to be noted that 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.
The allegations—of restricting dealers from stocking rival brands—mirror similar concerns raised earlier in a dismissed case filed by JSW Paints in 2022. This time, however, the scrutiny is sharper amid Asian Paints’ recent softening financials and the rise of serious contenders like Birla Opus.
CCI's formal investigation marks 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.
Storyboard18 earlier reported that dealers, though historically loyal to Asian Paints for credit support, sales consistency, and promotional backing, may gradually diversify inventories if confidence dips. Real estate developers, procurement agencies, and institutional buyers could also explore alternatives in a bid to mitigate risk.
Asian Paints' profit and revenue dropped significantly in fiscal year 2025. The company clocked a profit of Rs 3,585 crore in FY25, down 35% year-on-year. Whereas, the revenue from sales declined from Rs 31,093 crore in FY24 to Rs 29,421 crore in FY2025.
