The Competition Competition of India (CCI) has ordered an investigation against Asian Paints for alleged abuse of its dominant position in the decorative paints market, following a complaint by the Aditya Birla Group’s paints division Birla Opus Paints. The competition watchdog said it found prima facie violations of the various sections of the Competition Act by Asian Paints and ordered the director general (investigation) to probe the matter in detail
“Asian Paints, by way of restraining its dealers from dealing with its competitors like the Birla Opus Paints by enforcing exclusivity upon such dealers is imposing unfair conditions upon them, which is found to be in the nature of exploitative conduct,” the CCI said.
The CCI further said that by restraining suppliers of essential raw materials from providing goods and services to the Asian Paints’ competitors as well as by coercing landlords, clearing & forwarding agents and transporters to refrain from engaging with Birla Opus Paints, the Asian Paints seems to be prima facie creating barriers to new entrants in the market as well as partially foreclosing competition in the market. “Thus, the afore-detailed conduct of Asian Paints seems to be prima facie causing an appreciable adverse effect on competition in India,” the order said.
In December last year, Birla Opus had filed an interlocutory application with CCI seeking urgent intervention as the anti-competitive conduct of Asian Paints was significantly impacting its business operations.
Birla Opus alleged that Asian Paints is threatening the dealers against stocking the paints of the competitors. It said that the Asian Paints is reducing the credit limit and revising the service levels for dealers are engaging with Birla Opus. In addition, the Aditya Birla Group arm alleged that Asian Paints is directing its dealers to refrain from installing the tinting machines supplied by the Birla Opus besides restraining third parties, including suppliers of essential raw materials, from providing goods and services.
In its defence, Asian Paints told CCI that “no other paint company has been able to scale up in the manner that the Birla Opus has since its entry in March 2024.” Asian Paints also submitted a report by Jefferies (May 2025) that said that Birla Opus has been able to establish a network of about 50,000 dealers and an equal number of colour tinting machines, thereby surpassing the reach of many long-established players.
Experts said that the CCI order is “fairly reasoned.” “This is a case of dominant player trying to enforce exclusivity and excluding rivals from the market by threatening dealers through unfair means,” said M M Sharma, head of competition law at Vaish Associates Advocates.
While the CCI has asked the director general to submit its investigation report within 90 days, the experts said that the probe may take a longer time as the evidence collection process is usually time-taking in such investigation, and there will be a lot of cross examination.