Updated 6 June 2025 at 17:51 IST
Aitya Birla Group’s paint venture has filed an antitrust complaint against market leader Asian Paints, accusing it of abusing its dominant market position, according to multiple sources. This move sets the stage for a potential showdown between the two top players in India’s paint industry, as per a report by Reuters.
The complaint accuses Asian Paints of anti-competitive practices that could escalate tensions between the two rivals.
Asian Paints Market Share Erodes Amid Birla Opus Growth
Asian Paints currently commands around 52% of the Indian paints market but has lost some ground since Birla Opus entered the sector in February 2024.
According to Elara Capital data cited by Reuters, Birla Opus quickly captured close to a 7% market share by March 2025, signaling strong growth in a $9.5 billion industry.
CCI Reviews Complaint, No Decision Yet
The Competition Commission of India (CCI) has been reviewing a confidential complaint submitted by Birla Opus alleging that Asian Paints abused its market position. The regulatory body is yet to decide whether the allegations warrant a full investigation or dismissal, said two sources who requested anonymity due to the private nature of the matter as mentioned in the report by Reuters.
Allegations Include Dealer Restrictions and Credit Warnings
Sources familiar with the complaint said Birla Opus alleges that Asian Paints pressured its retail dealers to avoid stocking Birla Opus products and threatened to cut their credit facilities if they did not comply.
Additionally, Asian Paints reportedly warned dealers of curtailing supplies if Birla Opus advertisements were displayed prominently at their outlets.
Asian Paints Responds Confidentially to CCI
Asian Paints has not been formally notified of the case but has responded confidentially to the CCI, requesting the right to comment publicly before any decision is made. In a letter seen by Reuters, Asian Paints stated, “The rapid and substantial growth of Birla Opus demonstrated the absence of any significant barriers to entry or anti-competitive conduct by existing players.”
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Birla Opus’s Aggressive Expansion in Paints
Since launching last year with an investment of $1.2 billion, Birla Opus has rapidly expanded its operations, running five manufacturing plants currently. The paints arm is part of Grasim Industries, a flagship of the Aditya Birla Group, led by billionaire Kumar Mangalam Birla, ranked as India’s seventh richest person by Forbes.
Past CCI Verdict in the Paints Sector
This is not the first antitrust case involving Asian Paints. In 2022, the CCI closed a case filed by JSW Paints accusing Asian Paints of abusing its dominance, finding no violation of competition laws.
No Comments from Birla Opus and Asian Paints
Birla Opus did not respond to Reuters’ requests for comments. Asian Paints and the CCI also declined to comment.
Published 6 June 2025 at 17:20 IST