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Brinks Report > Blog > Business > Asian Paints Shares Drop as CCI Launches Probe Into Alleged Unfair Market Practices
Business

Asian Paints Shares Drop as CCI Launches Probe Into Alleged Unfair Market Practices

Dolon Mondal
Last updated: July 2, 2025 11:38 am
Dolon Mondal
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India’s biggest paint company, Asian Paints, is now under a serious spotlight. The Competition Commission of India (CCI) has ordered a probe into the company’s business practices. This comes after a complaint from Grasim Industries, the company behind the new Birla Opus Paints brand.

The paint war has officially begun.

Trulli

What’s the Complaint?

On July 1, CCI announced that Grasim had raised serious issues. According to the complaint, Asian Paints was using its market power to block competition. Grasim says the company was offering foreign trips and discounts to dealers—but only if they refused to sell Birla Opus products.

These offers, Grasim claims, were not based on dealer performance or any clear policy. Just loyalty.

Retaliation for Supporting Birla?

Grasim also said that dealers who chose to work with Birla Paints were punished. They reportedly faced:

  • Less credit
  • Higher sales targets
  • Cancelled rewards
  • Slower service

Some dealers even had rival Asian Paints outlets set up right next to them.

More Allegations

It didn’t stop there. The complaint also says Asian Paints:

  • Blocked Birla’s tinting machines from being used
  • Pressured suppliers not to work with Birla
  • Forced landlords and transport partners to cut ties
  • Ran a smear campaign against Birla Paints

That’s not just competition—it’s war.

Also Read Hero MotoCorp Posts 10% Sales Jump in June 2025, Dispatches 5.54 Lakh Units

What’s Asian Paints Saying?

Asian Paints, founded in 1942 and a market leader since 1967, says it is reviewing the order. The company said it will cooperate fully with the CCI. It also hinted at possible legal action.

With operations in 15 countries and 27 factories, Asian Paints is no small player. But this new battle with Grasim could shake up India’s decorative paint industry.

What Happens Next?

The CCI probe will now look into whether Asian Paints broke any competition laws. If found guilty, there could be heavy penalties and changes in how the company does business.

This could also open doors for new players like Birla Opus to grow in the ₹70,000-crore Indian paint market.

Final Word:
The paint industry is no longer just about colours—it’s about control. And right now, all eyes are on Asian Paints.

Also Read Asian Paints Buys Remaining 40% Stake in White Teak for ₹188 Crore

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