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India Orders Antitrust Probe Into Asian Paints Following Complaint by Birla’s Paint Venture

By  |  July 1, 2025

India’s top antitrust authority has initiated a formal investigation into Asian Paints Ltd., the country’s largest paint manufacturer, following allegations of anti-competitive behavior raised by Birla Opus, the paints division of Aditya Birla Group.

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    The Competition Commission of India (CCI) announced on Tuesday that a preliminary review had found merit in claims that Asian Paints may have violated competition regulations, according to Reuters. As a result, the regulator has instructed its investigative arm to examine the matter in detail and submit its findings within 90 days.

    The probe follows a complaint from Birla Opus, led by industrialist Kumar Mangalam Birla, alleging that Asian Paints engaged in practices that stifled fair competition. Among the accusations are claims that Asian Paints incentivized dealers with perks — including foreign travel — and discounts in exchange for exclusivity. Reuters previously reported the existence of the confidential complaint in early June.

    Further claims from Birla’s venture suggest that Asian Paints increased sales targets for dealers associated with Birla Opus and pressured landlords and logistics providers to avoid doing business with the new entrant. Per Reuters, the CCI found that these alleged practices could amount to unfair business conduct that restricts competition and creates entry barriers for new players in the market.

    Asian Paints, which holds over 50% of the domestic paint market, acknowledged the CCI’s directive and stated that it is currently reviewing the order. In a filing to stock exchanges, the company said it would take appropriate legal action and fully cooperate with the ongoing investigation.

    “The company remains committed to fully cooperating with the CCI during the course of the investigation,” Asian Paints said in its official statement.

    Birla Opus, which entered the paints market in February 2024, has rapidly grown to claim a near 7% market share by March 2025, according to data from Elara Capital. This expansion has posed a serious challenge to Asian Paints’ long-standing dominance.

    The CCI noted that Asian Paints’ conduct appears to “impose unfair conditions” on market participants and may amount to “exploitative conduct,” per Reuters. The regulator also expressed concern that such actions could partially close the market to competitors and reduce consumer choice.

    India’s paints and coatings sector is projected to expand significantly, with industry estimates from Mordor Intelligence placing the market size at $16.37 billion by 2030, up from $10.46 billion in 2025. This growth is being driven by robust infrastructure and real estate development across the country.

    Source: Reuters