India’s Competition Commission (CCI) has asked its investigation team to look into whether Asian Paints is using its market power unfairly. This comes after a complaint from Birla Opus, a new paint company started by Kumar Mangalam Birla.
The CCI thinks Asian Paints may have made unfair demands on paint dealers. For example, it gave discounts, rewards, and even foreign trips to dealers who agreed to sell only Asian Paints. It also raised sales targets for dealers who started selling Birla Opus paints. Birla Opus also said Asian Paints tried to stop landlords and transport companies from working with them.
The CCI said these actions might make it hard for new companies to enter the market and could reduce competition.
Asian Paints controls about 52% of India’s paint market, but its hold has weakened since Birla Opus entered the market in February 2024 and quickly gained around 7% market share.
Asian Paints said it is reviewing the order and will cooperate with the investigation, while also taking legal action if needed.
India’s paint and coatings industry is expected to grow from $10.46 billion in 2025 to $16.37 billion by 2030, thanks to rising construction and real estate development. This makes the current issue even more important for the future of the market.