Asian Paints Faces Trouble Over Market Dominance in India
India’s fast growth in buildings and real estate has made the paint industry big, worth around $9.5 billion. Now, Asian Paints, the top paint company with 52% market share, is in legal trouble.
The Competition Commission of India (CCI) is checking if Asian Paints used its powerful position unfairly. This happened after a rival company, Birla Opus, complained. Birla said Asian Paints gave extra discounts and benefits to dealers to stop them from working with Birla.
In court, Asian Paints told judges in Mumbai that the CCI’s order from July 1 had serious claims. One claim said that the Asian Paints CEO warned suppliers not to work with Birla, or else they would lose business from Asian Paints.
But the next day, that part of the order was suddenly removed. A new order was posted online, but both the old and new versions are still visible. Asian Paints says this change is against legal rules and is causing confusion.
In a court document filed on July 14, Asian Paints said, “Having two different orders is damaging the process and our reputation.” The company also said that its CEO’s name was wrongly affected by this situation.
The CCI, Asian Paints’ CEO Amit Syngle, and Birla Opus have not replied to any questions from the media.
This is the first time the public has heard details from the 250-page court case filed by Asian Paints.
Birla Opus, which is part of the big company Grasim Industries, only started its paint business in February 2024. But by March, it already grabbed nearly 7% of the market, according to Elara Capital.
Asian Paints also told the court that other important parts were changed in the second CCI order. For example, a line about dealers using Birla’s paint tools was removed.
The company said these changes show that CCI made its decision with “a pre-planned mindset.”
Before this, on June 6, Reuters had already reported on Birla’s secret complaint. Asian Paints shared that article with CCI and asked about the case.
The court will hear Asian Paints’ case on August 6.
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