The Competition Commission of India (CCI) has ordered a probe into Asian Paints following a complaint by Grasim Industries, part of the Aditya Birla Group.
Grasim alleged that Asian Paints abused its dominant position in the decorative paints segment by offering dealers incentives such as discounts and foreign trips in exchange for exclusivity.
It also accused Asian Paints of increasing sales targets for dealers selling Birla products and coercing landlords, C&F agents, and transporters to avoid doing business with Grasim.
The CCI found prima facie evidence of unfair practices and directed the Director General to submit an investigation report within 90 days.
Asian Paints, which holds 53% of India’s installed paint production capacity, has a distribution network of over 74,000 dealers and 1.6 lakh touchpoints in the ₹80,000–90,000 crore market.
Despite its size, its dominance is being challenged by Grasim’s Birla Opus, which launched in February 2024 and captured nearly 7% market share by March 2025, as per Elara Capital.
In 2022, a similar complaint by JSW Paints was dismissed. Asian Paints has stated it will cooperate with the investigation while considering legal options.
