The Competition Commission of India (CCI) launched a formal investigation into Asian Paints Limited after Grasim Industries Limited complained about the company. The antitrust body passed the order on 1 July 2025, citing that Asian Paints could have used its influence in the decorative paints segment to impose unfair conditions on dealers.
Grasim Industries, a company that entered the Indian market with paints in 2024 under its brand Birla Opus, has claimed that Asian Paints gave counterfeit abilities to its dealers in the business of selling the products of its company. The complaint addresses using such tactics as exclusive sales agreements and special inducements to ensure distribution control as applied by Asian Paints. According to the reports, the incentives involved offers of foreign travel and some additional discounts in exchange for exclusivity.
According to the CCI order, the practice could hinder competition and prevent new players from entering the market. Upon initial examination, the regulator said such moves seemed anti-competitive and needed to be investigated more closely.
The CCI has entrusted its Director General (DG) to investigate the complaints. The DG must prepare a detailed report within 90 days. The order made clear that this is not a preconceived decision; they are obligated to undergo investigation, and the DG must carry out an independent, unbiased investigation.
During the investigation, the DG will gather documents and visit sites when needed. The CCI has also specified possible solutions to prevent lengthy procedures. Investigated companies may choose to change their practices at their will or settle in case of wrongdoing. Reporters who asked questions about the investigation to the Asian Paints, Grasim Industries, and CCI officials did not receive a response upon publication.
Introducing new brands like Birla Opus and JSW Paints has brought a lot of competition to the Indian decorative paints industry. After its full-scale launch, Grasim Industries plans to generate revenue of 10,000 crore in three years through the paint business. The Indian paints and coatings market was estimated to be worth 14.41 billion dollars in 2023 and to reach 32.71 billion dollars by 2032.
It is not the first time that Asian Paints has been investigated. JSW Paints made similar complaints against market abuse in 2020, but CCI closed that case after a two-year investigation concluded that there was no violation.