The move came following a complaint by Grasim Industries, which has recently entered the sector under its Birla Opus Paints brand.
According to the CCI's order dated July 1, Grasim alleged that Asian Paints was using restrictive trade practices to stifle competition. The complaint claimed that the company was discouraging distributors from selling Birla Opus products by offering incentives such as foreign travel and discounts in exchange for exclusivity. These benefits, it was alleged, were not based on any uniform dealer policy or performance metrics.
Grasim further stated that dealers who chose to stock Birla Paints faced several forms of retaliation. These included reduced credit limits, increased sales targets, withdrawal of incentives, and lower servicing priority. It was also alleged that Asian Paints curtailed access to customer leads and institutional business for such dealers, sometimes opening competing dealerships in their vicinity as a form of pressure. The complaint went on to allege that Asian Paints directed its dealers to reject tinting machines supplied by Birla Paints, restrained third-party suppliers from engaging with the new entrant, and coerced landlords, clearing and forwarding agents, and transporters to sever ties with the company. Grasim also claimed that it was subjected to a smear campaign.
Asian Paints, established in 1942, is the largest listed company in India's decorative paints segment. It operates in 15 countries with 27 manufacturing facilities globally and has been a market leader since 1967.
In a statement, the company said it is reviewing the order and will consider appropriate legal action. It also affirmed its commitment to cooperating fully with the CCI throughout the course of the investigation.
The company’s consolidated net profit tumbled 44.92% to Rs 1,256.72 crore on 4.27% decline in revenue from operations to Rs 8,329.59 crore in Q4 FY25 over Q4 FY24.