India orders antitrust probe of Asian Paints after billionaire rival Birla’s complaint

India’s antitrust body on Tuesday ordered a probe into Asian Paints after billionaire Kumar Mangalam Birla’s paints venture alleged that the country’s top paint maker abused its dominant market position.

The Competition Commission of India’s (CCI) initial review showed Asian Paints had breached competition laws, the watchdog said in an order, directing its investigations unit to look into the matter and submit a report within 90 days.

Birla has alleged that Asian Paints was abusing its dominant market position by offering discounts and incentives such as foreign travel to dealers in exchange for exclusivity. Reuters had first reported the confidential case filing in early June.

Asian Paints increased sales targets for dealers who dealt with Birla products, Birla alleged. The firm also accused Asian Paints of “coercing” landlords and transporters to refrain from engaging with Birla’s company.

The CCI’s initial review shows Asian Paints has been “imposing unfair conditions upon them (dealers), which is found to be in the nature of exploitative conduct,” the watchdog said.

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Birla Opus is the paints arm of Aditya Birla Group company Grasim Industries, led by Kumar Mangalam Birla, India’s seventh richest person according to Forbes.

Asian Paints seems to be prima facie creating barriers to new entrants in the market as well as partially foreclosing competition, the CCI added.

Asian Paints is reviewing the order and will take appropriate legal recourse, the company said in a filing to exchanges.

“The company remains committed to fully cooperating with the CCI during the course of the investigation,” it added.

Asian Paints is India’s biggest player in the industry with a 52% market share, but has lost some dominance after Birla Opus was launched in February 2024 and grew rapidly to secure a near 7% market share by March this year, Elara Capital data shows.

India’s paint and coatings market is expected to reach $16.37 billion in size by 2030 from $10.46 billion in 2025, Mordor Intelligence estimates, driven by a boom in infrastructure and real estate development.