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The Aditya Birla Group’s paints subsidiary, Birla Opus, has lodged an antitrust complaint against industry giant Asian Paints, accusing the company of abusing its dominant market position, according to sources familiar with the matter. The Competition Commission of India (CCI) is currently reviewing the confidential complaint, though a formal investigation is yet to be launched. According to two sources, Birla Opus alleges that Asian Paints pressured retail dealers not to stock its products, even threatening to curtail credit facilities for those who did.
Asian Paints holds a commanding 52% share in India’s ₹79,000 crore ($9.5 billion) paint market. However, its dominance has recently been challenged by Birla Opus, which launched in February 2024 and quickly captured nearly 7% of the market by March, according to Elara Capital.
Birla Opus is part of Grasim Industries, a flagship company of the Aditya Birla Group, led by billionaire Kumar Mangalam Birla. The firm has invested $1.2 billion in its paints venture and now operates five manufacturing plants across the country.
Neither Birla Opus, Asian Paints, nor the CCI commented on the issue. In response to the allegations, Asian Paints reportedly told the CCI that Birla Opus’s rapid rise is proof there are no significant entry barriers in the market, and no evidence of anti-competitive behavior.
This isn’t the first time Asian Paints has faced such scrutiny. In 2022, the CCI dismissed similar allegations made by JSW Paints, finding no violation of competition laws. As the CCI weighs whether to proceed with a full investigation, the complaint sets the stage for a potential showdown between two major players in India’s booming paints industry.
(Source: Reuters)
