Latest news with #BirlaPaints
Business Standard
02-07-2025
- Business
- Business Standard
Asian Paints slips after CCI orders probe
Asian Paints slipped 0.6% to Rs 2,355.15 after the Competition Commission of India (CCI) ordered an investigation into the company for allegedly abusing its dominant position in the decorative paints market. 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 companys 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.
Business Upturn
01-07-2025
- Business
- Business Upturn
CCI orders probe against Asian Paints for alleged abuse of dominance following complaint by Grasim's Birla Opus Paints
By Aditya Bhagchandani Published on July 1, 2025, 18:51 IST The Competition Commission of India (CCI) has directed its director general (DG) to initiate an investigation against Asian Paints for alleged abuse of market dominance. The probe follows a complaint filed by Grasim Industries, which recently entered the paint market under the Birla Opus Paints brand. According to CCI's order dated July 1, Birla Opus Paints has accused Asian Paints of placing restrictive clauses in distributor agreements to discourage them from selling Birla Paints products. The complaint also alleges that Asian Paints rewarded exclusive dealers with special discounts and foreign trips, while penalizing those who sold both brands by reducing credit limits, increasing sales targets, and cutting down consumer leads. The commission noted that Asian Paints allegedly threatened raw material suppliers, transporters, and warehousing agents to limit business with Birla Paints. A specific incident was cited from October 2023, when Asian Paints, during a vendor meet at ITC Maratha Mumbai, reportedly warned over 150 top vendors that supplying to Birla Paints would result in a reduced business share with Asian Paints and that vendors should charge higher rates to Birla Paints. CCI observed that such conduct prima facie amounts to input foreclosure and denial of market access, which violates Section 4(2)(c) of the Competition Act. According to CMIE data, Asian Paints holds the largest market share in the Indian paints sector at 39.05% as of FY23, followed by Berger Paints with 12.13%, while Kansai Nerolac and Akzo Nobel India each hold under 10%. The commission has now ordered a detailed investigation into the matter. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
