Grasim’s Birla Opus Paints takes Asian Paints to CCI over alleged abuse of market dominance

In a significant development in the Indian paints industry, Grasim Industries’ paints division — Birla Opus Paints — has lodged a formal complaint with the Competition Commission of India (CCI) against Asian Paints, India’s largest paint manufacturer. The complaint alleges that Asian Paints has been engaging in anti-competitive practices and misusing its dominant market position to stifle competition.

According to sources, Birla Opus Paints has claimed in its submission that Asian Paints threatened dealers with a withdrawal of supply if they chose to stock or sell Birla Opus products. The company further alleged that dealers were explicitly instructed not to display Birla Opus branding or signboards at their outlets. These restrictions, Birla Opus says, are not only anti-competitive but are also hampering its ability to grow and expand in the paints market.

Birla Opus has argued that such actions are a direct violation of the Competition Act, which prohibits the abuse of dominant market position. The company believes that these tactics are being used by Asian Paints to create barriers to entry for new players and limit consumer choice.

Adding weight to its complaint, Birla Opus also referred to an FIR registered by a paint dealer who allegedly faced pressure and coercion for dealing with Birla Opus products. The FIR, as per sources, outlines incidents where dealers were discouraged — and in some cases allegedly threatened — for engaging with the new entrant.

Asian Paints, when approached by Zee Business on June 5th, denied any knowledge of such complaints and said it has not received any formal communication in this regard. The company emphasized that it adheres strictly to all legal and ethical business practices.

Meanwhile, both Birla Opus and the Competition Commission of India have so far not responded to emails and queries sent by Zee Business seeking their official comments on the matter.

The paints sector in India, long dominated by a handful of players led by Asian Paints, has recently seen new entrants including Birla Opus making aggressive inroads. Grasim Industries, part of the Aditya Birla Group, officially launched its paints business under the Birla Opus brand earlier this year, positioning itself as a serious challenger in the ₹70,000 crore Indian paint market.

This development could mark a turning point in the competitive landscape of the industry and may trigger closer scrutiny of market practices followed by dominant players.