Asian Paints Faces CCI Probe Over Anti-Competitive Practices

aints, a leading player in the Indian paints industry, is under scrutiny as the Competition Commission of India (CCI) has ordered an investigation into allegations of anti-competitive behavior. The probe, initiated on July 1, 2025, follows a complaint by Grasim Industries, a new entrant in the market through its Birla Opus Paints brand. The complaint accuses Asian Paints of imposing restrictive clauses on its distributors to discourage them from selling Birla Opus products. It further alleges that Asian Paints rewards dealers entering exclusive arrangements with special discounts and incentives like sponsored foreign trips. Conversely, dealers selling both Asian Paints and Birla Opus products reportedly face punitive measures, including reduced credit limits, higher sales targets, and fewer consumer leads. International brokerage CLSA maintained its 'underperform' rating on Asian Paints with a target price of Rs 1,966 per share. The brokerage highlighted that the complaint underscores increasing competitive intensity in the paints industry, which has relatively low entry barriers. This development is expected to intensify regulatory oversight on how established players respond to new market entrants. The investigation could have significant implications for Asian Paints as it navigates a rapidly evolving competitive landscape.