CNBC-TV18 Newsbreak Confirmed | CCI launches antitrust probe into Asian Paints

India’s competition regulator on Tuesday, July 1, launched a formal abuse of dominance investigation into Asian Paints following a complaint from Birla Opus Paints, a unit of Birla Group. The Competition Commission of India (CCI) found preliminarily evidence indicating that Asian Paints violated antitrust rules.The development follows a CNBC-TV18 newsbreak on June 6, citing sources  that Grasim Industries had complained against Asian Paints’ alleged restrictive practices to the CCI. The complaint was lodged in November 2024.

According to the complainant, Asian Paints as the market leader tried to stifle new entrants and suppress competition in the paints market.

The allegations were based on a third-party survey conducted by the complainant. Grasim Industries also alleged that Asian Paints was restraining third parties, including suppliers of essential raw materials, from providing goods and services to the Birla Opus Paints.
Based on the evidence submitted by Grasim Industries, CCI said Asian Paints appears to be restraining third parties like suppliers of essential raw materials, warehousing landlords, clearing and forwarding agents and transporters, from engaging with the Grasim-owned Birla Opus Paints.The formal investigation will need to be concluded in 90 days by the Director General of Investigation (DGI).

Also read: Asian Paints faces abuse complaint from Birla Opus Paints, formal CCI probe likely soon

The Grasim Industries stock received an upgrade from Morgan Stanley on June 10. The rating for Grasim was improved to ‘overweight’ from ‘equal-weight’ and the investment advisor also raised its price target for the Aditya Birla Group stock.

Grasim Industries shared ended at ₹2,859.30, up ₹12.35 (0.43%), on the BSE today (July 1). The Asian Paints stock also closed in the green at ₹2,368.85, up ₹27.50, or 1.17%.