Asian Paints Shares Fall 2% Amid CCI Investigation
Asian Paints' shares have declined by nearly 2% following an investigation by the Competition Commission of India (CCI) into allegations of market dominance abuse.
Asian PaintsCciMarket DominanceShares DeclineGrasim IndustriesReal Estate NewsJul 02, 2025
The stock dipped 1.78% to Rs 2,326.45 on the BSE. At the NSE, it went lower by 1.79% to Rs 2,327.
The direction for the investigation follows a complaint filed by Grasim Industries (Birla Paints Division), which accused Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints segment.
CCI stated in its order, 'The Commission is of the opinion that a prima facie case of contravention of the provisions of section 4(2)(a)(i), 4(2)(c), and 4(2)(d) of the Act by the OP (Asian Paints) is made out in the present matter.' Section 4 of the Competition Act, 2002, prohibits abuse of dominant position.
Accordingly, the fair trade regulator directed the Director General to conduct an investigation and submit a report within 90 days.
Grasim, a part of the Aditya Birla Group, entered the decorative paints segment under the 'Birla Opus Paints' brand in February last year. Asian Paints is a market leader, manufacturing paints for both decorative and industrial use.
The competition regulator observed that Asian Paints, by restraining its dealers from dealing with competitors like Grasim Industries Ltd, is imposing unfair conditions upon them, which is considered exploitative conduct.
Frequently Asked Questions
Why did Asian Paints' shares decline?
Asian Paints' shares declined by nearly 2% following an investigation ordered by the Competition Commission of India (CCI) into allegations of market dominance abuse.
What is the CCI's role in this investigation?
The CCI ordered an investigation into Asian Paints for allegedly abusing its dominant position in the decorative paints market, as per a complaint filed by Grasim Industries.
What does the Competition Act, 2002, prohibit?
The Competition Act, 2002, prohibits the abuse of dominant position in the market. This includes practices that restrain competition or impose unfair conditions on competitors.
What actions did Grasim Industries take against Asian Paints?
Grasim Industries filed a complaint with the CCI, accusing Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints segment.
What is the next step in the CCI investigation?
The Director General has been directed by the CCI to conduct an investigation and submit a report within 90 days.
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