Asian Paints challenges CCI investigation order in Bombay High Court

Asian Paints has filed a writ petition in the Bombay High Court against the investigation order of the Competition Commission of India (CCI), according to people aware of the matter.

 

CCI had ordered an investigation into the company for alleged abuse of dominant position based on a complaint received by Aditya Birla Group's Grasim Industries on July 1.

 

Asian Paints, in a stock exchange filing earlier, had said that it was reviewing the order and will take appropriate legal recourse.

 

The company had also informed the exchanges that the CCI had revised its investigation order.

 

Asian Paints did not reply to an email query sent on this matter.

 

Grasim had accused Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints segment.

 

“The commission, in terms of the provisions contained in Section 26(1) of the Act, directs the Director General to investigate the matter and submit a report within a period of 90 days of the receipt of the present order. At this prima facie stage, the regulator, in light of the material available on record, finds no reason to hear the opposing party before passing the present order,” said the order, adding that the order should not be construed as a final finding on the matter.

 

Grasim, a recent entrant into the decorative paints segment under the Birla Opus Paints brand, accused Asian Paints of forcing dealers to avoid stocking Birla Opus products under the threat of reduced credit, benefits, or support. It added that Asian Paints was pressuring partners to return Grasim’s tinting machines and blocking access to key suppliers, transporters, and warehouse facilities.

 

Grasim has already cornered a 10 per cent revenue market share in FY25, making it a serious player in the space.

 

The revised order of CCI had removed the reference to its earlier order in a similar complaint filed by JSW Paints against Asian paints.

 

In its revised order, the CCI said that it finds Asian Paints “to be prima facie in a position of dominance in the delineated relevant market, in 2024-25.”

 

In its initial order, the antitrust watchdog had said that, “it finds no reason to depart from its earlier finding of dominant position of the OP (Asian paints) in the delineated relevant market.”