Birla Opus files antitrust complaint against Asian Paints over alleged market abuse

New Delhi: Aditya Birla Group’s paint venture, Birla Opus, has filed a confidential antitrust complaint with the Competition Commission of India (CCI) against Asian Paints, accusing the market leader of abusing its dominant position, according to news reports.

Asian Paints holds a 52% share of India’s paints market but has faced growing competition from Birla Opus, which entered the sector in February 2024. According to Elara Capital, Birla Opus had already captured close to a 7% market share by March.

The CCI is currently assessing whether the complaint merits a wider investigation or should be dismissed. According to two sources, the complaint alleges that Asian Paints instructed retail dealers not to stock Birla Opus products and warned of credit restrictions for those who did.

Quoting sources, the news reports added that Asian Paints allegedly told retailers it would reduce supplies if they promoted Birla Opus through hoardings or prominent display placements.

Asian Paints has not officially been informed about the complaint, but a source with direct knowledge of the matter said the company had received media queries and responded to the CCI with a confidential letter, which was seen by Reuters.

"The rapid and substantial growth of Birla Opus demonstrated the absence of any significant barriers to entry or anti-competitive conduct by existing players," Asian Paints stated in its letter to the CCI.

Birla Opus is part of Grasim Industries, a subsidiary of the Aditya Birla Group led by Kumar Mangalam Birla, currently ranked as India’s seventh-richest person by Forbes. Neither Birla Opus nor Grasim responded to Reuters’ requests for comment.

Asian Paints and the CCI also did not comment on the matter.

The Indian paints market is estimated to be worth $9.5 billion. Since launching with a $1.2 billion investment, Birla Opus now operates five plants. Meanwhile, Asian Paints reported revenue of Rs 294 billion ($3.43 billion) in FY24 and runs 26 factories globally.

In 2022, the CCI had dismissed a similar case filed by JSW Paints against Asian Paints, concluding that no violation of competition law had occurred.