Asian Paints Appeals CCI Probe Order in Bombay High Court

Asian Paints, one of India’s leading paint manufacturers, has filed a writ petition in the Bombay High Court contesting the Competition Commission of India’s (CCI) directive to investigate the company for alleged anti-competitive practices, as per news reports. 

The move follows a complaint lodged by Aditya Birla Group's Grasim Industries, which accused Asian Paints of engaging in exclusionary tactics in the Indian decorative paints market.

Grasim Alleges Exclusionary Practices by Market Leader

Grasim Industries, a new entrant in the decorative paints segment through its Birla Opus Paints brand, had filed a complaint with the CCI on July 1. The company alleged that Asian Paints was pressuring dealers to avoid stocking its products under the threat of reduced credit, withdrawal of benefits, and curtailed support. 

The complaint further claimed that Asian Paints coerced business partners to return Grasim’s tinting machines and obstructed its access to critical resources such as suppliers, transporters, and warehouse facilities.

Grasim has quickly gained ground in the segment, securing a 10% revenue market share in FY25, thereby positioning itself as a serious competitor.

CCI's Revised Order Triggers Legal Challenge

Acting on the complaint, the CCI ordered an investigation under Section 26(1) of the Competition Act. “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,” stated the CCI.

Asian Paints, in a stock exchange filing, had earlier said it was reviewing the order and would take appropriate legal recourse. The company later informed the exchanges that CCI had revised its investigation order, which notably removed references to an earlier, similar complaint filed by JSW Paints against Asian Paints.

In the revised directive, the CCI stated, “It finds Asian Paints to be prima facie in a position of dominance in the delineated relevant market, in 2024-25.” The initial order had asserted, “It finds no reason to depart from its earlier finding of dominant position of the OP (Asian Paints) in the delineated relevant market.”

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Asian Paints Share Price Performance 

As of July 18, 2025, Asian Paints share price closed at ₹2,380.00 per share, reflecting a decline of 0.79%.

Conclusion

As the Bombay High Court takes up the matter, the dispute underscores the intensifying competition in India’s decorative paints segment. With Grasim’s rapid ascent and serious allegations of market manipulation, the outcome of this legal challenge could set a precedent for how dominant market positions are regulated and contested in India.

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