Asian Paints trades flat amid reports Birla Opus has filed antitrust case against firm

Last seen, the stock was trading at ₹2,239.20, down 0.27% on the NSE.

Asian Paints is India's biggest player with a 52% market share, but it has lost some of its dominance after Birla Opus entered the market in February 2024 and grew rapidly to garner a near 7% market share by March this year, according to a Reuters report that cited Elara Capital.

The Competition Commission of India (CCI) has in recent weeks been reviewing a confidential complaint filed by Birla Opus alleging abuse of its position by Asian Paints, Reuters reported, citing two sources.

Reuters reported that one of its sources added that Asian Paints also allegedly told its dealers it will curtail its supplies to them if they put up hoardings of Birla paint products or place them in prominent places.

"Asian Paints has not been told about the case, according to a source with direct knowledge. But it had received some media queries and has told the CCI in a confidential letter – seen by Reuters – that the company must be allowed fair comment before any decision is taken," the Reuters report said.

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

In 2022, the CCI closed a case filed by JSW Paints against Asian Paints for abusing its market position, saying it found no contravention of competition laws.

About Birla Opus

According to a report by PTI, published in May 2025, Birla Opus has become the second largest player in the Indian decorative paints industry in terms of overall installed capacity, which has touched 1,096 MLPA.

With the Mahad plant launch, Birla Opus' overall capacity increased to 1,096 MLPA (million litres per annum) out of the planned total capacity of 1,332 MLPA, according to a post-result investor presentation by the Aditya Birla Group firm.

The trial run production from its sixth coming plant at Kharagpur will commence in the first quarter of this fiscal year and will see commercial production in the first half of FY 26, it added.

Birla Opus' Decorative Paints' organised industry capacity share stood at over 21%, it said.

The Aditya Birla Group has set up five plants so far at Panipat, Ludhiana, Cheyyar near Chennai, Chamarajnagar, and Mysore. with a "total capex spent stood at ₹9,352 crore as of March 31, 2025, which is 94% of the total project cost", it said.

In August 2021, Grasim had announced entering the paints business with a capex of ₹5,000 crore and later doubled the capex to ₹10,000 crore in May 2022.

As part of its foray into the segment, it had announced a greenfield project of six simultaneous plants, which were executed without any project overrun, the company said.

Birla Opus Paints, which competes in an industry largely dominated by players such as Asian Paints, Berger, Kansai Nerolac and AkzoNobel India, has a revenue market share of over 10% in the decorative paints market.

What is the antitrust act?

According to CCI, the Antitrust Act prohibits anti-competitive agreements and abuse of dominant position by enterprises and regulates combinations (mergers, amalgamations and acquisitions) with a view to ensure that there is no adverse effect on competition in India.

The CCI says that the dominant position of an enterprise itself is not prohibited; however, if the enterprise, by virtue of having a dominant position in the relevant market, abuses its dominance, then the same stands prohibited. Abuse of dominant position impedes fair competition between firms, exploits consumers and makes it difficult for the other players in the market to compete with the dominant undertaking.