According to a Reuters report, the Competition Committee of India (CCI) Asian paint, which has a dominant market share of 52%, is investigating after a complaint filed by rival Birla Opus.
The complaint claimed that Asian paintings use its market leadership by offering unfair discounts and stimuli to dealers, thereby suffocating competition.
Asian paint had approached the Supreme Court in Mumbai in July and tried to destroy the investigation. The company argued that the CCI had damaged its reputation by taking on the all regions against his CEO – and later removing – in the first probe order.
In a short hearing on Thursday, however, the court found “no merit” in the plea and rejected the case. A detailed order is expected to follow, sources that are familiar with the issue told Reuters.
The antitrust probe originated at a time when the Indian paint sector, with a value of around $ 9.5 billion, witnesses rapid growth that is fed by infrastructure and real estate development.Also read: Oracle’s Single-Day rally of $ 244 billion as large as full IT-three unit of TCS, Infosys, HCL Tech
The accession of Birla Opus in February 2024 has already started with the influence on the market share of Asian Paints, where the new player wins almost 7% share by March, according to data from Elara Capital, cited by Reuters.
The provisional assessment of the CCI showed that Asian paint had imposed what the “unfair circumstances” called dealers, which amounts to “exploiting behavior,” Reuters added.
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