Asian Paints shares in focus as Court rejects plea to quash antitrust probe

Asian Paints shares are likely to be in the spotlight on Friday, September 12, after an Indian court dismissed the company’s plea to halt an ongoing antitrust investigation into alleged market abuse practices.

According to a Reuters report, the Competition Commission of India (CCI) is probing Asian Paints, which holds a dominant 52% market share, following a complaint filed by rival Birla Opus.

The complaint alleged that Asian Paints leveraged its market leadership by offering unfair discounts and incentives to dealers, thereby stifling competition.


Asian Paints had approached the High Court in Mumbai in July, seeking to quash the investigation. The company argued that the CCI had harmed its reputation by including—and later deleting—allegations against its CEO in the initial probe order.

However, in a brief hearing held on Thursday, the court found "no merit" in the plea and dismissed the case. A detailed order is expected to follow, sources familiar with the matter told Reuters.

The antitrust probe has emerged at a time when India’s paints sector, valued at around $9.5 billion, is witnessing rapid growth fueled by infrastructure and real estate development.

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The entry of Birla Opus in February 2024 has already begun to impact Asian Paints’ market share, with the new player gaining nearly 7% share by March, according to data from Elara Capital cited by Reuters.

The CCI’s preliminary review found that Asian Paints had imposed what it called “unfair conditions” on dealers, amounting to “exploitative conduct,” Reuters added.

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