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India's paint king faces antitrust heat - what CCI's 90-day probe could uncover

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The Competition Commission of India has ordered a 90-day investigation into Asian Paints for alleged abuse of dominant position following complaints by Aditya Birla Group's Grasim Industries. The probe will examine claims that Asian Paints offered dealers exclusive incentives including foreign travel while increasing sales targets for those dealing with competitors.

Grasim accused Asian Paints of coercing landlords, transporters, and suppliers to avoid engaging with competitors, creating market barriers. The CCI found prima facie evidence of exploitative conduct and unfair dealer conditions.

Asian Paints dominates India's Rs 80,000-90,000 crore paint market with 53% production capacity and 74,000 dealers across 1.6 lakh touchpoints. However, Birla Opus rapidly captured 7% market share since launching in February 2024, challenging Asian Paints' dominance.

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