Opinions Order for Authorized Motion, ETCFO
NEW DELHI: Asian Paints is reviewing the order handed by honest commerce regulator CCI directing a probe towards the nation’s main paint maker for alleged abuse of its dominant place available in the market and mentioned it plans to take acceptable authorized recourse.
Asian Paints mentioned it is going to cooperate with the Competitors Fee of India (CCI) within the investigation over allegations of exclusionary practices.
“The corporate is presently reviewing the order and can take acceptable authorized recourse. The corporate stays dedicated to completely cooperating with the CCI through the course of the investigation,” Asian Paint mentioned in a late evening regulatory submitting on Thursday.
Earlier this week, CCI ordered an investigation towards Asian Paints for allegedly abusing its dominant place available in the market for manufacturing and gross sales of ornamental paint over the complaints filed by Aditya Birla group agency Grasim Industries.
Grasim, a brand new entrant within the home paint trade with model Birla Opus, had accused Asian Paints of participating in exclusionary practices aimed toward stifling its entry and development within the Indian ornamental paint section.
“The Fee is of the opinion {that a} prima facie case of contravention of the provisions of part 4(2)(a)(i), 4(2)(c) and 4(2)(d) of the Act by the OP (Asian Paints) is made out within the current matter,” CCI mentioned within the order.
Part 4 of the Competitors Act, 2002, prohibits abuse of dominant place.
CCI has directed its probe unit Director Basic for an investigation into the allegations and submit a preliminary report inside a interval of 90 days.
CCI had noticed that Asian Paints, by restraining its sellers from coping with Grasim’s Birla Opus by imposing exclusivity upon them, which is imposition of unfair circumstances upon them, discovered to be within the nature of exploitative conduct.
The CCI order had additionally clarified that observations made weren’t a ultimate view on the case deserves and directed the DG to conduct the probe with out being swayed in any method by any means by the observations made by it.
Within the final 5-6 years, a number of new gamers have entered the paint market, together with Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints.
Moreover, pipes and fittings producer Astral acquired Gem Paints and JK Cements acquired Acro Paints making its entry into the paint sector.
Nevertheless, Asian Paints nonetheless controls over 50 per cent of the ornamental paint market in India, adopted by Berger Paints, and Kansai Nerolac. In keeping with studies, these three main gamers within the Indian paint trade management over three-fourths of the market.
In keeping with an ICICI Direct report, the dimensions of the India Paint and Coatings Market is estimated at USD 9.60 billion in 2024. It’s anticipated to achieve USD 15.04 billion by 2029, rising at a CAGR of 9.38 per cent between 2024 and 2029.
