- July 2, 2025
Asian Paints shares rebound after falling in morning trade; end over 2 pc higher
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New Delhi, Jul 2 (PTI) Shares of Asian Paints rebounded and ended over 2 per cent higher on Wednesday amid value-buying.
During the morning trade, the stock declined by nearly 2 per cent after the Competition Commission of India (CCI) ordered an investigation against the firm for allegedly abusing its dominant position in the market for manufacturing and sale of decorative paints.
The stock dipped 1.78 per cent to Rs 2,326.45 during the morning trade on the BSE. But, later it bounced back and ended at Rs 2,419.85 apiece, up 2.15 per cent.
Similarly, at the NSE, it climbed 2.39 per cent to end at Rs 2,426.30 after falling 1.79 per cent to Rs 2,327 during the morning trade.
The direction follows a complaint filed by Grasim Industries (Birla Paints Division), which accused Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints segment.
“The Commission is of the opinion that a prima facie case of contravention of the provisions of section 4(2)(a)(i), 4(2)(c) and 4(2)(d) of the Act by the OP (Asian Paints) is made out in the present matter,” CCI said in the order on Tuesday.
Section 4 of the Competition Act, 2002, prohibits abuse of dominant position.
Accordingly, the fair trade regulator directed the Director General to cause an investigation to be made into the matter and submit an investigation report within a period of 90 days.
Grasim, a part of the Aditya Birla Group, forayed into the decorative paints segment under the ‘Birla Opus Paints’ brand in February last year. Asian Paints is a market leader and manufactures paints for both decorative and industrial use.
The competition regulator observed that OP (Asian Paints), by way of restraining its dealers from dealing with the OP’s competitors like the informant (Grasim Industries Ltd) by enforcing exclusivity upon such dealers, is imposing unfair conditions upon them, which is found to be in the nature of exploitative conduct. PTI SUM SUM SHW
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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