JSA Advocates and Solicitors has acted as sole and lead counsel for Grasim Industries Limited’s Birla Paints Division (Birla Opus) before the Competition Commission of India (CCI), achieving a formal investigation under Section 26(1) of the Competition Act, 2002 into alleged anti-competitive practices by Asian Paints Limited. The CCI passed the order on 1 July 2025, directing its Director General to investigate within 90 days.
Legal Team and Representation
JSA acted as the exclusive legal counsel to Birla Opus. The competition team included:
Nisha Kaur Uberoi, Partner & Chair – Competition Practice
Sarthak Pande, Principal Associate
Shivangi Chawla, Senior Associate
Keerthana Kesavan, Associate
Mehar Singh Dang, Associate
Sudhanshu Singh, Associate
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Background & Allegations
Birla Opus, launched by Grasim Industries in February 2024, rapidly captured around 7% market share in India’s decorative paints market, directly challenging the 52% market dominance held by Asian Paints. Birla’s complaint alleges that Asian Paints abused its dominant position by:
Offering dealers exclusive discounts and foreign-travel incentives to deter them from stocking Birla Opus
Coercing landlords, transporters, and suppliers to avoid dealings with Birla Opus
Impeding dealership access for Birla Opus in breach of Sections 4(2)(a)(i), 4(2)(c) & 4(2)(d) of the Competition Act.
The CCI’s prima facie findings confirm the existence of “exploitative conduct” and potential “partial foreclosure” of competition, hence ordering a full-scale DG investigation.
Section 26(1) – CCI Investigation Order
Under Section 26(1) of the Competition Act, once prima facie evidence is detected, the CCI directs the Director General to conduct a detailed inquiry. That investigation must conclude within 90 days of the order.
This order confirms the CCI’s preliminary belief in the seriousness of the allegations and marks a crucial step from confidential review to formal investigation.
Industry Implications
1. Heightened IP & Channel Competition
The paint industry is a highly competitive, channel-driven sector. This case underscores how market leaders may seek to limit rivals’ access to critical distribution networks, and how new entrants like Birla Opus are key challengers.
2. Legal Precedent
Previous complaints, such as JSW Paints’ 2022 case which was dismissed, contrast sharply with the CCI’s current determination. Swift regulatory response reflects growing scrutiny on alleged exclusionary tactics.
3. Strategic Market Entry
Birla Opus’s rapid growth highlights the rising influence of conglomerates in traditionally entrenched industries and signals an evolving competitive landscape.
4. CCI Enforcement Trend
The order illustrates a broader CCI trend towards prompt, proactive treatment of abuse-of-dominance complaints—speeding up timeframes to formal investigation upon finding prima facie evidence.
The CCI’s formal probe, led by JSA, marks a significant escalation in paint sector competition enforcement. The findings could have major consequences for Asian Paints, including possible fines, corrective orders, or license conditions if abuse is proven.
Birla Opus now awaits completion of the DG’s 90-day investigation, after which final CCI decisions may follow, covering penalties or mandatory remedial action.
No other counsel has been named for Asian Paints, but the company has indicated it will cooperate and is committed to reviewing and responding to the order .
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Disclaimer
This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult professionals before making decisions.
