The India Competition Commission (FI) initiated an investigation into Asian colors Ltd. Regarding claims of abuse of its dominant position in the market for ornamental colors. This move comes after Grassim Industries, working through Berla Opus colors, argue that Asian colors use unjust practices to maintain their market dominance. CCI’s decision to investigate is based on claims that Asian colors offered special stimuli to dealers to ensure sales exclusivity, and thus stifling the competition.
Grassim Industries, a new color market participant, argues that Asian paint practices include offering additional discounts and incentives, such as foreign trips, on dealers that agree with exclusive sales contracts. This situation allegedly puts dealers who sell competitive products in a disadvantage because they face reduced credit boundaries and higher sales targets. The CCI preliminary review suggests that these practices could unjustly hinder competition and raise barriers for new markets, such as the colors of Berla Opus.
“The Commission is directing the CEO (” DG “) to investigate the issue and submit a report on the investigation within 90 days of receiving the current order. At this stage of the faces, the commission, in the light of the material available on the record, does not find a reason to hear OP before passing OP before brought OP before bringing OP before passing the current order, “said.
Following the initial assessment, CCI appointed CEO (DG) to conduct a comprehensive investigation into the allegations. The DG has a 90-day deadline to submit a final report. “Nothing stated in the current order can be presented with the final expression of the opinion on the merits of the case and the DG is conducting the investigation without swaying in any way by the folding made here,” the Antimonopoly regulator said, emphasizing the impartial nature of the current investigation.
The investigation process is designed to provide a thorough examination of claims, allowing CCI to determine the validity of the allegations. This thorough approach emphasizes the seriousness with which Zsi treats these claims in order to support the practices of the fair market.
According to data from the Indian Economics Monitoring Center (CMIE), Asian colors have the largest market share in the country in the FY23, with a percentage of 39.05%. Berger Colors came in second with a market share of 12.13%, while Kansai Nerolac Bois and Akcho Nobel India held their third and fourth position with market shares of less than 10% each.
The allegations are made from “Berla Colors” that Asian colors are putting pressure on suppliers to retain raw materials from Berla’s colors. In a specific incident quoted by Brala Colors, Asian colors organized a vendor in October 2023 at ITC Marata Bombay, attended by over 150 top Asian color sellers.
In the development of the color market are more competitive, as a result of new participants such as Berla Opus, the investigation of Asian colors can have significant implications. The presence of new players has stepped up competition, forcing existing companies to reconsider their strategies. As the market dynamics changes, the CCI probe aims to support fair competition and ensure that no player can establish unnecessary dominance through anti-competitive practices.
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