CCI ORDERS PROBE INTO MARKET ABUSE CHARGES AGAINST ASIAN PAINTS

 CCI ORDERS PROBE INTO MARKET ABUSE CHARGES AGAINST ASIAN PAINTS

CCI on 1st July 2025 ordered an investigation against Asian Paints for allegedly abusing its dominant position in the market for manufacturing and sale of decorative paints.

The direction follows a complaint filed by Grasim Industries (Birla Paints Division), which allegedly accused Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints market.

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 Competition Act by the OP (Asian Paints) is made out in the present matter.

DEALER INTIMIDATION STRATEGIES:

Suspected tactics include threatening reduced discounts and credit, increased targets, and removal of dealer incentives like foreign trips—unless they commit to stocking only Asian Paints products.

INPUT FORECLOSURE:

It is alleged that Asian Paints dispirited third parties—property-owners, C&F agents, carriers, raw material suppliers—from carrying business with Birla Opus.

MARKET SHARE:

Asian Paints is having around52% market share, while Birla Opusis having around 7%

It is said that Birla Opusis is trying to increase its market share through belligerent pricing and distribution tactics.

RESULT OF CCI’s PROBING

The CCI’s probing may result in the outcome which could result in penalties or behavioral directives if anti-competitive conduct is confirmed against Asian Paints.

R V SECKAR FCS,LLB 79047 19295

COMPLIANCE FAILURES AT SIGACHI INDUSTRIAL UNIT

COMPLIANCE FAILURES AT SIGACHI INDUSTRIAL UNIT

Sigachi Industries Ltd. is an Indian listed company  manufacturing Microcrystalline Cellulose (MCC) and other pharmaceutical excipients.

Sigachi Industries witnessed a fatal explosion and fire at its Pashamylaram factory in Sangareddy district, Telangana, on June 30, 2025.

LOSS OF LIFE

Company reported  loss of life about 40 deaths and over 33 injuries due to fire accident.

NO OBJECTION CERTIFICATE (NOC)

The unit did not have a No Objection Certificate (NOC) from the department and lacked basic fire safety infrastructure.

RISK MANAGEMENT POLICY

There is  no  Risk Management Policy in place in the Company  as the workers had repeatedly informed the management about the risks of using outdated machinery, but their concerns were ignored.

NO AUTOMATIC SAFETY INTERLOCKS

Critical safety systems, such as automatic machine shutdowns upon overheating, were reportedly absent or non-functional.

• Poor maintenance and aging machinery

• Inadequate firefighting infrastructure

• No third‑party safety audits

This fatal tragedy highlights deep-rooted compliance failures, from ignored alarms to expired certificates, structural flaws, and oversight failures.

Hence , it is the duty  every listed company to strengthen its compliance strategy in order to ensure safety in the manufacturing plant.

R V SECKAR FCS,LLB