Latest News | Asian Paints Shares Decline Nearly 2 Pc in Morning Trade
Get latest articles and stories on Latest News at LatestLY. Shares of Asian Paints declined by nearly 2 per cent on Wednesday morning trade 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.
New Delhi, Jul 2 (PTI) Shares of Asian Paints declined by nearly 2 per cent on Wednesday morning trade 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 on the BSE.
At the NSE, it went lower by 1.79 per cent to Rs 2,327.
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.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)