NEW DELHI: Amid a growing tussle between a new entrant in the decorative paints market JSW Paints, and the market leader Asian Paints, the former, dissatisfied with a Competition Commission of India (CCI) order against its complaint, is likely to approach the National Company Law Appellate Tribunal (NCLAT) against the latter.
JSW Paints alleges that Asian Paints uses its dominant position to hamper its entry into the market. AS Sundaresan, joint MD & CEO of JSW Paints, said, ”We don’t agree with the Commission’s order that Asian Paints hasn’t abused its dominant position.” He added that they are currently reviewing the order and will take appropriate steps to protect the interests of our customers and dealers for a free and fair market.”
JSW Paints, which entered the decorative paints market in 2020, had alleged that Asian Paints began targeting dealers who had agreed to stock and display their decorative paints. JSW stated that they were planning to launch their products in South and West India.
However, they had been denied access to the market even in these states and faced the same resistance in other regions due to coercive action taken by Asian Paints against the dealers. It also said Asian Paints had reduced the credit limit and tier of dealers following their dealings with JSW Paints.
Following this, a probe was ordered by the anti-trust regulator in 2020 after the complaint filed by JSW Paints. After a lengthy probe, CCI in its September 8 order said no prima facie case of contravention of the provisions of either section 3 or 4 of the Competition Act is made out against Asian Paints.
Accordingly, the fair trade regulator disposed of the complaint filed by JSW Paints. According to a source familiar with the development, the Jindal firm is gearing up to move NCLAT against Asian Paints.