June 19, 2025 –
Reliance’s Strategic Exit from Asian Paints Signals Market Turbulence
In a move that has sent shockwaves through India’s coatings industry, Reliance Industries has liquidated approximately 80% of its stake in market leader Asian Paints through a series of calculated transactions. The energy-to-retail conglomerate’s abrupt withdrawal, executed via undisclosed affiliate entities, represents one of the most significant capital reallocations in India’s specialty chemicals sector this fiscal year.

Market data reveals the divestment occurred in two strategic tranches. The initial block sale on June 12 moved 35 million shares at ₹2,201 apiece, followed by a secondary transaction four days later disposing 8.5 million shares at a marginally higher ₹2,207. While Reliance hasn’t publicly confirmed the latter sale, multiple brokerage reports confirm the transactions bear the conglomerate’s characteristic exit pattern.
The timing coincides with Asian Paints’ most challenging operational environment in recent history. The decorative coatings giant reported a concerning 20.8% contraction in operating profits for FY2025, compounded by a 450-basis-point market share erosion to aggressive newcomers like Birla Opus and Berger Paints. Industry analysts note this marks the first time in fifteen years that Asian Paints has simultaneously faced declining volumes, shrinking margins, and legal challenges.
A developing antitrust case filed by Aditya Birla Group’s coatings subsidiary adds regulatory complexity to the situation. The complaint alleges anti-competitive distribution practices, with India’s Competition Commission expected to rule before the monsoon season. Legal experts suggest the proceedings could potentially reshape industry pricing structures regardless of the verdict.
“Reliance’s exit reflects deeper sectoral headwinds,” commented a Mumbai-based specialty chemicals analyst. “With discretionary spending contracting and raw material volatility continuing, even market leaders must recalibrate expectations.” The development comes as India’s masterbatch producers report softening demand from paint manufacturers, suggesting potential downstream effects across the polymer additives value chain.