AkzoNobel India Acquisition by JSW: JSW Paints, led by Parth Jindal and part of the diversified JSW Group, is on the verge of signing a definitive agreement to acquire a majority stake in AkzoNobel India.
According to multiple industry insiders, final documents are expected to be signed in the coming days, marking a significant move in the Indian paints industry.
AkzoNobel N.V., the Dutch parent of AkzoNobel India and maker of Dulux paints, holds a 74.76% stake in its Indian arm.
This stake was valued at approximately ₹10,985 crore as of June 25, though earlier reports have estimated the deal’s value at around ₹9,000 crore.
JSW Emerged as Frontrunner After Intense Bidding
JSW Paints was first reported by Moneycontrol on May 15 as the leading contender in a competitive bidding process. Other interested parties included a consortium of Advent International and Indigo Paints, as well as Pidilite Industries, the maker of Fevicol.
After securing exclusivity, JSW Paints has been in advanced talks with AkzoNobel N.V., with sources suggesting the deal may be formally announced as early as this week.
Emails sent to both companies have yet to receive responses, and investment bank Citi is reportedly acting as the sell-side advisor for the AkzoNobel India acquisition.
Strategic Advantage for JSW Paints
Industry analysts believe that acquiring AkzoNobel India would significantly strengthen JSW Paints’ position in the decorative paints market. The firm would also benefit from the strong brand equity of Dulux, a household name in India.
JSW Paints entered the industry in 2019 and has already made rapid strides. The company operates two manufacturing units: an industrial coatings facility in Maharashtra and a decorative paints plant in Karnataka.
With a combined annual capacity of 170,000 kiloliters, it has become the largest industrial coil coatings producer in India.
Rising Competition in the Indian Paints Market
The acquisition comes amid intensifying competition in the Indian paints sector. Established giants like Asian Paints, Berger Paints, and Kansai Nerolac now face challenges from new entrants, including Birla Opus, Astral Paints, Haisha Paints from Pidilite, and JK Cements.
In response to shifting priorities, AkzoNobel N.V. announced a strategic portfolio review in October 2024. With a renewed focus on core coatings, the company is looking to redeploy capital away from its South Asian decorative paint operations.
This move led to AkzoNobel India initiating processes to sell off parts of its business, including powder coatings and R&D operations, to a wholly owned subsidiary.
Strong Financials Underpin the Deal
For FY 2024-25, AkzoNobel India reported operational revenues of ₹4,091.2 crore, a 3% rise over the previous year.
Earnings before interest and tax (EBIT) stood flat at ₹551.8 crore, while profit after tax (PAT) remained steady at ₹428.6 crore. The company also maintained a strong profitability margin of 13.5%.
A Pivotal Moment for JSW Paints
If completed, the AkzoNobel India acquisition will mark a major milestone for JSW Paints as it aims to cement its presence in a fiercely competitive market.
With the deal’s finalization looming, the Indian paint industry is set to witness a transformative shift led by one of the country’s fastest-growing players.
