JSW Paints Leads Race to Acquire AkzoNobel India in Potential $1.4 Billion Deal
| 2025-05-15
JSW Paints has emerged as the likely buyer of AkzoNobel India
JSW Paints has emerged as the likely buyer of AkzoNobel India in a deal worth ₹10,000–12,000 crore, as the Dutch parent seeks to restructure its South Asian operations.
JSW Paints Emerges as Front-Runner in AkzoNobel India Takeover Bid
JSW Paints is poised to acquire the Indian operations of AkzoNobel, according to sources familiar with the matter, with a deal estimated between ₹10,000 crore and ₹12,000 crore ($1.2–1.4 billion). The acquisition, if finalised, would include the decorative and industrial paints divisions, excluding Akzo’s powder coatings and research and development (R&D) units, which are to be retained by the Dutch parent company.
Strategic Shift in AkzoNobel’s South Asia Portfolio
The proposed sale comes as Amsterdam-based AkzoNobel NV undertakes a strategic review of its South Asian assets, aiming to reallocate capital and focus on core business segments. This includes a streamlining of operations amid global economic uncertainties.
The Indian business, listed on domestic stock exchanges, represents the fourth-largest player in the country’s paints sector, behind Asian Paints, Berger Paints, and Kansai Nerolac. AkzoNobel India commands an estimated 8% market share, primarily in the decorative and industrial paints categories.
Deal Nears Conclusion Amid Competitive Bidding
Multiple sources confirmed to Indian media that JSW Paints, part of the diversified JSW Group led by Sajjan Jindal, has likely outpaced rival bidder Indigo Paints, which is backed by private equity firm Advent International. While Pidilite Industries, known for brands such as Fevicol, had shown initial interest, it reportedly did not submit a final bid.
“A final decision in the ongoing sale process is yet to be taken by AkzoNobel NV,” one individual close to the discussions told The Hindu Business Line.
According to The Economic Times, the two companies have entered into an exclusive agreement to finalise deal terms. JSW Group has reportedly sought funding support from global institutions such as Standard Chartered Bank, MUFG, and Barclays, while also engaging structured finance providers including Ares Capital, KKR, and Apollo Global Management.
Financial Implications and Market Impact
AkzoNobel NV holds a 74.76% stake in its Indian subsidiary, currently valued at approximately ₹11,854 crore based on market capitalisation as of 15 May 2025. The proposed deal is expected to be executed at a 5–8% discount on the listed price.
In FY2024–25, AkzoNobel India reported revenues of ₹4,091.2 crore, marking a 3% year-on-year increase. Operating earnings remained stable at ₹551.8 crore, with profit after tax at ₹428.6 crore. The company also declared a final dividend of ₹30 per share, bringing the annual total to ₹100 per share.
Chairman and Managing Director Rajiv Rajgopal stated, “Committed to enhancing value for its shareholders, the Board of Akzo Nobel India has proposed a final dividend… subject to shareholders’ approval.”
Growth Strategy for JSW Paints
JSW Paints has two manufacturing facilities in India—one for decorative paints in Vijayanagar, Karnataka, and another for industrial coatings in Vasind, Maharashtra. The company claims a total installed capacity of 170,000 kilolitres per annum.
JSW Paints has positioned itself as an environmentally responsible manufacturer and has already become the leading producer of industrial coil coatings in the country. A successful acquisition of AkzoNobel India would solidify its presence across decorative and industrial segments, potentially elevating the company to fourth place in decorative paints and second in industrial paints in India.
JSW Paints Managing Director Parth Jindal has previously expressed keen interest in the deal, stating in January, “There is no choice... I have to give everything I’ve got for Akzo Nobel India.”
Industry Outlook and IPO Plans
The acquisition would align with JSW Paints’ ambition to achieve ₹10,000 crore in revenue ahead of a potential initial public offering (IPO) planned for 2025.
India’s paints market is expected to grow significantly in the coming years, with estimates from research firm Mordor Intelligence projecting a compound annual growth rate (CAGR) of 9.38%, reaching $16.37 billion by 2030 from $10.46 billion in 2025.
Context: Global Realignment by AkzoNobel
The sale of its Indian operations is part of a broader restructuring by AkzoNobel NV, which in January requested its Indian unit to transfer its powder coatings and R&D divisions to a wholly-owned arm of the parent.
The company also acquired intellectual property rights for the Dulux brand in India, Nepal, Bhutan, and Bangladesh for ₹1,152 crore and sold its powder coatings and R&D verticals to the parent for a combined ₹2,143 crore.
These transactions, coupled with the proposed divestment, reflect a concerted effort by the Dutch multinational to consolidate operations, focus on high-growth regions, and improve shareholder returns.
Next Steps
Pending regulatory approvals and final agreement on the terms, an official announcement on the acquisition is expected in the coming weeks. If concluded, the deal could reshape India’s competitive landscape in the paints industry and set the stage for JSW Paints’ next phase of expansion.
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