Last Updated:June 27, 2025, 07:44 IST
JSW Paints has agreed to buy Akzo Nobel’s India business, valuing the company for Rs 12,000 crore
JSW Paints (Representational Image)
JSW Paints has agreed to buy Akzo Nobel’s India business, valuing the company for Rs 12,000 crore (approximately $1.1 billion). This will make the paint maker the fourth-largest in the now highly competitive domestic paints market, sources told The Economic Times. After months of negotiations, JSW has agreed to pick up a 75 per cent stake in Akzo Nobel India for Rs 9,000 crore, a 17.4 per cent discount to the Thursday price.
A formal announcement is expected today.
JSW Paints, led by Parth Jindal, has outbid rival contenders, including a consortium of Indigo Paints and Advent International, as well as Pidilite Industries, to acquire Akzo Nobel India. The acquisition marks a major strategic move for JSW as it aims to strengthen its footprint in the industrial paints segment, where it will now emerge as the second-largest player after Kansai Nerolac India.
The deal will trigger an open offer for a 26% stake, targeting Akzo Nobel India’s minority shareholders, as per SEBI regulations. The offer price will be based on Thursday’s closing price of the stock, in line with SEBI’s pricing formula. Depending on how many shares are tendered in the open offer, JSW will purchase a proportionate number of shares from Akzo Nobel’s Dutch parent. However, JSW will ensure that its total shareholding does not breach the 75% threshold, allowing the Dutch company to potentially retain a small stake in the Indian unit.
Akzo Nobel India shares closed at Rs 3,213 apiece on Thursday on the BSE, with a market capitalisation of Rs 14,632 crore. The stock has declined around 10.5% year-to-date and is down nearly 30% from its October 2023 peak of Rs 4,649.
Known for its popular ‘Dulux’ brand, Akzo Nobel has been operating in India for over seven decades. It currently commands a 7% market share in the domestic paints market. However, subdued demand and heightened competition have weighed on the company’s performance, resulting in a decline in share prices. In February 2025, the company sold its powder coatings division—its most profitable vertical, contributing 12–14% of revenues—to its Dutch parent, making the asset less attractive to several other suitors.
JSW Paints, launched in 2019, has so far struggled to secure significant market share. The company posted its first operating profit in FY24 on a revenue of Rs 2,000 crore.
In contrast, Aditya Birla Group’s paint venture, Birla Opus, launched in 2024, has already captured a high single-digit market share and is targeting a revenue of Rs 10,000 crore within three years.
The Indian paints industry, valued at Rs 80,000–90,000 crore, is projected to grow 10–12% annually in volume terms, driven by rising housing demand and growing discretionary income. Unlike earlier years when niche players entered the sector, recent years have seen major conglomerates foraying into the space, intensifying competition, and changing industry dynamics.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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