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JSW Paints is set to acquire a 74.76% stake in Akzo Nobel India for INR 12,915 crore via a share purchase agreement with Akzo Nobel N.V., which will retain its powder coatings and R&D operations in India. JSW has also initiated an open offer to buy the remaining 25.24% from public shareholders, aiming for full ownership pending CCI approval. Akzo Nobel India, known for Dulux and Sikkens, boasts strong market presence and brand equity. JSW Paints, launched in 2019, has been expanding rapidly with two manufacturing units and a consumer-first approach. Meanwhile, Asian Paints exited its 4.42% stake, valued at INR 734 crore.
JSW Paints, a subsidiary of the USD 23 billion JSW Group, is set to acquire a 74.76% equity stake in Akzo Nobel India Limited in a transaction valued at INR 12,915 crore. The acquisition is being routed through a share purchase agreement signed with Akzo Nobel N.V., which will continue to retain its powder coatings business and global research and development centre in India. Advertisement
As part of regulatory requirements, JSW Paints has also launched a mandatory open offer to acquire up to 25.24% of the remaining equity capital held by public shareholders. Upon completion of the transaction and assuming full subscription to the open offer, JSW Paints would hold up to 100% ownership in Akzo Nobel India. The acquisition is currently pending clearance from the Competition Commission of India (CCI).
Akzo Nobel India, one of the oldest multinationals in the country, is known for iconic brands like Dulux, Sikkens, and International, with a significant presence in both decorative and industrial coatings. The company has a strong distribution footprint and longstanding brand recognition across Indian metros and Tier-II markets.
JSW Paints, which entered the market in 2019 under the leadership of Parth Jindal, has been actively expanding its footprint. The company operates two manufacturing units: one in Vasind, Maharashtra, and another in Vijayanagar, Karnataka, with a combined annual production capacity of around 170,000 kilolitres. Since its inception, JSW Paints has positioned itself as a challenger brand, offering a differentiated approach including "any colour one price" for consumers.
In a related development, Asian Paints, the largest player in the sector, divested its 4.42% stake in Akzo Nobel India, valued at around INR 734 crore. The timing of the sale aligns with the announcement of JSW's acquisition bid and may reflect broader portfolio shifts in light of intensifying competition.
Akzo Nobel India reported INR 3,353 crore in revenue for FY24, with an EBITDA of INR 496 crore, highlighting a solid operational base that JSW can now build on.
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