In a landmark transaction that is set to reshape India’s Rs 90,000-crore paints industry, JSW Paints will acquire a 74.76% stake in Akzo Nobel India from its Dutch parent in a transaction valued at approximately €1.4 billion ($1.6 billion), including debt.
The deal marks a strategic move by the Indian conglomerate to deepen its footprint in the paints sector.
According to a joint statement issued on Friday, the deal will generate around €900 million in net cash proceeds for Akzo Nobel, which is headquartered in Amsterdam.
As part of the agreement, JSW Paints will purchase up to a 74.76% stake in Akzo Nobel India Ltd. from the Dutch parent company and its affiliates for a consideration of up to 89.9 billion rupees ($1.1 billion).
Share price of Akzo Nobel India surged by more than 9.6% on the back of the announcement.
In accordance with Indian securities regulations, JSW will also be required to make an open offer to acquire a further 26% additional stake in Akzo Nobel India.
The deal includes an additional Rs 447 crore in contingent payouts and marks JSW Paints’ largest acquisition to date.
The acquisition will give the six-year-old paint company full operational control over Akzo Nobel India, which sells products under the Dulux brand and has a firm presence in the luxury and ultra-premium paint segments.
According to Akzo Nobel, the divestment is a “first step in the strategic portfolio review announced in October 2024, aimed at focusing the company’s capital and capabilities on leading positions in key global coatings markets.”
Capacity boost and new brand leverage for JSW Paints
With this acquisition, JSW Paints’ production capacity will jump from 170,000 kilolitres (KL) to around 420,000 KL, catapulting it to the fourth spot in decorative paints by capacity in India.
In comparison, industry leader Asian Paints has a capacity of 1.85 million KL, followed by Berger Paints with 1.5 million KL and Grasim’s Birla Opus with 1.096 million KL.
Akzo Nobel India currently holds about 7% market share, with an annual production capacity of 250 million litres.
It has been one of the more profitable players in the segment, with its Dulux brand commanding a premium position in urban markets.
ICICI Securities noted that the acquisition will keep pricing competitive across the sector.
“This will continue to maintain the price competitiveness in the market as all players will compete to gain market share in the near to medium term. Hence, we believe the paint companies margins will remain under pressure in the near term,” ICICI Securities said.
Outbidding rivals to secure Dulux
JSW Paints, headed by Parth Jindal, emerged victorious in a bidding contest that included a consortium of Indigo Paints and Advent International, as well as adhesive major Pidilite Industries.
The stake will be sold through Akzo Nobel’s two promoter entities: Imperial Chemical Industries Ltd (50.46%) and Akzo Nobel Coatings International B.V. (24.30%).
“Paints & Coatings is one of India’s fastest growing sectors and JSW Paints is amongst the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens,” said Parth Jindal, Managing Director of JSW Paints.
“We are excited to welcome them to the JSW family,” he added.
“With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector,” said Greg Poux-Guillaume, CEO of AkzoNobel.
Strategic exit for Akzo amid global pressures
The transaction comes as Akzo Nobel reevaluates its strategy in South Asia.
In October 2024, the Dutch firm announced plans to review its Indian operations.
By February 2025, it had agreed to hive off and sell its powder coatings business—its most profitable unit contributing 12–14% of local sales—to its Dutch parent, thereby narrowing the value for other prospective buyers.
Globally, Akzo has been cutting jobs and production as European industry contends with rising energy prices and geopolitical uncertainty following Russia’s invasion of Ukraine.
The India exit forms part of its broader strategy to focus on core markets and streamline operations.
Industry shake-up on the horizon
JSW Paints, launched in 2019, has struggled to enter the top tier of the decorative paints market despite aggressive expansion.
In contrast, Grasim’s Birla Opus made a strong entry in FY25, capturing 3–4% market share in just one quarter.
With the Dulux brand under its wing, JSW Paints now strengthens its foothold in the premium segment and significantly enhances its urban reach.
Following this deal, JSW will emerge as the second-largest player in the industrial paints segment, behind Kansai Nerolac, and the fourth-largest in the decorative paints market.
The company turned profitable at the operating level in FY24, with a 3% operating margin—another milestone it hopes to improve upon with the Akzo acquisition.
Still, challenges remain. Demand in the paints industry declined by 4–5% in FY25, and Akzo Nobel India’s profits were down 5% in the December quarter amid macro headwinds and a prior-year special dividend.
The automotive and vehicle refinish segments, in particular, weighed on performance.
For JSW Paints, however, the acquisition represents a strategic leap forward.
The question now is whether the brand, under new ownership, can climb further up the industry ladder in a market dominated by longstanding incumbents.
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