JSW Paints open to inorganic opportunities: Sundaresan A S joint MD & CEO

JSW Paints is open to exploring inorganic growth opportunities, including participating in the current process being run by Akzo Nobel.

 

Sundaresan A S, joint managing director and chief executive officer of JSW Paints, said, “As a group, we are open to looking at opportunities for inorganic growth. Akzo has announced a process. We will certainly look at it.”

 

He was speaking on the sidelines of the Indian Paint Conference in Kolkata, organised by the Indian Paint Association.

 

Sundaresan explained that acquisitions must be synergistic and complementary.

 

On how Akzo Nobel fits into the plan, he said it has certain brands with value. In terms of geographies, it could be complementary, Sundaresan added.

 

On organic expansion, JSW Paints plans to invest Rs 1,000 crore in the next three to five years.

 

Akzo Nobel NV (ANNV), the ultimate holding company of Akzo Nobel India, announced in October 2024 that it was conducting a strategic review of its portfolio to redeploy capital towards growing its core coatings businesses. The initial focus would be on its decorative paints positions in South Asia.

 

“AkzoNobel has a premium, highly profitable position in India in particular, with a strong track record of growth. Given this unique market position, the company is well-placed to participate in the further development of the highly dynamic South Asian decorative paints market, which is ripe for consolidation. The review will explore various strategic options ranging from partnerships or joint ventures to mergers or divestments,”  the press statement said.  .

 

Earlier this week, Akzo Nobel India said in an exchange filing that ANNV had requested its board to consider, evaluate, and thereafter start taking exploratory steps towards a potential sale of the company’s powder coatings business and its international research centre to a separate indirect wholly owned subsidiary of ANNV, and the potential acquisition of decorative paints intellectual properties owned by ANNV by Akzo Nobel India.

 

Apart from JSW Paints, Berger Paints is also understood to be evaluating participation in the potential opportunity presented by Akzo Nobel.

 

On a media report about Berger’s interest in buying AkzoNobel’s India stake, Berger clarified to the stock exchanges on Tuesday that it considers various proposals for inorganic growth and diversification as a matter of routine exercise.

 

On the specific news item, it said, at present there is no material event, information, or development in this matter to disclose under the Listing Regulations.