JSW Paints to buy almost 75% stake in Akzo Nobel India for ₹8,986 cr

Conglomerate to acquire 75% in Dutch paint maker for ₹8,986 cr; to become fourth-largest player in the sector

Billionaire Sajjan Jindal-led JSW Paints has signed definitive agreements to acquire up to 74.76 per cent of Akzo Nobel India Ltd, the makers of Dulux brand of paints, from its Dutch parent for ₹8,986 crore, marking one of the largest transactions in India’s paints sector. 

The conglomerate is planning to raise funds for the acquisition via multiple routes. Apart from the promoters selling part of their stake in JSW Infrastructure, the group is also in talks with global lenders to raise about ₹4,000 crore, sources said.  

The acquisition is aimed at accelerating JSW Paints’ expansion in the fast-growing decorative and industrial coatings market. 

As part of the transaction, JSW Paints along with affiliates JTPM Metal Traders and JSW EduInfra will launch a mandatory open offer to acquire an additional 25.24 per cent of Akzo Nobel India’s shares held by the public, at ₹3,417.77 per share. The open offer is valued at ₹3,929 crore, and will be adjusted to ensure promoter holding remains within the regulatory 75 per cent cap.  

Apart from the money payable for the transaction at completion of the deal, there are also certain contingent consideration amounts, totalling up to ₹447 crore, the company said. 

In a ₹1,210 crore transaction in May this year, the Sajjan Jindal Family Trust had offloaded 2 per cent in JSW Infrastructure Ltd — India’s second-largest commercial port operator — to multiple institutional investors, including the Singapore government, in a bid to fund the acquisition of Akzo Nobel India, bankers said. 

Akzo Nobel India shares closed at ₹3,405 on Friday, up 7 per cent, implying a total market capitalisation of ₹15,506 crore. Its shares are down 4 per cent since January this year. 

“Paints & coatings is one of India’s fastest-growing sectors,” said JSW Paints’ Managing Director (MD) Parth Jindal, who led the transaction for the group. “With the magic of Dulux and the thoughtfulness of JSW Paints, we look forward to building the paint company of the future,” he said. Apart from the Jindals, private equity major Blackstone and Pidilite Industries had also evinced interest to buy Akzo Nobel India assets but later dropped out of the race.   

Akzo Nobel NV, the parent company of Akzo Nobel India, said the total enterprise value (EV) for the transaction was approximately 1.4 billion euros, including debt ($1.64 billion), translating to an EV/Ebitda multiple of 22x. Ebitda stands for earnings before interest, taxes, depreciation and amortisation. The deal includes Akzo Nobel’s liquid paints and coatings operations in India but excludes its powder coatings business and International Research Center, which the Dutch company will retain. 

“This is the first step in our strategic portfolio review, announced in October 2024, to refocus on global core markets,” said Akzo Nobel NV CEO Greg Poux-Guillaume, adding the company expects net cash proceeds of about 900 million euros ($1.05 billion), of which 500 million euros will go toward debt reduction. The company also plans a 400 million euros share buyback following the transaction’s completion. 

The acquisition is expected to reshape the competitive dynamics in India’s paints industry, which is forecast to grow at double-digit rates, driven by urbanisation, infrastructure investments, and rising disposable income. 

The marquee Dulux brand will be part of the acquisition, helping JSW Paints significantly enhance its competitive position against rivals like Asian Paints, Berger Paints, and the Aditya Birla group’s Birla Opus. Akzo Nobel India holds 7 per cent share in the Indian paints market, with Asian Paints having the highest market share of 32.2 per cent till March 2025. On the other hand, Birla Opus holds 10 per cent market share in revenue terms. 

Analysts at Kotak Research had earlier said that Asian Paints’ domestic decorative business saw unprecedented levels of demand weakness and heightened competitive intensity in FY25, leading to historically low volume growth at 2.5 per cent and value growth of minus 5.7 per cent year-on-year (Y-o-Y) — the weakest in two decades — along with a market-share loss. 

 

A resurgent JSW-Akzo is expected to increase the “hyper competition” among the players, say analysts.