JSW Paints, a subsidiary of the diversified JSW Group, has signed a definitive agreement to acquire up to 74.76% of the larger rival and Dulux-maker Akzo Nobel India for Rs 8,986 crore, marking one of the largest transactions in the approximately Rs 90,000 crore domestic paints sector. The deal also includes an open offer, which will pay for the Dutch company's complete exit from the country.

Subject to regulatory approvals and a mandatory open offer, the acquisition will transform JSW Paints, which has yet to make a clear mark in the paints segment despite six years of operations, into a major player in the decorative and industrial coatings space.

Key Highlights

• JSW Paints will acquire a 74.76% stake in AkzoNobel India for ₹8,986 crore, securing a major growth leap.
• Deal values AkzoNobel India at ₹12,000 crore, positioning JSW as the fourth‑largest Indian paintmaker, boosting market position. 

Dulux is owned by Akzo Nobel India, a subsidiary of Akzo Nobel NV and its affiliates. In an exchange filing on June 27, the group stated that the maximum consideration under the Share Purchase Agreement is up to ₹8,986 crore, subject to certain closing adjustments.

The transaction is subject to Competition Commission approval and the completion of the company's mandatory tender offer to its public shareholders.

The transaction has been in the works for several years and is part of the Amsterdam, Netherlands-based company's global rebranding. It received numerous bids from a consortium of Advent International and Indigo Paints, as well as Fevicol manufacturer Pidilite Industries.

JSW will acquire a 74.76% stake from the Dutch promoters/holding entities Imperial Chemical Industries and Akzo Nobel Coatings International BV, the company announced on Friday.

On completion of the Akzo's Dutch promoter group, which together held 74.76% of the local unit here, exits the domestic decorative paints market, which is being disrupted by the entry of new players such as Aditya Birla Group.

The transaction will help JSW Group expand its presence in the paint segment, which it entered in 2019 as a relatively new player.

Parth Jindal, managing director of JSW Paints, stated that paints and coatings are one of the fastest-growing sectors."Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens."

According to AkzoNobel CEO Greg Poux-Guillaume, this transaction represents a significant milestone in the execution of our strategy. AkzoNobel India has consistently delivered strong results, and we are proud of the brand and talent that have contributed to its success."

Akzo Nobel announced last October that it was conducting a strategic review of its South Asian portfolio and was looking for strategic options such as partnerships, joint ventures, mergers, and divestments. This was done to redirect capital toward the expansion of its core coatings business.

Akzo Nobel India operates in a wide range of paint and coatings segments, including decorative paints, automotive and specialty coatings, industrial coatings, marine, protective, and yacht coatings, and powder coatings. Its revenue from operations in FY25 was Rs 4,091 crores.

Akzo announced in February of this year that it would transfer its powder coatings business and international research centre to its Dutch parent company, Akzo Nobel NV, in a Rs 2,143-crore intergroup transaction.

For Rs 1,152 crore, AkzoNobel India acquired Akzo Nobel Coatings International's "intellectual property rights" for its decorative paints business in India, Bangladesh, Bhutan, and Nepal.

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In the last five to six years, several new players have entered the market, including Pidilite with Haisha Paints, Grasim with Birla Opus, and JSW Paints. Furthermore, pipes and fittings manufacturer Astral acquired Gem Paints, and JK Cements entered the segment by acquiring Acro Paints, prompting its entry into the paint sector.

The Indian Paints Association estimates that the paints and coatings industry is worth $8.5 billion and produces 6.3 million tonnes by volume.