Indian media: JSW Paints may have 'won' AkzoNobel's Indian business

Since AkzoNobel announced in October 2024 a strategic review of its South Asian decorative coatings business—primarily its Indian subsidiary—it has attracted bids from domestic Indian paint companies and several major private equity firms, driving up the valuation of the Indian subsidiary. Earlier reports indicated that the enterprise value of AkzoNobel’s Indian entity stood between ₹160 billion and ₹170 billion (approximately USD 1.87–2.00 billion), while sources claimed AkzoNobel initially sought to sell a 74.6% stake in its Indian subsidiary for ₹200–240 billion (approximately USD 2.34–2.80 billion). To make the sale of AkzoNobel’s Indian subsidiary more feasible, AkzoNobel decided to split the asset package, thereby helping stabilize the final bidding price. In February this year, AkzoNobel made an offer to acquire the powder coatings business and the International Research Centre from its Indian subsidiary, while simultaneously transferring the intellectual property (IP) rights—including the 'Dulux' brand—for local decorative coatings operations (covering India, Nepal, Bhutan, and Bangladesh) to the Indian subsidiary. This acquisition has now been completed via a 'swap' arrangement. If the rumored ₹120 billion (USD 1.4 billion) bid by JSW Paints is confirmed, it would represent a near 50% discount relative to AkzoNobel’s original valuation. Another rumor concerning AkzoNobel suggests it is considering acquiring the coatings business currently under strategic review by BASF; such an acquisition would require approximately €6 billion (USD 6.7 billion), and proceeds from the Indian subsidiary sale would help fund it—though a significant funding gap remains. According to a report by Financial Express, sources indicated that JSW Paints’ parent, the JSW Group—and behind it, the Sajjan Jindal family—had planned to sell a 2% stake in its subsidiary JSW Infrastructure Limited to raise ₹20–30 billion (approximately USD 234–351 million) to finance the acquisition. The latest reports indicate ₹12.1 billion (approximately USD 142 million) has already been raised. The transaction is expected to trigger a mandatory open offer by JSW Paints for the remaining shares of AkzoNobel’s Indian subsidiary—potentially culminating in a full acquisition via reverse merger. Moreover, JSW Paints may also acquire AkzoNobel’s Sri Lankan business, which operates through a joint venture with a local partner, according to sources. Even acquiring just the 74.6% stake in AkzoNobel’s Indian subsidiary would elevate JSW Paints to the position of India’s fourth-largest paint company—ranking behind Asian Paints, Berger Paints, and Kansai Nerolac (the Indian subsidiary of Japan’s Kansai Paint).

Deal valued at ₹11.8 billion! AkzoNobel sells 74.76% stake in its Indian company to JSW

JSW Paints is India’s fastest-growing paint company and part of the USD 23-billion JSW Group—a leading Indian diversified conglomerate with businesses spanning steel, energy, infrastructure, cement, paints, defense, automotive, e-commerce, sports, real estate, and venture capital. The JSW Group directly employs nearly 40,000 people. ANIL is one of India’s leading decorative and industrial coatings companies and a part of AkzoNobel—the global leader in decorative and industrial coatings, headquartered in the Netherlands. Public records show JSW Paints was founded in 2019 and is among India’s fastest-growing paint companies, offering a diversified portfolio of decorative and industrial coatings. Leveraging a long history of product and process innovation, consumer-resonant brand marketing, state-of-the-art manufacturing facilities, and an ever-expanding pan-India distribution network, the company aims to transform India’s paint industry. 'This transformational acquisition positions JSW Paints as a key player in the industry, with strong growth anticipated over the coming years,' JSW Paints stated in its official announcement. According to the announcement, JSW Paints recorded total sales revenue exceeding ₹20 billion in FY2024—a growth rate over ten times higher than the industry average—driven primarily by robust expansion in both decorative and industrial coatings businesses. The company targets a 2.5-fold revenue increase by FY2026, reaching ₹50 billion (approximately RMB 4.2 billion at current exchange rates). Notably, Ashish Rai, formerly a senior executive at Unilever, has joined JSW Paints as Chief Commercial Officer to lead the transformation and growth of its decorative coatings business. JSW Paints stated that, drawing on over two decades of experience leading distribution and trade transformation initiatives across global organizations—including at Unilever—Ashish will drive profitable revenue growth for JSW Paints’ decorative coatings business. Per financial reports, AkzoNobel’s Indian subsidiary achieved FY2025 revenue of ₹40.912 billion (approximately USD 477.4 million or RMB 3.426 billion), representing a 3% year-on-year increase. Analyst Li Mingyue of Coating Observer noted that following completion of the ANIL acquisition, JSW Paints will swiftly achieve its targeted revenue growth and immediately rise to become one of India’s top paint companies—ranking third nationally, behind only Asian Paints and Berger Paints, and surpassing Birla Opus, a relatively new entrant to the paint sector experiencing rapid growth. AkzoNobel plans to acquire the powder coatings business for approximately ₹20 billion. India is a key market for AkzoNobel’s decorative coatings business. ICI Group began operations in India in 1911. Brunner Mond was one of the four UK-based companies that formed ICI in 1926; it opened a trading office in Kolkata, India, selling alkalis and dyes. In 1923, the company was renamed Brunner Mond (India); in 1929, it became Imperial Chemical Industries (India) Limited. This was followed by a sustained period of expansion, diversification, and growth, culminating in 1954 with the establishment of Indian Explosives Limited, jointly promoted by ICI PLC and the Government of India.

India's JSW Paints Eyes 4-5 Year Debt to Refinance Acquisition Funding

1 day ago

JSW Paints plans to raise approximately 30 billion rupees through 4-5 year bonds to refinance its previous acquisition of Akzo Nobel India. Merchant bankers indicate the sale could occur within weeks amidst strong investor demand for corporate debt.

reuters

2026-10-22

India's JSW Paints Eyes 4-5 Year Debt to Refinance Acquisition Funding

India's JSW Paints Eyes 4-5 Year Debt to Refinance Acquisition Funding

FAQ