Akzo Nobel India's Acquisition to Propel JSW Paints into the Big League
Deal News | Jun 30, 2025 | EIN
In a strategic move to climb the ranks in the paints industry, JSW Paints Ltd has announced the acquisition of a 75% stake in Akzo Nobel India Ltd for a sum of ₹9,000 crore. The acquisition is set to elevate JSW Paints from its sixth position by tripling its business to achieve revenues of ₹6,000 crore, thereby securing about 10% of the market share. Akzo Nobel India, a subsidiary of the Dutch multinational and a key player in India's paints sector with a significant presence in decorative paints and five manufacturing plants, is divesting as part of a broader strategic review. This deal offers JSW Paints expanded production capacity and a deepening market reach with access to Akzo's 22,000 distribution points across India. While the acquisition propels JSW into the top five paint manufacturers, the industry's competitive environment remains tight, dominated by Asian Paints holding over 50% market share. Notably, the acquisition will likely introduce debt into JSW Group, underscoring a financial move with significant implications in the consolidating paint market.
Sectors
- Paints and Coatings
- Mergers and Acquisitions
Geography
- India – The acquisition and business activities are primarily located in India, impacting the regional paints and coatings market.
- Netherlands – Akzo Nobel India is a subsidiary of the Dutch multinational Akzo Nobel, signifying the international scope of the acquisition.
Industry
- Paints and Coatings – This sector includes companies involved in the production and distribution of paints, coatings, and related products, which is the primary industry of both JSW Paints and Akzo Nobel.
- Mergers and Acquisitions – The acquisition of Akzo Nobel India by JSW Paints involves significant strategic investment and consolidation in the sector, relevant to M&A activities.
Financials
- 9,000 crore – Amount JSW Paints is paying to acquire a 75% stake in Akzo Nobel India.
- 6,000 crore – Projected revenue for JSW Paints post-acquisition from the combined business.
- 4,000 crore – Debt proposed to fund the acquisition on JSW's books.
- 2,000 crore – JSW Paints' revenue in FY24, primarily from industrial paints to JSW Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| JSW Paints Ltd | Acquirer | Company | A part of the JSW Group, involved in paints and coatings, acquiring Akzo Nobel India to expand its market presence. |
| Akzo Nobel India Ltd | Target | Company | A major player in the paints sector in India with significant manufacturing and distribution network, being acquired by JSW Paints. |
| Akzo Nobel N.V. | Parent Company | Company | The Netherlands-based multinational parent of Akzo Nobel India, focusing on strategic portfolio management. |
| JSW Group | Parent Company | Company | A major conglomerate involved in various sectors including steel and cement, supporting JSW Paints. |