Akzo Nobel India Shares Rally 9% on JSW’s Rs 9,000 Crore Deal

On Friday, Akzo Nobel India shares jumped upto 9.4 percent touching a day’s high price of Rs. 3,490 on NSE after Akzo Nobel N.V. has finalised an agreement to sell its controlling stake in Akzo Nobel India Limited to JSW Group, marking a major shift in the Indian paints and coatings industry. The deal, valued at approximately €1.4 billion or about Rs. 9,000 crore, is based on an EV/EBITDA multiple of 22x and includes AkzoNobel’s liquid paints and coatings business in India. However, AkzoNobel will retain ownership of its India Powder Coatings business and the International Research Center, both of which are currently part of India’s subsidiary.

JSW Paints will acquire the entire 50.46 percent stake held by Akzo Nobel’s promoter entity, Imperial Chemical Industries. Following this transaction, JSW Paints may hold up to 75 percent of Akzo Nobel India after making an open offer to minority shareholders, as mandated by SEBI takeover regulations. This acquisition is the largest in JSW Paints history and is set to keep the company to the position of the fourth-largest player in India’s highly competitive paints market, particularly strengthening its presence in the industrial paints segment.

From the management’s perspective, both companies have expressed optimism and strategic intent regarding the deal. Greg Poux-Guillaume, CEO of AkzoNobel, stated, “This transaction is a significant milestone in the execution of our strategy. AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector”. 

Parth Jindal, Managing Director of JSW Paints, with this sentiment, said, “Paints and Coatings is one of India’s fastest growing sectors, and JSW Paints is amongst the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints and coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family – employees, customers and partners – we aspire to build the paint company of the future. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders”.

Financially, Akzo Nobel India reported a consolidated net profit of Rs. 429.5 crore for the fiscal year ended March 31, 2025, compared to Rs. 426.6 crore in the previous year. The consolidated revenue from operations stood at Rs. 4,091.2 crore in FY25, up from Rs. 3,961.6 crore in FY24. In the fourth quarter of FY25, the company posted a marginally lower net profit of Rs. 108.4 crore, with revenues of Rs. 1,022.1 crore. According to Rajiv Rajgopal, Chairman and Managing Director of Akzo Nobel India, the company achieved ahead-of-industry topline growth, driven by double-digit growth in B2B businesses and sustained double-digit profitability, despite challenging market dynamics in the mass and economy categories.

Looking ahead, Akzo Nobel India’s recent strategic moves reflect its intent to focus on core competencies and high-growth segments. The company’s divestment of its decorative paints and industrial coatings businesses is expected to allow it to concentrate resources on other high-potential areas, such as powder coatings and research and development, which remain under AkzoNobel’s full ownership. 

With the Paint Industry competition heating up from the Birla Opus entry, there are rapid developments in this space with companies streamlining the paints in one of their value chains from start to end user ensuring value addition. Asian Paints being a market leader is expected to feel more pressure on margins and growing competition with new players being more aggressive on their spending. Product differentiation and operational efficiency can make company stand out of this competition. Akzo Nobel India has demonstrated steady revenue growth, improved market share, and with profitability trends, positions itself for long-term success in the Indian market, even as it navigates an increasingly competitive landscape.