JSW Paints likely to soon sign final pact for acquiring AkzoNobel India

Mumbai, June 26, 2025 — In a significant development for the Indian paints industry, JSW Paints is reportedly on the verge of signing a definitive agreement to acquire AkzoNobel India, a subsidiary of the global Dutch paints and coatings giant AkzoNobel NV. The potential deal, valued at approximately ₹5,000–₹6,000 crore, could reshape the competitive dynamics of India’s fast-growing decorative and industrial paints market.

According to sources close to the matter, final-stage negotiations are currently underway, and the definitive agreement may be signed “in the coming weeks.” If completed, the acquisition would represent JSW Paints’ biggest inorganic move to date and significantly bolster its market presence.

Deal Dynamics and Strategic Significance

JSW Paints, a part of the Sajjan Jindal-led JSW Group, has long been eyeing opportunities for expansion to challenge incumbents like Asian Paints, Berger Paints, and Nippon Paints. AkzoNobel India, known for its Dulux brand, brings with it a rich legacy, distribution network, premium product portfolio, and experienced workforce.

“This acquisition, if concluded, would allow JSW Paints to leapfrog years of organic growth. AkzoNobel’s brand equity and reach, combined with JSW’s aggressive marketing and distribution capabilities, can create a formidable force,” said Suresh Menon, Senior Analyst at ICICI Securities.

JSW Paints currently holds a small single-digit market share in the ₹70,000-crore Indian paints sector. AkzoNobel India, though smaller than the top three players, has a significant niche in the premium segment, which aligns with JSW Paints’ focus on high-margin offerings.

Market Context: Growing Industry, Consolidation Expected

India’s paint industry is poised for exponential growth, driven by increasing urbanization, rising disposable incomes, and an uptick in home renovations. The decorative paint segment alone is expected to grow at a CAGR of 12-13% over the next five years.

Against this backdrop, major players are exploring M&A options to increase scale and expand into underserved markets. AkzoNobel NV has been consolidating its global operations and could see this deal as part of a larger portfolio optimization strategy.

“India has been a strong market for AkzoNobel, but competition and the need for scale are pushing global players to reconsider their standalone operations. JSW offers them a clean exit while retaining the value of their legacy,” noted Ananya Ghosh, Managing Director at CapitalBridge Advisors.

Financial Details and Regulatory Aspects

While financial contours of the deal are still being finalized, initial estimates peg the enterprise value at ₹5,500 crore, subject to final due diligence and regulatory approvals. The acquisition would be financed through a mix of internal accruals and debt.

The transaction is expected to trigger mandatory open offer requirements under SEBI’s takeover code. If completed, JSW Paints could acquire a controlling stake and further consolidate its shareholding through open-market operations.

Industry watchers expect the Competition Commission of India (CCI) and other regulators to closely examine the deal, given its potential to alter competitive dynamics.

Investor Sentiment and Market Reaction

Following media reports of the possible acquisition, shares of AkzoNobel India surged over 8% on Wednesday’s trade, signaling strong investor approval. Meanwhile, analysts have kept a close eye on JSW Group’s potential synergies across its steel, cement, and paints verticals.

“This is a classic horizontal integration strategy. JSW already supplies raw materials like steel coils and industrial coatings. Bringing paints under the same umbrella enhances their construction material ecosystem,” said Kunal Bhatia, Vice President of Research at Dalal & Broacha.

Investors are also optimistic about JSW Paints' ability to leverage AkzoNobel’s established relationships with real estate developers, architects, and industrial clients.

Challenges Ahead

Despite the promising outlook, the path ahead is not without hurdles. Integrating two companies with different cultures, supply chains, and pricing strategies will require meticulous planning.

Moreover, global brands like Asian Paints and Berger are not expected to sit idle. They are likely to ramp up promotional efforts, product innovation, and rural penetration.

“The battle for market share post-acquisition will intensify. JSW must ensure minimal disruption while retaining top talent from AkzoNobel India,” said Nishita Agarwal, Consumer Analyst at JP Morgan India.

Outlook: New Growth Era or Risky Bet?

With this acquisition, JSW Paints could enter the top four league in the Indian paints industry by revenue and brand recall. This may also pave the way for a potential IPO in the medium term, offering investors a new avenue to participate in India’s consumption-led growth story.

However, the success of the acquisition will hinge on execution, brand integration, and sustained profitability.

As the final pact nears, all eyes are on the official confirmation from both companies, expected to be announced in early July.