JSW Paints to Enter Top 4 in Paint Industry After Akzo Nobel India Stake Buy: Parth Jindal

JSW Paints, a part of the $23 billion JSW Group led by Sajjan Jindal, is set to significantly expand its footprint in India's decorative and industrial coatings market. This strategic move follows the company's acquisition of a majority stake in Akzo Nobel India Ltd, the well-known maker of Dulux paints.

JSW Paints is preparing multiple funding options to support its Rs 9,000 crore acquisition of Akzo Nobel India, in case private equity (PE) investments don't go as planned. As per Hindu Businessline report, Parth Jindal, Managing Director of JSW Paints, confirmed that the company has put in place a backup strategy, including support from promoters and internal funds.

According to Parth Jindal, "once the acquisition is completed post approvals from regulatory bodies such as Competition Commission of India and others, the five-year old company, JSW Paints, would become the fourth largest player in the segment."

JSW Paints Acquires 74.76% Stake in Akzo Nobel India

Last week, JSW Paints announced that it had acquired a 74.76% stake in Akzo Nobel India Ltd (ANIL) from its Dutch parent company, AkzoNobel N.V. The deal is valued at Rs 8,986 crore, and to further consolidate its control, JSW Paints has also made an open offer worth up to Rs 3,929.06 crore for additional shares.

The acquisition marks a major step for JSW Paints in its mission to grow rapidly in India's booming paints sector. The company will now have access to the Dulux brand, known for its premium positioning, especially in urban and semi-urban areas.

How JSW Plans to Fund the Rs 13,000 Crore Deal?

The entire transaction, which could cost nearly Rs 13,000 crore, will be funded through a mix of internal funds, support from financial institutions, and private equity investments. Parth Jindal, Managing Director of JSW Paints, confirmed this plan.

Once regulatory approvals including clearance from the Competition Commission of India (CCI) are secured, JSW Paints will officially become the fourth-largest paints company in India in terms of market share.

Describing the deal as a turning point for the company, Parth Jindal said as per PTI report, "Coming together with Dulux takes us into the top four in the Indian paint industry."

He added that this acquisition aligns with the company's larger goal of becoming one of the top three players in the Indian paint market in the coming years.

With the acquisition of Akzo Nobel India, JSW Paints now operates through two clear market avenues, the Dulux brand will continue to cater to premium customers in metro cities as well as Tier I and Tier II towns, while JSW Paints' own brand will remain focused on the mass market and value segments, where it already has a strong and growing presence.

He also hinted at possible future consolidation in the sector, which could further shape the market in the next few years.

What Happens to Akzo Nobel India Ltd?

Post the open offer and completion of formalities, Akzo Nobel India Ltd (ANIL) will remain a listed company and continue to operate under its current management structure. This ensures continuity for employees, stakeholders, and existing customers.

AkzoNobel's global CEO, Greg Poux-Guillaume, said the decision to sell the stake came from a deeper understanding of the Indian market. "India is a unique market where local players dominate over international firms," he said. He added that proceeds from this deal will support AkzoNobel's global balance sheet and future growth plans.

Paint Industry Outlook in India

India's paint market is one of the fastest-growing in the world. It is currently led by Asian Paints, followed by Berger Paints, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints.

According to a report by ICICI Direct, the paint market in India is expected to grow from USD 9.6 billion in 2024 to USD 15.04 billion by 2029, at a CAGR of 9.38%. The report highlights increasing urbanisation, housing demand, and infrastructure growth as key drivers of this expansion.