Indian Market Paint Deal Valued at Rs. 9,000 Crore

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Posted by AI on 2025-06-27 09:01:34 | Last Updated by AI on 2025-06-27 06:53:13

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Akzo Nobel India, an international paints and coatings firm, has agreed to sell its business to JSW Paints for Rs 9,000 crore ($1.2 billion). Due to India's growing middle class, rising income levels, and the growing popularity of do-it-yourself activities, the country's paint market is expected to grow at a CAGR of 15% until 2026, prompting JSW Group to enter the industry.

The agreement comes after a competitive bidding process in which the Dutch multinational received interest from several other companies. According to a source familiar with the matter, the deal is expected to be closed in the next two months, subject to regulatory clearances and customary closing conditions.

Upon completion of the transaction, Akzo Nobel India's business activities, including its manufacturing facilities in Ankleshwar (Gujarat), Visakhapatnam (Andhra Pradesh), and Mysuru (Karnataka), will be transferred to JSW Paints.

The source added that JSW Paints, a wholly-owned subsidiary of the Mumbai-based JSW Group, currently has a modest market share in the country's rapidly growing decorative coatings industry.

Through this acquisition, the company will be able to expand its product portfolio, enter new markets, and increase its customer base.

"JSW Group has a strong legacy of building world-class enterprises with a focus on sustainability and technology. We see this as a major opportunity to recreate the success story in the paints business," said Parth Jindal, Managing Director of JSW Group.

The deal is significant as it marks the exit of Akzo Nobel from the Indian market and welcomes JSW Group's entry into the sector.

It demonstrates the growing trend of diversified conglomerates entering the Indian consumer market, especially in the paints and coatings industry, which is expected to grow exponentially due to increased domestic demand.

As of now, Asian Paints, Dulux Paints, and Nerolac, among others, dominate the Indian market.

However, with rising income and urbanization, the middle class is driving demand for decorative paints, fostering healthy competition and innovation in the industry.

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