JSW Paints to buy Akzo Nobel India for $1 billion

By | June 27, 2025
JSW Paints Akzo Nobel India Deal logo announcement

JSW Paints, a unit of the $24 billion JSW Group, is making a major move. The company has agreed to buy a controlling stake in Akzo Nobel India. This deal is valued at around ₹9,000 crore, or roughly $1 billion.

This acquisition could reshape India’s paint industry. JSW Paints aims to challenge market leaders like Asian Paints, Berger, and Kansai Nerolac. It’s a bold step for a company still building its brand.

Why the Deal Is Important

JSW Paints entered the market only a few years ago. Yet, it has quickly grown into a serious competitor. Despite this growth, the company still lacks the reach of older players.

Now, by acquiring Akzo Nobel India, JSW gains immediate access to a well-known brand—Dulux. This brand has a strong following in urban India. It also enjoys trust among customers looking for premium options.

In short, JSW gets more than a brand. It gets credibility.

What’s in the Deal

JSW Paints will acquire about 74.76% of Akzo Nobel India. This gives them control of the company. The rest of the shares will be offered to public shareholders through a mandatory open offer.

This strategy ensures compliance with Indian laws. If the open offer is successful, JSW could own nearly all of Akzo Nobel India.

Strategic Benefits for JSW Paints

There are clear benefits for JSW Paints in this deal:

  • Brand Value: Dulux already holds a premium position. JSW doesn’t need to build a new brand from scratch.
  • Distribution Access: Akzo has a large and established dealer network.
  • Manufacturing Power: Akzo Nobel India runs several production facilities. JSW can use them immediately.
  • Expanded Product Line: The company can now enter industrial coatings, not just decorative paints.

Clearly, this deal strengthens JSW on every front.

Funding the Acquisition

JSW Group plans to finance this deal using a mix of options. These include debt, equity investment, and mezzanine funding. Reports suggest leading financial institutions like MUFG and Standard Chartered are involved.

Interestingly, the deal is priced around 10–15% below market value. This gives JSW a financial advantage while helping Akzo exit a less strategic market.

Impact on India’s Paint Sector

The Indian paint market is worth over ₹80,000 crore. Demand is growing due to rising incomes, home renovation trends, and new construction.

This deal comes at a time of rising competition. For example, Grasim Industries is launching Birla Opus, a new entrant aiming to shake up the space.

Clearly, big businesses are eyeing this growing market. Consolidation seems inevitable. Only companies that innovate and scale quickly will survive.

Challenges Ahead

Despite the clear benefits, the integration process may not be smooth.

JSW will need to align company cultures. It must retain Akzo Nobel India’s dealers and employees. It also has to unify production and marketing operations.

If these efforts succeed, the reward could be huge. Analysts believe JSW Paints could soon become India’s fourth-largest paint company. Some even predict an IPO in the near future.

Looking Forward

The deal is expected to close by late 2025, subject to regulatory approvals. Once complete, JSW Paints will have a powerful product lineup. It will also be ready to compete with global players in industrial coatings.

This is more than just a business deal. It’s a shift in how India’s paint industry is structured.

Conclusion

JSW Paints’ decision to acquire Akzo Nobel India is both bold and strategic. The move gives the company a powerful brand, a strong distribution network, and a bigger market share.

At the same time, the deal highlights the ongoing changes in India’s paint industry. With new players and growing demand, only the most adaptive companies will lead the market.

JSW has now put itself in that group. The coming years will show how well it can manage and grow this investment.