Transaction:
- JSW Paints will acquire a 74.76% stake in Akzo Nobel India Ltd. (ANIL) from Imperial Chemical Industries Ltd (50.46% stake) and Akzo Nobel Coatings International B.V. for a consideration of Rs. 8,986 crore. The transaction implies an enterprise value of approximately Rs. 12,600 crore (€1.4 billion), based on a reported EV/EBITDA multiple of 22x.
- As per SEBI regulations, JSW will make a mandatory open offer to public shareholders for the remaining 25.24% stake at Rs. 3,418 per share, amounting to Rs. 3,929 crore. The total potential outlay stands at Rs. 12,915 crore.
About Akzo Nobel India Limited (ANIL):
- Incorporated in 1954, Akzo Nobel India Ltd. is engaged in the manufacture, trading, and sale of paints and coatings across diverse segments. It is a subsidiary of Akzo Nobel N.V., Netherlands, a global leader in paints and coatings.
- Product portfolio includes decorative paints, automotive and specialty coatings, industrial coatings, marine, protective, yacht, and powder coatings supported by a production capacity of 250 million litres annually.
About JSW Paints:
- Launched in 2019, JSW Paints is a part of the $23 billion JSW Group, one of India’s leading business conglomerates with interests across steel, energy, infrastructure, and cement.
- It offers a diverse portfolio across decorative paints and industrial coatings, backed by modern manufacturing facilities and a growing pan-India distribution network.
Rationale:
- The acquisition will give JSW Paints access to the premium and luxury decorative segment through the well-established Dulux brand, enhancing its product portfolio and brand positioning.
- JSW will also gain access to robust dealer and retail network, expanding its market penetration, especially in urban and Tier-1 geographies.
- Akzo Nobel India holds a 7% share of the domestic paints market, giving JSW significant scale in both decorative and industrial segments.
- In FY25, the company reported revenue of Rs. 4,091 crore and PAT of Rs. 429 crore, adding substantial top-line and bottom-line strength to JSW Paints’ portfolio, and accelerating its scale-up strategy.
- Post-acquisition, JSW Paints will become the 4th-largest player in decorative paints and the 2nd-largest in industrial paints in India, significantly strengthening its position in both B2C and B2B markets.
- The transaction will enhance JSW’s ability to compete against entrenched players such as Asian Paints (32.2% share), Birla Opus (10%), Berger Paints, and Kansai Nerolac, amid ongoing industry consolidation and new entrants
- The exclusion of Akzo Nobel’s powder coatings business and R&D centre from the deal aligns with JSW’s focused approach on decorative and liquid industrial paints.
- According to Mordor Intelligence Report, India’s paints and coatings industry is expected to grow from $10.46 billion in 2025 to $16.37 billion by 2030, driven by infrastructure development and real estate expansion
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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