FILE PHOTO: Akzo Nobel, known for its Dulux brand, holds a 10 per cent share in the country’s paint market
| Photo Credit:
Phil Noble
JSW Paints backed by TPG, and Hemant Jalan’s Indigo Paints, now backed by PE firm Advent International, have emerged as the top two contenders for the India business of Dutch paint-maker Akzo Nobel, post a top-level meeting held last week. Pidilite Industries is a distant third, while PE fund Blackstone has opted out of the race, sources in the know told businessline.
Binding bids from all the three are expected by the “end of April” or in the second last week of the month.
Akzo Nobel, known for its Dulux brand, holds a 10 per cent share in the country’s paint market, ranking fourth behind Asian Paints and Berger Paints, which together dominate with over 75 per cent, and Kansai Nerolac.
The Dutch major initiated a strategic review of its profitable India unit last year, putting the decorative paints, industrial coatings, and related manufacturing assets up for sale. The move reflects Akzo’s intent to refocus resources amid intense competition in India’s $8-billion paint industry.
Last week, AkzoNobel NV’s CEO, Grégoire Poux-Guillaume, visited India to meet representatives from JSW Paints, Indigo Paints, and Pidilite. “The discussions were productive, and we expect final offers within one to two weeks,” a source close to the process said.
Akzo Nobel declined to comment, and JSW Paints and Indigo Paints did not respond to queries.
Under consideration are the decorative paints and industrial coatings business of the company and related manufacturing assets.
The India unit, listed on Indian stock exchanges with a market capitalisation of ₹16,000 crore, is a significant prize. Earlier this year, it acquired the Dulux brand’s intellectual property rights for India, Nepal, Bhutan, and Bangladesh for ₹1,152 crore. Concurrently, it sold its powder coatings business to the parent company for ₹2,073 crore, and its R&D vertical for ₹70 crore. The net proceeds of ₹991 crore will cover tax obligations from the sales and fund dividends to shareholders.
Akzo Nobel’s global operations, headquartered in Amsterdam, carry a market capitalisation of €7.95 billion.
Revised bids
JSW Paints, an early contender, partnered with TPG to submit non-binding bids and is preparing a revised offer, sources said.
Indigo Paints, a relative latecomer, has teamed with Advent International to strengthen its position; and is now a key contender.
Pidilite, known for adhesives and sealants, also expressed initial interest and submitted non-binding bids. But the company declined to confirm plans for placing a binding offer.
Blackstone, which had valued Akzo’s India business at $1.2 billion and had placed non-binding bids, did not participate in recent talks, signaling its exit. “No meeting was held recently with the PE major,” sources said.
For JSW and Indigo, acquiring Akzo’s assets could bolster their scale and brand portfolio. JSW Paints, launched in 2019, aims to challenge industry leaders, while Indigo, a fast-growing player, seeks to expand. Pidilite’s interest, though less certain, suggests a potential diversification into decorative paints.
Published on April 14, 2025
