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Asian Paints has offloaded its entire holding in Akzo Nobel India, the maker of Dulux Paints, for about ₹734 crore, the company informed exchanges on Wednesday. Through the bulk deal mechanism, it sold its entire holding of more than 20 lakh equity stakes—representing a 4.42% equity stake—at a price of ₹3,651 per share.
The stake sale comes close on the heels of JSW Paints announcing, in June, a deal to acquire up to 74.76% stake in Akzo Nobel India from Dutch firm Akzo Nobel N.V. and its affiliates, for ₹8,986 crore. The deal is one of the largest in the sector and the company’s biggest bet, despite having only recently become operationally profitable in 2024 with an EBITDA of ₹67 crore and revenues exceeding ₹2,000 crore.
“We’re not just entering the big league—we want to take on the top two paint players,” Parth Jindal, managing director of JSW Paints, said after announcing the deal. Jindal said the company now targets ₹10,000 crore in revenue and aims to become the country’s third-largest decorative paint player and the leader in industrial coatings.
Jindal stated that, as a combined entity, market penetration will improve, with JSW Paints’ Tier 3 and Tier 4 reach complementing Dulux’s metropolitan markets. Speaking on the price points of the products, he said that he would continue with competitive pricing, with no plans to dilute Dulux’s premium pricing. “The aim is to increase per-dealer throughput while keeping Dulux firmly positioned as a premium brand,” he said.
Akzo Nobel Paints India is not just about expanding the paint business; the JSW Group, led by billionaire Sajjan Jindal, sees Dutch paint maker AkzoNobel’s India business as a strategic fit for their expansion ambitions across multiple businesses.
The decorative paint business is both lucrative and challenging, primarily due to the customer loyalty programs and incentives offered by established players. However, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, shook up the industry with the launch of Birla Opus in February last year.
A division of Grasim Industries, Birla Opus has already secured the second spot in India’s decorative paint industry by installed capacity, reaching 1,096 million litres per annum (MLPA), according to the company’s investor presentation. The market leader, Asian Paints—in which Mukesh Ambani’s Reliance Industries holds a 4.9% stake—boasts a capacity of over 1,850 MLPA.
AkzoNobel is also a key player in marine and protective coatings. This aligns well with JSW Infrastructure’s plans to expand its cargo handling capacity from 177 million tonnes (MT) to 200 MT in the short term and 300 MT by FY30. The company currently operates three ports and seven terminals across India.
India’s decorative paint market, a dynamic ₹72,000 crore industry, is projected to grow at a 10% annual rate over the next decade, driven by housing demand, industrialisation, and urbanisation. Yet, incumbent paint manufacturers are grappling with a slowdown in demand and disruption triggered by the entry of Birla Opus. They are hoping for commodity price stability, a normal monsoon, and a recovery in demand.
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