Why AkzoNobel is a strategic requirement for JSW’s expansion dreams

It’s not just for expanding the paint business, JSW group of billionaire Sajjan Jinal sees Dutch paint maker AkzoNobel’s India business as a strategic fit for their expansion ambitions of multiple businesses. If the Jindals acquire the company, JSW Paints—led by his son Parth Jindal—will gain a stronger foothold in the high-margin decorative paints segment. Jindal also plans to grow his presence in the automotive sector through MG Motor India, which Parth oversees, and his dream of launching ‘JSW Cars’. AkzoNobel, a global leader with advanced technologies in automotive and specialty coatings, complements this vision.

JSW Paints is reportedly close to acquiring a 74.76% stake in AkzoNobel India from its Dutch parent, potentially marking the multinational’s exit from the Indian market. According to sources, JSW Paints is expected to pay ₹10,000 crore, valuing AkzoNobel India at around ₹13,000 crore.

The decorative paint business is lucrative but challenging, largely due to 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.

In 15 months, Birla Opus has captured a 21% share of the organised decorative paints segment, historically dominated by legacy players such as Berger Paints, Kansai Nerolac, and AkzoNobel India.

JSW Paints, which launched in 2019, would gain a significant breakthrough in the decorative paints space if the AkzoNobel acquisition goes through. While it has already built a strong presence in the industrial paints segment—largely due to captive consumption by JSW’s steel and power businesses—AkzoNobel’s industrial coatings will further strengthen its portfolio. Parth Jindal previously stated that the company aims for an 80:20 revenue ratio between decorative and industrial paints by 2025.

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 demand recovery.

In recent quarters, a shift in consumer preference towards high-volume, low-value categories like putty and texture coatings, combined with aggressive discounting to retain market share, has exerted pressure on industry margins