JSW Paints has signed definitive agreements to acquire a 74.76% stake in Akzo Nobel India Ltd (ANIL) from its Dutch parent for ₹8,986 crore, marking one of the biggest consolidations in India’s paints industry. The move catapults JSW into the top tier of a ₹90,000 crore market historically dominated by Asian Paints, Berger, Kansai Nerolac, and Akzo Nobel.

A Strategic Leap in a Fast-Growing Market

India’s decorative and industrial paints market is projected to grow at a compound annual growth rate (CAGR) of 9.38%, reaching $15.04 billion by 2029, according to ICICI Direct. With this acquisition, JSW Paints—launched in 2019 and backed by the $23 billion JSW Group—has now secured a powerful foothold through globally recognised brands like Dulux, Sikkens, and International.

Parth Jindal, Managing Director of JSW Paints, expressed his enthusiasm, stating,

The acquisition will be followed by a mandatory open offer to minority shareholders, as required by Indian regulations. The deal is subject to approvals from the Competition Commission of India (CCI).

Competitive Landscape Heats Up

JSW’s bold move follows Grasim’s Birla Opus, which has already shaken up the market by becoming the second-largest player by capacity in just a few quarters. Indigo Paints and Pidilite Industries were also in the running to acquire Akzo Nobel India, according to multiple sources, but JSW emerged victorious, advised by Morgan Stanley and Khaitan & Co.

With this deal, JSW becomes the fourth-largest player overall, and second in the industrial coatings segment, just behind Kansai Nerolac. Akzo Nobel India currently holds a 7% market share, with strong positioning in premium decorative paints. The acquisition boosts JSW’s reach in urban luxury segments an area where it had limited traction.

Deal Valuation and Market Reaction

The stake is being acquired from two promoter entities Imperial Chemical Industries Ltd (50.46%) and Akzo Nobel Coatings International B.V. (24.30%). The transaction is valued at ₹2,639.4 per share, which represents a 17.3% discount to the previous day’s closing price. Despite the discount, Akzo Nobel India shares surged over 8% on the BSE following the announcement, closing at ₹3,455.90.

Akzo Nobel CEO Greg Poux-Guillaume called the transaction a strategic milestone, adding,

Why Akzo Was Willing to Exit

Akzo Nobel had initiated a strategic review of its India business in October 2023, and by early 2024 had sold off its powder coatings division one of its most profitable units contributing around 12–14% of revenue—back to its Dutch parent. This signaled an intent to exit the subcontinent and narrowed the field of suitors.

The broader paints industry in India saw a 4–5% decline in demand in FY25, especially in the automotive coatings and vehicle refinish segments. Still, Akzo remained among the most profitable players in the sector, with a 250 million litre annual production capacity.

A Turnaround for JSW Paints?

For JSW Paints, the acquisition is not just about expansion—it could be a turning point. The company turned EBITDA-positive for the first time in FY24, recording an operating margin of 3%. This acquisition could accelerate its march toward profitability and brand leadership.

As the Indian paints market shifts from an oligopoly to a battlefield of aggressive conglomerates, JSW’s move signals its intent to become a lasting force. Whether it can translate scale into sustained market share will depend on its integration strategy and ability to retain Akzo Nobel’s premium brand equity.