JSW Paints, part of the Sajjan Jindal-led JSW Group, has announced the acquisition of a 74.76% stake in Akzo Nobel India, marking a significant move in the Indian paints industry. Valued at ₹8,986 crore, this acquisition positions JSW Paints as the fourth-largest paint manufacturer in the country, after Asian Paints, Berger Paints, and Kansai Nerolac.
The stake purchase was made from Dutch multinational Akzo Nobel NV and its affiliates at a price of ₹2,762.05 per share, representing a 13.48% discount compared to the closing price of ₹3,192.60 on the BSE the previous day.
The total enterprise value of the deal is pegged at around ₹12,000 crore, with JSW Paints also committing an additional ₹447 crore in contingent payouts, bringing the full transaction value to approximately ₹9,400 crore.
With this acquisition, JSW Paints' market share will jump from 3% to 9.2%, substantially improving its position in India’s highly competitive paints sector. For comparison:
Asian Paints: 52% market share
Berger Paints: 18%
Kansai Nerolac: 12%
Birla Opus (Aditya Birla Group): 7% within a year of launch
The inclusion of globally recognized brands like Dulux, International, and Sikkens under the JSW umbrella further enhances the company’s brand portfolio.
Analysts view this acquisition as a game-changer for the ₹80,000 crore Indian paints market. According to Amnish Aggarwal, head of research at Prabhudas Lilladher, the deal is likely to “redraw industry dynamics” and intensify competition.
Aggarwal also noted that the acquisition was done at a notable discount, as Akzo Nobel shares were already trading at lower valuations compared to peers. Post-announcement, Akzo Nobel India’s stock surged 8% intra-day, closing 6.96% higher at ₹3,414.75 on the BSE.
With this strategic acquisition, paints will become the third-largest business vertical for the JSW Group, following steel and cement. Analysts believe this will allow the conglomerate to leverage distribution synergies across its different sectors and strengthen its pan-India footprint.
Parth Jindal, MD of JSW Paints, expressed enthusiasm about the deal:
“Paints and coatings is one of India’s fastest-growing sectors. Akzo Nobel India is home to some of the most globally renowned brands. We are excited to welcome them to the JSW family.”
As per SEBI regulations, the acquisition will trigger a mandatory open offer, priced at ₹3,417.77 per share — higher than Akzo Nobel’s pre-deal closing price of ₹3,192.60. This premium could further boost investor confidence in the acquisition.
The Akzo Nobel India divestment process began in October 2024, attracting attention from multiple industry players, including:
Berger Paints
Pidilite Industries
Indigo Paints
Asian Paints
Aditya Birla Group’s Birla Opus
However, due to high valuations, most bidders opted out. Ultimately, only JSW Paints and a consortium of Advent International and Indigo Paints remained. In the end, JSW Paints emerged as the winning bidder, finalizing one of the biggest deals in India’s paints sector.
This acquisition allows JSW Paints to:
Instantly expand its brand and product portfolio
Strengthen its market share in both decorative and industrial paints
Enter new markets through Akzo Nobel’s established distribution network
Compete more effectively against established players like Asian Paints and Berger
Given India’s rapidly growing demand for construction and infrastructure, this move could significantly benefit JSW Group's long-term growth strategy.