AkzoNobel Plans Exit from Indian Market: Potential Sale of AkzoNobel India

AkzoNobel, a prominent player in the Indian market for the past 70 years, is set to exit the region entirely and is considering the sale of its subsidiary, AkzoNobel India. This decision is not without precedent; in October 2024, the company announced a strategic review of its portfolio to redeploy capital, focusing on enhancing its core paint business.

The emphasis of this strategic review is on the decorative paint segment within South Asia. AkzoNobel, headquartered in the Netherlands, believes that the current environment presents a ripe opportunity for “integrating” its operations. The company plans to explore various avenues for its South Asian decorative paint business, including partnerships, mergers, and even asset sales.

In India, AkzoNobel primarily operates under the Dulux brand and has established itself as a key player in the paint industry. It is currently the fourth-largest paint manufacturer in the country, trailing behind Asian Paints, Berger, and Kansai Nerolac. The company holds a 5-7% market share in India and is recognized for its strong profitability, particularly in the premium paint market, where it commands about 16% of the market share. AkzoNobel’s market valuation is currently over ₹170 billion (approximately $17 billion).

Insiders suggest that the potential sale could value the company at ₹250 billion (around $25 billion), well above its current valuation. There is significant interest from major competitors in acquiring this business, with several bidders willing to pay a premium.

At present, AkzoNobel is preparing to issue “non-binding bids” for its Indian operations, excluding its powder coatings and R&D segments. So far, at least four companies have expressed strong interest, including Berger Paints, JSW, Indigo Paints, and Asian Paints, although none have submitted formal bids yet.