AkzoNobel Ends Equity Sale Bidding JSW Paints and Others in the Race

AkzoNobel has officially concluded the bidding process for the sale of its Indian subsidiary's equity, with JSW Paints, backed by private equity firm TPG, and special chemicals manufacturer Pidilite Industries leading the bids. JSW Paints has received an invitation from AkzoNobel's Dutch headquarters regarding the transaction details, while companies like Berger Paints and Indigo Paints have also shown strong interest in acquiring stakes.

JSW Paints is part of the $23 billion diversified JSW Group, and since its establishment in 2019, it has achieved an annual paint production capacity of 150,000 kiloliters, making it the largest industrial coil coating company in India. The company anticipates surpassing ₹20 billion (approximately $2.4 million) in revenue for the fiscal year 2024.

CEO AS Sundaresan of JSW Paints noted that the dynamics of AkzoNobel's business development will be a key focus as the company explores various growth strategies, planning to invest up to ₹10 billion over the next 3-5 years. Last year, AkzoNobel announced a strategic review of its portfolio, primarily focusing on the decorative paint market in South Asia.

Additionally, AkzoNobel is evaluating its powder coating business and international research center for potential strategic changes, including the possibility of selling these assets to its wholly-owned subsidiary. Market analysts estimate that AkzoNobel India could achieve a valuation between ₹160 billion and ₹200 billion, largely due to the strength of the Dulux brand.

Despite fierce competition, AkzoNobel India maintains strong market competitiveness due to its quality products and extensive customer base. According to financial reports, the company has seen continuous revenue growth from fiscal years 2019 to 2023, reporting ₹20.186 billion in revenue for the first half of fiscal year 2025, representing a 3% year-on-year increase.

In the face of market challenges, AkzoNobel India continues to uphold profitability, with Chairman Rajiv Rajgopal stating that despite rising raw material costs, the company remains committed to investing in growth.