AkzoNobel Unloads Powder Coatings and R&D Assets for $330 Million to Refocus on Core Paint Business

On April 30, AkzoNobel India confirmed a sweeping internal restructuring worth over ₹26.7 billion (approximately $330 million), marking a decisive move to exit non-core operations and double down on its decorative and liquid coatings strategy.

The company has accepted a binding offer from its Dutch parent AkzoNobel to offload its powder coatings and international research center businesses. The assets will be acquired by a newly formed indirect subsidiary named AkzoNobel Powder Coatings India Private Ltd., registered on March 4, for a total cash consideration of ₹21.46 billion ($258 million). This includes ₹20.73 billion for the powder coatings unit and ₹700 million for the R&D arm.

In a separate transaction, AkzoNobel India will also acquire the intellectual property (IP) of its decorative paints business in India, Bangladesh, Nepal, and Bhutan from AkzoNobel Coatings International for ₹11.52 billion ($137 million). This strategic IP transfer will eliminate ongoing royalty payments, reduce dependency on the parent firm, and boost long-term profitability and cash flow.

The sale of the powder coatings division, which generated revenue of ₹4.75 billion in FY2024, is being positioned as a strategic divestment. According to company officials, the segment operates with entirely distinct technologies, raw materials, and service needs, offering minimal synergies with its liquid coatings core business. Divesting this complex operation will allow the company to streamline its portfolio and concentrate resources on high-growth verticals in the Indian paints market.

AkzoNobel also cited the cost burdens and inefficiencies tied to operating its global R&D center in India, especially amid rising inflation and labor costs. Its sale is expected to simplify the company structure, reduce overhead, and enhance decision-making autonomy.

While the original agreement was scheduled for execution on May 1, AkzoNobel has requested a deadline extension to July 1, pending supervisory board approval. If approval is not secured, the Dutch parent has pledged to reimburse all reasonable costs incurred by AkzoNobel India during the evaluation process.

Notably, AkzoNobel is also weighing the sale of its South Asia decorative coatings business, including the iconic Dulux brand, in a deal potentially valued between $2.5–3 billion (₹200–240 billion). The valuation reflects the strong brand positioning and decades-long presence in the region. Major players like JSW Paints, Asian Paints, Berger Paints, and global PE firms like Warburg Pincus, Blackstone, and CVC Capital have expressed interest.

Founded in 1911, AkzoNobel India operates five manufacturing plants and two R&D centers, serving markets from automotive to marine coatings. The company’s revenue climbed steadily from ₹26.6 billion in FY2021 to ₹39.6 billion in FY2024.

This restructuring aligns with AkzoNobel’s global realignment strategy, ensuring greater agility, financial flexibility, and a laser-sharp focus on high-margin businesses to fuel long-term shareholder value.