101 Billion Yuan Acquisition Nears Finish JSW Set to Reshape India’s Paint Industry

In a move that could redefine India’s competitive paint landscape, JSW Group is on the verge of acquiring a 75% stake in Akzo Nobel India for ₹120 billion (approx. ¥101 billion). The deal, expected to finalize by Q2 2025, would mark a pivotal strategic entry for JSW into premium decorative and industrial coatings, currently dominated by Asian Paints, Berger, and Kansai Nerolac.

JSW secured its leading position after outmaneuvering rivals such as Pidilite Industries and Indigo Paints in exclusive negotiations. To finance the massive acquisition, JSW offloaded 2% of JSW Infrastructure for ₹12.1 billion and is reportedly partnering with private equity firms, a method it’s successfully used in earlier deals like KSK Energy (₹160 billion) and O2 Power (₹124.7 billion).

This transition could signal a partial or full exit by Akzo Nobel from the Indian market, after launching a strategic business review in October 2024. Despite Akzo Nobel India’s valuation nearing ₹150 billion, the transaction excludes its powder coatings and R&D units, which will return to the Dutch parent.

The motivation behind the exit includes fierce competition and underwhelming financials. Although revenue grew 3% in FY2025, EBITDA declined by 1.5% and net profit by 0.3%, squeezed by increased branding costs and changing revenue mix. Even with consistent double-digit EBIT margins, Akzo Nobel has struggled to grow in a market where the top three players control nearly 75% of the ₹800 billion sector.

With operations across five regional plants and iconic brands like Dulux, Interpon, and International, Akzo Nobel India has built a niche in both decorative and industrial coatings. The acquisition would allow JSW to scale its paints business, launched in 2019, into a formidable national player overnight.

If completed, the deal will not only reshape the market hierarchy, but also position JSW as a serious contender across both B2C and B2B coating segments, while Akzo Nobel reorients its global strategy amid macroeconomic uncertainty.