JSW Paints Likely Front-Runner in AkzoNobel India Stake Sale

JSW Paints, part of the Sajjan Jindal-led JSW Group, has likely emerged as the leading contender to acquire the majority stake in AkzoNobel India from its Dutch parent, Akzo Nobel N.V., according to four sources familiar with the matter.

While no final decision has been made, sources told Moneycontrol that JSW Paints appears to be ahead after the recent round of binding bids. A competing consortium of Advent International and Indigo Paints also remains in the fray. Pidilite Industries was an earlier contender.

Akzo Nobel N.V., headquartered in Amsterdam, currently holds a 74.76% stake in its Indian unit, valued at around ₹11,854 crore based on the May 15 closing market cap. A controlling stake deal would trigger a mandatory open offer.

Investment bank Citi is advising on the sell side, the sources added.

JSW Paints declined to comment, and AkzoNobel India and its parent firm stated, “We do not comment on market rumours.” Indigo Paints did not respond, and Citi and Advent International were unavailable for comment.

AkzoNobel India is present in the decorative as well as industrial paints segment and has witnessed its stock price rise by 35.79% in the last year. In FY 2024–25, the company achieved revenue of ₹4,091.2 crore (3% up), EBIT of ₹551.8 crore, and PAT of ₹428.6 crore. Profitability remained at 13.5%.

The Board has approved a last dividend of ₹30 an equity share, which makes the FY25 payout of ₹100 an equity share, said Vinod Rajgopal, Chairman and Managing Director.

JSW Paints has two plants, Vasind in Maharashtra and Vijayanagar in Karnataka, with a combined annual capacity of 170,000 KL, making it the biggest industrial coil coatings player in India.

This sale of stakes is by Akzo Nobel N.V.’s overall strategy to redeploy capital and concentrate on core coatings. In October 2024, the company announced a portfolio review, starting with South Asia. In January, AkzoNobel India also disclosed plans to sell its powder coatings and R&D units to a separate group entity.