Asian Paints Offloads Akzo Stake for ₹734 Cr Amid Major Paints Sector Shake-Up

Asian Paints has sold its remaining holding of 4.42 percent in Akzo Nobel India Ltd for ₹734 crore, the company stated in a filing with the stock exchanges on Tuesday. The bulk sale was executed at ₹3,651 per share for 20.10 lakh equity shares. Following the transaction, Akzo shares fell 1.6 percent to ₹3,627 on the NSE.

The divestment comes in the wake of some major turmoil in the Indian paint industry. Last month, JSW Paints, a part of the $23 billion JSW Group, signed definitive agreements to acquire a controlling 74.76 percent stake in Akzo Nobel India Ltd (ANIL) from its Dutch promoters-Imperial Chemical Industries and Akzo Nobel Coatings International BV-for ₹8,986 crore.

With this transaction, Akzo Nobel NV and its affiliates have officially exited the market for decorative paints in India, where competition is rapidly growing from New Entrants, such as the Aditya Birla Group. The JSW transaction is still subject to regulatory approvals, including from the Competition Commission of India, and a mandatory open offer to public shareholders of ANIL.

Asian Paints’ exit may indicate a strategic repositioning as the paint sector sees increasing consolidation. Meanwhile, JSW, a relatively new entrant since 2019, is rapidly expanding its footprint in the segment.

Akzo Nobel India reported ₹4,091 crore in operating revenue for FY25 and has a diversified portfolio including decorative paints, industrial and marine coatings, automotive finishes, and powder coatings. In February, ANIL also announced it would transfer its Powder Coatings business and International R&D Centre to Akzo Nobel NV in a ₹2,143-crore intergroup deal.

The divestment by Asian Paints, alongside JSW’s entry, signals a turning point in India’s paint industry dynamics, with global majors stepping back and domestic players taking the lead.