JSW Paints, Indigo Paints Emerge as Front-Runners in Akzo Nobel India Buyout Race

JSW Paints and Indigo Paints have emerged as the top contenders to acquire Akzo Nobel’s India business, following a strategic meeting last week with the Dutch paint giant’s global CEO, Grégoire Poux-Guillaume. Backed by TPG and Advent International respectively, both companies are expected to submit binding bids by the end of April.

Pidilite Industries, a manufacturer of popular adhesives and sealants, lags at a distant third, whereas private equity firm Blackstone has withdrawn from the race altogether after having earlier valued the domestic operations at $1.2 billion. Akzo Nobel, maker of Dulux paints, ranks fourth in India’s $8 billion paint market with a 10% share. The top players, namely Asian Paints, Berger Paints, and Kansai Nerolac, control more than 75 percent of the pie. Akzo’s India unit is publicly listed on domestic exchanges and has a market cap of ₹16,000 crore.

The potential sale covers Akzo Nobel India’s decorative paints, industrial coatings, and manufacturing assets. The decision is part of a broader strategic review to streamline operations in the face of intense competition. Akzo had earlier acquired IP rights of the Dulux brand in India, Nepal, Bhutan and Bangladesh for ₹1,152 crore. It also sold its powder coatings and R&D units to its Dutch parent for ₹2,073 crore and ₹70 crore respectively. After taxes and payouts, net proceeds stood at ₹991 crore.

JSW Paints, launched in 2019, sees the acquisition as a chance to rapidly scale and compete with market leaders. Indigo Paints, one of the fastest-growing players in the sector, hopes to strengthen its brand portfolio through the deal.

While Pidilite submitted an initial non-binding bid, it has yet to indicate whether it will move forward with a final offer. The exit of Blackstone narrows the field, making JSW and Indigo the leading bidders in what could be one of the most significant consolidations in India’s paint industry this year.