February 12, 2025 – AkzoNobel, a multinational coatings giant with a seven-decade-long presence in India, is reportedly planning a complete exit from the Indian market and is looking to divest its Indian subsidiary. The company has recently concluded the bidding process for the sale of its stake in the Indian arm.
In a fiercely contested bid, JSW Paints and specialty chemicals manufacturer Pidilite Industries have emerged as the two front-runners. Notably, JSW Paints has received an invitation from AkzoNobel’s headquarters to engage in in-depth discussions on the specifics of the transaction. The bids were submitted at the end of January 2025, with Citibank acting as AkzoNobel’s commercial bank, overseeing and facilitating the smooth progress of the sale.
According to industry insights from AsiaMB, AkzoNobel India is expected to fetch a substantial premium valuation, potentially up to five times its Indian revenue, ranging between INR 160 billion to INR 200 billion. For the fiscal year 2024, the company reported revenue of INR 39.616 billion and a net profit of INR 4.267 billion, marking growth of 4% and 27% respectively, highlighting its impressive profitability. Market analysts attribute this high valuation to the strong influence of the Dulux brand in the Indian market and AkzoNobel’s long-standing presence.
As the fourth-largest player in the Indian coatings market, AkzoNobel India holds a significant position across various segments, including decorative paints, automotive and special coatings, industrial coatings, and powder coatings. Particularly in the construction sector, its Dulux brand is a favorite among consumers, making it a leader in the Indian architectural coatings industry.
Despite facing stiff competition from local giants like Asian Paints and Berger Paints, AkzoNobel India has maintained its robust market competitiveness through superior products and services. However, with intensifying market competition and evolving consumer demands, the company has been under unprecedented market pressure.
In October 2024, AkzoNobel announced a strategic review of its portfolio to optimize its business structure, enhance operational efficiency, and stay competitive in the dynamic market environment. In November, the management of its Indian subsidiary decided to sell some of its real estate assets. The high valuation in the bidding process also reflects the market’s high recognition of AkzoNobel India’s future growth potential.
Among the potential bidders, Berger Paints and JSW Paints have shown strong acquisition intentions. Meanwhile, Indigo Paints, Asian Paints, and the Aditya Birla Group, which has rapidly risen in the Indian market in recent years, are also eager to participate. Although the bidding phase has concluded, discussions and evaluations are still ongoing. AkzoNobel is expected to decide on the ownership of its Indian subsidiary in the coming months. It remains to be seen who will ultimately land this “big catch,” and the development warrants continued attention.