Paint maker Akzo Nobel India’s operations are valued at ₹16,000 crore, a figure described by market sources as a premium and slightly higher than expectations.
The valuation excludes the powder coatings and R&D segments, which are expected to fetch an additional ₹2,000 crore.
Non-Binding Bids Expected Soon
Sources indicate that non-binding bids, which are indicative offers without legal obligations, will be invited soon for Akzo Nobel India’s business.
The deal excludes the powder coating and R&D operations, which the board plans to transfer to a subsidiary.
At least four players, including Berger Paints, JSW, and Indigo Paints, have shown interest in the acquisition.
However, no formal bids have been made yet.
Akzo Nobel India’s Market Position
Akzo Nobel India, the owner of the Dulux brand, is the fourth-largest paint-maker in the country.
It holds a market share of 5–7 percent, trailing Asian Paints and Berger, which together dominate nearly seventy percent of the Indian market.
The company operates across various segments, including decorative paints, automotive, industrial, marine, and protective coatings.
It has a strong distribution network and a premium brand image, which have contributed to its rich valuation.
Powder Coatings and R&D Units Set for Subsidiary Sale
The international promoter has directed Akzo Nobel India’s board to sell its powder coatings and R&D operations to a subsidiary.
Meanwhile, the promoter stake is being evaluated for acquisition offers. Investment banking firm Citigroup Global is reportedly advising on the deal.
A source familiar with the matter said, “The evaluation covers decorative, industrial, and project businesses. Non-binding bids are likely by January-end or early February. Valuation details will become clearer after this stage.”
Market Reaction to Valuation
The ₹16,000-crore valuation, driven by Akzo’s deep distribution network and premium positioning, has sparked debate among potential bidders.
“The valuation seems a bit high, but more clarity will emerge once non-binding bids are placed and the company discloses financial details,” informed a prospective bidder.
Interested Parties Respond
Berger’s Managing Director and CEO Abhijit Roy did not comment.
However, Indigo Paints’ Chairman and MD Hemant Jalan stated, “We are still evaluating and have not decided on a bid”.
As reported by thehindubusinessline.com, the market now awaits the bidding process to unfold, with more details expected in the coming weeks.
