JSW Paints, backed by TPG, and Indigo Paints, supported by Advent International, have surged ahead in the bid to acquire the India business of Dutch paint manufacturer Akzo Nobel. The two companies emerged as the top contenders following a key meeting last week. Meanwhile, Pidilite Industries remains a distant third, and Blackstone has exited the race entirely.
Final Bids Expected Soon
Binding offers from JSW Paints, Indigo Paints, and Pidilite are expected by the end of April or during the penultimate week of the month. The sale includes Akzo Nobel’s decorative paints and industrial coatings businesses, along with associated manufacturing assets.
Akzo Nobel, known for its Dulux brand, controls approximately 10% of the Indian paint market. The company ranks fourth behind market leaders Asian Paints, Berger Paints, and Kansai Nerolac, which together dominate more than 75% of the industry.
Strategic Review Sparks Major Divestment
Last year, Akzo Nobel launched a strategic review of its Indian operations, signaling a potential exit amid intensifying competition in the $8 billion Indian paints sector. The company is divesting its profitable Indian unit to reallocate resources more effectively.
During a recent trip to India, Akzo Nobel CEO Grégoire Poux-Guillaume met with senior executives from JSW Paints, Indigo Paints, and Pidilite. According to insiders, the meetings were productive, and final bids are expected within one to two weeks. While Akzo Nobel declined to comment, queries to JSW Paints and Indigo Paints also went unanswered.
A Valuable Asset on the Market
Earlier this year, Akzo Nobel acquired the intellectual property rights to the Dulux brand across India, Nepal, Bhutan, and Bangladesh for ₹1,152 crore. Simultaneously, it sold its powder coatings business to its parent firm for ₹2,073 crore and its R&D division for ₹70 crore. The combined net proceeds of ₹991 crore will cover tax liabilities and fund shareholder dividends.
JSW and Indigo Position for Growth
JSW Paints, launched in 2019, is partnering with TPG to prepare a revised binding bid. The acquisition would significantly boost its market position and product offerings as it challenges the dominance of top players.
Indigo Paints, a fast-growing challenger brand, has teamed up with private equity giant Advent International to strengthen its bid. The company sees Akzo’s assets as a strategic fit to accelerate growth and expand its footprint.
Outlook
With final bids expected shortly, the acquisition of Akzo Nobel India stands to reshape the competitive landscape in the country’s paint industry. As reported by siliconindia.com, for JSW and Indigo, this deal represents a golden opportunity to gain scale, brand equity, and a stronger foothold in a fast-evolving market.
