Akzo Nobel, one of Europe’s largest paint manufacturer, is considering a strategic shift in its presence within the Indian market, with options ranging from partnering with a larger competitor to a complete exit.
The company, which markets its products in India under the Dulux brand, initiated a strategic review of its decorative paints business in South Asia, signaling a potential change in approach as the Indian paint industry undergoes consolidation.
CEO Gregoire Poux-Guillaume stated, “In markets where consolidators naturally emerge, we are open to being a minority partner or to exit”.
With a 5% share of India’s paint market, Akzo Nobel has operated with a focus on profitability and maintains a presence across India, Pakistan, Sri Lanka, and Indonesia.
The competitive landscape in India’s paint sector is intensifying, particularly with Grasim Industries’ recent entry via its Birla Opus brand and rivals like Asian Paints and Berger Paints strengthening their distribution networks. Akzo Nobel is now evaluating its options for the future.
“India’s paint market is evolving rapidly, with established players and new entrants alike seeking unique competitive advantages,” Poux-Guillaume remarked, noting the company’s plans to explore discussions with industry peers to determine its potential contribution to this shifting landscape.
Akzo Nobel emphasized that it is well-positioned to either expand its role or pursue a strategic partnership in the South Asian decorative paint market, which it views as ripe for further consolidation and growth.
As reported by manufacturingtodayindia.com, with a market capitalization exceeding ₹17,000 crore, Akzo Nobel’s decision to form a partnership or exit could have significant implications for the competitive dynamics of India’s paint industry.
