Amsterdam-based paint manufacturer AkzoNobel has officially closed the bid process for the sale or stake offload of its Indian subsidiary.
Two Mumbai-based entities have emerged as front-runners—JSW Paints, backed by private equity firm TPG, and speciality chemical-maker Pidilite Industries.
JSW Paints has received an invitation to discuss deal specifics at AkzoNobel’s Dutch headquarters. Other companies, including Berger Paints and Indigo Paints, had also expressed interest in acquiring a stake.
Bidding Timeline and Key Players
Bids were submitted in the last week of January, approximately 10-15 days ago. Citi is managing the sale process as the merchant banker for AkzoNobel.
“One of the bidders, most likely JSW Paints, was called for preliminary discussions in Amsterdam. While the bids are closed, the final deal is yet to be determined,” said a source familiar with the situation.
Premium Valuation Expected
During a recent investor call, AkzoNobel NV’s CEO, Greg Poux-Guillaume, stated that the company is considering multiple options to strengthen its Indian operations, including a joint venture or a complete sale.
He also noted that the powder coatings segment is being separated to facilitate discussions, as it is a key asset with differentiated technology.
Sources indicated that AkzoNobel India is expected to command a premium valuation, possibly five times its Indian turnover. This would place its valuation in the range of ₹16,000–20,000 crore.
Market analysts attribute this high valuation to the strong brand positioning of Dulux, which AkzoNobel owns in India. Although Asian Paints and Berger collectively control nearly 75% of the market, AkzoNobel India remains one of the top four brands.
JSW Paints and Pidilite’s Strategic Interests
JSW Paints, as part of its inorganic expansion strategy, entered the bidding process last month in partnership with TPG.
Multiple merchant bankers, including JM Financial, are advising on the deal. Pidilite Industries also sees paints as a natural extension of its business.
Next Steps in the Deal Process
While the bidding phase has concluded, discussions and evaluations are still underway.
Thehindubusinessline.com reports that AkzoNobel will decide on its Indian unit’s ownership structure in the coming months. JSW Paints and Pidilite Industries currently lead the race.
