JSW Paints Adds Dulux to Its Palette with AkzoNobel Acquisition. What Happens Next?

India’s ₹90,000 crore paints market has seen a flurry of activity in the past year, but few moves have been as decisive as JSW Paints’ acquisition of Akzo Nobel India. 

In a transaction worth ₹8,986 crore, JSW Paints has agreed to buy a 74.7% stake in the India unit of Dutch paint giant Akzo Nobel, marking its most ambitious play yet in the highly competitive space.

The move not only propels JSW Paints into the top four decorative players in India but also cements its position as the second-largest industrial paint company, trailing only Kansai Nerolac.

Paint Industry Market Share

Source: NDTV

The acquisition, which includes a post-deal open offer for 26% from minority shareholders, has the potential to realign market share in a segment that has been under intense pressure due to slowing demand and the entry of large new players.

Inside the Deal

JSW Paints will acquire the 74.7% stake through two promoter entities of Akzo Nobel India:

• Imperial Chemical Industries Ltd (50.46% stake)
  
• Akzo Nobel Coatings International B.V. (24.30% stake)

An open offer will be made for the remaining 26%, priced based on SEBI’s formula using the stock’s previous closing price. Importantly, JSW has committed to not exceeding the 75% ownership cap, meaning Akzo Nobel NV could retain a small stake if the open offer isn’t fully subscribed.

(Source: Akzo Nobel India Exchange Filing, June 21, 2025)

Why Akzo Nobel India?

Akzo Nobel’s India business, best known for its Dulux brand, operates largely in the luxury and ultra-premium paint segments, particularly in urban markets. It has an annual production capacity of 250 million litres and a 7% market share, making it a strategic fit for JSW Paints, which has so far lacked a strong presence in the premium category.

Although Akzo Nobel India is among the most profitable players in the industry, it has faced margin pressure in recent quarters. These headwinds, combined with Akzo’s global strategy to streamline operations, led to its decision to exit the Indian market.

Earlier this year, the company sold its powder coatings business—accounting for 12–14% of sales—to its Dutch parent. That decision deterred some potential suitors but aligned well with JSW Paints’ interest in the high-end decorative segment.

Birla Opus: A New Disruptor

While JSW Paints has scaled up through acquisition, another major player has emerged organically—Birla Opus, backed by the Aditya Birla Group. Launched in February 2024 under Grasim Industries, Birla Opus is perhaps the most aggressive entrant the sector has seen in years.

In just over a year, Birla Opus has managed to capture 6%-7% market share. This growth has come largely at the expense of incumbents like Asian Paints and Berger.

Its go-to-market strategy is focused on tier-2 and tier-3 towns, where it is opening compact 300–400 sq ft stores, each staffed with paint consultants and operated by trained local entrepreneurs.

While JSW Paints is scaling with an acquisition-heavy approach, Birla Opus is growing by building a distribution and services ecosystem from the ground up.

Source: Business Standard

JSW’s Strategic Bet

The AkzoNobel acquisition is a milestone for Parth Jindal, Managing Director of JSW Paints. The company, which turned operating-level profitable in FY24 with a 3% margin, had been seeking an entry point into the premium decorative space. Akzo’s Dulux brand gives it that advantage.

JSW Paints has also outpaced bids from a consortium of Indigo Paints and Advent International, and even Pidilite Industries, to secure the deal.

With the transaction complete, JSW Paints:

• Gains an established luxury brand
  
• Expands into premium urban markets
  
• Becomes the 4th-largest in decorative paints
  
• Becomes the 2nd-largest in industrial paints

It is a bold step, but not without its complexities, especially as integration begins and market pressures persist.

What Lies Ahead

JSW Paints will now focus on integrating Akzo Nobel India’s assets, people, and processes while scaling its operations. The final structure will depend on the open offer outcome, but regardless, the company has significantly improved its strategic position.

Meanwhile, Birla Opus continues to challenge the traditional distribution models and expand its reach with strong backing and capital.

For the Indian paints industry, this moment signals a transition. The dominance of legacy players is being tested by both acquisitions and new launches. With a market size of over $10 billion, the space remains lucrative; however, competitive intensity has reached new highs.

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