New Delhi: JSW Paints, a part of the Sajjan Jindal-led JSW Group, has announced its intent to acquire a 74.76% stake in Dulux paints parent Akzo Nobel India Pvt Ltd. Akzo Nobel is a global leader in the decorative coatings and industrial paint maker headquartered in the Netherlands. Dulux paints has a 7% market share in India. After this transaction, JSW will become the fourth largest brand in the highly competitive paints sector in India.
“Paints & Coatings is one of India’s fastest growing sectors and JSW Paints is amongst the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family – employees, customers and partners – we aspire to build the paint company of the future. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.” Parth Jindal, Managing Director, JSW Paints, said.
The transaction will also involve an open offer by JSW to Akzo Nobel’s public shareholders to acquire an additional 20% stake. Akzo Nobel is looking to completely exit the company with this transaction. JSW had emerged as a winner to buy Akzo Nobel, after bids by adhesive maker Pidilite Industries and a consortium of Indigo Paints and Advent International were rejected.
Dulux Paints has a strong presence in Tier I cities, especially with its decorative paints segment. This acquisition will help JSW Paints crack this segment, where it hasn’t been able to make a mark, even as new brands like Birla Opus have already captured a 7% market share in the lucrative Rs. 90,000 crore worth Indian paints industry.
Legacy brands like Asian Paints, Berger and Kansai Nerolac are increasingly feeling the heat of competition, as newer brands like JSW and Birla Opus are aggressively looking to capture market share.
