JSW Paints has entered into a definitive agreement to acquire Akzo Nobel India in a landmark transaction valued at approximately US$1.6 billion, marking the largest-ever deal in the Indian paint and coatings industry. The acquisition underscores JSW Group’s ambitions to significantly expand its footprint in the rapidly growing Indian market, amid intensifying competition and evolving industry dynamics.
The transaction includes the acquisition of a 74.76% stake in Akzo Nobel India for US$1.05 billion, with JSW Paints set to launch an open offer for the remaining 25% held by public shareholders. The deal includes debt and is expected to close in the fourth quarter of 2025, pending regulatory approvals.
Following the announcement, shares of Akzo Nobel India surged over 11%, before stabilising at a 7.6% increase in mid-morning trading on the Mumbai exchange. The sharp uptick reflects investor confidence in the deal’s potential to reshape the domestic market landscape.
Founded in 2019, JSW Paints is part of the diversified US$23 billion JSW Group. Upon completion, the acquisition will elevate the company to fourth place in the Indian paints sector by market share, trailing only Asian Paints, Berger Paints, and Kansai Nerolac. The move is seen as a strategic play to gain scale and operational depth in a sector experiencing unprecedented competitive churn.
Parent company Akzo Nobel, headquartered in the Netherlands and owner of the Dulux brand, had previously initiated a review of its South Asia operations in a bid to streamline costs and reinforce its core coatings business. Despite the divestiture, Akzo Nobel will retain its powder coatings operations and research and development centre in India. Globally, it ranks as the fourth-largest paint manufacturer by market capitalisation, behind PPG, Nippon Paint, and Sherwin-Williams.
The Indian paints and coatings market is projected to grow from US$10.46 billion in 2025 to US$16.37 billion by 2030, driven by surging infrastructure and real estate development, according to data from Mordor Intelligence.
This acquisition arrives at a time when legacy players face mounting pressures. Kumar Mangalam Birla’s Grasim entered the market in 2024 under the Birla Opus brand, intensifying competition. Grasim has since lodged an antitrust complaint against Asian Paints, alleging abuse of market dominance. In 2022, a similar complaint filed by JSW Paints was dismissed by the competition watchdog for lack of evidence.
Industry analysts suggest that while the acquisition provides JSW Paints with a compelling scale-up opportunity, integration challenges may create short-term openings for incumbents, particularly in the premium and luxury segments.
Akzo Nobel anticipates net proceeds of €900 million from the sale and has announced plans to launch a €400 million share buyback programme post-completion.
