India’s paints industry, valued at over ₹80,000 crore, has seen heightened competitive intensity in recent years. Once dominated by incumbent giants like Asian Paints, Berger, and Nerolac, new entrants like Birla Opus from Kumar Mangalam Birla-led Grasim, Sajjan Jindal-owned JSW, and Fevicol maker Pidilite are shaking up the market.
JSW Paints has entered a definitive agreement to acquire up to 74.76 per cent stake in European paint major Akzo Nobel NV’s Indian unit for up to ₹8,986 crore.
JSW Paints, together with JTPM Metal Traders and JSW EduInfra, will also make an open offer to acquire up to 25.24 per cent stake in Akzo Nobel India from public shareholders at ₹3,417.77 a share, a 7 per cent premium to Akzo Nobel’s closing price of ₹3,192.60 on the BSE on Thursday. However, the stock was up over 8 per cent on Friday morning, trading at ₹3,452 on the BSE.
JSW Paints is not listed. But, JSW Holdings shares were up 2.4 per cent at ₹21,645 on the BSE.
The diversified JSW Group has been a major player in steel, energy and ports. This acquisition of Akzo Nobel India will give its paints business added heft to take on the deep-pocketed competition from Grasim on the one hand and renewed push from market leader Asian Paints.
“Paints and 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. Together, along with the Akzo Nobel India family—employees, customers and partners—we aspire to build the paint company of the future,” said Parth Jindal, managing director of JSW Paints.
The paints sector remained largely muted in 2024-25, amid weak consumer sentiment, heightened price sensitivity, and pressure from competition, that led to downtrading and ultimately constraining growth and profits, according to Mrunmayee Jogalekar, analyst at Asit C. Mehta Investment Intermediates.
However, early signs of a recovery emerged in the fourth quarter, with growth trajectory improving sequentially for some players more than others, she added.
Aditya Birla Group’s Grasim made a big entry in the paints sector in 2024, with an investment of ₹10,000 crore.
Incumbent Asian Paints still leads and has over 50 per cent market share in the industry, but it has lost some share since Grasim’s entry, according to analyst reports.
