Berger, JSW look to acquire Akzo Nobel’s decorative paints business in India
11 Jan 2025
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Berger Paints and JSW Paints are looking at acquiring Akzo Nobel, the maker of Dulux paints, as the Dutch multinational has started a review if its decorative pains business in South Asia. Both Berger and JSW are reported to have expressed their interest in acquiring the business, which would help them expand share in India’s booming paints market.
The recent entry of the Aditya Birla Group in the decorative paints business have altered market equations and the two paint makers must be feeling the squeeze more.
Akzo Nobel, which is into decorative and performance coatings business, is currently carrying out a strategic review of its portfolio in South Asia. The company is a leader in performance coatings products like paints for ocean going vessels ans also industrial paints.
While Akzo Nobel is looking at European and Chinese markets, Berger and JSW want to expand their India market to grow their business.
Talking to the media on the sidelines of the Indian Paints Association conference on Friday, AS Sundaresan, joint managing director and CEO of JSW Paints, said the company is exploring both organic and inorganic growth options and that it is also examining the developments at Akzo Nobel.
The company, he said, has plans to invest up to Rs1,000 crore for expansion over the next 3-5 years, adding thay any potential acquisition will depend on business and operational, synergies.
A PTI report citing sources at Berger Paints said the company also is looking at acquiring Akzo’s decorative paints business, adding that any acquisition will depend on right valuation.
Berger Paints also issued a clarification regarding its interest to take over Akzo Nobel’s business portfolio, through a stock exchange notification, stating that it is only one of several options the company is considering.
Akzo Nobel India is a diversified paints company with a presence in decorative, automotive, marine, industrial, protective and powder coatings. It is also the fourth-largest paints company in India with an estimated 7 per cent market share.
Akzo Nobel, which has been in India over the past 70 years, is carrying out a strategic review of its business portfolio in South Asia and may spin off the decorative paints business.
