A paint company is seriously interested in acquiring AkzoNobel India. According to analysts at KBC Securities, including Wim Hoste, JSW Paints is prepared to pay approximately 1.1 billion dollars for a 75 percent majority stake, currently held by the Dutch parent company AkzoNobel. Various media sources, including Bloomberg, reported this news.
JSW Paints, a subsidiary of the JSW Group, has been in business since 2019 and produces both decorative paints for the consumer market and industrial coatings. The company has a strong profile with environmentally friendly, water-based products. Its product range includes interior and exterior wall paints, metal and wood paints, and waterproofing solutions under the IBlok brand name.
© JSW Paints
Strategic realignment
JSW Paints' interest is in line with a strategic realignment announced by AkzoNobel last year. At that time, the multinational announced that it would be reviewing its portfolio, with a particular focus on its decorative paint activities in South Asia. India is the most important market in this region.
Powder coatings account for approximately 10 percent of AkzoNobel India's turnover. AkzoNobel, which is the market leader in this technology, intends to retain this segment. According to Hoste, the company already decided in February to withdraw these activities from its Indian branch, partly because potential buyers often lack sufficient experience with the technology behind powder coatings.
The remaining paint activities have since been put up for sale, with JSW Paints now a serious candidate for purchase. A deal would enable JSW to further strengthen its position in the Indian market and expand its own range.
More information:
AkzoNobel
www.akzonobel.com