JSW Paints targets ₹10,000 cr revenue in 3 years

The acquisition would take the company to the fourth position beyond at Asian Paints, Berger Paints and Kansai Nerolac.

JSW Paints, which recently acquired Akzo Nobel India, targets to achieve revenue of ₹10,000 crore in next three years and become the third largest player in the industry.

The unlisted JSW Paints intends to keep Akzo Nobel listed on the exchange even after completion of the deal. The acquisition would take the company to the fourth position beyond at Asian Paints, Berger Paints and Kansai Nerolac.

Late last week, JSW Paints signed definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from its parent company and affiliates for up to ₹8,986 crore and pay additional ₹447 crore on basis of certain contingent consideration. It will also make the mandatory open offer to acquire at ₹3,418 per share.

Parth Jindal, Managing Director, JSW Paints said the company has already tied up the required fund to close the deal with equal contribution from the promoters, internal accruals, debt and private equity partners.

Depending on the response for the open offer, he said the promoters will ensure that their holding will not go beyond 75 per cent (maximum allowed by SEBI).

CCI nod awaited

The deal awaits approval from the Competition Commission of India and shareholders.

On the competition from Grasim Industries, Jindal said though margins in the decorative business will be under pressure due to intense competition, the company will fight it out.

The company will not cut prices sharply even if it is forced by the competitors and will always keep an eye on profitability, he said.

Jindal said Akzo has retail network of 19,000 dealers while JSW Paints has 9,000, and after eliminating an overlap of 10 per cent the overall dealers count should add up to about 27,000.

The combined revenue of both companies should touch ₹6,000 crore and target is to increase it to ₹10,000 crore in three years, he said.

While Akzo Nobel’s decorative paints have wider market share in urban region, JSW Paints is strong in mass market and smaller cities.

Greg Poux-Guillaume, CEO, AkzoNobel CEO the company is not exiting Indian business completely and will be active in the powder coating business besides being a technology partner to JSW Paints in coating business.

On reasons to divest the paints business, Greg said the company holds strong product quality and brand recognition, but backed local firepower to fully capitalise on market potential in India.

“As a multinational, we were at times distracted. We weren’t capitalising enough on the value of the brands or the quality of our products. What we missed was the ability to take that promise and transform it into business and market share,” he said.

Akzo Nobel is also planning to return most money to shareholders from the sale of India operations.

Published on July 1, 2025