AkzoNobel nears conclusion of India business review as strategic talks intensify, likely deal conclusion by June

The review aligns with AkzoNobel’s broader push to enhance efficiency. The company has already slashed over 1,600 jobs globally – 70 per cent of its targeted 2,200 headcount reduction – and is closing underutilised plants in Europe.
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AkzoNobel NV, the Dutch paints and coatings giant, is likely to finalize a pivotal strategic review of its India operations by the end of mid-May to June, a move that could see the global major possibly exit India markets, in totality or partially, with a stake offload.

The company, known for brands like Dulux, has been in active discussions to rationalize its South Asia portfolio, with India at the heart of the talks. Akzo has a 74 per cent stake in the India business, and the company top brass maintains it could either carry out a full stake offload, or partial sale, depending on the bid.

The India business has a market capitalisation of about ₹15,000 crore; which includes some verticals like powder coatings, that wouldn’t be included in the sale.

The business review, first signaled last year, comes as Akzo seeks to streamline operations and boost efficiency amid global economic uncertainties.

‘Dynamic discussions’

Greg Poux-Guillaume, Chief Executive, at Akzo Nobel NV, described the discussions as “dynamic” and emphasized a focus on securing the “best outcome for AkzoNobel and our business locally.”

The company’s goal, he added, is to conclude the process by the second quarter’s end, a timeline reiterated despite global trade tensions and tariff uncertainties.

“India, our timing is still to be able to come to a conclusion in Q2 (April – June). So that hasn’t changed. But once again, discussions are active. They’re dynamic,” Poux-Guillaume, said during the investor call.

For Akzo, its India business “has outperformed softer regional markets, posting resilient growth despite a temporary slowdown in the first quarter of 2025”. “Our Indian business outperformed in a temporary market low,” Poux-Guillaume, said during the call.

AkzoNobel India, the fourth player by market size, after Asian Paints, Berger and Kansai Nerolac, is centered on decorative paints for homes and commercial spaces, operates as a largely self-contained unit, insulated from global supply chain disruptions.

The India unit is listed on Indian stock exchanges. Earlier this year, the unit here acquired the Dulux brand’s intellectual property rights for India, Nepal, Bhutan, and Bangladesh for ₹1,152 crore. Concurrently, it sold its powder coatings business to the parent company for ₹2,073 crore and its R&D vertical for ₹70 crore. The net proceeds of ₹991 crore will cover tax obligations from the sales and fund dividends to shareholders.

“This is largely an India-for-India business,” Poux-Guillaume noted, highlighting its resilience in a deglobalizing world.

businessline had previously reported that JSW Paints, Indigo Paints (backed by PE firm Advent) and possibly Pidilite are the ones in fray. Two binding bids have already come in, and a third is awaited, probably by the end of April.

“Discussions are continuing,” Poux-Guillaume said, declining to elaborate on potential partners or structures.

The review aligns with AkzoNobel’s broader push to enhance efficiency. The company has already slashed over 1,600 jobs globally – 70 per cent of its targeted 2,200 headcount reduction – and is closing underutilised plants in Europe to lift capacity utilization to the mid-70s. In India, where operations are optimized for local demand, the focus is less on cost-cutting and more on unlocking value.

Akzo NV estimates a modest €35 million EBITDA hit from tariffs globally, with India’s exposure minimal due to its localized model. The stock, traded on Euronext Amsterdam, has been buoyed by its Q1 performance, flat organic sales and EBITDA of €357 million.

Published on April 24, 2025