JSW Paints finalising fund infusion from promoters, PE funds for Akzo buy: Parth Jindal 

Mumbai, Jul 01 (ANI): JSW Paints Managing Director Parth Jindal addresses a press conference, at JSW Centre, Bandra Kurla Complex in Mumbai on Tuesday. (ANI Photo)
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JSW has arranged back-up plans, which include fund infusion through promoter holdings, to fund the Akzo Nobel India buy in case PE deals don’t work out on expected lines, Parth Jindal, Managing Director, JSW Paints, told businessline. A “clutch of PE funds are being tapped”. 

The company is in talks with four to five private equity players to raise nearly ₹2,000 crore of debt. Talks are on with the likes of Barclays, KKR, Temasek, and Aries, those in the know said. 

Around ₹7,000 crore of funding will be through infusion by promoters — Sajjan Jindal and family — and also through internal accruals, he said. There would be some debt, too. 

In an ideal situation, the company would prefer a 33 per cent contribution, each from internal accruals, promoter stake infusion, and the remainder from PE funds. 

It already has “several offers” and is in touch with the funds, said Jindal. 

“There is [fund] infusion by the family for equity and there [are] private equities that are coming in. So, roughly ₹7,000 crore is being put in by the family between the debt at paints [company] level, as well as the promoter infusion. And the rest is going to come in from private equity. Otherwise, it will come as equity infusion by the family,” Jindal told businessline during an interaction. 

He, however, did not name the PE players they are in discussions with. 

PE funds JSW  is in talks with, could get an NCD  (non-convertible debenture) option, sources said.

JSW Paints’ ₹9,000 crore Akzo India buy will propel the Sajjan Jindal-led company to the No 4 slot in the Indian paints market. 

Regulatory approvals

Jindals will own upto 75 per cent of the equity in the Indian entity, post an open offer and other necessary regulatory approvals. The deal is expected to be concluded by end of this calendar year. 

“We will not be sacrificing the bottomlines for funding,” Jindal had said earlier. 

“If the deal goes through earlier [than calendar year-end], it will be better for us,” he added. 

JSW Paints, currently an unlisted entity, has an 88-90 holding through the Jindal Family Trust; and the remaining, less than 10 per cent, is through the group flagship, JSW Steel. 

When asked if JSW Steel shares will be pledged or whether family trust will see some dilution, Jindal said: “No…I am assuming there will be a dilution of JSW Steel [shares] also in this transaction, in the holding of JSW Paints.” 

He clarified that other listed group entities will not be leveraged for raising funds. 

“No equity [will be raised] from the group, [only] from the family,” Jindal said. 

A month-back, promoter entity JSW Family Trust offloaded 2-odd % stake in JSW Infra, raising nearly Rs 1230 crore. “Yes this [stake dilution] is part of the funding [Akzo buyout] plan,” he confirmed. 

Future Growth Plans

A reverse merger with Akzo Nobel India will see JSW Paints get listed on the bourses, those in the know said. 

Jindal said the company has set a 3 year time frame to be amongst the top three paint-makers in India. While Dulux — the Akzo Nobel India brand that it acquired — will continue to play in the premium segment, the deal allows JSW a larger distribution network and play on a pan-India level, and access higher capacities. 

It also strengthens JSW’s position in industrial and protective paints categories, apart from decorative. 

“The plan going forward would be to double revenues by leveraging the existing manufacturing capacities,” he said. 

Together, the two entities will be a near 8-10 per cent market share, combined capacities of 630,000 kilo litres per annum and revenues of nearly ₹6,000 crore. 

Published on July 1, 2025