'We realised that partnering with a strong local player like the JSW Group would create far greater value than going it alone.'
In a $1.4 billion deal signed last week, JSW Paints acquired AkzoNobel India, marking a major step in its ambition to become one of the top three players in India's highly competitive paint market.
In an exclusive conversation with Business Standard's Sharleen D'Souza and Dev Chatterjee, Parth Jindal, Managing Director of JSW Paints, and Gregoire Poux-Guillaume, CEO of Amsterdam-based AkzoNobel NV, discuss the strategic rationale, potential synergies, and the road ahead for both companies.
What made JSW Paints so bullish about the acquisition of AkzoNobel India?
Parth Jindal: We launched JSW Paints in 2019 and grew organically to over Rs 2,200 crore in revenue (in 2025).
When AkzoNobel announced its global strategic review in September 2024, we saw a significant opportunity.
We closely studied the synergies between JSW Paints and AkzoNobel India and found there was immense complementarity--particularly with Dulux's strong presence in the premium decorative segment and AkzoNobel's leadership in industrial coatings like auto refinish and marine.
We've been working hard to build our premium paints portfolio, but the incumbents are well entrenched--Dulux being one of the strongest.
On the industrial side, we've had some success in areas like auto refinishing and protective coatings, but AkzoNobel NV's technological expertise, built over two centuries, gives it a clear edge that's hard to replicate.
To truly scale and break into the top three of the Indian paint industry, this acquisition was a once-in-a-lifetime opportunity.
I did everything I could to make it happen--and I'm grateful my father (Sajjan Jindal) backed the vision.
Will JSW Paints and AkzoNobel India merge after the acquisition?
Parth Jindal: It is still too premature, but it is natural that it will happen at some point.
It makes sense to keep them separate for now to unlock synergies.
A reverse merger of JSW Paints into the AkzoNobel India entity is natural, but I don't see it happening for at least three to four years.
What are the technology transfer arrangements in this deal and how much will JSW Paints pay for technology?
Parth Jindal: AkzoNobel NV will remain our long-term technology partner for the industrial coatings business.
For any new industrial segments we plan to enter in the future, we will engage in discussions with AkzoNobel's global team to determine whether a similar technology arrangement can be extended, or if a different model would apply for that particular segment.
On the decorative side, the Indian listed entity has already acquired the intellectual property (IP) and now owns the technology outright.
Once we complete the acquisition, that technology becomes ours. This also means decorative royalties will no longer apply.
However, in the industrial segment, AkzoNobel will continue to provide technology support, and royalty payments will continue--except for powder coatings, which AkzoNobel is retaining globally.
We will pay a technology fee of 4.5 per cent of sales to AkzoNobel NV.
At a time when all the MNCs are entering India, why is AkzoNobel NV partially exiting the Indian market, given the country's growth potential?
Gregoire Poux-Guillaume: This is not an exit from India for AkzoNobel NV.
We've actually increased our presence by acquiring full ownership of the powder coatings business and will retain our large R&D centre, which supports our global operations.
We'll also continue as the technology provider for the liquid coatings business under a royalty agreement.
India's paint market is highly local and competitive. We realised that partnering with a strong local player like the JSW Group would create far greater value than going it alone.
JSW brings strong distribution and brand presence, especially in decorative paints, while we bring world-class technology.
It's a complementary partnership that positions both sides to win.
Dulux is a strong brand in India. What gives you confidence that this acquisition will propel JSW Paints into the top three?
Parth Jindal: The combined entity will have revenues of around Rs 6,000 crore, making us the fourth-largest player--very close to the number three at Rs 7,500 crore.
With minimal overlap in our distribution networks, we'll now reach nearly 27,000 retailers.
JSW Paints is strong in smaller towns, while Dulux leads in metros, creating a powerful geographic balance.
Dulux holds a 15 per cent share in the premium decorative segment, and JSW Paints is the fastest-growing in value and mass-premium.
Together, we see strong growth potential across waterproofing, construction chemicals, and wood finishes.
Our goal is to break into the top three overall--number three in decorative, and number one in industrial coatings.
Are you raising funds from private equity for this deal?
Parth Jindal: We're in active talks with private equity players for some portion of this deal.
We are just closing the paperwork with them.
We may raise 30 per cent of our acquisition cost from PE, though we have enough cash for the entire transaction.
Will you need to burn cash or take on debt to stay competitive and reach the top three positions?
Parth Jindal: No, the business is stable. Last year, when there was an aggressive new entrant among listed entities, AkzoNobel India was probably the best performing--both in terms of revenue and bottom-line growth.
The power of AkzoNobel was felt last year, and that is the model we want to follow.
We will do whatever it takes to grow on the decorative side; we will reinvest in the brand.
We will be aggressive.
But I don't think, at this size and scale, we would need to burn cash. It will be done in a sustainable manner. Overall, we will be focused on topline growth.
We will also be focused on the bottom line, but we will be reinvesting in the brand.
With Dulux's premium positioning and JSW's strength in mass segments, will the JSW brand cease to exist in favour of Dulux?
Parth Jindal: We have to come together and figure out what the market requires, and we will then arrive at our strategy.
Within the industry, we have different segments and we want to make sure we attack all of them. We will do whatever makes sense to gain share across the board.
Feature Presentation: Aslam Hunani/Rediff