Indigo Paints-Advent, JSW vie for Akzo’s India business: report

JSW Paints, and a consortium comprising Advent International and Indigo Paints have submitted binding bids to acquire Akzo Nobel India, The Economic Times reported, citing people familiar with the development.

The move comes as the company’s Dutch parent, Akzo Nobel NV, is considering an exit from the Indian market as part of its global restructuring strategy.

Akzo Nobel NV, which has a 74.76% stake in its Indian arm, is looking at the divestment option amid rising competition in the Rs9,000 crore Indian paints market.

Both JSW Paints and the Advent-Indigo consortium submitted their bids after the original deadline of 15 April was extended, people in the know told ET.

A third interested party, Pidilite Industries, is reported to be evaluating only the decorative paints segment of Akzo Nobel India.

Akzo Nobel India’s board is expected to begin reviewing the submitted bids this week.

The offers are priced at a 10–15% discount to the current market valuation, the report said.

As of Thursday, Akzo Nobel India’s market capitalization stood at about Rs15,984 crore, excluding certain segments such as the powder coatings division.

Akzo Nobel India, which is listed on Indian stock exchanges, has made a series of strategic moves earlier this year. It acquired the intellectual property rights for the Dulux brand in India, Nepal, Bhutan, and Bangladesh for Rs1,152 crore.

The company also sold its powder coatings business to its Dutch parent for Rs2,073 crore and divested its research and development vertical for Rs70 crore.