AkzoNobel India has made a bold move, reshaping its business strategy with a ₹2,144 crore buyout of its own powder coatings business and international research centre. This decision is part of a larger strategic realignment, allowing the company to focus entirely on its liquid paints and coatings segment.
But what does this mean for the company’s future, its stock, and the paint industry in India? Let’s break it down.
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A ₹2,144 crore deal: What’s changing?
AkzoNobel N.V., the Dutch parent of AkzoNobel India and the owner of the Dulux brand, is acquiring the powder coatings business and the international research centre of its Indian subsidiary. The deal, structured as a slump sale, includes:
| Transaction | Amount (₹ crore) |
| Powder coatings business | 2,073 |
| International research centre | 70 |
Additionally, AkzoNobel India will acquire intellectual property (IP) rights from AkzoNobel Coatings International B.V. for ₹1,152 crore. This move will grant the Indian entity complete independence over the brand and technology for its decorative paints business in India, Bangladesh, Bhutan, and Nepal.
With these transactions, AkzoNobel India will transition into a pure-play liquid paints and coatings company, eliminating non-core assets and aligning itself for future growth.
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Why is AkzoNobel India selling its powder coatings business?
This isn’t a random divestment it’s part of AkzoNobel’s broader strategic review of its India business. Last year, reports suggested that the company was looking at selling only its consumer-facing paints division for $1.5-1.7 billion while retaining the more technically complex industrial coatings segment.
The powder coatings business, which mainly caters to industrial clients, was reportedly a hurdle in this process. Industrial coatings businesses have long-term contracts (10-20 years) and require specific chemical expertise, making them harder to sell. This strategic move makes AkzoNobel India a leaner and more focused entity, simplifying future business decisions.
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Who’s interested in the Dulux business?
The decorative paints segment is where the competition heats up. Several major industry players have shown interest in acquiring Dulux India, including:
- Pidilite Industries
- JSW Paints
- Indigo Paints
With the sale of the powder coatings business, AkzoNobel India has set the stage for a potential divestment of its decorative paints business, which could fetch up to $1.5 billion.
How will this impact AkzoNobel India’s share price?
Stock market reactions often indicate how investors perceive such business decisions. Following the announcement, AkzoNobel India’s share price rose 1.33% to ₹3,310.90.
Why the optimism?
- The company is now a more focused, efficient operation
- It has become fully independent in its core decorative paint segment
- The potential sale of the Dulux business could bring in a massive cash inflow
In the long run, AkzoNobel India’s share price will likely be influenced by shareholder approvals, regulatory clearances, and market competition.
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Industrial coatings
AkzoNobel India isn’t just about decorative paints. The company has a strong presence in industrial coatings, competing with major players such as:
| Competitor | Key partnership |
| Asian Paints | PPG Inc. (USA) |
| Kansai Nerolac | ICRO Coatings & Polygel Industries |
| Nippon Paints | IVM Chemicals (Italy) |
Notably, AkzoNobel India has key contracts with the Indian Navy, including painting the INS Vikrant. This segment remains crucial for the company’s long-term growth.
What’s next for AkzoNobel India?
The transaction is expected to be completed by December 31, 2025, subject to shareholder and regulatory approvals. In the coming weeks, AkzoNobel India will:
- Seek shareholder approval for the deal
- Complete regulatory and statutory clearances
- Align its strategy towards expanding the liquid paints segment
While the company has sold its powder coatings business, its revenue from operations in FY24 stood at ₹3,961.6 crore a strong financial foundation to build upon.
Final thoughts
This move marks a significant shift in AkzoNobel India’s business approach. By offloading its industrial-focused powder coatings business and securing full control over its decorative paints IP, the company is paving the way for a sharper, more defined future.
The key takeaway? If the Dulux India sale goes through, AkzoNobel India could be sitting on a major cash influx, reshaping its presence in the market. Investors and industry watchers should keep a close eye on how this unfolds.
