Latest news with #AkzoNobelIndia
Time of India
26-05-2025
- Business
- Time of India
JSW Paints to acquire Akzo Nobel India stake for $1.1 billion
NEW DELHI: JSW Paints, led by Sajjan Jindal , is close to acquiring Akzo Nobel India, valuing the Dutch parent Akzo Nobel NV's 74.76% stake at around Rs 9,000 crore ($1.1 billion). This pegs the total valuation of the Indian unit between Rs 12,000-12,200 crore — a 25% discount to its current market price, as per the Economic Times report. If finalised, the acquisition will elevate JSW Paints to the fourth-largest player in India's decorative paints market and second in the industrial paints segment, significantly strengthening its presence. Akzo Nobel India's market capitalisation stands at Rs 16,380 crore, with its shares closing at Rs 3,582 on the BSE on May 23. The stock has gained 40% in the past year amid growing speculation of a stake sale. The acquisition will trigger an open offer for an additional 26% of Akzo Nobel India, based on regulatory norms and the average share price over the past 60 days. The company has about Rs 700 crore in cash, expected to be distributed to shareholders as dividends. JSW plans to fund the buyout with Rs 3,000 crore in promoter equity and another Rs 3,000 crore in bank financing, with lenders including Deutsche Bank, MUFG, and Axis Bank. The agreement is expected to be finalised by mid-June within a 30-day exclusivity window. The deal follows JSW's successful bid over a consortium of Advent International and Indigo Paints. If completed, it could also bring JSW Paints closer to achieving Rs 10,000 crore in annual revenue, setting the stage for a potential IPO. Akzo Nobel India, which has a 7% market share, offers a diverse range of products from decorative paints to industrial and marine coatings. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
26-05-2025
- Business
- Time of India
JSW poised to acquire Akzo Nobel India for $1.1 billion
JSW Paints is set to take over Akzo Nobel India , valuing parent Akzo Nobel NV's 74.76% stake at about Rs 9,000 crore ($1.1 billion), said people aware of the matter. This translates to a Rs 12,000-12,200 crore value for the Indian unit of the Dutch multinational, a 25% discount to the current market price, they said. The deal will take the acquirer to fourth position in the country's decorative paints market and number 2 in the industrial segment, giving it much-needed heft. Akzo Nobel India's market capitalisation is at Rs 16,380 crore, with the stock having closed at Rs 3,582 on Friday. The share has bucked industry trends, surging 40% in the past year in anticipation of a sale. Announcement of the transaction will trigger an open offer for another 26% of the company. This is based on the regulatory formula of the share price's weighted average in the past 60 days, after adjusting for Rs 700 crore cash on the books that will be given to shareholders as dividends. JSW won't exceed the 75% threshold. In the event that the entire open offer quota is tendered by public shareholders, it will buy that much less from Akzo Nobel NV. In that scenario, the Dutch parent won't exit its entire holding in one go and may gradually pare the stake through open market sales. It's estimated that JSW may end up spending Rs 9,000-9,500 crore on the transaction. The two sides are working toward finalising the share purchase agreement by mid-June, within the 30-day exclusivity period, said the people cited. ET reported on May 15 that they had entered into an exclusive agreement to hold negotiations as JSW trumped a competing bid by a consortium of Advent International and Indigo Paints. The JSW promoter family —led by group chairman Sajjan Jindal —is planning to put in Rs 3,000 crore as equity for the buyout, said the people cited. Another Rs 3,000 crore is being financed through banks such as Deutsche Bank, MUFG and Axis, among others. ET has earlier reported the group to be in discussions with the credit funds of KKR , Ares Capital and Goldman Sachs, among others, for funding. Interestingly, the plan is to keep privately owned JSW Paints and Akzo India as two separate businesses and not initiate a reverse merger between the two, according to the people familiar with the plan. Akzo and JSW Group declined to comment. Citi and Morgan Stanley are advisors to the deal. UNHAPPY HUE After announcing its decision to review business operations in the Indian subcontinent in October last year, Akzo India, in February, hived off and agreed to sell its powder coatings business— the unit's most profitable stream that contributes close to 12-14% of sales—to its Dutch parent. This had taken some of the sheen off the deal for contenders. The intense competition in the Indian paints industry and the resultant margin squeeze has also led to valuations getting impacted, according to analysts. FY25 was one of the worst years for the country's paint industry in nearly three decades, with business contracting. This came amid increased competition with the entry of the Aditya Birla Group's Birla Opus in February last year. At an industry level, demand fell 4-5% in FY25. Akzo, like most in the industry, has been bracing for sectoral headwinds. The company has about 7% market share in India and is one of the most profitable in the segment, with an annual production capacity of 250 million litres, focused on high-end decorative paints with its Dulux brand. It experienced low single-digit growth in value in the December quarter while profit was down 5%, partly due to a special dividend issued in the previous year. The automotive and vehicle refinish segments faced challenges, hitting overall performance. Akzo, one of the largest paint companies in the world, has been slashing jobs and production, intensifying concerns about the resilience of European industry, as the continent struggles with rising energy costs following Russia's invasion of Ukraine. JSW is looking for significant gains. It turned profitable at an operating level for the first time in FY24, with an operating margin of 3%. An Akzo buy will inch it closer to third-placed Kansai Nerolac in the decorative segment.
Time of India
26-05-2025
- Business
- Time of India
JSW poised to acquire Akzo Nobel India for $1.1 billion
Synopsis JSW Paints is poised to acquire Akzo Nobel India, valuing Akzo Nobel NV's stake at approximately Rs 9,000 crore. This acquisition will position JSW Paints as a significant player in both the decorative and industrial paints sectors in India. The deal, expected to finalize by mid-June, involves an open offer for an additional 26% of the company's shares.
Business Standard
21-05-2025
- Business
- Business Standard
AkzoNobel India launches 'Dulux Maestro' Program to strengthen collaboration with architects and interior designers
VMPL New Delhi [India], May 21: AkzoNobel India, a leading global paints and coatings company and the maker of Dulux paints, has today launched 'Dulux Maestro' -- AkzoNobel's first dedicated ecosystem to empower India's architect and designer community as they shape modern living spaces for the Naya Bharat of today. According to a recent study*, the Indian interior design market is projected to grow at a CAGR of 14.3% to reach USD 81.2 billion by 2030. With urbanization expected to cross 50% in India by 2050, demand for curated and personalized living spaces is fast expanding, especially in Tier 2 and Tier 3 cities. Sharing insights into the launch of Dulux Maestro, Rohit Totla, Executive Director, Akzo Nobel India, said, "With growing demand for hyper-personalized and on-trend living spaces, affluent consumers are increasingly tapping on the expertise of interior designers and architects. Building on AkzoNobel's 70-year legacy of quality and innovation, Dulux Maestro goes beyond just a product offering. It's our commitment to empowering design professionals to reimagine spaces for the rising, design-conscious Naya Bharat, both in and beyond the metros." Thoughtfully crafted with needs of architects and interior designers at its core, the Dulux Maestro program integrates the best of end-to-end business support with Dulux's global insights into colour, visualization, and personalization. From site inspections, on-site sampling, expert colour consultancy to advanced digital visualization with Dulux Colour Plug-in with over 2,000 shades, from technical trainings and on-demand previews to access to Dulux accredited top-tier contractors and quotation tools --the program is designed to empower professionals at every stage. Dulux Maestro program also unlocks exclusive member benefits. These include early access to innovations, professional collaborations, insights into colour, trends forecasting workshops, and exclusive rewards -- backed by Dulux's trusted portfolio of premium decorative paints and the dedicated support team. With over 2000 architects and interior designers already onboarded, Dulux Maestro program is live in 16 key cities across 5 states and 1 Union Territory in Phase-I. These include Pune, Nagpur, Nashik and Aurangabad in Maharashtra; Ahmedabad, Baroda, Surat, Rajkot and Bhavnagar in Gujarat; Kolkata, Howrah, Hooghly and Burdwan in West Bengal; Bhopal and Indore in Madhya Pradesh; Raipur in Chhattisgarh; Ghaziabad and Noida in Uttar Pradesh; and Goa.
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Business Standard
16-05-2025
- Business
- Business Standard
Jindal family sells stake worth ₹1.2K crore to fund AkzoNobel India buy
The Sajjan Jindal Family Trust has offloaded 2 per cent in JSW Infrastructure Ltd — India's second-largest commercial port operator — in a ₹1,210 crore transaction to multiple institutional investors, including the Singapore government, in a bid to fund the potential acquisition of AkzoNobel India. The trust has offloaded 0.88 per cent stake in JSW Infra to the Government of Singapore for ₹531 crore via block deals on Thursday. According to data from the National Stock Exchange (NSE), Singapore's sovereign arm purchased around 18.4 million shares at ₹288 apiece from the promoter group. The share sale is aimed at complying with India's minimum public shareholding norms by the promoters. It is also for potentially financing JSW Group's planned acquisition of AkzoNobel India from its Dutch promoter, people familiar with the matter said. This acquisition of Akzo Nobel India will mark JSW's latest strategic push into the consumer-facing paints segment, where it is aiming to build scale in a market witnessing heightened competition. The acquisition of AkzoNobel India will give JSW access to a robust nationwide distribution network and the well-recognised Dulux brand, bolstering its presence in a sector recently disrupted by the entry of the Aditya Birla Group. Parth Jindal, scion of the Jindal family, is leading the talks with Akzo Nobel NV and an announcement is expected soon, say bankers. AkzoNobel NV holds a 75 per cent stake in its Indian subsidiary. JSW Infrastructure shares closed at ₹288.25 on the BSE on May 16, valuing the company at about ₹60,533 crore. Akzo Nobel India closed 3.3 per cent up at ₹3,597 a share. The Sajjan Jindal Family Trust held an 80.72 per cent stake in JSW Infrastructure as of March 31, while total promoter shareholding stood at 85.62 per cent. Under the Securities and Exchange Board of India (Sebi) regulations, listed companies must maintain at least 25 per cent public float. JSW Infra, which went public in October 2023, has until September 2026 to bring promoter holdings below the 75 per cent threshold. In a recent filing, JSW Infra said the promoter group, represented by Sajjan Jindal and Sangita Jindal, plans to sell up to 2 per cent of its stake through open market transactions between May 13, 2025, and March 31, 2026.
