Latest news with #JSWPaints
United News of India
12 hours ago
- Business
- United News of India
JSW Paints acquires Akzo Nobel India's paint business for Rs 12,915 Cr
Mumbai, June 28 (UNI) JSW Paints has officially announced that it will acquire Akzo Nobel's India paint business in a Rs 12,915 crore transaction which was executed with support from Morgan Stanley as the exclusive financial adviser to JSW Paints. Khaitan & Company provided legal advisory services, while Deloitte conducted financial and tax due diligence to execute the deal. According to a company press release, JSW Paints will acquire a 74.76 percent stake in Akzo Nobel India which makes Dulux brand of paints for Rs 8,986 crore, which will be followed by an open market offer to an additional 25 percent stake valued at Rs 3,929.06 crore. "JSW Paints entered into definitive agreements to acquire up to 74.76 percent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore," according to a company press release here today. JSW Paints Managing Director Parth Jindal said, "Paints is one of India's fastest growing sectors. JSW Paints is among the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints and coatings like Dulux, International and Sikkens. We are delighted to incorporate them into the JSW family. In collaboration with the Akzo Nobel India team, including staff, clients and associates, we aim to establish the next generation paint organisation." AkzoNobel CEO Greg Poux-Guillaume said, "This transaction is a significant milestone in the execution of our strategy. AkzoNobel India has consistently been a strong performer. We are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector." UNI XC SS
India.com
12 hours ago
- Business
- India.com
Dulux paints sold! This Indian company signs Rs 89860000000 deal to buy major stake at…, becomes fourth largest paint company in India with market value of Rs…
JSW Paints, the paint company owned by the Jindal Group, has announced that it will buy a 74.7 per cent stake in the Indian unit of Akzo Nobel, the company known for selling paints under the Dulux brand in India. The deal is worth Rs. 8,986 crore. With this deal, JSW Paints has now become the fourth largest paint company in India's Rs. 80,000 to 90,000 crore paint market. Following the purchase, JSW will also be required to make an open offer to buy another 26 per cent of the company's shares from public investors, as per Indian market rules. Other bidders in the race This deal had been in discussion for some time, and JSW Paints was not the only company interested in buying Dulux. Other companies in the race included Indigo Paints and a group led by Advent International and Pidilite Industries. But under the leadership of Parth Jindal, JSW Paints managed to outbid them all. Akzo Nobel's Dutch parent company is selling its stake through two promoter entities: Imperial Chemical Industries Ltd., which holds 50.46 per cent of Akzo Nobel India Akzo Nobel Coatings International B.V., which owns another 24.30 per cent Together, these two firms are selling a combined 74.7 per cent stake to JSW Paints. JSW Paints shares future plans, aims to build a stronger brand JSW Paints Managing Director Parth Jindal has shared his excitement about the company's latest move. Talking about the recent deal to acquire Akzo Nobel India (makers of Dulux paints), he said, 'We are happy to welcome this new company into the JSW family. By working together with their employees, customers, and partners, we want to build the paint company of the future.' JSW Paints chasing a Spot in the Top 3 Since its launch, JSW Paints has struggled to break into the top 3 brands in the decorative paints market. Meanwhile, Birla Opus, the new paint brand from Grasim Industries, has made fast progress, capturing 3 to 4 per cent market share in just one quarter. JSW Paints not listed on the stock market It's important to note that JSW Paints is not a publicly listed company. However, it belongs to the larger JSW Group, whose major firms like JSW Steel and JSW Energy are already listed on the stock exchange. With the acquisition of a well-known brand like Dulux, JSW Paints is clearly aiming to expand its reach and strengthen its place in India's growing paint industry.
Mint
a day ago
- Business
- Mint
JSW fires a fresh salvo even as paintmakers battle to protect turf
Mumbai: India's paintmakers must gird up for a tougher battle from two upstarts. Birla Opus, owned by billionaire Kumar Mangalam Birla, has already shaken up the nation's paints sector with its pricing war. Now, JSW Paints Ltd's ₹9,300-crore acquisition of Dutch giant AkzoNobel's India unit portends a tighter squeeze on the profitability of their peers as they battle to protect turf. The deal by JSW Paints, part of billionaire Sajjan Jindal's steel-to-cement empire, will not immediately change the competitive landscape as it merely changes ownership from a multinational to a local player, according to Abneesh Roy, executive director for research at Nuvama Institutional Equities. 'But this is positive for JSW Paints. Over the next five years, we see Kansai, Akzo + JSW, Birla fight for the No. 3,4,5 slots, and also take some share from [other] local players." The sector is already grappling with tepid demand for decorative paints due to a slowdown in new construction and elongating repainting cycles. Birla Opus' discounting to win over market share is squeezing the profitability of incumbents. India's largest paintmaker Asian Paints Ltd's operating margin shrank to 17.7% in FY25 from 21.4% in FY24. To be sure, India's paints industry is expected to reach $15.04 billion by 2029, growing at an annualized rate of 9.38% from nearly $9.60 billion in 2024, according to a report by ICICI Direct. But the entry of two billionaire-led upstarts in the past half a decade has shaken up the long-standing leaderboard. While the exact market shares differ based on products such as decorative and industrial paints and associated materials like coatings and putty, industry insiders estimate that Birla Opus has achieved a podium position this year, and the JSW-AkzoNobel combine is within a striking range of the fourth position. They estimate the new pecking order as: Asian Paints, Berger Paints India, Birla Opus, Kansai Nerolac, JSW Paints (including Akzo Nobel India) and Indigo Paints. Analysts at Nuvama expect Asian Paints and Berger Paints to put up a fight to protect their sales. They are also positive on Indigo Paints. The companies are expected to snatch share from unorganized players, who still hold around 25% of the market. While the two upstarts have cornered market share from the incumbents rapidly, growth may be more challenging from here. 'A proper integration after acquisition is essential. Simply acquiring a company will not make you a strong player overnight. You have to work on multiple things before you are a force to be reckoned with," said an analyst on JSW Paints disrupting the market. He spoke on the condition of anonymity as he is not allowed to comment on an individual company before publishing a report. The $23-billion JSW Group, which started as a mining company, has diversified across key sectors like infrastructure, cement, e-commerce platforms and paints. JSW Infrastructure and JSW Energy are listed on the country's stock exchanges. JSW Cement got the market regulator's nod for going public in January. JSW Paints, launched in 2019, has a portfolio spanning decorative and industrial paints. The privately held JSW Group firm will acquire 74.76% in listed Akzo Nobel India Ltd from its Dutch parent Akzo Nobel N.V. and its affiliate for ₹8,986 crore, the company said in a press release. The transaction is priced at ₹2,639.4 per share, a 17.32% discount to Thursday's closing price, according to Mint calculations. In a post on X, JSW Paints managing director Parth Jindal, 35, said it was 'a historic day". 'Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family," he said in a statement. 'This transaction is a significant milestone in the execution of our strategy. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector," said Greg Poux-Guillaume, the CEO of AkzoNobel. The Dutch paintmaker had hinted at an exit from India in October last year, when it initiated a strategic review of the business. Apart from JSW Paints, Pidilite Industries Ltd and Indigo Paints Ltd were also in the race for acquiring Akzo Nobel India. Indigo paints, which has consolidated market share in recent years, had come close to entering the top 4 club. Meanwhile, adhesives major Pidilite Industries, which lost the race to buy Akzo Nobel India, is also looking to start its paints journey through in-house capacity development. The company plans to target a growing demand for decorative paints in non-urban areas, Mint reported on 27 March.
Time of India
a day ago
- Business
- Time of India
JSW to buy Dulux paints biz for Rs 9,000 crore
MUMBAI: JSW Paints will acquire about 75% stake in Dulux-owner Akzo Nobel's India unit for Rs 9,407 crore ($1.1 billion) - marking the country's biggest deal in the sector amid growing competition. The acquisition will position JSW Paints, established by steel tycoon Sajjan Jindal in 2019, as the fourth largest player in the industry dominated by Asian Paints, Berger Paints, and Kansai Nerolac. The industry saw a new entrant in 2024 when Aditya Birla Group launched Birla Opus. JSW Paints plans to acquire an additional 25% stake from Akzo Nobel India's public shareholders through an open offer for Rs 3,929 crore, in accordance with Indian takeover regulations. Public shareholders will receive Rs 3,418 per share in the open offer, while the Dutch firm will receive Rs 2,762 per share from JSW Paints. JSW Paints will purchase the required number of shares from the Dutch company to maintain a 75% ownership in Akzo Nobel India, based on the response to the open offer. Upon the deal's completion, JSW Paints, a part of the $23-billion JSW Group, will become Akzo Nobel India's promoter, with the Dutch firm potentially retaining public shareholder status. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Akzo Nobel India's shares ended at Rs 3,405 per share on the BSE on Friday, up nearly 7%. "We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family - employees, customers and partners - we aspire to build the paint company of the future," said Parth Jindal, MD of JSW Paints and son of Sajjan Jindal. Akzo Nobel, ranked fourth globally in paint manufacturing by market value after PPG, Nippon Paint, and Sherwin-Williams, owns stakes in Akzo Nobel India through Imperial Chemicals (50.5%) and Akzo Nobel Coatings (24.3%). Akzo Nobel entered India in 2008 by acquiring the British company Imperial Chemical Industries. Following an assessment of its South Asia operations in 2024, it decided to divest its decorative paints business in India to streamline expenses and strengthen its core coating operations. The company will, however, continue to operate its powder coatings business and research centre in India. Akzo Nobel CEO Greg Poux-Guillaume said: "This transaction is a significant milestone in the execution of our strategy. Akzo Nobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success." In a regulatory filing, Akzo Nobel India said post-deal, the Dutch company will execute certain corporate brand and intellectual property licensing agreements with it. Akzo Nobel owns well-known brands like Dulux, Sikkens, International and Interpon. Amsterdam-based Akzo Nobel is likely to receive 900 million euros in net cash proceeds. It plans to use around 500 million euros to reduce debt and launch a 400-million-euro-share buyback programme. 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
2 days ago
- Business
- Time of India
JSW Paints' Rs 12,915-cr proposed acquisition of Akzo Nobel India among topdeals this year
Sajjan Jindal-led JSW Paints ' Rs 12,915-crore deal to acquire Dutch paint maker Akzo Nobel's India unit is among the biggest transactions in the country so far this year. JSW Paints on Friday announced that it will buy a 74.76 per cent stake in Dulux paint-maker Akzo Nobel India for Rs 8,986 crore, followed by an open offer to buy another 25 per cent from open market for up to Rs 3,929.06 crore, totalling tad over Rs 12,915 crore. It is slightly behind Japan's Sumitomo Mitsui Banking Corp's acquisition of a 20 per cent stake in Yes Bank for Rs 13,483 crore announced last month. State Bank of India (SBI) along with seven other lenders, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank, agreed to sell their combined stakes aggregating 20 per cent in Yes Bank to Sumitomo Mitsui. The Sumitomo-Yes Bank deal was the largest cross-border investment in the Indian banking sector. Live Events Yet, the biggest so far this year is Bajaj group's deal to acquire long-time partner Allianz' 26 per cent stake in Bajaj Allianz life and general insurance for a total of Rs 24,180 crore announced in March. Under their share purchase agreements, Bajaj Finserv agreed to acquire a 26 per cent stake owned by Allianz SE of Germany in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company for Rs 13,780 crore and Rs 10,400 crore, respectively. The second biggest transaction this year is ONGC-NTPC Green's deal to acquire Ayana Renewable Power for an enterprise value of Rs 19,500 crore (USD 2.3 billion) announced in February. ONGC-NTPC Green Pvt Ltd (ONGPL), a 50:50 joint venture between ONGC Green Ltd and NTPC Green Energy Ltd, signed a share purchase agreement to acquire a 100 per cent stake in Ayana Renewable Power. Singapore-headquartered global investment firm Temasek's 10 per cent stake acquisition in Haldiram's for reported USD 1 billion is also among the top deals of 2025 so far. JSW Paints' acquisition of Akzo Nobel India will help JSW group expand its play in the paint segment, which it entered in 2019. It will make the company the fourth largest paints maker after Asian Paint, Berger and Kansai Nerolac. In last 5-6 years, several new players have entered the market, including Pidilite with Haisha Paints, Grasim with its Birla Opus. Besides, pipes and fittings manufacturer Astral acquired Gem Paints, and JK Cements entered the paints sector by acquiring Acro Paints.
