Can JSW Paints Disrupt the Colourful Cartel? What the Akzo Nobel Deal Signals for India’s Paint Industry

India’s decorative paints market has long been a fortress—closely held by a few dominant players with entrenched brands, deep dealer networks, and high capital barriers. Leadership in this space has changed little over the decades, despite growing demand, rising urbanisation, and evolving consumer preferences.

That status quo may now be under pressure.

In this blog, we break down what the deal signals for the sector—how it may impact pricing power, supply chains, and consumer choice—and whether India’s paint market is finally ready for a shake-up.

What’s the News?

JSW Paints has signed a ₹12,915 crore acquisition deal to buy up to 74.76% stake in Akzo Nobel India Ltd (ANIL) for ₹8,986 crore, with an open offer of ₹3,929.06 crore for the remaining 25.24% at ₹3,417.77/share . This positions JSW as the 4th-largest player in India’s ₹72,000 crore paints industry . Akzo Nobel NV retains its powder coatings and R&D centre, while JSW gains brands like Dulux, Sikkens, and International.

The deal values Akzo Nobel India Ltd. at €1.4 billion, with an EV/EBITDA multiple of 22x. Akzo Nobel expects €900 million net proceeds, allocating €500 million for deleveraging and €400 million for share buybacks. ANIL’s FY25 revenue stood at ₹4,091.21 crore. JSW Paints aims to reach ₹10,000 crore in revenue and become India’s third-largest decorative paint player within three years.

Regulatory approvals, including from the Competition Commission of India (CCI), are pending. Completion is expected by Q4 2025.

What Does the Deal Signal for the Indian Paint Industry?

Here is what the deal between JSW Paints and Akzo Nobel India Ltd. means for the Indian paint industry:

• Reshaping Market Segmentation
  

The acquisition enables JSW Paints to operate with two distinct brand identities: Dulux for premium urban consumers and JSW Paints for value-driven Tier 2 and Tier 3 markets. This dual-brand architecture is not merely a marketing tactic, but a structural shift in how paint companies approach segmentation.

Dulux’s retention of premium pricing and brand equity allows JSW to preserve aspirational value, while JSW Paints can aggressively pursue volume growth. This split may prompt rivals to reassess their brand strategy and distribution, particularly in semi-urban and rural markets where JSW is already well-established.

• Royalty Structure

JSW Paints will pay a 4.5% royalty to Akzo Nobel for the continued use of industrial coating technologies. While the 3.5% royalty on decorative paints has been eliminated following the Intellectual Property (IP) acquisition, the industrial royalty remains in effect. This introduces a fixed cost layer that could influence JSW’s pricing flexibility in industrial segments.

More importantly, it sets a precedent for technology licensing in India’s paint industry, which has traditionally relied on in-house research and development or outright acquisitions. Competitors may now explore similar licensing models to access advanced formulations without full ownership, particularly in niche segments such as marine, aerospace, and auto refinish.

• Dealer Throughput

JSW Paints aims to increase per-dealer throughput rather than expand dealer count. This shift from network expansion to productivity optimisation marks a new phase in the distribution strategy. By leveraging Dulux’s urban dealer relationships and JSW’s rural footprint, the combined entity can drive higher sales per outlet through better inventory management, targeted promotions, and bundled offerings.

This approach may prompt rivals to prioritise outlet-level profitability and engagement over the dealer count.

• Cross-Sector Synergies

JSW Group’s presence in steel, cement, and infrastructure opens up cross-sector synergies for paint applications. Coil coatings, marine paints, and auto refinish segments can benefit from captive demand and integrated R&D. JSW Paints’ leadership in coil coatings and its partnerships with automotive players, such as MG Motor, suggest a convergence of industrial and decorative innovation.

This vertical integration may accelerate product development cycles and reduce dependency on external demand. Other conglomerates with diversified portfolios may follow suit.

• Limits of Global Playbooks

Despite strong product quality and brand recognition, Akzo Nobel struggled to scale its decorative business in India. CEO Greg Poux-Guillaume acknowledged the lack of “local firepower” and operational agility. This underscores a broader industry signal: global playbooks, even with premium brands, are insufficient without deep local execution. The Indian paint market demands granular dealer-level engagement, regional pricing strategies, and hyperlocal marketing.

• Consolidation Phase

The JSW-Akzo deal follows the entry of Birla Opus and acquisitions by Astral and JK Cement. This flurry of activity signals the onset of a consolidation phase in India’s ₹90,000 crore paint industry . As new entrants disrupt pricing and distribution norms, established players are either doubling down on innovation or seeking strategic exits. The market is transitioning from a legacy-dominated structure to a dynamic, multi-polar ecosystem where scale, agility, and brand architecture will determine survival.

• Push for Eco-Friendly Paints

JSW Paints has actively positioned itself as a proponent of green manufacturing and low-VOC (Volatile Organic Compound) paints. Dulux also enjoys global credentials in the sustainable product space. This combined reputation enables JSW to appeal to a growing but still niche segment of eco-conscious urban consumers, builders, and architects. As regulatory focus on green buildings and environmental standards increases, this alignment may prompt other players to accelerate their own innovation in eco-friendly areas.

Conclusion

The JSW-Akzo deal is more than just a big-ticket acquisition; it signals a serious shake-up in India’s paint industry. With a dual-brand strategy, tech licensing, dealer productivity push, and cross-sector synergies, JSW Paints is reshaping how paints are sold, branded, and distributed. It also highlights the growing importance of local execution and sustainable innovation. As consolidation gains momentum, traditional players must reassess their strategies or risk losing ground in this rapidly evolving market.

Read More:

FII trends 2025: How global giants are betting on India