Some of the country’s top paint makers, including Berger Paints, JSW Paints, Indigo Paints and Aditya Birla group, which forayed into the sector in 2024, are in the race to buy a majority stake in AkzoNobel India, sources have told FE.
AkzoNobel India is the country’s fourth-largest paints company with an estimated market share of 7%. Rivals Asian Paints, Berger Paints and Kansai Nerolac are estimated to have market shares of 50%, 20% and 15%, respectively, in the domestic paints market valued at Rs 65,000 crore ($7.8 billion), according to industry experts.
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The Dutch parent of AkzoNobel India, which owns a nearly 75% stake in the company, has been looking to offload its shareholding in the firm at a deal valued at $2.5-3 billion (Rs 20,000-24,000 crore), sources said. However, players are willing to pay around half the asking price at Rs 10,000-12,000 crore ($1.2-1.4 billion), sources said.
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In a note to the exchanges on Tuesday, Akzo Nobel India said it could not ascertain the correctness of the news. “We have not received any specific information or communication from our parent company about any such event or negotiation,” the company said.
Calls to Abhijit Roy, MD & CEO of Berger Paints India, elicited no response at the time of going to press. In a clarification to exchanges, Berger Paints said it considers various proposals for inorganic growth and diversification as a matter of routine exercise.
“There is no material event, information and development in this matter to disclose,” Berger Paints said.
Both Aditya Birla group and JSW Paints declined comment when contacted. Indigo Paints was not immediately available for comment.
Shares of AkzoNobel India closed trade 6.14% up at Rs 3,632.70 apiece on the BSE on Tuesday, as investors lapped up news of its possible stake sale. Berger Paints closed trade up 0.96% at Rs 451.35 apiece.
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