How JSW Group Plans to Fund ₹9,000 Cr Buyout of AkzoNobel India

JSW Group’s promoters, the Jindal family, plan to pledge a portion of their stakes in group companies to help fund the ₹9,000 crore acquisition of AkzoNobel India, the owner of the Dulux paint brand. It was earlier reported that JSW Paints had signed an exclusivity pact with Dutch parent AkzoNobel NV for the potential acquisition of its Indian unit.

According to a report by Moneycontrol, billionaire Sajjan Jindal's family will pledge a portion of their holdings in JSW Steel and JSW Paints to raise about ₹2,000 crore. The remaining ₹7,000 crore will be arranged through a mix of debt and structured credit.

The report further notes that JSW is working with Standard Chartered Bank, Morgan Stanley, and MUFG to arrange financing. Simultaneously, talks are underway with global investment firms Farallon Capital and Ares Management to raise up to ₹4,000 crore in mezzanine funding. To protect its core businesses—especially JSW Steel—the group is planning a staggered pledge of promoter holdings, aiming to preserve credit ratings and ensure a balanced capital structure.

Launched in 2019, JSW Paints remains a challenger in a market dominated by Asian Paints. Acquiring AkzoNobel India would significantly expand its footprint by providing access to an established distribution network, manufacturing facilities, and a strong product portfolio.

AkzoNobel India, the Indian arm of the Dutch paints giant, is a key player in the decorative and industrial coatings segment, best known for its Dulux brand. While the parent company has not officially confirmed an exit, it is actively exploring the sale of its decorative paints business in India. Interest has come from JSW Paints, Pidilite, Indigo Paints, Adani, Aditya Birla, Asian Paints, and Blackstone, as per the reports.

With a market capitalisation of under ₹8,000 crore, any deal is expected to include a control premium. The final structure—whether a complete buyout or a controlling stake—remains under discussion.

In February 2025, AkzoNobel India agreed to transfer its powder coatings business and international R&D centre to the Dutch parent for a combined ₹214.3 crore, including decorative paints IP.

This potential acquisition comes amid intensifying competition in India’s paints market, especially after Grasim Industries, part of the Aditya Birla Group, launched Birla Opus, stepping up rivalry with established players such as Asian Paints, Berger Paints, and AkzoNobel.