Akzo Nobel India has announced the sale of its powder coatings division and international research and development (R&D) centre to its Dutch parent, Akzo Nobel NV, in a ₹2,143-crore deal aimed at simplifying the company’s operations. The board of Akzo Nobel India Ltd. (ANIL) has approved the binding offer from Akzo Nobel NV, which involves a ₹2,073-crore slump sale of the powder coatings business and ₹70 crore for the transfer of the international research centre, according to a regulatory filing on Monday.
The company, known for its ‘Dulux’ decorative paint brand, will now focus on strengthening its liquid paint and coatings business by divesting these non-core assets. The sale is structured through two separate business transfer agreements with a subsidiary of Akzo Nobel NV, which will be set up in India. ANIL’s decision also includes the acquisition of intellectual property rights related to Akzo Nobel Coatings International BV for its decorative paints business in India, Bangladesh, Bhutan, and Nepal, valued at ₹1,152 crore.
“These transactions will streamline Akzo Nobel India’s operations, making the company more focused on its core liquid paints and coatings business. This move also helps the company become independent in terms of its brand and technology in the decorative paints segment,” the statement explained.
The completion of the transaction is contingent on approval from Akzo Nobel India’s shareholders and the supervisory board of Akzo Nobel NV. Shareholder approval is expected in the coming weeks, with the voting process to conclude within a month. If approved, the transactions are expected to be finalized by December 31, 2025, pending any necessary regulatory and statutory approvals.
The rationale behind the sale of the powder coatings business is to better align Akzo Nobel India’s resources and operations, enabling a more focused approach on liquid paints and coatings, which are seen as core to its business strategy.
For the fiscal year 2024, Akzo Nobel India’s powder coatings division generated ₹421.2 crore in revenue, while the international R&D centre contributed ₹53.5 crore. This move follows Akzo Nobel NV’s strategic review in October 2024, where the company announced its intention to explore options like partnerships, joint ventures, mergers, or divestitures to invest more in expanding its core coatings business.
Akzo Nobel India is a leading manufacturer of paints and coatings, known for its wide range of products that cater to both industrial and decorative applications. A subsidiary of the global coatings giant Akzo Nobel NV, the company has built a strong presence in the Indian market with a focus on innovation, sustainability, and high-performance solutions.
Akzo Nobel India offers a diverse portfolio, including decorative paints, industrial coatings, and specialty chemicals, serving various sectors such as automotive, construction, and consumer goods. With a commitment to quality and environmental responsibility, the company leverages advanced technologies and a robust research and development network to drive growth. Additionally, Akzo Nobel India plays a key role in the parent company’s global operations, contributing to its strategic initiatives in the region.
