JSW Paints is preparing to make its boldest move yet in India’s paints industry with the acquisition of Akzo Nobel India Ltd. The deal, valued at around Rs. 12,915 crore, will transform JSW Paints into one of the country’s largest players in both decorative and industrial paints.
To partly fund the acquisition, JSW Paints will raise Rs. 3,300 crore through non-convertible debentures (NCDs). The bonds, set to be issued this Friday, are part of the JSW Group’s broader Rs. 6,500-crore capital infusion plan. According to The Economic Times, this capital structure reflects the group’s intent to balance debt and equity while expanding strategically in consumer-facing sectors.
Credit rating agency ICRA has rated the proposed NCDs ‘AA- (Stable)’. The debentures carry a five-year term, with a call or put option after three years, and a bullet repayment at maturity. Notably, only part of the coupon will be paid annually, with the rest due at redemption. ICRA believes JSW Paints will be able to comfortably meet its debt obligations through its operational cash flows and expected dividend income from Akzo Nobel India over the next few years.
Even so, the agency has noted that the company’s leverage will stay “elevated” at above four times in the medium term. This means JSW Paints will carry a relatively high level of debt until the acquisition’s benefits start reflecting in its earnings.
JSW Paints Limited (JSWPL) is part of the Sajjan Jindal–led JSW Group and is managed by Parth Jindal. The company plays a key role in supplying industrial paints to JSW Steel, another group flagship. Over the past year, JSW Steel has infused ?750 crore into JSW Paints, while South West Mining Limited contributed ?150 crore to support its expansion, debt repayment, and working capital needs. ICRA expects this promoter support to continue as the group pursues the Akzo Nobel acquisition.
The purchase of Akzo Nobel India is expected to strengthen JSW Paints’ business profile dramatically. The acquisition brings with it strong operational synergies, a wider dealer network, and access to cutting-edge paint technologies. Once merged, JSW Paints and Akzo Nobel India will together become the fourth-largest decorative paints company in India and the second-largest in the industrial segment.
A key strategic benefit for JSW Paints is the inclusion of Akzo Nobel’s well-known premium brand Dulux, which will immediately strengthen its decorative portfolio. The deal will also open new frontiers for JSW in specialized industrial areas such as automotive refinishes and marine coatings—segments where Akzo Nobel has deep expertise and market presence.
In FY25, JSW Paints reported revenues of Rs. 2,155 crore, but analysts expect that figure to rise sharply from FY26 onward as synergies take effect in manufacturing, logistics, and marketing. ICRA projects that JSW Paints could achieve healthy low double-digit operating margins by FY27, marking a turnaround from its operating losses in FY25.
The acquisition was first announced in June 2025, when JSW Paints agreed to acquire a 74.76% stake in Akzo Nobel India for Rs. 9,400 crore. The deal received the green light from the Competition Commission of India on September 16, 2025, and is likely to be completed within the current financial year.
Following the acquisition, Akzo Nobel’s Dutch parent will retain ownership of the powder coatings business and the company’s research and development centre.
For JSW Paints, this acquisition represents a decisive step toward building a strong, integrated paints business with a global edge. From being a challenger brand to now entering the league of top-tier players, JSW’s latest move signals a fresh chapter in India’s fast-growing paints industry, one driven by scale, technology, and the pursuit of colour in every sense of the word.
