Akzo Nobel India Ltd. (ANIL) has agreed to sell its powder coatings business and international research and development (R&D) centre to its Dutch parent company, Akzo Nobel NV, for ₹2,143 crore. The move is part of a strategic effort to simplify operations and focus on its core liquid paints and coatings business.
The transaction includes two separate agreements. The powder coatings business will be sold for ₹2,073 crore, while the international R&D centre will be transferred for ₹70 crore. Both deals will be executed through a subsidiary of Akzo Nobel NV, which will be established in India. The company disclosed these details in a regulatory filing on Monday.
ANIL, known for its popular ‘Dulux’ decorative paint brand, plans to use the proceeds from the sale to strengthen its liquid paints and coatings business. Additionally, the company will acquire intellectual property rights from Akzo Nobel Coatings International BV for its decorative paints operations in India, Bangladesh, Bhutan, and Nepal. This acquisition is valued at ₹1,152 crore.
In a statement, ANIL said, “These transactions will streamline our operations, allowing us to focus more on our core liquid paints and coatings business. It will also make us independent in terms of brand and technology in the decorative paints segment.”
The deal is subject to approval from ANIL’s shareholders and the supervisory board of Akzo Nobel NV. Shareholder voting is expected to conclude within a month, and if approved, the transactions are likely to be finalized by December 31, 2025, pending regulatory and statutory clearances.
The powder coatings division generated ₹421.2 crore in revenue during the fiscal year 2024, while the international R&D centre contributed ₹53.5 crore. The sale aligns with Akzo Nobel NV’s broader strategy to focus on its core coatings business. In October 2024, the parent company announced plans to explore partnerships, joint ventures, mergers, or divestitures to support this goal.
About Akzo Nobel India
Akzo Nobel India is a leading manufacturer of paints and coatings, offering a wide range of products for both industrial and decorative applications. A subsidiary of Akzo Nobel NV, the company has a strong presence in the Indian market, driven by innovation, sustainability, and high-performance solutions.
Its diverse portfolio includes decorative paints, industrial coatings, and specialty chemicals, catering to sectors such as automotive, construction, and consumer goods. With a focus on quality and environmental responsibility, Akzo Nobel India leverages advanced technologies and a robust R&D network to support its growth and contribute to the parent company’s global strategy.
This strategic divestment marks a significant step in Akzo Nobel India’s journey to streamline its operations and reinforce its position in the liquid paints and coatings market.
