**AkzoNobel to Acquire Powder Coatings Business and Research Centre from Indian Subsidiary**
AkzoNobel N.V., Europe’s largest paint manufacturer and owner of the Dulux brand, has announced its plan to acquire the powder coatings business and international research centre from its Indian subsidiary, AkzoNobel India Ltd., for ₹2,144 crore. The transaction, disclosed in a statement late Monday, consists of two main components: a ₹2,073 crore slump sale of the powder coatings business and a ₹70 crore transfer of the international research centre. Both transactions will be carried out through separate business transfer agreements with a proposed indirect wholly owned subsidiary of AkzoNobel N.V. to be established in India.
Additionally, AkzoNobel India will obtain intellectual property rights from AkzoNobel Coatings International B.V. for its decorative paints business across India, Bangladesh, Bhutan, and Nepal for ₹1,152 crore. This transfer of intellectual property will grant the Indian subsidiary full independence regarding brand and technology in its core decorative paints segment.
According to the company, “These transactions will enable AkzoNobel India to focus more on its liquid paints and coatings business, allowing it to operate as a fully brand-and-technology-independent entity in the decorative paints sector.”
This strategic move is part of AkzoNobel’s ongoing review of its operations in India, which began last year. Reports indicate that AkzoNobel N.V. may revise its plans to divest its India business, potentially opting to sell only its consumer-facing paints division for $1.5-1.7 billion while retaining the more complex industrial coatings segment. The coatings business, protected by intellectual property rights and long-term agreements lasting 10 to 20 years, presents challenges for divestment. Meanwhile, companies such as Pidilite Industries Ltd., JSW Paints, and Indigo Paints Ltd. have progressed to the second round of bidding for the Dulux paints business.
Selling the B2B coatings segment poses difficulties due to its reliance on specialized chemical technology and expertise, as noted by an anonymous source.
On a global scale, AkzoNobel is a leading player in the industrial coatings market. In India, the company has secured various contracts, including recent work with the Indian Navy, such as the painting of the INS Vikrant.
The completion of these transactions is contingent upon shareholder approval from AkzoNobel India and the supervisory board of AkzoNobel N.V.
