Paint-maker AkzoNobel India, subsidiary of the Dutch speciality chemical Akzo Nobel NV, is expecting “binding bids” for the India business “over the next three-to-four months”, sources told businessline.
Non-binding bids have closed, with several paint companies currently being in the fray for the ‘Dulux’-brand owner, which occupies a fourth position in the country’s paint market. Asian Paints and Berger, the top two in the country, together occupy nearly 75 per cent of the market.
“Binding bids are expected to be placed in another three-to-four months time,” a market source said adding that, “Non binding bids have been placed, and closed. And talks are under-way. So broadly a week or two plus/minus, the non-binding bids have come in.”
According to Rajiv Rajgopal, Chairman and MD, AkzoNobel India, the sale of the decorative and industrial coatings business sale “could be likely concluded over the next 6–9 months or maybe by the end of this year”. The India business review will take a while.
Early process
“It is still at an early process. So there are non-binding bids, binding bids, offers, counter offers, and so on. It could be at least 6-9 months before something moves towards a conclusion,” Rajgopal told businessline. He did not comment on the bids or their timeline.
Regulatory processes are complex, he said adding that the next stages include management presentations, and “something could emerge probably in the first half of this year”, or “little before Diwali”.
“We will keep interest of minority shareholders in mind too,” he said adding that “there are no immediate delisting plans for the Indian entity”.
Powder coatings business
Earlier this year, the international promoter directed the India entity to sell its powder coatings business and international R&D business to a separate subsidiary on a “slump sale basis”; while “evaluate acquisition offers for the decorative paints business”.
SEBI registered valuer has been appointed for valuation of the powder coatings business, which will be segregated from the decorative paints and industrial coatings businesses and be taken over by the Dutch parent-company. Valuation process is expected to be completed over the next two–three weeks, and “most probably by end of February”.
AkzoNobel India has a market cap that varies between ₹16,000 crore and ₹17,000 crore.
For Q3FY25, (Oct–Dec),the company reported a revenue of ₹1,050 crore, a 15.9 per cent margin and a PAT of around ₹108 crore. Market share gains have been reported for nearly 12 quarters odd.
