AkzoNobel puts up India unit for sale

Europe's largest paint-maker and owner of the Dulux brand, AkzoNobel NV, plans to exit its India business after seven decades of operations in the country, amid rising competition in the domestic market.

- Anirudh Laskar

The Dutch firm is eyeing an all-cash deal valuing its listed Indian arm at $2.5-3 billion, which would make it the largest ever in India's paints and coatings sector. JSW Group, Adani Group, Aditya Birla Group and Asian Paints Ltd have been approached for acquiring AkzoNobel India Ltd, said two persons familiar with the development, speaking on the condition of anonymity.

AkzoNobel's promoters have appointed Citigroup Global Markets as the investment banker to shortlist an appropriate buyer for AkzoNobel India Ltd, which currently has a market capitalization of $2.1 billion.

Amsterdam-headquartered AkzoNobel, which is also the world's largest coatings company, has been doing business in India under various other names since 1954.

"The deal is likely to be agreed upon at around ₹25,000 crore. The buyers are keen to pay a premium to the market price," said one of the two persons mentioned above, adding that requests for proposal (RFPs) for the deal will be sent to the potential bidders in about a month.