Akzo Nobel India Expects Strong Q3, Q4 Led By Festive Season
Earlier this year, JSW Paints entered into a deal to acquire a 74.76% stake in Akzo Nobel India from Akzo Nobel NV, a Dutch multinational company, and its affiliates for Rs 8,986 crore.
Akzo Nobel India is optimistic about a strong festive season led by post-monsoon recovery that will drive demand, according to its Chairman and Managing Director, Rajiv Rajgopal. He expects it to spill over into the final quarter of the current financial year.
“With monsoons now coming close to an end in mid-September, I do think that October, November and December will be big. Of course, it's a truncated Diwali. But, I do think that the season post Diwali will continue to be very strong,” he told NDTV Profit.
Rajgopal also explained what he meant by a “truncated Diwali”.
“Typically, Diwali, if you look at last year, was the end of October. Normally, the season's very strong when you have Diwali towards the, the second, first week of November. But again, it depends on what length you're looking from,” he said.
Rajgopal outlined a two-step growth strategy for the company.
“Our first task is to get back to mid-single digit, get equal to GDP growth. We are now going to get super aggressive on the top line and that's the brief from the incoming owners. Then start looking at moving to double-digit growth. So, that's the two-step journey,” he underlined.
“Incoming owners” is a reference to JSW Paints. Earlier this year, JSW Paints entered into a deal to acquire a 74.76% stake in Akzo Nobel India from Akzo Nobel NV, a Dutch multinational company, and its affiliates for Rs 8,986 crore.
"What's sold to the JSW group is not just the brand Dulux, which is decorative, but also the liquid coatings, which include marine and protective and our vehicle refinished business," Rajgopal stated.
He confirmed that the deal excludes Akzo Nobel India’s powder coating business and its international research centre in Bengaluru.
The completion of the acquisition is currently awaiting approval from the Competition Commission of India (CCI), which is expected by mid-to-late October. Rajgopal anticipates the entire deal, including the open offer, will be finalised by the end of the year or in early January 2026.
Shares of Akzo Nobel India closed 0.48% lower at Rs 3,374.8 apiece on the NSE, while the benchmark Nifty50 settled 0.13% higher at 25,005.5.
