Akzo Nobel pivots toward industrial coatings in Asia
Akzo Nobel has sold its Indian decorative paint unit for $1.6 billion, marking a major shift in its Asia strategy. The company will now focus on industrial coatings, a higher-margin business. This move reflects the firm’s broader plan to streamline operations and target long-term growth sectors in Asia.
Moreover, the shift signals a growing trend among multinational firms to realign portfolios in favor of performance-driven segments.
Decorative exit signals strategic reset
Akzo Nobel sold a 74.76% stake in its Indian subsidiary to JSW Paints, including rights to the Dulux brand in India. The deal, expected to close by Q4 2025, will free up capital for investment in the firm’s core industrial coatings segment. It will also retain its R&D center and powder coatings operations in the country.
The buyer, JSW Paints, is now positioned to become a top-four decorative paint player in India. The acquisition significantly boosts its production capacity and access to premium urban markets. This reflects the growing appetite among Indian firms to consolidate local sectors.
Akzo Nobel’s India exit follows the company’s 2024 review of underperforming consumer divisions across Asia. As a result, further asset sales in Southeast Asia may follow.
Industrial focus to drive growth
With the Indian exit, Akzo Nobel is turning its attention to B2B performance coatings, which now contribute over 60% of company profits. CEO Greg Poux-Guillaume stated that Akzo’s goal is to lead in all chosen segments, and “where we’re not, we reassess.”
The company sees strong demand for protective, marine, and powder coatings across Asia’s growing infrastructure and logistics sectors. In fact, Akzo plans to increase investment in supply chain digitization and regional R&D, especially in Vietnam and Indonesia.
Moreover, Akzo Nobel may divest additional decorative paint units in Thailand, Malaysia, and the Philippines. The company is expected to reinvest proceeds into scaling up automation and green coatings technology.
Meanwhile, JSW Paints will use its new decorative portfolio to challenge leaders like Asian Paints and Berger Paints, reshaping competition across India.
Global firms rethink Asia playbooks
Akzo Nobel’s decision to exit decorative paints in India marks a broader trend. Global firms are rethinking their Asia playbooks, focusing on margin-led strategies over market share at all costs. Decorative paints require deep distribution networks and branding, often with high overheads and lower returns.
However, industrial coatings offer contract-driven business and are tied to long-term economic trends like manufacturing, shipping, and clean energy expansion. This aligns well with Asia’s evolving development landscape.
JSW’s expansion, on the other hand, shows how domestic players are stepping up to fill gaps left by global exits. Moreover, their access to capital and long-term infrastructure exposure make them well-suited to dominate the next cycle.
While Akzo trims its footprint, it aims to strengthen category leadership. This leaner approach may yield stronger, more sustainable performance in the region.
Portfolio rationalization and regional investment to accelerate
Looking ahead, Akzo Nobel will likely fast-track portfolio rationalization across Asia to boost margins and reduce complexity. More decorative paint exits could emerge in smaller markets over the next 12 months. The company has also hinted at new joint ventures for marine and powder coatings.
This strategy fits into Akzo’s global aim to simplify operations while reinforcing leadership in profitable segments. At the same time, Southeast Asia’s industrial rebound gives the company a unique chance to expand in coatings for infrastructure, shipping, and construction.
JSW Paints, meanwhile, will focus on brand integration and market capture. Its acquisition of Dulux India provides a springboard for deeper national presence and potential exports to Bangladesh, Sri Lanka, and the Middle East.
Overall, Akzo Nobel’s move reflects how international firms are recalibrating strategies in Asia—not just for scale, but for resilience, profit, and focus. Asia’s industrial growth story is still being written, and companies that adapt smartly will be best placed to lead.
