JSW, Berger Eye Akzo Nobel's India Plans: Possible Divestment

Kolkata, Jan 10 (PTI) JSW Paints is exploring both organic and inorganic growth options to expand its business.

On Friday, the company said that it will examine paint-maker Akzo Nobel's process, in which the Dutch parent company is conducting a strategic review of its portfolio in South Asia, indicating a possible divestment of its decorative business.

"As a group, we are open to exploring opportunities for inorganic growth. Akzo Nobel has announced a process, and we will certainly look into it," the Joint Managing Director and CEO of JSW Paints, Sundaresan A S, said on the sidelines of the Indian Paint Association's conference.

He added that any potential acquisitions must offer synergies.

The company has plans to spend Rs 1,000 crore over the next 3-5 years for organic growth, officials said.

A senior Berger Paints official said that they will also explore opportunities in Akzo Nobel's decorative business but at the right valuation.

In a stock exchange clarification regarding takeover interest in Akzo Nobel, Berger said it considers various proposals for inorganic growth and diversification as part of its routine exercise.

The review of Akzo Nobel's business will explore various strategic options, including partnerships, joint ventures, mergers, or divestments.

Meanwhile, the paint industry officials deliberations at the conference said that rural demand will drive growth in the industry for the next two to three quarters as urban demand remains largely muted.