Dulux owner AkzoNobel India on November 22 said its board approved a proposal of selling non-productive properties of the company.
"The Board has approved a proposal of monetisation by way of sale of Company’s immovable property/ies, which is/are having a very limited use/non-productive use for business operations of the Company. As and when the Company is about to reach a finality on sale of such immovable property/ies by signing the definitive agreement/s, appropriate disclosures to the stock exchanges would be made," said Akzo Nobel India in a stock exchange filing.
On November 22, AkzoNobel India's shares on BSE closed 0.24% higher at Rs 3,640 apiece. The market capitalisation of the stock is Rs 16,577 crore.
AkzoNobel India also appointed Anil Chaudhry as an independent director for three years, subject to shareholder approval via postal ballot and accepted independent director Smriti Rekha Vijay's resignation "on account of her ongoing health challenges".
AkzoNobel NV, the Dutch parent of AkzoNobel India, had recently signalled its intent to engage with market players in India as it evaluates options for its decorative paints business. In a post-earnings call with analysts in October, the company specifically referenced Grasim Industries, part of the Aditya Birla Group, and market leader Asian Paints, hinting at possible collaboration or even a stake sale in the Indian market.
The comments were made as the global paints and coatings leader reevaluates its position in South Asia, particularly India, amid intensifying competition in the decorative paints segment, which it describes as “ripe for consolidation”. In October, the company announced a strategic review of its portfolio to redirect capital toward expanding its core coatings business, noting it would explore various strategic options, including partnerships, joint ventures, mergers or divestments.
Operated by AkzoNobel India, Dulux has a significant legacy in the country, of nearly 70 years. In a competitive landscape dominated by Asian Paints, Berger Paints and now Grasim’s entry, Dulux differentiates itself with a strong premium positioning. Dulux holds a market share of around 5 percent in the Indian paint industry, much smaller than what leaders like Asian Paints and Berger Paints boast. However, it maintains a strong presence in the premium segment of the market and is renowned for its higher-end decorative paints, including emulsions, glosses and wall coatings.
"We have been observing India...where you see that there's people pushing in like the Grasim guys from the cement sector, there's Asian Paints solidifying its position, there's other companies also trying to figure out what their differentiating assets are over time. It's a good time to have conversations with the various market players to see how we can contribute to a winning hand, winning play over time," chief executive officer Gregoire Poux Guillaume said in a call with analysts while announcing the company's third-quarter results on October 23.
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