Akzo Nobel India shares in focus on selling powder coatings business and R&D centre to parent entity

The firm said that the acquisition of the intellectual property pertaining to the decorative paints business would establish the Akzo Nobel's technological independence in its core business of liquid paints and coatings and reduce dependence on its parent entity. Further, it would eliminate ongoing royalty payments to the parent for the intellectual property
being purchased, while enhancing margins and cash flow.

In an exchange filing, the firm said, "These transactions will make Akzo Nobel India a more focused liquid paints and coatings business and enable it to become a fully brand-and-technology-independent company for its core decorative paints business."

AkzoNobel, Europe’s largest paintmaker, launched a strategic review of its India business last year. While it currently intends to retain its industrial coatings division, a full exit—if pursued—could push the overall deal valuation to $2.2 billion, sources added.

Publicly listed Akzo Nobel India has a market capitalization of $1.75 billion. However, selling the industrial coatings segment may be challenging due to intellectual property protections and long-term contracts, including agreements with the Indian Navy, sources told had told Mint.

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