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Local players that account for 25% of the market share are likely to lose some grip to organised players. | Photo Credit: REUTERS
In India’s fiercely competitive ₹80,000-crore paint market, JSW Paints has vaulted to prominence, seizing the fourth spot with its bold acquisition of Akzo India. The deal has propelled JSW Paints’ market share to nearly 10 per cent, narrowing the gap with third-ranked Kansai Nerolac, which commands 12 per cent of the market and ₹7,823 crore in revenue. This strategic coup could reshape the industry hierarchy, positioning JSW Paints as a formidable contender in a high-stakes battle for dominance. And the immediate prize is the number three spot.
In the sub-continent, paints are categorised into industrial and decorative; with the latter commanding a near 75 per cent of the segment. And apart from organised players, nearly 25 per cent of the market is dominated by unorganised and regional or local players.
Friday’s deal would tilt market share gains mostly in favour of organised players and brands again.
Asian Paints at ₹33,400-odd crore turnover continues to dominate the paint market with nearly 50-52 per cent market share; while Berger Paints – with a near ₹11,500 crore turnover enjoys the second spot at 20-odd per cent market share.
Kansai Nerolac, with a turnover of ₹7,500 crore (apprx) enjoys the third slot, while Akzo Nobel India with ₹4,000 crore revenues has the fourth spot. Notably, Asian Paints has less than 5 per cent stake in Akzo Nobel India, owners of the Dulux brand here.
Other known names include Indigo Paints with a ₹1,340 crore turnover in FY25, Birla Opus – unlisted – but with a turnover of around ₹2,500-3,000 crore (estimated) and JSW Paints – at around ₹1,500-2,000 crore (estimated). This apart, Shalimar Paints with nearly ₹600 crore turnover is amongst the other prominent names.
As per market sources, Grasim’s Birla Opus has been amongst the recent entrants that have come into the market and ensured “substantial high single digit gains” – with a market share hovering at around 6 per cent (quarterly estimates). In FY25, the Grasim top brass claimed that Birla Opus had “crossed 10 per cent revenue market share”, after combining revenues of Birla White Putty and the paint company.
JSW Paints – having launched offerings in mid-2019 – had in 2024 announced that it had reached operating profits. The Sajjan Jindal-led company has around 2 per cent market share.
“Post the acquisition of Akzo by JSW Paints, executed through a share purchase agreement on June 27, the combined market share would be 10 per cent max, and combined turnover at ₹5,000-5,550 crore (₹3,500 crore for the paints business of Akzo taking out the powder coating and International Research Centre segments). This is smaller than number 1 and 2 players at this moment,” a market source told businessline.
Expanding its pan-India footprint, JSW Paints gets access to Akzo’s deeper distribution channels and the premium Dulux brand – with a higher recall than most players in the market.
The challenge, though, would be for the “third player” that would have to maintain itself, or play out aggressively to gain market share. Other new entrants, who have so far been “pretty aggressive” in gaining market share, will have to be on the watch or continue with their tempo.
“So, JSW is now a clear fourth, targeting the third place. Birla Opus is a challenger that has made in-roads,” said a second market participant.
According to Abneesh Roy, Executive Director, Nuvama Institutional Equities, the acquisition “doesn’t change the landscape for existing paint players”. There is just change in ownership from a MNC to a local player.
“But, this is positive for JSW Paints. Over the next 5 years, we see Kansai, Akzo + JSW, Birla fight for number 3,4, and 5 spots and take some share from local players,” he said, adding that Asian Paints and Berger are “likely to eventually comeback”.
“Local players who still have 25 per cent market share will lose some share to organised players,” Roy said.
In fact, market share gains for most paint companies in India, last fiscal, came at the cost of the market leader.
Price positioning, extending credit period for dealers, discounts, etc. will also play out significantly in the market.
Birla Opus has already lodged a complaint against Asian Paints, with the Competition Commission of India, accusing the latter of using its dominant position to pressure dealers, threatening them with reduced credit limits and withdrawal of contracts if they stock the former’s products. It also alleged that Asian Paints is delaying supplies and restricting access to tinting machines as a tactic to suppress competition.
Published on June 27, 2025
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