JSW Group to Sell Non-Core Land Assets of Akzo Nobel India

JSW Group is preparing to monetise non-core land holdings of Akzo Nobel India, now renamed JSW Dulux, according to The Economic Times report.  

The proposed exercise could yield about ₹4,000-4,500 crore. The development follows JSW Paints’ acquisition of a majority stake in the company for nearly ₹9,000 crore last year. 

Potential Recovery of Acquisition Cost 

As per the report, the planned divestments could help recover up to 50% of the amount spent on the buyout.  

The focus is on land parcels that are no longer required for ongoing operations. These assets are being reviewed as part of post-acquisition restructuring. 

Thane Asset Among Identified Properties 

One of the sites under consideration is located in Thane. The facility is understood to have been developed several years ago and may not be central to current requirements. Further details of the land parcel were not disclosed. 

The review is limited to surplus or underutilised properties rather than core manufacturing locations. 

Sale Routes Under Evaluation 

JSW Group may either sell the identified assets to third parties or transfer them to its real estate arm, JSW Realty. The unit has undertaken residential developments along with projects such as a museum and a hospital. 

Property prices in Mumbai and nearby markets such as Thane remain elevated, which could support such transactions and help generate cash from these holdings. 

Manufacturing Presence and Consolidation 

JSW Dulux currently operates five manufacturing units across Thane, Mohali, Bengaluru, Hyderabad and Gwalior. In addition, JSW Paints runs a facility at Vijayanagar in Karnataka and an industrial coatings plant at Vasind in Maharashtra. 

The group is likely to consolidate some of its operations in Maharashtra and Karnataka into a single location, people cited earlier said. This is to streamline operations after the acquisition. 

Read More: JSW Group Eyes ₹50,000 Crore Green Steel Investment for Europe! 

Conclusion 

The proposed land monetisation is part of ongoing integration efforts following the transaction. Proceeds may be used within the business as the group adjusts its operational structure. JSW Group did not respond to queries. 

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