Mumbai : JSW Group plans to monetise non-core land assets of Akzo Nobel India that could generate as much as ₹4,000-4,500 crore, said people aware of the matter. Group company JSW Paints acquired a majority stake in Akzo Nobel India last year for nearly ₹9,000 crore, making it the fourth-largest paint maker.
Akzo Nobel India has since been renamed as JSW Dulux.
“As much as 50% of what was spent on the buyout can be recovered through these property sales,” said one of the persons cited above. “The land in Thane, for instance, can be monetised...it was built many years ago, but they don’t need to be there anymore.”
The person did not elaborate on the Thane land asset.
JSW Group could monetise the land assets by selling them to a third party or to group company JSW Realty—the real estate arm of the $23-billion conglomerate. JSW Realty has built residential townships apart from a museum and a hospital.
Prevailing high property prices in markets like Thane and Mumbai can allow JSW to divest its land assets and free up cash, utilising the proceeds for its other business operations.
JSW Dulux has five manufacturing facilities spanning Thane, Mohali, Bengaluru, Hyderabad, and Gwalior. JSW Paints has a facility at Vijayanagar in Karnataka and an industrial coatings facility at Vasind in Maharashtra.
The paint maker is likely to consolidate its operations in Maharashtra and Karnataka into a single location, the people said.
JSW Group did not respond to an email query.
Akzo Nobel India has since been renamed as JSW Dulux.
“As much as 50% of what was spent on the buyout can be recovered through these property sales,” said one of the persons cited above. “The land in Thane, for instance, can be monetised...it was built many years ago, but they don’t need to be there anymore.”
The person did not elaborate on the Thane land asset.
JSW Group could monetise the land assets by selling them to a third party or to group company JSW Realty—the real estate arm of the $23-billion conglomerate. JSW Realty has built residential townships apart from a museum and a hospital.
Prevailing high property prices in markets like Thane and Mumbai can allow JSW to divest its land assets and free up cash, utilising the proceeds for its other business operations.
JSW Dulux has five manufacturing facilities spanning Thane, Mohali, Bengaluru, Hyderabad, and Gwalior. JSW Paints has a facility at Vijayanagar in Karnataka and an industrial coatings facility at Vasind in Maharashtra.
The paint maker is likely to consolidate its operations in Maharashtra and Karnataka into a single location, the people said.
JSW Group did not respond to an email query.
