Akzo Nobel India Limited — Important, 24-02-2025: Disclosure of material issue

Akzo Nobel India Limited's Board of Directors has approved the acquisition of key intellectual property from Akzo Nobel Coatings International B.V., the company's holding/promoter entity. This transaction involves the decorative paints business across India, Bangladesh, Bhutan, and Nepal, with the purchase consideration set at ₹1152 crore. Acquiring this intellectual property will enable the company to enhance its technological independence, eliminate ongoing royalty payments, and potentially improve profit margins and cash flow.

This strategic move is anticipated to positively impact the company's operational outlook by reducing reliance on the seller. The Board also noted that the transaction will include a formal Intellectual Property Sale and Transfer Agreement, expected to be finalized. Notably, the agreement is characterized as a related party transaction, adhering to arm’s length principles, and includes various post-transfer restrictions on how the acquired intellectual property can be utilized outside the specified territories. Watch closely for further developments in this significant acquisition.