JSW Paints will buy Dutch paint maker Akzo Nobel's Indian arm for about $1.6 billion, in what will be the country's biggest deal yet in the sector as competition intensifies between established players and new entrants.

JSW Paints is expanding despite increasing competition from new players such as billionaire Kumar Birla’s Birla Opus.

JSW Group agreed to buy up to 75% of Akzo Nobel NV’s Indian business as the conglomerate seeks to expand its presence in areas such as paints.