A Broken Industry & a Clean Name: Why Syed Babar Ali Should Not Buy AkzoNobel

For decades, Syed Babar Ali’s name has stood for clean business, strong governance, and long-term thinking.

But today, that reputation is facing an uncomfortable question:

Should a group built on transparency enter one of Pakistan’s most broken industries?

As AkzoNobel prepares to exit Pakistan, IGI Holdings is reportedly exploring the acquisition. On paper, the deal looks attractive — established brands, existing distribution, and a familiar product category. On the ground, however, the paint industry tells a very different story.

This is a market where:

- Competition is no longer about quality or performance

- Painters, not homeowners, decide which brand gets used

- Hidden “tokens” inside paint buckets drive sales

- Informal manufacturers undercut prices by avoiding taxes and standards

- Clean, compliant companies are steadily being pushed out

- Multinationals aren’t leaving Pakistan’s paint sector by accident.

They’re being squeezed by a system that rewards shortcuts, cash deals, and hidden incentives — a system that directly clashes with the values that built the Packages Group.

In this video, Profit Magazine breaks down:

- Why AkzoNobel’s exit is not surprising

- How the token system quietly controls the industry

- Why painters and dealers hold real power

- How the informal market has distorted competition

- And why this acquisition could put a 70-year legacy at risk

This is not a story about paint. It’s about what happens when integrity meets a market designed to punish it