Singapore-based Wilmar International is likely to strengthen the food portfolio of Adani Wilmar by introducing products such as cheese, ready-to-eat meals and snacks after the exit of the Indian partner, sources have told FE.
Last week, the Adani Group said it was divesting its entire 44% stake in the joint venture, offloading 31% to Wilmar and selling the balance 13% to the public to meet minimum public shareholding norms. The transaction, expected to be completed by the end of the current financial year (FY25), will fetch a little over $2 billion for the Adani Group, which the conglomerate is expected to deploy in its core energy and infrastructure businesses, it said last week.
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Adani Wilmar, meanwhile, will become a subsidiary of Wilmar International, with the latter exploring opportunities to bring in strategic investors, it indicated.
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Wilmar is likely to tap into the extensive distribution network of Adani Wilmar, which reaches 2.1 million outlets, selling edible oils and food products, sources said. Apart from rural areas, where Adani Wilmar has been traditionally strong, the company may also ramp up its presence in urban areas as Wilmar takes over operations, persons in the know said.
Adani Wilmar derives around 20% of its volume and 9% of its value in terms of turnover from its food and FMCG business. Edible oils, led by the Fortune brand of products, contributes 60% volume and 79% value in to the topline. Over the last twelve month period ending December 31, 2024, the company achieved a turnover of `6,000 crore from food and FMCG products, marking an over two-fold increase in two years, analysts tracking the company said.
In its latest update for the December quarter, Adani Wilmar said that its food and FMCG business had registered a year-on-year revenue growth of 22%. Excluding sale to government-appointed export agencies,
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