Adani Wilmar likely to acquire 3 FMCG brands for $1B
Adani Wilmar, the fast-moving consumer goods (FMCG) division of the Adani Group, is planning to invest up to $1 billion in acquiring three brands, as per HT Mint. These brands specialize in spices, packaged foods, and ready-to-cook products. The move is part of a strategy to strengthen its position, in the rapidly growing packaged consumer goods market. The potential acquisitions are expected to be based in eastern and southern India.
Aggressive expansion strategy
This ambitious investment plan is considered Adani Wilmar's most aggressive capital expenditure (capex) strategy to date. It follows discussions about selling a stake in the company. In July, Bloomberg reported that both the Gautam Adani-led firm and Wilmar International, were considering selling an equal minority stake in Adani Wilmar, totaling 13%. The proposed acquisitions are part of a broader growth strategy for the firm, which primarily serves food and FMCG customers in western, central, and northern India.
Financial performance and future plans
For the June quarter, Adani Wilmar clocked a standalone net profit of ₹323 crore, a significant turnaround from a loss of ₹38.44 crore in the same period last year. The company's revenue also saw an increase to ₹13,750.04 crore from ₹12,378.83 crore in the year-ago period. The group is reportedly planning to acquire one company each from southern and eastern India, that are well-established in the spices and ready-to-cook food business.
Adani Wilmar's stock performance
Adani Wilmar's shares have seen a significant increase of 27% from a low of ₹285.85 in November 2023, to ₹363 apiece now. It had a consolidated net profit of ₹313.2 crore, against a net loss of ₹78.92 crore a year ago. Revenue from the food and FMCG business, which primarily includes oil under the Fortune brand, wheat flour and rice, grew by 40%.
