Adani Wilmar looks to buy three FMCG brands in $1 billion deal

Adani Wilmar, the FMCG unit of the Adani group, looks all set to purchase three brands of packaged edibles, ready-to-cook food and spices in what is being estimated as a billion dollar deal. The aim is to have a stronger presence in the packaged consumer goods market, which is constantly evolving in India.

Billionaire Gautam Adani’s FMCG arm is widely known for its Fortune brand of products that include edible oil, Basmati rice, sugar, soya chunks, pulses, wheat flour and besan. The new FMCG deal could be the company’s most ambitious capex move yet.

Details are still to be confirmed but, according to Mint report, Adani Wilmar is likely to buy companies that are based in South and East India.

Adani Wilmar reported a net profit of Rs 323 crore in the June quarter of the fiscal year 2024-’25 (FY25), after witnessing losses worth Rs 38.44 crore in the same period last year. The company’s revenue grew from Rs 12,378.83 crore in the year-ago period to Rs 13,750.04 crore.

The latest news of expansion follows a report that appeared in Bloomberg a couple of months ago, which said the Adani Group and Singapore-based Wilmar International were planning to sell a small stake of Adani Wilmar. The two parent organisations were reportedly in talks to sell equal portions of stake that would amount to 13 per cent.

In related developments of the Adani Group, The Squirrels reported on Friday that Adani Ports and Special Economic Zone Limited (APSEZ) has finalised an agreement to acquire an 80 per cent interest in Astro Offshore for $185 million in a cash transaction. The company indicated the current promoters of Astro would retain the remaining 20 per cent interest.

“APSEZ has executed a definitive agreement to purchase an 80 per cent stake in Astro for $185 million in an all-cash transaction, which reflects an enterprise value of $235 million and an EV/FY25E EBITDA multiple of 4.4x. This transaction is anticipated to be accretive to value from the first year,” a statement said, adding: “Acquisition is part of APSEZ’s roadmap to becoming one of the world’s largest marine operators.”