Mumbai: adani vilmareWhich has overtaken Hindustan Unilever from the top position to become the largest FMCG company in the country in terms of revenue. Basmati brands of rice kohinor And Charminar From US-based McCormick, to expand its Prime Food portfolio.
The company is a joint venture between the Adani Group and Singaporean agribusiness player led by billionaire Gautam Adani. Wilmer International, did not disclose the consideration for the acquisition. But it said the purchase was financed from the proceeds of the IPO.
It had earmarked Rs 450 crore for M&A from its Rs 3,600 crore IPO.
Apart from Kohinoor and Charminar, Adani Wilmar acquired trophy – which is popular in the hotel, restaurant and catering (or horeca) segment – from McCormick. The cost of all three brands is Rs 115 crore. The deal strengthens Adani Wilmar’s position as the number three player in India’s branded basmati rice segment and aligns with its strategy to grow its packaged food business.
Kohinoor falls in the premium category, while Charminar comes under the affordable category.
The deal also gives Adani Wilmar rights over Kohinoor’s ready-to-cook and ready-to-eat curry and food portfolio. Moreover, it will help the company to premiumize its portfolio, thereby improving its margins.
The packaged food business posted a loss in FY22 with a revenue of Rs 2,621 crore. Since the company’s focus is on expanding its packaged food portfolio, it will use the proceeds of the IPO for inorganic growth.
The company is a joint venture between the Adani Group and Singaporean agribusiness player led by billionaire Gautam Adani. Wilmer International, did not disclose the consideration for the acquisition. But it said the purchase was financed from the proceeds of the IPO.
It had earmarked Rs 450 crore for M&A from its Rs 3,600 crore IPO.
Apart from Kohinoor and Charminar, Adani Wilmar acquired trophy – which is popular in the hotel, restaurant and catering (or horeca) segment – from McCormick. The cost of all three brands is Rs 115 crore. The deal strengthens Adani Wilmar’s position as the number three player in India’s branded basmati rice segment and aligns with its strategy to grow its packaged food business.
Kohinoor falls in the premium category, while Charminar comes under the affordable category.
The deal also gives Adani Wilmar rights over Kohinoor’s ready-to-cook and ready-to-eat curry and food portfolio. Moreover, it will help the company to premiumize its portfolio, thereby improving its margins.
The packaged food business posted a loss in FY22 with a revenue of Rs 2,621 crore. Since the company’s focus is on expanding its packaged food portfolio, it will use the proceeds of the IPO for inorganic growth.