Adani Wilmar may add regional kitchen essentials brands to its portfolio as it seeks a wider market share

“We have not announced anything after acquiring the Kohinoor (Rice) brand, but we are working on it,” Adani Wilmar MD and CEO Anshu Malik said. mint Tuesday. “We'd very much like to do that, hopefully by the end of the year.”

He added that the acquisition will be in the kitchen essentials sector, with other regional companies also being targeted.

“Kitchen essentials, prepared foods, spices, condiments, everything in that space should be in there,” he said. “In these segments, most of the companies are regional, with very few national players. I don't see any reason for the national players to exit. They're all local, regional companies based in one or two states that have grown but are looking to exit at the right valuation because they can't compete with the multinationals and the big players.”

The company recorded a profit. ₹Revenues stood at Rs 51,262 crore in FY24, with underlying volume growth of 10%.The food and FMCG division, comprising flour, besan, rice and soya nuggets, saw sales grow by 23%. ₹The revenue from edible oil is ₹38,788 crores.

Adani Wilmar reported a profit. ₹First-quarter sales reached Rs 313 crore on Monday on the back of stable edible oil prices. Sales for the quarter grew 10 per cent to Rs 14,169 crore.

Adani Wilmar shares rose 2.3% ₹The stock price was trading at 352.35 on the BSE on Tuesday. The stock has fallen 15.3% in the last one year.

Target Evaluation

The company, which went public in February 2022, ₹The IPO proceeds of Rs 5,000 crore will be used for acquisitions and investments. The company acquired basmati rice brand Kohinoor from McCormick Swiss in 2022.

“We have already ₹We invested Rs 125 crore to acquire Kohinoor on May 22, so we still have the money in hand. ₹Adani Wilmar's chief financial officer Shrikant Kanhere said on Tuesday that the company plans to allocate Rs 4,000 crore from the IPO proceeds if there is an opportunistic acquisition opportunity.

Adani Wilmar on July 11 said it would acquire a 67% stake in speciality chemicals company Omkar Chemical Industries Private Limited for an enterprise value of $1.2 billion. ₹562.5 crore. While a deal is not expected to close anytime soon, the company continues to evaluate potential targets, Malik said.

“As part of the ongoing exercise, we continue to study a number of targets. Some are available, some are not,” he said.

Malik said consumption is likely to improve in the second half of the year.

“Overall, the first quarter has been good in terms of demand. Going forward, demand should improve as festival season, winter and marriage season are approaching. If the harvest is good, consumption will also increase,” he said.

Private consumption in the country has not kept pace with economic growth, and measures proposed in the budget such as lowering personal taxes, offering incentives for new workers and supporting rural growth would put more money in people's hands and spur spending, experts said.

Adani Wilmar is a 50:50 joint venture between Singapore's Adani Group and Wilmar Group. The two companies collectively held 87.87% of the joint venture as of March 31, below the minimum 25% threshold for public ownership.

“It has to do with regulatory compliance where the companies and promoters have to dilute another 13 per cent by February 2025. The promoters are certainly working on that,” Kanhere said.