MUMBAI: Adani Wilmar, which ousted Hindustan Unilever from the top spot to become the country’s top FMCG company by revenue, has acquired US-based McCormick’s renowned basmati rice brands Kohinoor and Charminar to expand its staple food portfolio.
The company, a joint venture between the Adani Group, led by billionaire Gautam Adani, and Singapore-based agribusiness Wilmar International, did not disclose the consideration for the acquisition. The purchase was financed from the proceeds of the IPO, it said.
It had earmarked Rs 450 crore for mergers and acquisitions from its 3,600 crore IPO raise.
Aside from Kohinoor and Charminar, Adani has acquired Wilmar Trophy – which is popular in the Hotel, Restaurant and Catering (or HoReCa) segment – from McCormick. The three brands are valued at Rs 115 crore. The deal strengthens Adani Wilmar’s position as number three in India’s branded basmati rice segment and is in line with its strategy to grow its packaged food business.
Kohinoor is positioned in the premium category while Charminar falls in the affordable segment.
The deal also gives Adani Wilmar the rights to Kohinoor’s portfolio of ready-to-cook curries and dishes. Additionally, it will help the company upgrade its portfolio, which will improve its margins.
The packaged food business, which had sales of Rs.2,621 crore, posted a loss in FY22. With the company’s focus on expanding its packaged food portfolio, it will use the residual proceeds from the IPO for inorganic growth.
The company, a joint venture between the Adani Group, led by billionaire Gautam Adani, and Singapore-based agribusiness Wilmar International, did not disclose the consideration for the acquisition. The purchase was financed from the proceeds of the IPO, it said.
It had earmarked Rs 450 crore for mergers and acquisitions from its 3,600 crore IPO raise.
Aside from Kohinoor and Charminar, Adani has acquired Wilmar Trophy – which is popular in the Hotel, Restaurant and Catering (or HoReCa) segment – from McCormick. The three brands are valued at Rs 115 crore. The deal strengthens Adani Wilmar’s position as number three in India’s branded basmati rice segment and is in line with its strategy to grow its packaged food business.
Kohinoor is positioned in the premium category while Charminar falls in the affordable segment.
The deal also gives Adani Wilmar the rights to Kohinoor’s portfolio of ready-to-cook curries and dishes. Additionally, it will help the company upgrade its portfolio, which will improve its margins.
The packaged food business, which had sales of Rs.2,621 crore, posted a loss in FY22. With the company’s focus on expanding its packaged food portfolio, it will use the residual proceeds from the IPO for inorganic growth.
