Adani Wilmar looks for local & global acquisitions to expand its consumer goods business.
Asia’s richest man, Gautam Adani, owns the kitchenware company Adani Wilmar Ltd., which is looking for local and international acquisition targets. This comes just a few weeks after Reliance Industries Ltd. announced plans to start a consumer goods business.
Adani Wilmar’s CEO and managing director, Angshu Mallick, said in an interview on Wednesday that the company is looking to buy brands of staple foods and distribution companies to expand its consumer goods business. ‘By March, we hope to have bought a couple of businesses.’
Mallick said that the company has set aside ₹500 crores ($62.9 million) from its IPO to buy things. He said that the extra money will come from the company’s own savings and the ₹3,000 crores that will be spent on capital projects starting in April of next year. Since its $486 million debut in February, the shares of the food company have gone up more than three times.
The UN’s Food and Agriculture Organization says that the food production industry is worth $400 billion. Big companies like Adani Group and Mukesh Ambani’s Reliance Industries are trying to get a piece of it.
McCormick Switzerland sold several brands to Adani Wilmar, including the cooking brand Kohinoor, for an amount that is not known. Adani Wilmar now has the only rights to sell basmati rice and ready-to-cook, ready-to-eat curries and meals made by Kohinoor in India.
The Adani Group has been on a buying spree over the past year, buying 32 companies worth about $17 billion. Many of these companies are not related to coal or infrastructure, which are their main businesses.
Reliance Retail Ltd., which is a subsidiary of Reliance Industries, announced in August that it would be getting into the fast-moving consumer goods, or FMCG, business. Its goal is to make and sell high-quality products at prices that most people can afford.
‘Companies need to offer quality products, good value for money, and a strong distribution network in the future,’ Mallick said, adding that his company is seeing a 50% rise in e-commerce sales through Amazon and Flipkart.