Adani Wilmar eyes FMCG expansion, sets aside $1 billion for 3 acquisitions

Adani Wilmar is planning to purchase at least three brands specialising in spices, ready-to-cook foods, and packaged edibles

To strengthen its foothold in India's expanding packaged consumer goods sector, Adani Wilmar is preparing to acquire three food companies, supported by a substantial $1 billion acquisition fund, according to a report by Livemint.

The company's strategy involves purchasing at least three brands specialising in spices, ready-to-cook foods, and packaged edibles. This move is part of its most ambitious capital expenditure plan to date.

With heightened interest from both global and local investors, the group plans to enhance its FMCG presence through strategic acquisitions over this and the next financial year, focusing on the southern and eastern parts of India.

Adani Wilmar bullish on FMCG growth

The group's long-term objective is to have 25-30 per cent of its total revenue derived from consumer-facing sectors such as food, FMCG, commodities, and airport services. Over the next two to three years, Adani Wilmar is expected to pursue several acquisitions, sources told Livemint.

A joint venture between Adani and Wilmar, Adani Wilmar offers a diverse range of food and FMCG products, including essentials like edible oil, wheat flour, rice, pulses, and sugar. Its flagship brand, Fortune, reaches 113 million households. The company also acquired the packaged rice brand Kohinoor in 2022.

The market for packaged staple food products is approximately 300 million tonnes, with edible oil consumption at 23 million tonnes, the report noted.

The Adani Group has yet to comment on these recent developments.

Adani Wilmar earnings

In the June quarter, Adani Wilmar reported revenues of Rs 14,169 crore, up from Rs 12,928 crore the previous year. The company achieved a consolidated net profit of Rs 313.2 crore, a turnaround from a net loss of Rs 78.92 crore a year earlier. Revenue from its food and FMCG segment, primarily consisting of Fortune-branded oil, wheat flour, and rice, grew by 40 per cent.

In the past year, Adani has expanded its food distribution network by 18 per cent, now reaching 740,000 direct outlets across 30,000 rural towns.

These acquisitions align with Adani's broader strategy to grow its digital ecosystem through its super-app, Adani One, launched last year. This app is designed to integrate the group's consumer-facing businesses, offering a comprehensive platform for accessing food, FMCG, and other products and services. Adani aims to engage 400 million users through the app by 2030.