Gautam Adani Buys This Company To Compete With Mukesh Ambani
Asia’s richest man Gautam Adani is looking for local and overseas acquisitions for his kitchen essentials firm, Adani Wilmar Ltd. He decided to expand into the food business weeks after Reliance Industries Ltd. announced its foray into the consumer goods business.
HIGHLIGHTS
• Big conglomerates trying to get a share of the $400 billion Indian food production industry
• Adani Wilmar Ltd. bought the Kohinoor cooking brand
• The company will invest INR 5 billion for expansion
• Reliance Retail Ltd. has already announced its foray into the FMCG business in August
What Is The State Of The Indian Food Production Industry?
The food and Agriculture Organization of the UN has pegged the food production industry at $400 billion and it is expanding. Recently Reliance Industries Ltd. announced its foray into the fastest-moving consumer goods (FMCG) business intending to deliver high-quality goods while maintaining affordability.
How Is Adani Wilmar Ltd. Doing In FMCG Business?
The company bought some 32 firms valued at about $17 billion last year. And many of these firms are outside of the coal and infra-related business. It also bought the Kohinoor brand that sells basmati rice and ready-to-consume curries and meals in India from McCormick Switzerland for an undisclosed amount.
Angshu Mallick, chief executive officer, and managing director at Adani Wilmar said that the company had earmarked $62.9 million (INR 5 billion) from its IPO for expansion. Mallick further said that the additional funding would come from internal accruals and the 30 billion rupees of planned capital expenditure for the next year starting in April. Mallick further said that the company’s share had more than tripled since its $486 million debut in February.
