Adani's shopping plans: Three food companies, a billion-dollar wallet
₹51,261.63 crore in FY24, primarily caters to food and FMCG customers in the western, central and northern India. "The group is planning to acquire a company from southern India engaged in the spices and ready-to-cook food business. Another company the group plans to take over is from eastern India.
Both are quite established names, and the planned acquisitions may get the group an immediate foothold in the two regions," said the first person. In its FY24 annual report, Adani Wilmar said the company perceives a "substantial opportunity within the packaged foods business, recognizing its significant potential for growth." "Leveraging robust distribution and retail networks, formidable brand equity, strong sourcing capabilities, and a widespread manufacturing presence across India, Adani Wilmar is optimistic about becoming the country’s largest food FMCG company," it said. Adani primarily competes with Hindustan Unilever Ltd and Godrej Consumer Products Ltd in the FMCG space.
India's organized packaged foods retail market, valued at around ₹6 trillion, represents just 15% of the total food and grocery retail market, estimated at around ₹39.45 trillion, an Adani Wilmar presentation showed. The rising demand for packaged foods on the back of a shift in consumer preferences towards convenience and processed foods is compelling FMCG players to expand faster and diversify. Adani's presentation said that currently, the total addressable market for packaged staple food products stands at nearly 300 million tonnes, including edible oil consumption of 23 million tonnes.
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