Adani Wilmar may acquire regional companies in kitchen essentials space
Mint Tuesday. “We are very eager to do it. Maybe by the year end, if we can." The acquisitions would be in the kitchen essentials space, he said, adding that more targets are available among regional companies.
“It should be in the space of kitchen essentials, ready-to-eat, ready-to-cook, and also spices, condiments, anything in that space," he said. “In these categories, there are mostly regional players, there are very few national players. Those present nationally, I don't think they have any reason to exit.
It is all the local, regional players, with presence in one or two states, those who have grown, but now they can't compete with the multinationals or large companies, so they look at exiting at a fair valuation." The company recorded revenue of ₹51,262 crore in FY24, with underlying volume growth of 10%. The food and FMCG vertical consisting of wheat flour, besan, rice and soya nuggets reported 23% growth in revenue to ₹4,994 crore. Edible oil revenue stood at ₹38,788 crore.
Adani Wilmar reported a profit of ₹313 crore for Q1 on Monday, on the back of stable edible oil prices. Revenue rose 10% to Rs 14,169 crore in the quarter. Shares of Adani Wilmar gained 2.3% to ₹352.35 on the BSE on Tuesday.
The stock has declined 15.3% in the past one year. The company, which listed on the stock exchanges in February 2022, had set aside ₹500 crore of its initial public offer proceeds for acquisitions and investments. In 2022, the company acquired basmati rice brand Kohinoor from McCormick Switzerland GMBH.
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