MUMBAI: Adani Wilmar, which dislodged Hindustan Unilever from the top spot to become the country’s largest FMCG company in terms of revenue, has acquired renowned basmati rice brands Kohinoor and Charminar from the US-based McCormick, to expand its staple foods portfolio.
The company, a joint venture between Adani Group, led by billionaire Gautam Adani, and Singapore agribusiness player Wilmar International, didn’t disclose the consideration for the acquisition. But it said that the purchase was financed from the IPO proceeds.
It had earmarked Rs 450 crore for M&A from its Rs 3,600-crore IPO-raise.
Apart from Kohinoor and Charminar, Adani Wilmar has acquired Trophy — which is popular in the hotel, restaurant and catering (or HoReCa) segment — from McCormick. The three brands are valued at Rs 115 crore. The deal fortifies Adani Wilmar’s position in India’s branded basmati rice segment as the number three player and aligns with its strategy to ramp up its packaged food business.
Kohinoor is positioned in the premium category, while Charminar falls in the affordable segment.
The deal also gives Adani Wilmar the right over Kohinoor’s ready-to-cook & ready-to-eat curries and meals portfolio. Further, it will help the company to premiumise its portfolio, which will improve its margins.
The packaged food business, with a revenue of Rs 2,621 crore, posted a loss in FY22. Since the company’s focus is on scaling up the packaged food portfolio, it will use the balance IPO proceeds for inorganic growth.
