Adani Group Weighs Exiting India's Largest FMCG Company & Owners Of Fortune Brand

Adani Enterprises Ltd is reportedly considering selling its stake in Adani Wilmar, its consumer-staple joint venture with Wilmar International as the group seeks to shift focus to its core business and shore up liquidity.

As per a Bloomberg report, the conglomerate is planning a potential sale of its 44% stake in Adani Wilmar currently valued at $6.17 billion.

Meanwhile, Gautam Adani and his family is likely to retain a minority stake in a personal capacity following the sale, added the Bloomberg report. Wilmar might reportedly retain its stake in the business.

Adani Enterprises might decide to keep its stake, as per reports as the deliberations are still at an early stage.

Shares of Adani Wilmar Ltd witnessed a decline of 3.57% in morning trade today. Its 52-week high price is Rs 841.90 apiece and 52-week low price is Rs 327.00 apiece, respectively. It has a market capitalisation of Rs 49,647.72 crore.

Adani Wilmar stock declined 13% in last 6-months, fell 36% YTD, and tumbled 43% in last 1-year.

It is worth mentioning that Adani Wilmar Ltd has already dislodged Hindustan Unilever Ltd (HUL) from the spot of largest FMCG company in India. It happened after the company declared its Q4FY22 results. In Q4FY22 results, Adani Wilmar announced its operational revenue at Rs 54,214 crore in FY22 while HUL's yearly revenue stood at Rs 51,468 crore in FY 2021-22.

Adani Wilmar's large chunk of revenue arrived from the edible oil business. Edible oil business significantly contributed nearly 84% towards Adani group's top-line and continued to push Adani Wilmar's sales in FY 2022. In FY 2022, AWL's revenue from edible oil declared at Rs 45,401 crore, up 47% YoY against Rs 30,818 crore in FY21.

Commenting on the results, Adani Wilmar CEO and MD Angshu Mallick said, "We have delivered a steady growth in spite of the challenging macro environment. The food & FMCG segment registering double digit growth. We have continued to improve our market share across edible oil & food categories. We are also on track to implement our go-to-market strategy focused to capture the rural growth story. We will continue to invest in our brand, distribution, sourcing and manufacturing capabilities. Going forward, we will focus more on inorganic growth and strategic investments in the foods space."

Adani Wilmar for the quarter ended June 30, 2023 declared its consolidated total income at Rs 12,994.18 crore, down 6.82% as compared to its last quarter total income of Rs 13,945.02 crore. It announced its recent quarter net profit after tax at Rs -59.71 crore.

It is one of the largest FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses and sugar. Its products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups.