White Organic Retail stock ends 4% lower on D-Street after promoters sold 55.01% stake to Suumaya Industries

‘Suumaya Group’ has emerged as one of the unique player in the entire Agri Value Chain.

Sep 28, 2021 04:09 IST India Infoline News Service

White Organic Retail Ltd (WORL) has informed that the promoters of the company has sold their 55.01% holdings to Suumaya Industries Limited (formerly known as Suumaya Lifestyle Limited) wholly-owned subsidiary – ‘Suumaya Retail Ltd.’

Through this acquisition, Suumaya Industries an emerging Diversified Conglomerate Group has marked its footprint into Food & Beverages Retail business through inorganic route.

‘Suumaya Group’ has emerged as one of the unique player in the entire Agri Value Chain – from ‘Seed to Fork’. The company is one of the leading player in the Agri segment by posting robust performance over the last two quarters.

WORL is now gearing up to integrate its operations with the “Suumaya Group”. The acquisition is nearing completion with few regulatory approvals awaited. The process is expected to be concluded soon and the management control will vest with “Suumaya Group”. Currently, the existing management is actively in discussion with the new promoters for smooth transition of the business operations and also drawing up the strategy for its next phase of growth.

The larger platform of “Suumaya Group” substantially widens the sourcing capability of WORL across pan-India. This would aid WORL significantly in terms of expanding its existing product basket and enjoy economies of scale and thereby improve margins.

WORL is positioned as a niche player focussing on Organic Products aimed at lifestyle and health conscious customer segment. Its premium positioning would be further strengthened as it would be now able to procure specialized Organic products from various respective States having their speciality in particular products.

WORL with its unique positioning in Health Focussed segment would be endeavouring in bringing its premium product offering to the masses primarily on the back of robust pan-India procurement capability of the “Suumaya Group”. Outbreak of Covid-19, has resulted in surge in healthy products especially organic food products, which would augur well for long term growth of the company.

Updating on the acquisition status, Darshak Rupani, Managing Director of White Organic Retail Limited said, “The acquisition of White Organic Retail Ltd by the wholly-owned subsidiary of Suumaya Industries Ltd is nearing completion. We are awaiting few final regulatory approvals and the entire deal would be closed soon.

In the intermittent period, we are working rigorously for smooth vesting of management control to the acquirer and at the same time ensuring business continuity. Our team is actively and jointly working with the ‘Suumaya Group’ for transition of the business operations. We are extending our full support for devising the next phase of growth by the new Promoter Group.

We are also excited that the new promoters have quite aggressive growth plans for WORL and that would be very much beneficial to the existing shareholders of the company.”

White Organic Retail ended at Rs275 per piece down by 4.20% on the BSE.

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