6 Nov 2023 , 11:39 AM
The Fortune brand of packaged grocery products and edible oils is Adani Wilmar Ltd.; the Adani Group is allegedly in talks to sell its entire 43.97% ownership in the company with a number of international consumer goods firms.
The group is requesting $2.5–3 billion for its share in the joint venture (JV) with Singapore-based Wilmar International, which also owns an equal 43.97% ownership in the company. A deal is expected to be finalized within a month, according to a November 6 story from the Economic Times.
Previous week, Adani Wilmar released much lower quarterly results for the current fiscal year’s September quarter, reporting a loss of Rs 131 crore as opposed to a profit of Rs 49 crore for the same period previous year. The company’s financial performance was influenced by a loss in revenues over the previous year, which was the cause of this decline in profitability.
The manufacturer of fast-moving consumer goods (FMCG) recorded a 13.3% decrease in revenue from the previous year, coming in at Rs 12,267.15. Even though the company was able to bring down overall expenses to Rs 12,439.45 crore, the decrease was substantial enough to leave them with a Rs 131 crore net loss.
Notably, billionaire Gautam Adani’s company Adani Enterprises in August made it clear that there were no intentions to sell its share of the FMCG joint venture and that there had been no events pertaining to this topic that needed to be disclosed.
In a regulatory filing, the business had stated, ‘We would like to clarify that as of now, there is no such event concerning the media report, which requires any disclosure from the company side in accordance with Regulation 30 of SEBI Listing Regulations.’
Following allegations, notably one from news agency Bloomberg, that Adani was considering selling its share in the JV in order to raise money for its primary business operations, the conglomerate released a statement outlining its stance on the possible sale of its interest in Adani Wilmar.
The 1999-founded JV has equal ownership between Adani and Wilmar. After raising Rs 3,600 crore in an initial public offering (IPO) in February 2022, both companies’ shareholdings were decreased to 43.97 percent each.
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