Adani Group is reportedly in talks with multiple multinational consumer goods companies to sell its entire stake in Adani Wilmar of 43.97 per cent. The deal is reportedly expected to be finalised within a month.
According to a report in a business daily, the conglomerate, led by Chairman Gautam Adani, is expecting $2.5-3 billion for the stake in the joint venture. Adani Wilmar, which owns the popular Fortune brand of edible oils, is a JV between the group and Singapore-based Wilmar International. Wilmar also owns 43.87 per cent in the company. The JV was incorporated in January 1999.
The group and Adani Wilmar have not made a comment on the report.
As per the report that cited a source, the group is planning to exit a few businesses to invest deeply in core focus areas such as infrastructure. Plans to disinvest in Adani Wilmar are part of those plans. The proceeds are expected to go into other investments and not to pare debt.
Reports of the group exiting non-core assets to create a liquidity buffer have been doing the rounds for the past few months. This came after the Hindenburg Research report led to a $150-billion wealth erosion for investors.
Adani Wilmar, apart from the Fortune brand, also offers other kitchen commodities including wheat flour, rice, pulses and sugar. It is one of the largest-growing packaged food companies in the country, as per its website. It is the largest lauric fat manufacturer and the largest manufacturer of castor oil in India. Adani Wilmar is also the largest exporter of castor oil and its derivatives.
The company has 23 plants across 10 states in India.
(With inputs from agencies)