Adani Group weighs stake sale in Adani Wilmar, exiting $6 bn JV: Report

The Adani Group is reportedly exploring a stake sale in Adani Wilmar, its consumer-staple joint venture with Wilmar International. This comes amid reports that the group is aiming to focus on its core business and shore up liquidity.

According to a report in Bloomberg, the conglomerate has been considering a potential sale of its 44 per cent stake in Adani Wilmar that is currently valued at $6.17 billion.

Chairman of the group, Gautam Adani and his family could retain a minority stake in a personal capacity following the sale, the report added. Wilmar could retain its stake in the business.

Moreover, Adani Enterprises might decide to keep its stake, the report stated, adding that the deliberations are still at an early stage.

The FMCG company that offers a range of essential kitchen items including edible oil, wheat flour, rice, pulses and sugar, was incorporated as a joint venture in January 1999 between the Adani Group and the Wilmar Group. As of now, the company has 23 plants across 10 states in India. Edible oil brand Fortune is their flagship brand.

In the first quarter ended June 2023, Adani Wilmar reported a loss of Rs 79 crore. EBITDA slipped 71 per cent to Rs 130 crore in Q1 against Rs 443 crore in the Q1 of last fiscal. EBITDA fell 64 per cent from Rs 349 crore in the March 2023 quarter. Gross profit slipped 21 per cent to Rs 1,178 crore in Q1 against Rs 1,494 crore profit in the corresponding quarter of the last fiscal.

Adani Group-linked stocks lost nearly $147 billion in market value earlier this year following the scathing report by Hindenburg Research that accused the company of stock manipulation and financial misdeeds. The conglomerate called the report a ‘malicious attempt’ at damaging its reputation.

The conglomerate had to call off its Rs 20,000 crore follow-up public offer (FPO), a day after it was successfully closed.

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