INDIA – Adani Wilmar, a leading packaged food company in India has denied speculation that the parent company, Adani Group was mulling the disposal of the 44% interest in the Adani Wilmar venture to raise funds for capital purposes.
Headed up by chairman Gautam Adani, the Indian conglomerate kicks back after an initial Bloomberg News report that the flagship company of the Adani group plans to sell its stake in a joint venture with Singapore’s Wilmar International.
However, in a notice posted with the Bombay Stock Exchange (BSE) on 10 August, Adani Enterprises refuted the claims.
Billionaire Adani and his family were said to be considering retaining a ‘minority stake in a personal capacity.
But the filing, signed off by Jatin Jalundhwala, the company secretary and legal joint president, read: “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 following the Regulation 30 of SEBI Listing Regulations”.
Adani Wilmar was set up in 1999 by Adani Enterprises and the Singapore group to produce and supply snacks, rice, pulses, flour, edible oils, and sugar, as well as home and personal-care products.
The company completed an IPO in 2022 after some delays, raising around Rs36bn ($435.5m today). However, under rules set by the Securities and Exchange Board of India (SEBI), individual or public shareholders must own at least 25% of a business within five years of a listing.
In April, the company recorded a year-on-year (YoY) volume growth of 14% in the last fiscal, helping the company’s revenue to cross Rs 55,000 crore (US$6.7M) in FY23.
The company attributed the growth to the food and FMCG sector driven by good progress in all enablers like sourcing, manufacturing, distribution, brand building, and strengthening the teams for the new products.
The company said that the food business is scaling up its operations in India in line with its expectations, adding that, it has reported good growth in both the key categories – wheat & rice.
After the speculation, a spokesperson for Wilmar International said in a brief statement noted that the company was unable to comment on Adani’s plans concerning their investment in Adani Wilmar but as far as Wilmar is concerned, “we remain committed to this investment.”