Adani Enterprises to exit FMCG business: Report

Adani Enterprises Limited (AEL) has announced its decision to exit Adani Wilmar, its FMCG joint venture with Wilmar International’s subsidiary Lence Pte, to concentrate on its core infrastructure sectors. This move aims to realign its investments towards energy, utilities, transport, and logistics.

In a statement on Monday, AEL disclosed that divesting its stake in Adani Wilmar will generate $2 billion, which will be reinvested into the company's primary infrastructure platforms. The exit will occur in two phases: Lence will acquire a 31.06% stake from Adani Commodities LLP (ACL), AEL’s subsidiary, via a call and put option, and AEL will sell an additional 13% to adhere to public shareholding norms. The agreed share price will not exceed Rs 305 per share.

Upon completing these transactions, AEL will fully divest from Adani Wilmar. Consequently, Pranav V Adani and Malay Mahadevia, Adani’s nominee directors, will resign from the board, and the company is expected to undergo a name change.

Despite the announcement, Adani Wilmar's stock slightly dipped by 0.17% to Rs 329.5 per share, while Adani Enterprises' shares rose by 7.65% to Rs 2,593.45 per share on Monday. Adani Wilmar's market cap stood at Rs 42,824 crore as of December 30.

Established in 1999, Adani Wilmar has grown its FMCG presence with products including edible oils, rice grains, soya chunks, pulses, and cleaning products, under brands like Fortune and Kohinoor. For the quarter ending September 30, Adani Wilmar reported a revenue of Rs 14,460 crore, with its edible oils business contributing significantly. The company recorded an EBITDA of Rs 613 crore and a net profit of Rs 311 crore for the same period.

Adani Wilmar went public in February 2022, with ACL and Lence holding equal stakes of 43.94% each before the exit announcement.