Adani Wilmar, which has surpassed Hindustan Unilever as the country's largest FMCG firm in terms of sales, has purchased the famed basmati rice brands Kohinoor and Charminar from the US-based McCormick to extend its staple foods portfolio.
The acquisition price was not disclosed by the firm, which is a joint venture between Adani Group, founded by billionaire Gautam Adani, and Singapore agricultural powerhouse Wilmar International. However, it stated that the acquisition was paid for with IPO profits. From its Rs 3,600-crore IPO, it set aside Rs 450 crore for M&A.
Aside from Kohinoor and Charminar, Adani Wilmar has bought Trophy from McCormick, which is well-known in the hotel, restaurant, and catering (or HoReCa) sector.
The combined worth of the three brands is Rs 115 crore. The transaction strengthens Adani Wilmar's position as the number three player in India's branded basmati rice category and corresponds with the company's objective to expand its packaged food business. Kohinoor is classified as premium, whilst Charminar is classified as inexpensive.
Adani Wilmar also gains control of Kohinoor's ready-to-cook and ready-to-eat curries and meals portfolio. Furthermore, it will assist the corporation in premiumizing its portfolio, which will enhance profits.
In FY22, the packaged food company lost Rs 2,621 crore on revenue of Rs 2,621 crore. Because the company's primary emphasis is on expanding its packaged food line, the remaining IPO proceeds will be used for inorganic expansion.
