Reportedly, the Adani Group is actively exploring the possibility of divesting a stake in Adani Wilmar, its consumer-staple joint venture in collaboration with Wilmar International. This move aligns with the group\’s purported intent to concentrate on its primary business endeavors and enhance its financial liquidity.
Sources indicate, as per a Bloomberg report, that the conglomerate has initiated discussions about selling a portion of its existing 44 percent ownership in Adani Wilmar, currently estimated at a value of $6.17 billion.
In this prospective arrangement, Gautam Adani, the group\’s chairman, and his family may choose to retain a minority interest on a personal level subsequent to the sale. Conversely, Wilmar International might opt to maintain its stake in the enterprise.
Furthermore, it\’s mentioned that Adani Enterprises might opt to retain its own stake, although these deliberations are still in their preliminary stages.
Established as a joint venture between the Adani Group and the Wilmar Group in January 1999, this Fast-Moving Consumer Goods (FMCG) company offers a diverse range of essential kitchen commodities, encompassing edible oils, wheat flour, rice, pulses, and sugar. Presently, the company operates across 23 manufacturing plants situated in 10 Indian states. The flagship product within its portfolio is the edible oil brand \”Fortune.\”
In the first quarter concluding in June 2023, Adani Wilmar reported a loss amounting to Rs 79 crore. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a decline of 71 percent, reducing to Rs 130 crore in Q1 as opposed to Rs 443 crore recorded in the corresponding period of the prior fiscal year. EBITDA also saw a 64 percent decrease from Rs 349 crore in the preceding quarter, ending in March 2023. Moreover, the gross profit experienced a 21 percent contraction, diminishing to Rs 1,178 crore in Q1 compared to the Rs 1,494 crore profit achieved in the equivalent quarter of the previous fiscal year.
Earlier this year, stocks associated with the Adani Group faced a substantial decline of approximately $147 billion in market value, largely in response to a critical report by Hindenburg Research that leveled allegations of stock manipulation and financial improprieties against the company. In response, the conglomerate dismissed the report as a baseless and malicious attempt to tarnish its reputation.
In a related event, the Adani Group was compelled to cancel a follow-up public offering (FPO) valued at Rs 20,000 crore, the decision being made a day after its successful closure.