Adani Group in talks to sell its entire 43.97% stake in Adani Wilmar: Report
- Adani Group is in talks with multiple multinational consumer goods companies and the deal is expected to close within a month's time.
Adani Group is looking to sell its entire stake in Adani Wilmar Ltd, executives familiar with the matter told Economic Times. The billionaire Gautam Adani-led group holds 43.97% stake in Adani Wilmar, the company which sells a range of edible oils and food products under Fortune brand.
As per the newspaper report, Adani Group is in talks with a number of multinational consumer goods companies to exit the joint venture and the deal is expected to close within a months time, executives told ET.
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Earlier this year, there were media reports which had said that the flagship company of the ports-to-power conglomerate was planning to sell its stake in Adani Wilmar.
However, Adani Enterprises had denied reports of exiting Wilmar Ventures.
“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 in accordance with the Regulation 30 of SEBI Listing Regulations," said Adani Enterprises had said in an exchange filing.
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Adani Wilmar is an equal joint venture between business conglomerate Adani Group and Singapore-based Wilmar International wherein both hold 43.97% stake each.
Meanwhile, the Edible oil major on November 1 released its Q2 results wherein the company reported a consolidated net loss of ₹130.73 crore for the September 2023 quarter, as profitability was badly impacted in the cooking oil business. The company had posted a net profit of ₹48.76 crore in the year-ago period.
The total expenses of Adani Wilmar stood at ₹12,439.45 crore during the second quarter of this fiscal against ₹14,149.62 crore in the year-ago period. During the second quarter, the edible oil business contributed 58 percent to the total volumes while cooking oils accounted for 74 percent of the total revenue from operations, which stood at ₹12,267 crore.
“Profitability was adversely impacted due to loss in the edible oil segment, which was partially offset by better margins in the Food & FMCG and industry essential segments. Edible Oil losses are primarily driven by divergent trends in the spot (physical) and future prices, resulting in hedging losses," Adani Wilmar had said in a release.
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Business NewsCompaniesNewsAdani Group in talks to sell its entire 43.97% stake in Adani Wilmar: Report
First Published:6 Nov 2023, 10:01 AM IST
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