- 15 Sep 2022
- ICICIdirect Research
ADANI WILMAR SCOUTS FOR ACQUISITIONS
AWL - 312 Change: -1.45 (-0.46 %)News:
Adani Wilmar is scouting for local & overseas acquisition targets. The company is looking at acquiring brands in staple foods & distribution companies to boost consumer goods offering and reach. it has set aside Rs 500 from IPO proceeds for acquisitions. Adani Wilmar recently acquired several brands, including the Kohinoor cooking brand from McCormick Switzerland for an undisclosed amount. The acquisition gave Adani Wilmar exclusive rights over Kohinoor’s basmati rice and ready-to-cook, ready-to-eat curries and meals in India.
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We believe Adani Wilmar's foray into newer food categories would increase competition for existing FMCG and food companies like ITC, Nestlé, TCPL and Brittania. However, this would also accelerate a shift in consumption from the unorganised to the organised sector.
Impact:
Neutral.