The Adani Group and Wilmar International plan to sell part of their stake in FMCG giant Adani-Wilmar – known for its Fortune brand of edible oils and packaged grocery products – to private equity (PE) firms and have approached a few companies in this regard, Business Standard reported.
The business newspaper quoted senior executives of some PE firms as saying that the two partners, which own 44% in Adani-Wilmar, have offered them a majority stake. No official was available for whether the Adani Group or Wilmar International for a comment.
The sale, if it happens, would be one of the largest transactions in the FMCG industry. The market valuation of Adani-Wilmar as of 6 December was Rs 51,513 crore, way down from its peak in January this year at Rs 81,268 crore, the newspaper reported.
“A joint team of Adani and Wilmar have approached PEs for a possible stake sale and we are looking at the proposal,” the head of a large US-based PE firm told Business Standard.
In an event held last week, Jugeshinder Singh, Adani group’s chief financial officer, had said the group was studying whether to keep or divest the Wilmar stake.
Adani and Wilmar’s JV was established in 1999. Following an initial public offering (IPO) launched in February 2022 to raise Rs 3,600 crore, their shareholdings were reduced to 43.97% each. After the exit, the conglomerate is expected to focus more on areas like infrastructure.
Apart from the FMCG sector, Adani-Wilmar has a stake in Vishakha Polyfab Private Limited, one of the largest high-barrier multilayer flexible film manufacturers in India.
Vishakha Polyfab was incorporated in the year 1993. Adani-Wilmar holds a 50% stake and the rest is held by the Doshi Family (Vishakha Group).
There was no clarity on whether the divestment of Adani-Wilmar’s deal with Vishakha Polyfab. When asked, a top official of Vishakha Polyfab said Adani is very much with Adani-Wilmar at present.