The Gautam Adani group is reportedly in talks with multinational consumer goods companies to sell its complete 43.97% stake in Adani Wilmar Limited – known for its Fortune brand of edible oils and packaged grocery products, the Economic Times reported.
The company has been posting losses for two consecutive quarters. Last week, it reported a loss of Rs 130.73 crore for the July-September quarter compared to a profit of Rs 49 crore in the same quarter of the previous financial year, as profitability erodes the cooking oil business.
The report said a deal is likely to be sealed within a month. The group is hoping for $2.5-3 billion for its stake in the joint venture (JV) with Singapore-based Wilmar International, which holds an equal 43.97% share in the company. The company, though, in August had denied any plan to sell its stake, after a report in Bloomberg.
The fast-moving consumer goods (FMCG) maker reported a 13.3% year-on-year drop in revenue at Rs 12,267.15. While the company did manage to reduce total expenses to Rs 12,439.45 crore, the drop was significant enough to result in a net loss of Rs 131 crore, MoneyControl reported.
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, the report said.