The Adani Group, led by Gautam Adani, is reportedly in discussions to divest its complete 43.97 per cent stake in Adani Wilmar, with the deal anticipated to be finalised within a month, as reported by a media house. Adani Wilmar, the owner of well-known brands like Fortune Oil and packaged groceries, is expected to fetch the conglomerate between USD 2.5-3 billion for its stake. Following this exit, the group aims to concentrate more on sectors such as infrastructure, according to an individual familiar with the situation.
The report also mentions that the group’s promoters have been contemplating the sale of their stake in non-core businesses since the release of the Hindenburg report earlier this year. This development comes amid two consecutive quarters of losses for the company. In the latest financial results, it recorded a consolidated net loss of Rs 130.73 crore for the July-September quarter, primarily due to challenges in the cooking oil sector.
Adani Wilmar’s total income during this period decreased from Rs 14,209.20 crore to Rs 12,331.20 crore compared to the previous year. The company’s total expenses for the second quarter of this fiscal were Rs 12,439.45 crore, down from Rs 14,149.62 crore in the same period of the previous year. In terms of sales volume, the company experienced an 11 per cent growth, amounting to 1.46 million tonnes.
Adani Wilmar’s Managing Director and CEO, Angshu Mallick, expressed confidence in the reversal of the edible oil sector’s profitability in the near future. The company attributed the losses in the edible oil segment to diverging trends in spot and future prices, resulting in hedging losses, although these were partially offset by improved margins in the Food & FMCG and industry essential segments.
