FMCG giant Adani Wilmar acquires Kohinoor brand

The stock has witnessed profit-taking from higher levels and is down by nearly 14.5 per cent from its 52-week high.   

Adani Wilmar Limited (AWL), one of the largest and the fastest-growing packaged food FMCG companies in India offering a wide array of consumer products, announced the acquisition of several brands including the renowned Kohinoor brand - domestic (India region) from McCormick Switzerland GMBH for an undisclosed amount.  

In essence, the acquisition would give AWL exclusive rights over the brand 'Kohinoor’ basmati rice along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the umbrella brand of Kohinoor in India.   

The addition of Kohinoor’s domestic brand portfolio strengthens Adani Wilmar’s leadership position in the food FMCG category by augmenting a strong product basket with a premium brand along with the potential to scale value-added products. It also leverages the reach of Kohinoor brand to drive synergies for AWL across geographies and complements the reach of its flagship brand ‘Fortune’ in the food FMCG domain. The acquisition will fuel the next level of growth for AWL and widen the portfolio to cater to premium customer segments across rice as well as other value-added food businesses.   

The stock jumped more than 50 per cent in the month of April when the frontline indices were seen trading volatile with a negative bias. Meanwhile, on a YTD basis, the stock is up by a staggering 180 per cent. Having said that, the stock has witnessed profit-taking from higher levels and is down by nearly 14.5 per cent from its 52-week high.   

Interestingly, the stock of Adani Wilmar has surpassed Hindustan Unilever Ltd (HUL) and took a numero uno position in the FMCG space as the former reported revenue for FY21-22 at Rs 54,214 crore. Meanwhile, the revenue of HUL for FY21-22 stood at Rs 51,468 crore.