Adani in talks with FMCG firms to sell its full 43.97% stake in Wilmar JV

Adani and Wilmar share equal ownership in the JV, which was established in 1999.

The Adani Group is reportedly in talks with multiple multinational consumer goods companies to divest its complete 43.97 percent stake in Adani Wilmar Ltd, which is known for its Fortune brand of edible oils and packaged grocery products.

A deal is likely to be sealed within a month and the group is seeking $2.5-3 billion for its stake in the joint venture (JV) with Singapore-based Wilmar International, which also holds an equal 43.97 percent stake in the company, the Economic Times reported on November 6.

Moneycontrol could not verify the report independently.

Adani Wilmar last week reported significantly lower numbers for the September quarter of the current financial year, posting a loss of Rs 131 crore against a profit of Rs 49 crore in the year-ago period. This drop in profitability was attributed to a decline in revenues over the past year, which impacted the company’s financial performance.

Also Read: Adani Wilmar swings into Rs 131-crore losses in Q2 as revenue declines over 13%

The fast-moving consumer goods (FMCG) maker reported a 13.3 percent 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.

Notably, Adani Enterprises, backed by billionaire Gautam Adani, in August clarified that there were no plans to sell its stake in the FMCG JV, saying there was no event related to this matter that required disclosure.

Also Read: Adani Enterprises clarifies on reports of plan to exit Wilmar venture

“We would like to clarify that as of now, there is no such event concerning the media report, which requires any disclosure from the company side in accordance with the Regulation 30 of SEBI Listing Regulations," it had said in a regulatory filing.

Also Read: Adani Power up on stellar Q2 numbers, other Adani stocks in the green too

The statement clarifying the conglomerate’s position on the potential sale of its stake in Adani Wilmar came after reports, including one by news agency Bloomberg, suggested that Adani was exploring the possibility of selling its stake in the JV to allocate capital for its core business activities.

Adani and Wilmar share equal ownership in the JV, which was established in 1999. Following an initial public offering (IPO) launched in February 2022 to raise Rs 3,600 crore, both companies' shareholdings were reduced to 43.97 percent each.