Adani Wilmar (AWL) announced the acquisition of several brands including the renowned Kohinoor from McCormick Switzerland GMBH for an undisclosed amount.
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 Kohinoor Brand umbrella in India. The brand portfolio comprises “Kohinoor” for premium Basmati rice, “Charminar” for affordable rice, and “Trophy” for the hotels, restaurants, and catering (HORECA) segment.
After this acquisition, AWL will strengthen its position with a 12 per cent market share in basmati rice. AWL’s Fortune had a 6.5 per cent market share and Kohinoor 5.2 per cent.
However, even after the buy, the combined entities will trail the market leaders India Gate. It has a 33 per cent market share, and Daawat has about 23 per cent market share.
Kohinoor is one of the trusted brands which represents the flavors of India and is well received by consumers, Angshu Mallick, chief executive officer, and managing director, Adani Wilmar, said.
“This acquisition is in sync with our business strategy to expand our portfolio in the higher margin branded staples and food products segment. We believe the packaged food category is under-penetrated with significant headroom for growth. The Kohinoor brand has a strong brand recall and will help accelerate our position in the Food FMCG category,” he added.
Other News
Edible oil major Adani Wilmar on Monday reported a 26 per cent decline in consolidated net profit at Rs 234.29 crore for the quarter ended March on higher tax expenses. The company had posted a net profit of Rs 315 crore in the year-ago period.
In a regulatory filing, Adani Wilmar reported that its total income increased to Rs 15,022.94 crore during the January-March period of last fiscal from Rs 10,698.51 crore in the corresponding period of 2020-21.
During the full 2021-22 financial year, the company’s net profit rose to Rs 803.73 crore from Rs 728.51 crore in the previous fiscal.
Total income grew to Rs 54,385.89 crore as against Rs 37,194.69 crore earlier.
Adani Wilmar, which sells its cooking oils and some other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar.
The company recently got listed on the stock exchange after raising Rs 3,600 crore through an Initial Public Offer (IPO).
The Russia-Ukraine war has hit sunflower oil consumption which has fallen 50 per cent as Ukraine is the largest supplier of sunflower to the world, said Adani Wilmar in its earnings update. The stock of the edible oil major seems to have taken a beating after the company’s statement.
Adani Wilmar’s tax expense in Q4 stood at Rs 79.1 crore as against a tax write-back of Rs 93.3 crore in the year-ago quarter. However, adjusting for the one-time write-back of tax in the year-ago quarter on account of switching to the new corporate tax regime. The company’s net profit in the reported quarter climbed 39 percent on the year, Adani Wilmar said in a post-earnings note.