Adani Wilmar Ltd (AWL) on Tuesday announced the acquisition of several brands, including McCormick Switzerland GMBH’s renowned ‘Kohinoor’ brand, to strengthen its leadership position in the grocery business.
The transaction size was not disclosed.
The acquisition would give AWL exclusive rights to the “Kohinoor” brand of basmati rice, as well as ready-to-cook, ready-to-eat curries and meals under the Kohinoor umbrella brand in India, the company said in a statement Explanation .
The addition of Kohinoor’s domestic brand portfolio strengthens AWL’s leadership position in the food FMCG category by expanding a strong product basket of premium brands along with the potential to scale value-added products.
The acquisition will propel the next stage of growth for AWL, expanding the portfolio to serve premium customer segments in rice and other value-added grocery stores, it added.
Kohinoor’s brand portfolio includes “Kohinoor” – for premium basmati rice, “Charminar” – for affordable rice and “Trophy” for the HORECA (hotel, restaurant and café) segment.
“We are excited to welcome the Kohinoor brand to the Fortune family. This acquisition is in line with our business strategy to expand our portfolio in the higher-margin branded consumer goods and grocery products segment.
“We believe the packaged food category is under-penetrated and has significant room for growth. The Kohinoor brand has strong brand recognition and will help expand our leadership position in the Food FMCG category,” said AWL Chief Executive Officer and Managing Director Angshu Mallick.
On Monday, AWL reported a 26% decline in consolidated net income to ₹234.29 billion for the quarter ended March, compared to ₹315 crore in the same period last year, due to higher tax expenses.
Total revenue increased from ₹10,698.51 billion in the corresponding period 2020-21 to ₹15,022.94 billion in the period January to March of the last fiscal year.
Throughout the 2021-22 financial year, the company’s net profit rose to £803.73 billion and total revenue increased to £54,385.89 billion year-on-year.
Adani Wilmar, a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar, recently went public after raising ₹3,600 crore through an initial public offering (IPO).