8 Jan 2025
Adani Enterprises had proposed a FMCG business demerger in August 2024, which was withdrawn in October.
On December 30th, Adani Enterprises announced its decision to sell the entire 43.94% stake in Adani Wilmar Limited. It sold 31.06% to Singapore-based Wilmar International and plans to sell the remaining ~13% in the open stock market for a total of $2 billion.
Adani’s exit from Adani Wilmar, its FMCG business, was long expected. Adani Wilmar makes cooking oil, wheat flour, and other edibles under the ‘Fortune’ brand. The edible oil share declined steadily due to rising import costs and weak demand, but Adani retained market leadership at 20%. The edible oil segment contributes 80% to Adani Wilmar's revenue share but offers lower profitability, with a margin of just 0.33% in FY2024.
This is the biggest deal after Adani was indicted in the US on bribery charges in November. The matter pushed the conglomerate to focus on reducing the debt of ₹2.4 lakh crore in FY2024 from its listed companies.