Adani Eyes Acquisitions to Push Food Business in India, says CEO

Adani Wilmar Ltd., the kitchen essentials company owned by Gautam Adani, is looking for local and overseas acquisition targets as the richest man of Asia doubles down on expanding his empire’s food operations soon after Reliance Industries Ltd. announced its plans to start a consumer goods business.

In an interview on Wednesday, Angshu Mallick, Chief Executive Officer and Managing Director at Adani Wilmar stated, "We are looking at purchasing brands in staple foods and distribution firms to increase our consumer goods offering and reach.  We expect completing a few acquisitions by March."

According to Mallick, the business set aside 5 billion rupees ($62.9 million) from its initial public offering for purchases. Internal accruals and the 30 billion rupees in planned capital expenditures for the following year, beginning in April, will provide additional financing, he added. Since the company's $486 million launch in February, the share price of the food company has more than tripled.

Since its February listing, Adani Wilmar has achieved two milestones.

According to the UN's Food and Agriculture Organization, the food production business in India is estimated to be worth $400 billion. Conglomerates like the Adani Group and Reliance Industries, owned by billionaire Mukesh Ambani, are competing for a share of this market.

For an unknown amount, Adani Wilmar recently purchased a number of brands from McCormick Switzerland, including the Kohinoor cooking brand. Adani Wilmar now has exclusive rights to Kohinoor's ready-to-cook, ready-to-eat curries and dinners in India as a result of the acquisition.

The Adani Group has been on a purchasing spree, acquiring 32 firms worth nearly $17 billion over the course of the last year, many of which are outside of its core coal and infrastructure-related industries.