Adani Enterprises exit from consumer goods joint venture with Wilmar International

Adani Enterprises Ltd (AEL) announced its exit from the joint venture, Adani Wilmar Ltd (AWL), with Wilmar International. Adani Enterprises Ltd, Adani Group’s flagship company, made its exit from its stake in the joint venture that they started in 1999, in an exchange filing.   

According to the agreement, Adani Commodities LLP, an AEL subsidiary, will sell up to 31.06 percent of AWL's equity shares to Lence Pte Ltd, Wilmar's wholly owned subsidiary, through call or put options. To comply with public shareholding standards, AEL will also sell off about 13% of its shares, thus exiting its 44% investment in AWL. 

In addition, Wilmar International has said that it will buy the remaining 31% stake of Adani Enterprises in Adani Wilmar. AEL stated that the more than $2 billion in profits from the divestiture would be utilized on "core infrastructure platforms." Earnings from the divestment will be utilised to strengthen AEL’s primary infrastructure investments in primary industry, logistics, transport and energy. According to the company, this will position it as leading incubator of India for growth platforms  

AWL is the biggest food FMCG company in India, with a market valuation of Rs 42,785 crore ($5 billion) as of December 27, 2024. It has a substantial presence in both urban and rural areas. The company will change its name, and the board of AEL has decided to remove candidate directors from AWL's board.  
 
The Adani Group's nominee directors will resign from their positions on the Adani Wilmar board following this departure, and the parties have also decided to change the company's name. Adani Commodities owned 43.94% of the business as of the September quarter, with the remaining 43.94% being owned by Lence Pte., a division of Wilmar International.