Gautam Adani's company to acquire popular brand for Rs 603 crore, its business is...

Indian billionaire Gautam Adani has a presence in several sectors, including FMCG. Now, the billionaire's FMCG firm Adani Wilmar Ltd (AWL), a joint venture between Adani Group and Wilmar Group of Singapore, has announced the acquisition of GD Foods Manufacturing for Rs 603 crore, ET reported. GD Foods sells food products like pickles and sauces under the Tops brand. Whereas, Adani Wilmar sells edible oils and other food products under the Fortune brand. In a regulatory filing, the company informed that it has signed a definitive agreement to acquire GD Foods Manufacturing (India) Private Limited.

How will the acquisition take place?

The acquisition will be executed in multiple tranches, with 80 per cent of the shares to be acquired in the first tranche and the remaining 20 per cent over the next three years. The acquisition will be subject to compliance of the customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds, it said. Adani Wilmar said the acquisition offers a strategic advantage by expanding its portfolio with a broad range of value-added food products. In December 2024, Adani Enterprises of Gautam Adani had announced to exit from Adani Wilmar.

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Adani Wilmar Managing Director and CEO Angshu Mallick said the acquisition will lead to the significant addition of margin-accretive products in Adani Wilmar's portfolio. "We will further invest in the brand and significantly increase the distribution reach of all its products." As the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality and affordable products that fulfil the essential needs of Indian kitchens, he said.

GD Foods

Founded in 1984, GD Foods' 'Tops' brand has built a strong reputation as a household brand in North India over the last 40 years, offering products in categories spanning across tomato ketchup, snack sauce, specialty sauces and culinary sauces, jams, pickles, noodles, instant mixes, corn and choco flakes and cooking essentials like vinegar, baking powder, cake mix and corn flour. In FY24, GD Foods achieved a revenue of Rs 386 crore, growing at a three-year CAGR of 15 per cent, and recorded an EBITDA of Rs 32 crore.

(With inputs from PTI)