Adani Wilmar Buys Kohinoor Rice Brand: What’s Next?
Adani Wilmar Limited (AWL), one of the largest and fastest-growing packaged food FMCG companies in India, announced the accession of several brands, including the renowned Kohinoor Brand – domestic (India region) from McCormick Switzerland GMBH for an amount not known yet.
This joint venture between Adani Group and Wilmar Group of Singapore would provide exclusive rights over the brand Kohinoor basmati rice along with ‘Ready to Cook, Ready to Eat curries and meal portfolios under the Kohinoor Brand.
“The addition of Kohinoor’s domestic Brand Portfolio strengthens Adani Wilmar’s leadership position in the food FMCG category by augmenting a strong product basket with the premium brand along with the potential to scale value-added products,” said AWL.
As per the sources, the deal will also focus on increasing the reach of the Kohinoor rice brand to drive synergies for AWL across geographies and complements the reach of its primary brand Fortune in the food FMCG domain. The collaboration will uplift the growth level for AWL and broaden the portfolio to cater to premium customer segments across rice and other value-added food businesses.
Billionaire Gautam Adani’s firm targets in becoming a formidable player with the addition of the Kohinoor brand in the India region. Kohinoor – a premium Basmati rice, Charminar – an affordable rice brand and Trophy for the HORECA segment is what the Kohinoor brand portfolio comprises of.
Angshu Mallick, Chief Executive Officer and Managing Director of Adani Wilmar commented on the acquisition: “Adani Wilmar is pleased to welcome the Kohinoor brand to the Fortune family. Kohinoor is a trusted brand that represents India’s authentic flavours and is loved by consumers. This acquisition is in sync with our business strategy to expand our portfolio in the higher margin branded staples and food products segment. We believe the packaged food category is under-penetrated with significant headroom for growth. The Kohinoor Brand has a strong brand recall and will help accelerate our leadership position in the Food FMCG category.”
Adani Wilmar reported a 25.6% year-on-year decline in consolidated net profit to ₹234.3 crore due to higher inflation and the Russia-Ukraine crisis for the January-March quarter of 2022, which created demand and supply-side challenges. The sudden spike in sunflower oil prices due to Russia’s invasion of Ukraine, the major sunflower oil producers, pushed cost prices higher and eroded profit margins.
The firm’s consolidated revenue from operations rose 40.2% to ₹14,960.4 crores as compared to the quarter ended March 31, 2021. In terms of volume, on a quarter-on-quarter basis total sales stood at 1.29 MMT in Q4 FY22, up 16%.