In August, Mukesh Ambani of Reliance announced that his company would start the FMCG business. After this, Adani Wilmar has also decided that she will increase her work in the food business of the country.
Gautam Adani’s company Adani Wilmar is in a new preparation. This company is making new acquisitions at domestic and foreign level. On this front, Adani has made preparations to give competition to Mukesh Ambani’s company Reliance Industries. Gautam Adani is currently the third richest person in the world and the richest person in Asia. Adani Group is going to enter consumer goods business very soon. In the recent AGM meeting, Mukesh Ambani had said that he is going to announce a new FMCG business soon. Apart from this, his Reliance Mart already runs. Now Gautam Adani has also made preparations to enter this area.
Adani Wilmar CEO and Managing Director Angshu Malik told ‘Bloomberg’, we are preparing to acquire staple food and distribution companies to expand the consumer goods business. Malik said that some acquisition work would be completed by March. For this work, Adani will take support of Wilmar IPO, through which Rs 5 billion will be raised. The rest of the money will be raised by the company. In April of the next financial year, Rs 30 billion has been earmarked for capital expenditure, which will help in acquisition of new companies.
Adani shares rise
Adani Wilmar’s shares have risen up to three times. It started in February with $ 486 million. After its listing in February, there has been a steady increase in the shares. Adani Group and Mukesh Ambani’s Reliance Company want to increase their business in the country’s food production industry. The business of food production in India is about 400 billion dollars. Adani Wilmar has recently acquired several companies, including the Kohinoor cooking brand.
Adani Wilmar bought Kohinoor from McCormick Switzerland Company. This company makes Basmati rice, ready-to-eat curries and food items. Last year, Adani Wilmar acquired 32 companies at a cost of $17 billion. Adani’s major work is in business related to coal and infrastructure. But the company has also increased its work in the business of food products.
Reliance-Adani clash
In August, Reliance Industries announced its foray into the business of fast moving consumer goods or FMCG. The company says that quality products will be delivered to the customers at low prices. Similarly, Adani Group will also increase its FMCG business and for this the distribution network will be strengthened. Adani Wilmar says that it has got up to 50 percent growth on e-commerce websites Amazon and Flipkart.
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