Adani Enterprises Plans Exiting from $6 billion Wilmar venture

Mumbai(India), 09/0823: Adani Enterprises Ltd. is considering selling its stake in its Mumbai-listed consumer-staple joint venture with Wilmar International Ltd. in order to free up funds for their main business.

The conglomerate has been exploring selling its 44% holding in Adani Wilmar Ltd. for a few months, according to the people, who asked not to be identified because the information is classified. According to Bloomberg estimations, Adani’s shares are worth approximately $2.7 billion at the current share price.

According to the sources, billionaire Gautam Adani and his family may keep a minority ownership in the company after it is sold. Wilmar, the Singapore-based food behemoth co-founded by billionaire Kuok Khoon Hong in 1991, could decide to keep its investment in the company, according to one of the sources.

The discussions are still in their early stages, and Adani Enterprises may decide to preserve its stake, according to the sources. According to an Adani spokesman, the company will not comment on market speculation.

Adani Wilmar shares have plunged 36% this year, putting the company at roughly $6.2 billion. Adani-linked companies had lost more than $150 billion in market value at one point after US-based short seller Hindenburg Research accused the business empire of fraud. The Adani Group has refuted all allegations of malpractice.

According to its website, Adani Wilmar is a so-called fast moving consumer goods company that provides numerous key kitchen commodities for Indian consumers such as edible oils, wheat flour, rice, pulses, and sugar. According to its annual report, the company’s products reach over 114 million households through more than 10,000 distributors. In India, it competes with ITC Ltd. and Hindustan Unilever Ltd.

In the fiscal quarter ending June 30, the corporation reported a net loss of ₹790 million. The loss was attributed to dropping edible oil prices and high-cost inventories by management.