Jugeshinder Singh, the Adani Group’s Chief Financial Officer, said the company will make a decision in the next three months on the disposal of its interest in the Adani Wilmar joint venture.
A brief about Adani Group will decide in three months whether to offload its Wilmar JV interest
Singh was cited by news agency Reuters as stating, “We are currently studying the whether to keep or divest Wilmar stake,” outside of an event in Mumbai.
According to a report published last month, the Adani Group is in discussions to sell its whole 43.97 percent ownership in Adani Wilmar Ltd. with a number of international consumer products companies.
The joint venture is well-known for being the owner of the Fortune brand, which is especially well-known for its packaged grocery items and edible oils. According to sources, a deal might be completed in less than a month.
The conglomerate, which operates in a variety of industries including ports and renewable energy, is hoping to sell its share of the joint venture with Singapore-based Wilmar International for between $2.5 billion and $3 billion. Wilmar International also owns an equivalent 43.97 percent of Adani Wilmar Ltd.
This is a part of Adani Group’s larger strategy to get out of some companies and spend more heavily in core areas of focus, mainly infrastructure.
Adani Wilmar is a prominent participant in the edible oil industry, possessing a robust market presence. The company recorded revenues of Rs 55,262 crore and a net profit of Rs 607 crore for the preceding fiscal year.
It did, however, encounter difficulties in the second quarter of FY24, revealing a Rs 131 crore net deficit. Additionally, the business reported a deficit for the first quarter of the current fiscal year.
This is happening as Adani Group promoters are thinking about selling non-core asset shares to create a liquidity cushion after a negative report from US short seller Hindenburg Research caused a valuation decline.