Adani has strengthened its presence in the food segment with the acquisition of Kohinoor rice.
Adani Wilmar Limited (AWL), Tuesday announced the acquisition of several brands including the Kohinoor Brand – domestic (India region) from McCormick Switzerland GMBH for an undisclosed amount.
“The acquisition would give AWL exclusive rights over the brand ‘Kohinoor’ basmati rice along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India,” the company said in a release.
Adani is looking to cement its presence in the staples segment which contributes around 11 per cent to its topline.
The acquisition will fuel the next level of growth for AWL and widen the portfolio to cater to premium customer segments across rice and other value-added food businesses.
“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 a premium brand along with potential to scale value added products. It also leverages the reach of Kohinoor brand to drive synergies for AWL across geographies and complements the reach of its flagship brand ‘Fortune’ in the food FMCG domain,” AWL said in a statement.
The Kohinoor brand portfolio comprises of; “Kohinoor” – for premium Basmati rice; “Charminar” – for affordable rice and “Trophy” for HORECA segment.
“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,” Angshu Mallick, Chief Executive Officer and Managing Director of Adani Wilmar, said.
Adani Wilmar expects the acquisition to help in further consolidating its market share and leverage the brand for product extension and diversification.
Adani Wilmar’s flagship Fortune already has a strong presence in packaged foods including packaged wheat flour, rice, pulses, besan, sugar, soya chunks and cereals-based products such as ready-to-cook khichdi.