Adani Wilmar to invest Rs 600 crore to expand edible oil business

NEW DELHI: Adani Wilmar Ltd plans to invest around Rs 600 crore this fiscal mainly to expand its processing capacities of edible oil business and will launch more food products for consumers as well as institutional buyers to achieve higher growth in volume terms, its MD & CEO Angshu Malick said on Tuesday. This is over and above the ongoing expansion programmes of around Rs 3,400 crore to add capacities across businesses.

Adani Wilmar, an equal joint venture between Adani Group and Singapore’s Wilmar, also said that promoters need to bring down their stakes in the company to 75 per cent by February next year from the current 88 per cent to meet SEBI’s minimum public shareholding norm of 25 per cent with the current market cap being Rs 45,794 crore.

The Ahmedabad-based company is into edible oil, food & FMCG and industry essentials businesses. The company sells most of its products under the ‘Fortune’ brand. On Monday, Adani Wilmar reported a consolidated net profit of Rs 313.20 crore for the first quarter of this fiscal against a net loss of Rs 78.92 crore in the year-ago period. The total income rose to Rs 14,229.87 crore during the April-June period this fiscal from Rs 12,994.18 crore in the corresponding period of the previous year.