MUMBAI: Adani Wilmar (AWL) is acquiring GD Foods which sells a range of sauces, pickles and other food products through its brand Tops. The acquisition will allow the company to step up its play in the kitchen essentials category and offer more choices to consumers in a competitive consumer goods market.
The acquisition will be closed in tranches- AWL will initially acquire 80% shares from the existing promoters of GD Foods in a deal valued at Rs 603 crore. The remaining 20% will be acquired in a phased manner over the next three years. GD Foods will continue to operate as a separate entity, AWL said in a filing on Tuesday.
Based in New Delhi with sales primarily concentrated in parts of North India, GD Foods started operations in 1984 as a noodles brand and eventually expanded its product portfolio, covering pickles, sauces, tomato ketchup, jams and other food items like instant mixes and corn flakes. For AWL which already sells kitchen staples edible oil, pulses and a host of food products including atta, suji, soya nuggets and poha through its flagship brand Fortune, addition of the Tops brand to its portfolio will allow it to provide consumers a full range of kitchen essentials.
The company’s strategy is to cater to the “kitchen needs of Indian households.” “With 8 new product categories added to our portfolio, we are laying a strong foundation to build a formidable presence in the value-added products market over time,” said Angshu Mallick, MD & CEO at AWL in a statement. The company will tap into its pan-India network to expand the reach of Tops.
AWL plans to fund the acquisition through internal accruals and IPO proceeds. Last year, the Adani Group announced its exit from the Wilmar joint venture, ending the Group’s 25-year presence in the staples sector. AWL secured shareholders’ nod to change the name of the company to AWL Agri Business.
FMCG brands have been on a shopping spree of late with players like Reliance Consumer Products, ITC closing acquisition deals to bolster their product portfolio and expand their play in the market.
