BANKING AND ECONOMY
Adani Wilmar Limited (AWL) has acquired basmati rice brand Kohinoor’s India portfolio from McCormick Switzerland GMBH, which strengthens its position in the packaged food business. The brand portfolio comprises “Kohinoor” for premium Basmati rice, “Charminar” for affordable rice, and “Trophy” for the hotels, restaurants, and catering (HORECA) segment. The deal was undisclosed.
The company’s focus on growing its presence in the branded staples segment is also open to more acquisitions in the packaged food space. This acquisition will give the company exclusive rights over the ‘Kohinoor’s basmati rice’ along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the brand ‘umbrella’ in India.
After this acquisition, AWL will strengthen its position with a 12% market share in basmati rice. The acquisition was based, on the food business (non-edible oils portfolio) of the company has grown by 34% (in FY 21-22) as compared with the previous year and to continue with this type of growth. And this brand fits well in this strategy, as it is a versatile brand. The company has the option to extend this brand also to the non-basmati premium price segment.
The brand was being sold across only 30,000 outlets but we have a much wider distribution coverage of more than 1,00,000 outlets. For Adani Wilmar, nearly 35% of the edible oils business and about 40% of the branded staples business comes from the rural markets.