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Packaged goods giant Adani Wilmar Ltd on Tuesday announced the acquisition of G.D. Foods Manufacturing (India) Pvt. Ltd, the maker of Tops ketchup and noodles, in a deal valued at ₹603 crore. The strategic move is part of Adani Wilmar’s broader plan to bolster its presence in the fast-moving consumer goods (FMCG) segment.
Transaction Details
The acquisition will be executed in multiple tranches. Adani Wilmar will acquire 80% of G.D. Foods’ shares in the first tranche at an enterprise value of ₹603 crore, with the remaining 20% to be acquired over the next three years.
“The price per share for the first tranche, i.e., 80% of shares, has been arrived at an agreed enterprise value of ₹603 crore (on a debt-free and cash-free basis) for the tranche 1 closing. For subsequent tranches, the price per share shall be arrived at on the basis of an enterprise value to be calculated by a predetermined method as set out in the share purchase agreement,” Adani Wilmar said in a stock exchange filing.
The first tranche is expected to close within 60 days, subject to customary closing conditions. The deal will be funded through internal accruals or proceeds from Adani Wilmar’s public listing.
Financial Performance of G.D. Foods and Adani Wilmar Acquistion
In the financial year 2023-24, G.D. Foods reported a revenue of ₹386 crore and an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of ₹32 crore. The acquisition is expected to add margin-accretive products to Adani Wilmar’s portfolio, enhancing the company’s overall profitability.
Angshu Mallick, managing director and chief executive of Adani Wilmar, highlighted the importance of the acquisition in meeting the evolving needs of Indian households.
“As the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality, affordable products that fulfil the essential needs of Indian kitchens. Delivering on this requires best-in-class manufacturing operations and a broad distribution reach, both of which are key strengths of Adani Wilmar,” Mallick said.
Adani Wilmar intends to invest further in the Tops brand, significantly expanding its distribution reach.
“We will further invest in the brand and significantly increase the distribution reach of all its products. This acquisition will lead to the significant addition of the margin-accretive products in our portfolio,” Mallick added.
Adani Wilmar’s Position in the Market
Founded in 1984, G.D. Foods is known for its Tops brand, which offers a range of products including tomato ketchup, snack sauce, speciality sauces, jams, pickles, noodles, instant mixes, corn flakes, choco flakes, and cooking essentials such as vinegar, baking powder, cake mix, and corn flour. The company is headquartered in Delhi, with its sales primarily concentrated across seven northern states. Tops products are available in more than 150,000 retail outlets.
Adani Wilmar, a joint venture between India’s Adani Group and Singapore’s Wilmar Group, sells essential kitchen items such as edible oil, wheat flour, rice, pulses, besan, and sugar under its Fortune and Kohinoor brands. The company reported revenues of ₹51,262 crore in 2023-24, though its profit declined to ₹148 crore from ₹582 crore in the previous year.
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