Indian FMCG major Adani Wilmar (AWL) has reached an agreement to acquire local sauces and pickles maker GD Foods Manufacturing (India). This strategic move aims to enhance AWL’s portfolio with value-added food products.
AWL announced this acquisition in a stock filing on Tuesday (4 March), revealing that the takeover of GD Foods, known for its ‘Tops’ ketchup brand, will occur in multiple tranches.
Initially, AWL will acquire an 80% stake in GD Foods, with the remaining 20% to be acquired over the next three years.
Founded in 1984 and headquartered in Delhi, GD Foods boasts a diverse product line that includes sauces, jams, pickles, noodles, and instant mixes.
Furthermore, the ketchup manufacturer has a robust retail presence, operating in over 150,000 outlets primarily located in seven northern Indian states, supported by three in-house manufacturing facilities.
Adani Wilmar MD and CEO Angshu Mallick stated, “The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households.”
He added, “With eight 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.”
In FY2024, GD Foods reported revenue of Rs3.86bn ($44.3m), showcasing a compound annual growth rate (CAGR) of 15% over the past three years.
Additionally, the company recorded earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs320m.
AWL emphasized that the ‘Tops’ brand ranks among the top three players in India’s tomato ketchup and pickles category. The company intends to invest further in the brand while significantly increasing the distribution reach of all GD Foods products.
“This acquisition will lead to the significant addition of margin-accretive products in our portfolio,” AWL added.
On his part, GD Foods vice chairman Nitin Seth remarked, “For the past 40 years, we have remained committed to understanding and meeting the needs of Indian households through innovative products.”
He further stated, “Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of homes.”
AWL plans to fund this transaction through internal accruals or proceeds from the company’s IPO.
The first tranche of the deal is expected to be completed within 60 days, subject to customary closing conditions.
Adani Wilmar operates as a joint venture between India’s Adani Group and Singapore-based agri-food leader Wilmar Group.
It maintains a diversified product portfolio, including kitchen staples such as the Fortune edible oil brand, wheat flour, rice, and sugar.
AWL manages 24 production facilities across ten states, featuring refineries, crushing units, and food manufacturing plants.
Notably, its refinery in Mundra, Gujarat, is recognized as the largest single-location refinery in India, boasting a designed capacity of 5,000 tonnes per day.
In January, Wilmar International announced plans to acquire a chunk of the shares held in India venture Adani Wilmar from its partner, Adani Enterprises, which is exiting the alliance.
Wilmar is poised to pay approximately Rs126.91bn for just over 31% of Adani Wilmar.