Indian FMCG major Adani Wilmar (AWL) has agreed to acquire local sauces and pickles maker GD Foods Manufacturing (India) to expand its portfolio with “value-added food products”.
In a stock filing released on Tuesday (4 March), AWL announced that the acquisition of GD Foods, the owner of the ‘Tops’ ketchup brand, will be completed in multiple tranches.
Go deeper with GlobalData
In the first tranche, AWL will acquire an 80% stake in GD Foods, with the remaining 20% to be acquired over the next three years.
Established in 1984 and Headquartered in Delhi, GD Foods has a portfolio of products including sauces, jams, pickles, noodles and instant mixes.
The ketchup maker has retail presence in more than 150,000 outlets, primarily across seven northern Indian states, and operates three in-house manufacturing facilities.
Adani Wilmar MD and CEO Angshu Mallick said: “The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households.
“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), reflecting a three-year compound annual growth rate (CAGR) of 15%.
The company also recorded earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs320m.
AWL stated that the ‘Tops’ brand is among the “top 3” players in India’s tomato ketchup and pickles category, adding that it 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 the margin-accretive products in our portfolio”, AWL added.
GD Foods vice chairman Nitin Seth said: “For the past 40 years, we have remained committed to understand and meet the needs of Indian households through innovative products.
“Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of homes.”
The FMCG major said that it intends to fund the transaction through internal accruals or proceeds from the company’s IPO.
The first tranche of the deal is anticipated to be completed within 60 days, subject to meeting customary closing conditions.
Adani Wilmar is a joint venture between India’s Adani Group and Singapore-based agri-food heavyweight Wilmar Group.
Its diversified product portfolio includes kitchen staples such as the Fortune edible oil brand, wheat flour, rice and sugar.
AWL operates 24 production facilities across ten states, including refineries, crushing units, and food manufacturing plants.
Its refinery located in Mundra town in the Indian state of Gujarat is the “largest” single-location refinery in the country with 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 leaving the alliance.
Wilmar is to pay around Rs126.91bn for just over 31% of Adani Wilmar.
