Just Food

Daily Newsletter

11 August 2023

Daily Newsletter

India’s Adani kicks back at Adani Wilmar stake sale talk

Singapore partner Wilmar International has said it is “committed” to the venture on its part.

Adani Enterprises has effectively denied the Indian conglomerate plans to sell its stake in a joint venture with Singapore’s Wilmar International.

Speculation surfaced this week that the parent company, Adani Group, headed up by chairman Gautam Adani, was mulling the disposal of the 44% interest in the Adani Wilmar venture to raise funds for capital purposes.

Billionaire Adani and his family were said to be considering retaining a ‘minority stake in a personal capacity’. Adani Wilmar was set up in 1999 by Adani Enterprises and the Singapore group to produce and supply snacks, rice, pulses, flour, edible oils and sugar, as well as home and personal-care products.

However, in a notice posted with the Bombay Stock Exchange (BSE) today (10 August), Adani Enterprises refuted the claims.

The filing, signed off by Jatin Jalundhwala, the company secretary and legal joint president, read: “We would like to clarify that as of now, there is no such event concerning the media report, which requires any disclosure from the company side in accordance with the Regulation 30 of SEBI Listing Regulations.”

Adani Wilmar completed an IPO in 2022 after some delays, raising around Rs36bn ($435.5m today). However, under rules set by the Securities and Exchange Board of India (SEBI), individual or public shareholders must own at least 25% of a business within five years of a listing, Bloomberg reported this week.

Adani Enterprises added today: “In the event there is any development that requires disclosure under the Regulation 30 of the SEBI Listing Regulations, we will disclose the same in accordance with the regulatory requirements.”

Meanwhile, Adani Wilmar also filed a note with the BSE yesterday: “We would like to clarify that we are unable to comment on media speculation and rumours and it would be inappropriate on our part to do so.”

A spokesperson for Wilmar International said in a brief statement sent to Just Food: “We are unable to comment on Adani’s plans with regard to their investment in Adani Wilmar but as far as Wilmar is concerned, we remain committed to this investment.”

Adani Wilmar is headed up by CEO Angshu Mallick and owns the rice brands Kohinoor, Fortune and Trophy Royale. The business runs 23 production plants across ten Indian states, according to its website.

In the year to 31 March, Adani Wilmar reported total revenue of Rs581.8bn, an increase of 7% over the previous 12 months. It posted profit after tax of Rs5.8bn.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.