Adani Enterprises board approves FMCG business

Delhi Delhi. The boards of directors of Adani Group’s flagship company Adani Enterprises and food company Adani Wilmar today approved the scheme of arrangement, under which AEL will transfer its 43.94 percent stake in Adani Wilmar to its shareholders. With this, the existing shareholders of Adani Enterprises will directly hold shares in Adani Wilmar. After the split, AEL shareholders will get 251 shares of AWL for every 500 shares of AEL or in that proportion. In a notice to the stock exchange, Adani Enterprises said that it will continue to develop new businesses and create sustainable and long-term value for its stakeholders. “Over the years, we have a track record of successfully incubating businesses across sectors, which are currently leading players in their respective sectors and delivering substantial returns to their shareholders. In line with this, AEL’s board of directors has approved the demerger of AEL’s food FMCG business into Adani Wilmar as well as AEL’s strategic investment in Adani Commodities LLP. The food FMCG business has become self-sustaining, is performing well, and is poised to grow further under AWL. For AEL, this arrangement will not only unlock value for shareholders but also allow for a focused strategy for sustainable growth in its incubating businesses,” it said.

“This demerger is in line with AEL’s incubation strategy, which involves demerging the business once it is self-sustaining and properly established. In the past, AEL has demerged businesses such as Adani Green Energy, Adani Energy Solutions (earlier Adani Transmission), etc once they were self-sustaining,” a group source said. No cash consideration is payable under the proposed scheme. It said the turnover of the demerged undertaking, i.e. the food FMCG business of the demerged company, was zero as on March 31. The company also said that each of the diversified businesses carried on by the demerged company, whether on its own or through its subsidiaries or associates, including the food FMCG business, has significant potential for growth and profitability. “The food FMCG business and the other businesses of the demerged company are capable of attracting a different set of investors, strategic partners, lenders and other stakeholders,” AWL said in its filing. “There are also differences in the manner in which the food FMCG business and the other businesses of the demerged company are handled and managed,” the filing said. The company also said the separation will increase management focus in the food FMCG business and the other businesses, thereby facilitating management to efficiently exploit opportunities for each business and also provide scope for independent synergies and expansion. Adani Wilmar shares closed 0.19 per cent higher at Rs 348.80 per share on the NSE, while Adani Enterprises shares closed 1.76 per cent higher at Rs 3,225.10 per share.