Adani Wilmar plans acquisition of brands, processing units in the rice segment

Adani Wilmar is looking to acquire brands and processing units in the rice segment. The company had acquired a sick rice processing unit in West Bengal to mark the journey in the segment which is 30-35 million tonnes per annum in size.

It is currently betting big on staples and scouting for acquisition of regional rice brands and processing units in several states of the country, according to a company official. The company will launch branded daily-use rice under the fortune brand beginning with West Bengal from early April. Staple is just 11 percent of the company’s topline.

Acquisitions allow quicker rollout and rapid growth. Greenfield will take at least two years to begin operation. The company is already into Basmati but it is only 10 per cent of rice consumption so the idea is to focus on regional local rice used for daily consumption which is a huge untapped market.

“We are planning to launch packaged local rice based on regional preference. In Bengal, we will launch Baskati and miniket rice which is common here. Sona masuri in Uttar Pradesh and Kolam rice in South India,” said Adani Wilmar MD & CEO, Angshu Mallick to PTI.

The company which hit the capital market recently had earmarked Rs 450-500 crore for acquisition and atta and rice is major focus area in the staples segment. Adani is scouting for more rice units and brands in North India and South India. “We will ideally have one unit each in states first and then gradually scale up. We will procure paddy from farmers, mandis and brokers,” Mallick added. Adani Wilmar has 22 own factories in total and has sourcing arrangement products from 28 more plants across the country. Staple contributes 11 per cent to Adani Wilmar’s topline while the rest is from edible oil and industry essentials. The aim is for 30 percent growth in the food segment and 6-7 per cent in edible oil in volume terms.

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