Adani Wilmar will Purchase G.D. Foods, Manufacturer of Tops Ketchup

On February 4, the packaged goods business Adani Wilmar Ltd. agreed to acquire G.D. Foods Manufacturing (India) Pvt. Ltd., a smaller competitor that produces Tops noodles and ketchup. According to a stock exchange filing by Adani Wilmar, the acquisition would be carried out in many phases, with 80% of the shares to be purchased in the first tranche at an enterprise value of INR 603 crore and the remaining 20% to be purchased over the following three years. The Adani Group had amassed a $1 billion war fund for acquisitions to expand the conglomerate's food and packaged goods division, according to a September media report.

The Tops brand, owned by G.D. Foods, was established in 1984 and offers a variety of products, including tomato sauce, snack sauce, speciality and culinary sauces, pickles, jams, noodles, instant mixes, corn and chocolate flakes, and cooking supplies like vinegar, baking powder, cake mix, and corn flour. With more than 150,000 retail locations and its headquarters in Delhi, the corporation primarily sells in seven North Indian states.

Specifics of the Acquisition Deal

G.D. Foods made INR 386 crore in revenue and INR 32 crore in EBITDA in 2023–2024. Earnings before interest, taxes, depreciation, and amortisation is known as EBITDA. The first tranche is anticipated to close in 60 days, and the acquisition is contingent upon fulfilling standard closing conditions. Either internal accruals or the revenues from a public listing will finance the deal. The agreement represents Adani Wilmar's approach to meeting the changing demands of Indian homes. As the industry develops, reputable national food FMCG brands are clearly needed to provide high-quality, reasonably priced products that meet the basic requirements of Indian kitchens, according to Angshu Mallick, managing director and chief executive of Adani Wilmar. Adani Wilmar's best-in-class manufacturing operations and wide distribution network are essential for achieving this.

About Adani Wilmar

The Adani Group of India and the Wilmar Group of Singapore have partnered to form Adani Wilmar. Edible oil, wheat flour, rice, legumes, besan, and sugar are among the kitchen necessities that the company sells. It markets its goods under the Fortune and Kohinoor labels. Mallick went on to say that the business will make additional investments in the brand and greatly expand the reach of all of its products' distribution. The margin-accretive goods will be a major addition to Adani Wilmar's portfolio as a result of this acquisition. The company's 2023–24 sales were INR 51,262 crore; during the same period, its profit decreased from INR 582 crore to INR 148 crore. In the market for packaged goods, Adani Wilmar has competition from businesses like Marico Ltd., ITC Ltd., and Tata Consumer Products Ltd.