Adani Wilmar signed a big deal, preparing to buy GD Foods of TOPS brand

Taking a big decision, the FMCG company led by Billionaire Gautam Adani (Adani Wilmar Ltd.) has made an agreement to acquire GD Foods Manufacturing, GD Foods Manufacturing, a big decision. The company of Adani Group gave this information in the exchange filing.

This deal will be completed in several stages, in which 80% shares will be purchased in the first installment and the remaining 20% ​​shares will be purchased in the next three years.

Adani Wilmar’s portfolio will be expanded

Adaani Wilmer said in the information to the stock market that it has signed a pucca agreement to acquire GD Foods Manufacturing (India) Private Limited. Adani Wilmar, who sells edible oil and other food products under the Fortune brand, will increase its range of its products through this acquisition. The company said that this is in line with its strategy and this will help him to meet the growing needs of Indian homes.

GD Foods hold the market

GD Foods started in 1984 and its major brand Tops have a strong hold in the North India market for the last 40 years. The company’s food products are sold in 7 states and have up to more than 1,50,000 shops.

What are the food products of Tops brand?

Many types of food products are sold under Tops brand, including Tomato ketchup, Snack Sauce, and other kitchen sauces, jams and pickles, instant mixes, noodles and breakfasts Breakfast cereals such as cornflakes and choco flakes, cooking essentials such as Vinegar, Baking Powder, Cake Mix and CORN Flour is included.

Adani Wilmar’s CEO statement

Adani Wilmar Ltd. The managing director and CEO Angshu Mallick said, “The acquisition of GD Foods is in accordance with our plan and this will be able to fulfill the needs of Indian homes in a better way. 8 new product categories will be further strengthened by our status and strengthened in the value-added products.”

Vice chairman of GD Foods

Nitin Seth, Vice Chairman of GD Foods, said, “Now that AWL (Adani Wilmar Ltd.) is with us, the products of the TOPS brand will be able to reach more homes.

In the first phase, the deal is expected to be completed within 60 days

Let us know that Adani Wilmar Limited – AWL is known for her domestic brand ‘Fortune’ (Fortune). This acquisition will be completed in two stages. In the first phase, the deal is expected to be completed within 60 days. On the previous day, Adani Wilmar Share Price closed at ₹ 239.87 on NSE.

GD Foods earning total Rs 386 crore in FY 2023-24

GD Foods earned a total of Rs 386 crore in the last financial year 2023-24. The company’s Ebita stood at Rs 32 crore. Ebita means “Earnings Before Interest, Taxes, Depreciation, and Amortization” i.e. earnings before interest, tax, depreciation and refinement. This is a way to measure the company’s profits, which do not include these expenses. The company earned a profit of Rs 32 crore before paying tax and interest.

What will be the benefit to Adani Wilmar?

This acquisition will give Adani Wilmar many benefits:

1. Extension of food business – Now the company will not only eat edible oil, but will also put a foot in a large -scale processed food sector.
2. Strong grip in the domestic market – Especially in North India, there will be benefit of the already made identity of Tops brand.
3. Entry in the new category – will enter new product category like jam, sauce, noodles, instant mix and breakfast serial.

Acquisition of GD Foods for Adani Wilmar is a major strategic decision, which will strengthen the company’s food products portfolio. This will not only increase the company’s market, but will also be able to reach more customers of TOPS brand.

(Disclaimer: New Delhi Television is a Subsidiya of Amg Media Networks Limited, an adani group company.)