Adani Wilmar Limited, a leading food FMCG company, has announced the acquisition of GD Foods Manufacturing (India) Private Limited, the parent company of the well-known brand “Tops.” This strategic move aims to strengthen Adani Wilmar’s presence in the value-added food products market by expanding its portfolio with a diverse range of processed and packaged goods.

The acquisition will be executed in multiple tranches, with Adani Wilmar acquiring 80% of GD Foods’ shares in the first tranche and the remaining 20% over the next three years. This phased approach allows for a gradual integration of GD Foods into Adani Wilmar’s operations.

In FY24, GD Foods reported a revenue of Rs 386 crore, reflecting a three-year compound annual growth rate (CAGR) of 15%. The company’s EBITDA for the same period stood at Rs 32 crore. This strong financial performance underscores the strategic value of the acquisition for Adani Wilmar.

GD Foods’ brand “Tops” is renowned for its high-quality products in categories such as tomato ketchup, snack sauces, jams, pickles, noodles, instant mixes, and cooking essentials. The acquisition adds eight new product categories to Adani Wilmar’s portfolio, enhancing its offerings and positioning it for growth in the value-added food segment.

The acquisition aligns with Adani Wilmar’s vision to deliver high-quality, affordable products that meet the evolving needs of Indian households. By leveraging GD Foods’ established brand presence, particularly in North India, Adani Wilmar aims to expand its distribution reach and strengthen its position in the FMCG sector.

Following the announcement, Adani Wilmar’s shares rose by 6%, reflecting investor optimism about the deal’s potential to enhance the company’s margin-accretive product portfolio. Analysts believe that this acquisition could add approximately 0.7% to Adani Wilmar’s overall sales.

The acquisition of GD Foods by Adani Wilmar marks a significant step in the company’s strategy to diversify its product offerings and strengthen its presence in the Indian FMCG market. As Adani Wilmar integrates GD Foods into its operations, it is poised to benefit from the “Tops” brand’s strong reputation and extensive retail network.

Key Highlights:

• Acquisition Overview: Adani Wilmar acquires GD Foods, owner of the “Tops” brand, in a phased deal.
• Financial Details: The acquisition involves an 80% stake initially, with the remaining 20% to be acquired over three years.
• Portfolio Expansion: Adds eight new product categories to Adani Wilmar’s portfolio, enhancing its offerings in value-added foods.
• Market Impact: Adani Wilmar’s shares rose 6% following the announcement, reflecting investor optimism about the deal’s potential.