Adani Wilmar Limited (AWL) announced the acquisition of
renowned Basmati rice brand- Kohinoor for the India region from McCormick
Switzerland GMBH for an undisclosed amount.

The acquisition will give Adani Wilmar exclusive rights
over the brand ‘Kohinoor’ Basmati rice along with ‘Ready to Cook’, ‘Ready to
Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India.
The Kohinoor brand portfolio includes Kohinoor – for premium Basmati rice,
Charminar – for affordable rice and Trophy for hotels, restaurants, and
catering (HORECA) segment. All three brands already have a sale of Rs 300 crore
a year, the company said.

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“The addition of Kohinoor’s domestic brand portfolio
strengthens Adani Wilmar’s leadership position in the food FMCG category by
augmenting a strong product basket with the premium brand along with the
potential to scale value-added products,” Adani Wilmar said in a stock exchange

“It also leverages the reach of Kohinoor brand to drive
synergies for AWL across geographies and complements the reach of its flagship
brand ‘Fortune’ in the food FMCG domain,” it added.

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AWL, which is already the largest edible oil importer,
refiner, and marketer in India, will strengthen its position in the branded
rice market with the acquisition of Kohinoor brands.

The acquisition by the Ahmedabad-based firm aligns well
with its strategy to expand the packaged foods and personal care portfolio by
capacity expansion and acquisitions. The deal will allow the firm
cross-leverage its distribution and production capacities while helping gain
market share and strengthen its portfolio, which AWL desperately need to
improve its margins.

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Adani Wilmar is actively looking for brands to acquire
that can help it to scale and improve its margins. In the financial year
2021-22, AWL’s food and personal care business grew 38% to Rs 2,621 crore from
Rs 1,905 crore in the financial year 2020-21.

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Adani Wilmar’s flagship brand Fortune already has a
strong presence in packaged foods including packaged wheat flour, rice, pulses,
besan, sugar, soya chunks, and cereals-based products.