The country’s second richest billionaire Gautam Adani is now preparing to introduce branded rice. In fact, Adani Wilmar, a part of the Adani Group, is focusing on staple food items like flour and rice. According to news agency PTI, Adani Wilmar is now looking to acquire regional rice brands and processing units in several states.
First acquisition in Bengal: PTI quoted a company official as saying that Adani will introduce branded rice under the Wilmar Fortune brand. It will start from West Bengal in April. Adani Wilmar has forayed into this space by acquiring a sick rice processing unit in West Bengal. The size of this field ranges from 30 to 35 million tonnes per annum.
Here is the complete plan: Angshu Malik, MD & CEO, said, “We are aiming to grow rapidly in the daily use rice segment. Its market is 30 to 35 million tonnes per annum apart from distribution of food grains through ration shops. We are looking for acquisition of brands and rice processing units in multiple states for rapid growth.”
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He said acquisitions will bring growth while new projects take at least two years to become operational. “We are already into basmati rice, but it accounts for only 10 per cent of rice consumption. So we cannot ignore the regional local rice used for daily consumption. There is a lot of opportunity in this segment.”
“We will introduce packaged local rice based on regional preference. In Bengal we will introduce Banskati and Miniket rice which is popular among common people here. Sona Mussoorie is popular in Uttar Pradesh and Kolam rice is popular in South India.
Adani Wilmar, the company that brought the IPO recently, has earmarked Rs 450-500 crore for the acquisition. In the food category, its main emphasis is on flour and rice. Meanwhile, on Wednesday, the share price of Adani Wilmar closed at Rs 397 on the BSE index with a slight increase.