Adani Wilmar to acquire 67% stake in Omkar Chemicals at Rs 56 cr enterprise value

New Delhi: Edible oil major Adani Wilmar Ltd will acquire a 67 per cent stake in Omkar Chemicals Industries at an enterprise value of Rs 56 crore.

Adani Wilmar, a joint venture between Adani Group and Singapore's Wilmar Group, is one of the largest consumer food FMCG companies in India. The company has a diversified product portfolio offering most of the primary kitchen essentials, including edible oil, wheat flour, rice, pulses, chickpea flour (besan) and sugar. It is also a leading player in oleochemicals.

In a regulatory filing on Thursday, Adani Wilmar said it has signed the share subscription and share purchase agreement to take a majority stake of 67 per cent in Omkar Chemicals Industries Pvt Ltd, a speciality chemicals company.

The acquisition is expected to be completed within 3-4 months, "at an enterprise value of Rs 56.25 crore (subject to closing adjustments thereto) to be paid in cash".

Omkar Chemicals operates a manufacturing plant in Panoli, Gujarat with an annual capacity of around 20,000 tonnes of surfactants and is further adding capacity for other products.

The speciality chemicals market presents a significant opportunity across diverse sectors such as home & personal care products, food additives, plastics & polymers, agrochemicals, and lubricants & petrochemicals, Adani Wilmar said, adding that the company currently operates in this sector through third-party manufacturing and by importing from Wilmar's plants.

"Through this acquisition, Adani Wilmar will immediately establish a production footprint and capabilities that will allow us to better meet customer requirements," Saumin Sheth, Chief Operating Officer of Adani Wilmar, said.

"Downstream derivatisation of our basic oleochemicals in select areas is a strategic focus for us, in line with the focus of our co-promoter Wilmar International, which is the world's largest oleo-chemical manufacturer. We aim to bring the diversified product portfolio of Wilmar and its associates to India to better serve our customers," he added.