Adani's Billion-Dollar Exit: Shaking Up the FMCG Sector with Strategic Withdrawal

Billionaire Gautam Adani's group is exiting its FMCG joint venture, Adani Wilmar, by selling its entire stake for over USD 2 billion. The transaction marks the group's first major deal post US bribery indictment and aims to bolster Adani Enterprises Ltd's infrastructure investments.

Billionaire Gautam Adani's conglomerate is set to exit its joint venture in the fast-moving consumer goods sector, Adani Wilmar, by selling its substantial stake for over USD 2 billion. The move marks a significant strategic shift as the group distances itself from the FMCG market to reinvest in infrastructure growth.

The deal involves selling a 31.06 per cent stake to Wilmar International and divesting around 13 per cent in the open market to comply with public shareholding norms. Adani Enterprises Ltd (AEL) aims to complete this transaction by March 2025 to focus on core infrastructure services, bolstering its role as a leading incubator for India's economic growth.

This development follows the group's denial of allegations tied to a USD 265 million bribery scheme. Despite legal tussles, the group continues its strategic expansion within key infrastructure sectors, thereby ensuring its financial robustness with equity assets forming a significant portion of its portfolio.

(With inputs from agencies.)