Adani-Wilmar's Consumer Goods Division, overseen by CAM and Khaitan, culminates in a $1.3 billion exit
The Adani Group has announced a strategic exit from its consumer goods joint venture with Singapore's Wilmar International, selling its entire 44% stake in AWL Agri Business Ltd for approximately $1.3 billion.
This move marks a calculated strategic shift for the Adani Group, allowing them to reallocate capital to their core infrastructure and energy projects. The decision comes after AWL Agri's revenue growth was overshadowed by declining profits due to soft demand and changing consumer preferences.
In the transaction, Wilmar International's subsidiary Lence Pte Ltd purchased a 20% stake directly for ₹275 per share, amounting to ₹10,874 crore ($1.3 billion). An earlier 13.5% stake sale via an Offer for Sale (OFS) in January 2025 was also part of the deal to meet regulatory public shareholding norms. As a result, Wilmar will increase its ownership to about 64%, becoming the majority shareholder and taking control of AWL Agri Business.
Cyril Amarchand Mangaldas and Khaitan & Co acted as key legal advisors in this complex transaction. The former represented Adani Enterprises and Adani Commodities, while the latter advised the Wilmar Group. Anchal Dhir and Jay Parikh led the Cyril Amarchand Mangaldas team, with assistance from Ayushi Toshniwal, Varun Kannan, and Priyamvada Sharma. Karun Cariappa and Abhishek Dadoo led the Khaitan & Co team, with Gaurav Malhotra and Gaurang Mansinghka as counsel and senior associate respectively.
Avaantika Kakkar and Pushkar Singh advised on competition law aspects, while Devaki Mankad and Mansi Jhaveri handled capital markets aspects for the Cyril Amarchand Mangaldas team. Anshuman Sakle, Alisha Mehra, Tanveer Verma, Rishabh Vohra, Ritika Ghosh, and Sana Vaidya advised on competition law matters for the Khaitan & Co team.
The remaining Adani stake in AWL Agri Business will be sold to pre-identified investors. The joint venture between the Adani Group and Wilmar International operated in India's consumer goods market, with AWL Agri Business having popular brands in edible oils and food products. The acquisition price is at 275 rupees per share, representing a 4.8 percent premium to the company's Wednesday closing price.
The transaction was completed between Adani Enterprises, Adani Commodities, and the Wilmar Group. Following the transaction, Wilmar will hold up to 63.94 percent of AWL Agri Business, making it the controlling shareholder. This move signifies a significant step in Adani's strategic focus on its core infrastructure business.
- In light of the recent transaction, the Adani Group, with the help of legal advisors such as Cyril Amarchand Mangaldas and Khaitan & Co, will reallocate the capital gained from selling its stake in AWL Agri Business to their core infrastructure and energy projects, aligning with their initial business focus.
- The decision to exit the consumer goods joint venture with Wilmar International and invest in their core business might be a strategic move that addresses the financial audacity required for significant investing in infrastructure projects, as currently planned by the Adani Group.
