Adani Group Approves Demerger of Food FMCG Business, Records 116% Profit Jump

Adani Enterprises announced the demerger of its food FMCG business to Adani Wilmar Limited and posted a 116% increase in net profit for the April-June quarter of 2024. The demerger aims to unlock shareholder value and focus on sustainable business growth.

The board of directors has approved the demerger of Adani Enterprises' food FMCG business to Adani Wilmar Limited, as well as its strategic investment in Adani Commodities LLP. The Adani Group stated that the food FMCG business is self-sustained and is expected to grow further under Adani Wilmar.

Adani Enterprises noted that this demerger will unlock value for shareholders and allow greater focus on sustainable growth in its incubating businesses. Adani Wilmar provides essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar.

Adani Enterprises, known for incubating new businesses and creating long-term value, has successfully developed various sectors into leading players, contributing significant returns to shareholders. The flagship company reported a total income of Rs 26,067 crore for the April-June 2024 quarter, a 13% year-on-year increase. The net profit surged by 116% to Rs 1,458 crore.

These substantial figures are bolstered by strong performances from the ANIL ecosystem, airport operations, and road construction business. Their contribution to the company's EBIDTA increased to 62% in Q1 2024-25, up from 45% the previous year. Gautam Adani, Chairman of the Adani Group, emphasized the company's commitment to operational excellence and sustainable value creation.

(With inputs from agencies.)