FMCG firm Adani Wilmar Ltd (AWL) on Tuesday said it has bought popular rice brand Kohinoor from McCormick Switzerland GMBH for an undisclosed amount.
“The acquisition would give AWL exclusive rights over the brand ‘Kohinoor’ basmati rice along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India,” the company said in a statement. The acquisition will fuel the next level of growth for AWL and widen the portfolio to cater to premium customer segments across rice and other value-added food businesses, AWL added.
The addition of Kohinoor’s domestic Brand Portfolio strengthens Adani Wilmar’s leadership position in the food FMCG category by augmenting a strong product basket with premium brand along with potential to scale value-added products. It also leverages the reach of Kohinoor brand to drive synergies for AWL across geographies and complements the reach of its flagship brand ‘Fortune’ in the food FMCG domain.
McCormick had invested $115 million to buy 85% stake in Kohinoor Speciality Foods India Pvt. Ltd in 2011 to market and sell Kohinoor’s basmati rice and food products in India.
Commenting on the acquisition, Angshu Mallick, Chief Executive Officer and Managing Director, AWL, said: “This acquisition is in sync with our business strategy to expand our portfolio in the higher-margin branded staples and food products segment. We believe the packaged food category is under-penetrated with significant headroom for growth. The Kohinoor Brand has a strong brand recall and will help accelerate our leadership position in the Food FMCG category”