The Adani Group is setting aside a whopping $1 billion (₹8,389 crore) to bolster its food and fast-moving consumer goods (FMCG) business, with an ambitious plan to acquire at least three companies in the sector.

What Happened: The Adani Group is strategising major acquisitions to fortify its FMCG business, Adani Wilmar Ltd, according to a report by Mint.The conglomerate is in talks to purchase three brands in the spices, ready-to-cook foods and packaged edibles sectors, primarily in the southern and eastern parts of India.

This aggressive capital expenditure plan signifies a major pivot for the Adani Group, which had considered selling its stake in Adani Wilmar just last year. The group is now setting its sights on expanding its presence in the FMCG space through acquisitions this year and the next fiscal year.

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The Adani Group firm, which is a 50:50 joint venture with Singapore’s Wilmar group, offers a diverse range of food and FMCG products and is anticipated to make multiple acquisitions over the next two to three years.

The group is also planning to acquire a company from southern India involved in the spices and ready-to-cook food business and another company from eastern India. These acquisitions could provide the group with an immediate foothold in these regions.

With a strong distribution network and robust sourcing capabilities, Adani Wilmar aims to become India’s largest food FMCG company. The group is targeting 25-30% of its top-line to come from direct consumer-facing businesses such as food, FMCG, commodity, and the airport business.

Price Action: Shares of Adani Wilmar were up 2.21% to ₹370 on Monday morning.

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