Adani Wilmar acquires 67% Stake in Omkar Chemicals for ₹56.25 Crore

12 Jul 2024 , 11:25 AM

Adani Wilmar Ltd (AWL) has acquired a 67% stake in Omkar Chemical Industries Private Ltd (OCIPL) to strengthen its position in the specialty chemicals industry.

OCIPL operates a plant in Panoli, Gujarat, with an annual capacity of approximately 20,000 million tonnes (MT) of surfactants. The acquisition, worth ₹56.25 crore, will be paid in cash and is expected to be completed within 3-4 months.

At the time of writing on July 12, 2024 at 11.21 am shares of Adani Wilmar is currently trading at ₹338.45 which is a 1.27% gain than the previous close.  

The specialty chemicals market offers significant opportunities in sectors like home & personal care products, food additives, plastics & polymers, agrochemicals, and lubricants & petrochemicals.

AWL currently operates in the specialty chemicals sector through third-party manufacturing and imports from Wilmar’s plants.

OCIPL started its operations in the fiscal year 2023-24 and is currently scaling up its capacity utilisation, which was below 10% in its first year.

OCIPL is involved in manufacturing, formulating, processing, producing, buying, selling, importing, exporting, distributing, and supplying various chemicals and chemical compounds.

The acquisition is part of AWL’s strategy to diversify and expand its footprint in the specialty chemicals sector. The entrepreneurs behind Omkar Chemicals bring over 15 years of industry experience, adding substantial value to the acquisition.

OCIPL was incorporated in India on November 26, 2020, and registered with the Registrar of Companies, Gujarat. OCIPL’s product range includes organic and inorganic compounds, gels, downstream ingredients, and related chemical products.

Adani Wilmar Limited (AWL), an Indian multinational food and beverage conglomerate based in Ahmedabad, was founded in 1999 as a joint venture between Adani Enterprises and Wilmar International.

AWL is India’s largest processor of palm oil, with 22 plants across 10 states in India as of 2022, and exports its products to the Middle East, Africa, and South East Asia.

AWL’s brand Fortune is known for edible oils and foods, with other packaged products like rice, soya chunks, and flour launched between 2014 and 2017 under the same brand name. Between 2019 and 2020, AWL entered the personal care market with the brand Alife and the Ready to Cook (RTC) products market.