Indian multinational food and beverage conglomerate Adani Wilmar, which also produces oleochemicals, has acquired a 67% stake in speciality chemical company Omkar Chemicals, Startup Story reported.
Omkar Chemicals operates a manufacturing plant in Panoli, Gujarat, India, with a production capacity of approximately 20,000 tonnes/year of surfactants, the 13 July report said.
The company has plans to scale up production at the plant, which currently uses less than 10% of its capacity, according to the report.
As the deal did not require government or regulatory approval, Adani Wilmar – a joint venture between the Adani Group and leading Singapore agribusiness Wilmar International – was quoted as saying it expected to finalise the acquisition within three to four months.
The acquisition was a strategic step for Adani Wilmar as it looked to establish a strong production footprint in the speciality chemicals market, which included sectors such as home and personal care products, food additives, plastics and polymers, agrochemicals, and lubricants and petrochemicals, Startup Story wrote.
“We are pleased to add these speciality chemicals, which represent further downstream derivatisation of our product portfolio. Through this acquisition, Adani Wilmar will immediately establish a production footprint and capabilities that will allow us to better meet customer requirements,” company CEO Saumin Sheth was quoted as saying.
Although Adani Wilmar was active in the speciality chemicals sector through third-party manufacturing and by importing from Wilmar’s plants, the acquisition would enable in-house production, the report said.
Adani Wilmar is a market leader in food and edible oils in India. Its edible oil products include soyabean, palm, sunflower, rice bran, mustard, groundnut, cottonseed and blended oils, vanaspati and specialty fats. Its flagship edible oil brand Fortune is the largest selling product of its type in India, according to the company’s website.
As well as edible oils, Adani Wilmar also supplies pulses, rice, sugar and wheat flour.
The company produces oleochemicals including stearic acids, soap noodles, palmitic acid, oleic acid and glycerine for home and personal care products, including soaps, detergents, cosmetics, polymer, pharmaceuticals and industrial rubber.
Omkar Chemicals’ portfolio comprises 90 products including inorganic intermediates like derivatives of molybdenum, selenium, iodine, cobalt, and bismuth; organic intermediates like tartaric acid derivatives and other organic inorganic intermediates including iodobenzene diacetate, dess martin periodinane and vanadyl sulphate.
