8AUGUST 2024ADANI GROUP TO VENTURE INTO VIETNAM FOR LUCRATIVE INVESTMENTSADANI WILMAR TO VENTURE INTO EDIBLE OIL BUSINESSIndia's Adani Group is exploring opportunities to invest in Vietnam's aviation and logistics sectors, according to a statement from the Vietnamese government on Wednesday. This announcement follows a meeting between Vietnamese Prime Minister Pham Minh Chinh and Gautam Adani, the head of the Adani Group, during Chinh's official visit to India.Adani Group is considering investments in two significant airport projects in Vietnam:Long Thanh Airport: Located in the southern region of Vietnam, Long Thanh Airport is a major infrastructure project aimed at relieving the overload of Tan Son Nhat Airport in Ho Chi Minh City.Chu Lai Airport: Situated in the central region of Vietnam, Chu Lai Airport is strategically positioned to support economic development in the area.The statement did not specify the exact amount of investment or the timeline for these projects. However, it highlighted Adani Group's intent to strengthen cooperation with Vietnamese partners in the aviation and logistics sectors.This initiative builds upon Adani Group's broader plans in Vietnam, as Karan Adani, the elder son of Gautam Adani, previously announced intentions to invest up to $3 billion in seaport and renewable energy projects last year. Looking ahead, these investments could potentially expand to $10 billion over the longer term, reflecting the group's strategic interest in enhancing its presence in Vietnam's infrastructure and energy sectors. Adani Wilmar plans to invest approximately Rs 600 crore this fiscal year to expand its processing capacities in the edible oil business and launch new food products for both consumers and institutional buyers, according to Managing Director and CEO Angshu Malick. This investment is part of a broader strategy to achieve higher growth in volume terms, and it is in addition to the ongoing expansion programs worth around Rs 3,400 crore aimed at increasing capacities across various business segments.Adani Wilmar, a joint venture between Adani Group and Singapore's Wilmar, needs to reduce its promoters' stake to 75 percent by February next year from the current 88 percent to comply with SEBI's minimum public shareholding requirement of 25 percent. The company's current market capitalization stands at Rs 45,794 crore.Headquartered in Ahmedabad, Adani Wilmar operates in the edible oil, food & FMCG, and industry essentials sectors, with most products sold under the 'Fortune' brand. The company reported a consolidated net profit of Rs 313.20 crore for the first quarter of this fiscal year, compared to a net loss of Rs 78.92 crore in the same period last year. Total income increased to Rs 14,229.87 crore from Rs 12,994.18 crore in the corresponding period of the previous year.In an interview with PTI, Malick highlighted the company's performance in the first quarter of 2024-25, noting a 12 percent growth in volume and a 10 percent growth in value. In the edible oil segment, the company achieved a volume of one million tonnes, representing a 12 percent increase. The food and FMCG business experienced around 40 percent growth in both volume and value terms, with a 19 percent volume growth when excluding rice exports on a government-to-government basis. TOPSTORIES
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