Shree Renuka Sugars, Indias largest sugar manufacturer on sale? Heres who may well buy it
Renuka Sugars had reportedly been reeling under debt due to falling domestic sugar prices and its aggressive expansion plans for South America. Recently, Wilmar had raised its stake in the firm to help bring down Renukas debt to Rs 2,364 crore, but the company has now decided to launch the open offer on 4 June, in the wake of the Competition Commission of Indias nod for the acquisition of a strategic stake in Renuka, the report said. Wilmars open offer will reportedly close on 15 June.
The Adani Group is likely to acquire India’s largest sugar manufacturer, Shree Renuka Sugars Ltd, from Wilmar Sugar Holdings through Adani Wilmar Ltd, said a LiveMint report, citing a senior company executive. Wilmar Sugar, which is a subsidiary of Singapore-based agri business group Wilmar International, reportedly owns a 39% stake in Shree Renuka. The report, citing the executive, said that the parent firm is launching an open offer to help Wilmar Sugar get a controlling stake in Shree Renuka, but it is also holding parallel talks with Adani Wilmar, a 50:50 joint venture between the two groups, to market Shree Renuka’s Madhur brand. Wilmar is reportedly seeking to leverage Adani’s distribution network and marketing expertise.
Renuka Sugars had reportedly been reeling under debt due to falling domestic sugar prices and its aggressive expansion plans for South America. Recently, Wilmar had raised its stake in the firm to help bring down Renuka’s debt to Rs 2,364 crore, but the company has now decided to launch the open offer on 4 June, in the wake of the Competition Commission of India's nod for the acquisition of a strategic stake in Renuka, the report said. Wilmar's open offer will reportedly close on 15 June.
“We (Renuka Sugars) have synergies with Adani Wilmar and I continue to be on their board. Fortune is available across the country. We are in serious talks with Adani Wilmar (for scaling up the distribution of Madhur). It will be done at an arm’s length,” Atul Chaturvedi, CEO of Adani Agri Logistics and Adani Agrifresh, and a member on the Shree Renuka board, told LiveMint.
Atul Chaturvedi, who is expected to take over as the executive chairman of Shree Renuka Sugars after the open offer is completed, when asked about the Adani Group's interest on acquiring Renuka Sugars, further told LiveMint: “Sugar is something which is missing from the product portfolio of Adani Wilmar. There is rice, edible oil, besan, pulses, and soya nuggets, among others. Why not add some sugar in the basket. If it makes sense, why not?”
Watch this Zee Business video
Adani Wilmar, which was launched in 1999, markets its products, including edible oil, rice, pulses and soya chunks, under the Fortune brand.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.