Wilmar International Ltd., a food giant, is backing the joint venture with India’s Adani Group, which has come under fire following a report by short-seller Hindenburg Research. “We will continue to support our Indian associate,” Wilmar said.
In running the venture, Wilmar contributes expertise on the commodity and consumer food-product businesses, while Adani provides local logistical and regulatory support.
The Adani Group, controlled by tycoon Gautam Adani, has been shaken to its core in recent days after Hindenburg Research accused the conglomerate of widespread corporate malfeasance, including market manipulation and accounting fraud. In a bitter showdown that’s riveted investors worldwide, the allegations have prompted steep falls in the companies’ share prices despite a lengthy rebuttal from Adani Group.
Adani Wilmar, which was recently listed on India’s National Stock Exchange and Bombay Stock Exchange, underwent a full initial public offering process under the scrutiny of regulators. The joint venture was incorporated in 1999 and is now one of India’s fastest-growing packaged food companies, supplying essentials such as edible oil, wheat flour, rice, pulses, and sugar.
Despite Wilmar’s supportive comments, shares in Adani Wilmar dropped again, losing ground along with other Adani-linked stocks. Adani Wilmar is headed for the lowest level since March 2022, with losses over the past four sessions nearing about 20%.
Wilmar’s response comes as Abu Dhabi’s International Holding Co. pledged to invest about $400 million in a follow-on share sale at Adani Enterprises Ltd., voicing confidence in the billionaire’s businesses despite the market turmoil.