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Singapore’s Wilmar International to support its JV with Adani Group

Singapore’s Wilmar International to support its JV with Adani Group

Wilmar International, the Singapore-listed food processing company, will reportedly stick with its joint venture with India's Adani Group, claiming that a probe by short-seller Hindenburg Research found no problems with the unit.

According to Wilmar, an independent team of expert management oversees Adani Wilmar's daily operations, while an independent director is serving as board chair.

As claimed by the agribusiness giant, Wilmar brings knowledge of the commodity and consumer food products industries, while Adani offers regional logistical and administrative support.

In recent days, the giant Adani Group, owned by Indian tycoon Gautam Adani, has been shaken to its core after Hindenburg charged the company with serious corporate misconduct, including market manipulation as well as financial fraud, in a fierce confrontation that has gripped investors.

Despite a thorough rejection from the Adani Group, the claims have caused the company's market value to drop by over US$72 billion this week.

Wilmar claimed that it will continue to back its Indian affiliate and added that Adani Wilmar, which recently featured on India's National Stock Exchange as well as the Bombay Stock Exchange, underwent a thorough initial public listing process under the supervision of regulators.

The joint venture was established in 1999 and is currently one of India's packaged food firms with the quickest pace of growth, delivering necessities including wheat flour, edible oil, rice, lentils, and sugar.

Despite Wilmar's encouraging remarks, shares in Adani Wilmar further fell on Tuesday, losing ground with other firms connected to Adani. On Tuesday, Adani Wilmar lost 5%, bringing its losses over the previous four sessions to about 19%.

Wilmar's response comes after the International Holding Company based in Abu Dhabi announced its intention to commit around $400 million to a follow-on sale of shares at Adani Enterprises, demonstrating its faith in the billionaire's ventures despite the current market upheaval.

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