New Delhi, March 7 -- Adani Wilmar Ltd (AWL) is doubling down on branded foods with its Rs.600 crore acquisition of G.D. Foods Manufacturing (India) Pvt. Ltd, the maker of Tops sauces and pickles. The move marks a decisive shift beyond its core edible oil business into the high-margin, fast-moving consumer goods (FMCG) category.

But will Tops be the growth catalyst AWL needs or just another incremental step in its diversification plan?

Sure, the acquisition strengthens AWL's hold in north India, where Tops enjoys a strong retail presence across 150,000 outlets. More importantly, with a 48% gross margin in FY24, the deal is expected to bolster AWL's long-term push toward a 20-25% gross margin in its food business post-FY28. The challenge...