Adani Wilmar is exploring the acquisition of regional rice brands and processing units in several states of the country and will launch branded daily-use rice under the Fortune brand beginning with West Bengal in early April.
Staple is just 11 percent of the company’s topline. Adani Wilmar purchased a sick rice processing unit in West Bengal to begin its journey in the segment, which has a capacity of 30–35 million tonnes per year.
Adani Wilmar MD & CEO, Angshu Mallick, said, “We are targeting to grow fast in the daily-use rice segment, which is 30-35 million tonnes per annum, apart from public distribution foodgrain. For fast growth, we are scouting for acquisitions of brands and rice processing units in several states. We have done the first from West Bengal, taking over a sick unit.
Acquisitions allow for quicker rollout and rapid growth. It will take at least two years to begin operations, he said. “We’re already into Basmati, but it only accounts for 10% of rice consumption, so we can’t ignore regional local rice used for daily consumption, which is a huge untapped market,” Mallick explained.”We will launch packaged local rice based on regional preference.
In Bengal, we will launch Basmati and miniket rice, which are common here. Sona masuri in Uttar Pradesh and Kolam rice in South India, “he added.” The company that hit the capital market recently had earmarked Rs 450–500 crore for acquisition, and atta and rice are the major focus areas in the staples segment.
Adani is scouting for more rice units and brands in North India and South India. “We will ideally have one unit each in states first and then gradually scale up. We will procure paddy from farmers, mandis, and brokers, “Mallick said.