Amid a broader slowdown in India’s fast-moving consumer goods (FMCG) sector, Adani Wilmar, the nation’s largest edible oil supplier, reports strong demand for kitchen essentials like edible oils, Atta, and Maida. As FMCG giants, including Hindustan Unilever, ITC, and Tata Consumer Products, observe a slowdown in urban demand, Adani Wilmar says it remains unaffected, driven by robust e-commerce sales and upcoming expansion into spices.
“While other FMCG companies see softer urban demand, we continue to perform well as we cater to essentials that every household needs,” said Angshu Mallick, CEO & MD of Adani Wilmar. The company reports no indication of consumers’ downtrading within its product categories and anticipates continued demand growth from urban India.
Adani Wilmar’s revenue from modern trade and e-commerce channels posted strong double-digit growth year-over-year in Q2, with the e-commerce segment alone increasing fourfold over four years, surpassing Rs 3,000 crore over the last 12 months. Mallick noted that bulk orders for 5-litre oils and 5-kg atta are popular on quick-commerce platforms, particularly in urban areas.
Additionally, a rise in edible oil prices since October is not expected to hinder Q3 growth. “The wedding season, Diwali festivities, and strong rural demand due to a favourable kharif harvest will boost sales,” Mallick explained.
Expanding its product line, Adani Wilmar plans to enter the spice market within this fiscal year by either establishing an in-house plant or contracting production. The company recently returned to profitability with a consolidated profit of Rs 311.02 crore in Q2 FY25, reversing a Rs 130.73 crore loss in the same period last year. Q2 revenue reached Rs 14,460 crore, an 18% increase year-over-year, with edible oils, food, and FMCG segments contributing significant double-digit growth.
Expanding its rural distribution network, Adani Wilmar now directly reaches over 36,000 towns, aiming for 50,000 by FY25. This expansion is poised to strengthen its position across rural and urban markets, positioning the company for continued growth.