AWL Agri Business, formerly known as Adani Wilmar, is accelerating its push into packaged foods as part of a strategic shift to reduce dependence on the highly volatile edible oil segment. The company aims to expand packaged food volumes to 30% of its total business over the next five years, up from the current 20%, a top executive told Reuters.
Shrikant Kanhere, who assumed charge as managing director and CEO on Tuesday, said the focus on food is driven by the category’s stronger margin profile compared to edible oils, where price swings continue to disrupt profitability.
“Food remains a high focus for us because food has a better margin profile as compared to edible oil,” Kanhere said. The pivot mirrors a broader industry trend, with peers like Marico — maker of Saffola — diversifying into branded staples such as oats, muesli, and soya nuggets to tap rising demand in the packaged food market.
The move comes as India continues to grapple with elevated edible oil prices. Government data shows oils and fats inflation averaging 18%–21% in the September quarter, the highest among food and beverage categories, after a year of elevated prices. While soaring edible oil rates boosted AWL’s topline last year, they have more recently dented volumes as consumers down-traded to cheaper alternatives.
AWL expects revenue to grow around 10% in the second half of FY26, driven by increased product availability and geographic expansion. The company, which already reaches 900,000 retail outlets across India, plans to scale that footprint to 1 million by next year.
The pivot to packaged foods marks a strategic evolution for the Fortune brand owner as it seeks more stable revenue streams amid commodity market fluctuations and intensifying competition in the edible oils space.