Adani Wilmar Ltd (AWL), India’s largest edible oil company, is set to replicate ITC’s growth strategy by leveraging its core edible oil business to drive its high-margin FMCG portfolio following the Adani Group’s exit. Similar to how ITC utilized its cigarette business to fuel FMCG expansion, AWL aims to capitalize on its extensive oil distribution network for growth.
After the Adani Group’s exit, Wilmar International is expected to introduce more global FMCG brands into the Indian market. AWL recorded a 24% year-on-year growth in its FMCG segment during the December quarter, reflecting robust expansion in food products such as wheat flour, rice, nuggets, pulses, poha, and sugar.
The share of FMCG and food products in AWL’s overall volumes rose to 20%, contributing 9% to total revenues—an increase from 10% and 5%, respectively, in FY21.
“Our integrated distribution model is helping us capitalize on the strength of our oil distribution network to expand the reach of our food products, particularly in urban markets,” the company said. E-commerce, including quick commerce sales, also witnessed a significant 41% year-on-year growth.
AWL’s extensive distribution network, primarily built through its flagship ‘Fortune’ edible oil brand, currently reaches 2.1 million outlets across India. While the edible oil segment remains the backbone of AWL’s revenue—contributing 80% of its earnings—the share is gradually declining as FMCG gains traction.
In the last quarter, higher edible oil prices, which surged by 25%, drove a 39% revenue growth in the segment, while food and FMCG revenues climbed 22% year-on-year. As a result, AWL’s overall revenues grew by 33%, surpassing analysts’ expectations of 10-15% growth.
Following Adani Group’s exit, Wilmar International acquired a 31.06% stake in AWL for approximately Rs. 12,314 crore, with plans to sell the remaining 13% in the open market. The total transaction is valued at over $2 billion (approximately Rs. 17,100 crore).
The move positions Wilmar International to expand its global brands in India through AWL’s well-established distribution network and manufacturing capabilities.
AWL, established in 1999, operates under the ‘Fortune’ brand and produces edible oil, wheat flour, rice, pulses, and sugar across 23 plants in 10 states. Wilmar International, through Wilmar Sugar and Energy Pte Ltd, also holds a significant 62.48% stake in Shree Renuka Sugars, one of India’s largest sugar producers.
With its solid foundation in edible oil and increasing focus on FMCG, AWL is well-positioned to emulate ITC’s success and drive long-term growth in India’s competitive consumer goods market.