Adani Wilmar has reported a 10% increase in total volume during the second quarter of this financial year, while its food and FMCG segment achieved 31% volume growth. The͏͏ company͏͏ has͏͏ been͏͏ expanding͏͏ its͏͏ distribution͏͏ network,͏͏ directly͏͏ reaching͏͏ over͏͏ 36,000͏͏ rural͏͏ towns͏͏ by͏͏ the͏͏ end͏͏ of͏͏ September͏͏ 2024,͏͏ with͏͏ a͏͏ target͏͏ to͏͏ access͏͏ more͏͏ than͏͏ 50,000͏͏ rural͏͏ towns͏͏ by͏͏ the͏͏ end͏͏ of͏͏ FY25.
Strong͏͏ Revenue͏͏ Performance:
The͏͏ company͏͏ reported͏͏ another͏͏ robust͏͏ quarter,͏͏ achieving͏͏ a͏͏ year-on-year͏͏ revenue͏͏ growth͏͏ of͏͏ 16%.͏͏ This͏͏ performance͏͏ was͏͏ fueled͏͏ by͏͏ effective͏͏ execution͏͏ in͏͏ both͏͏ its͏͏ edible͏͏ oils͏͏ and͏͏ food͏͏ businesses.͏͏ “We͏͏ are͏͏ witnessing͏͏ growth͏͏ in͏͏ the͏͏ food͏͏ sector͏͏ across͏͏ various͏͏ categories͏͏ and͏͏ regions͏͏ throughout͏͏ the͏͏ country.͏͏ Our͏͏ diverse͏͏ portfolio͏͏ of͏͏ oils͏͏ and͏͏ food͏͏ products,͏͏ along͏͏ with͏͏ increased͏͏ throughput,͏͏ is͏͏ giving͏͏ us͏͏ a͏͏ scale͏͏ advantage͏͏ in͏͏ distribution,”͏͏ the͏͏ company͏͏ stated͏͏ in͏͏ its͏͏ Quarterly͏͏ Update͏͏ on͏͏ Business͏͏ on͏͏ BSE.
Furthermore,͏͏ the͏͏ company͏͏ stated͏͏ that͏͏ it͏͏ is͏͏ focused͏͏ on͏͏ enhancing͏͏ sales͏͏ productivity͏͏ by͏͏ implementing͏͏ a͏͏ customized͏͏ go-to-market͏͏ strategy͏͏ for͏͏ premium͏͏ outlets͏͏ and͏͏ increasing͏͏ the͏͏ use͏͏ of͏͏ technology͏͏ in͏͏ its͏͏ sales͏͏ operations.
Continue͏͏ Exploring:͏͏ Adani Wilmar eyes͏͏ expansion͏͏ with͏͏ $1͏͏ Bn͏͏ fund͏͏ to͏͏ acquire͏͏ three͏͏ food͏͏ brands͏͏ in͏͏ India
Growth͏͏ in͏͏ Alternate͏͏ Channels:
In͏͏ the͏͏ second͏͏ quarter,͏͏ revenue͏͏ from͏͏ alternate͏͏ channels͏͏ grew͏͏ at͏͏ a͏͏ strong͏͏ double-digit͏͏ rate͏͏ year-on-year,͏͏ with͏͏ sales͏͏ surpassing͏͏ INR͏͏ 3,000͏͏ crore͏͏ over͏͏ the͏͏ past͏͏ 12͏͏ months.
The͏͏ e-commerce͏͏ channel͏͏ has͏͏ experienced͏͏ even͏͏ faster͏͏ growth,͏͏ with͏͏ revenue͏͏ increasing͏͏ approximately͏͏ fourfold͏͏ over͏͏ the͏͏ past͏͏ four͏͏ years.
“Our͏͏ mass͏͏ brand,͏͏ Kings,͏͏ has͏͏ also͏͏ seen͏͏ substantial͏͏ growth͏͏ from͏͏ a͏͏ smaller͏͏ base͏͏ in͏͏ these͏͏ channels,͏͏ allowing͏͏ us͏͏ to͏͏ effectively͏͏ execute͏͏ a͏͏ two-brand͏͏ strategy͏͏ in͏͏ alternate͏͏ channels,”͏͏ it͏͏ added.
The͏͏ edible͏͏ oil͏͏ business͏͏ sustained͏͏ its͏͏ strong͏͏ momentum,͏͏ achieving͏͏ double-digit͏͏ year-on-year͏͏ volume͏͏ growth͏͏ fueled͏͏ by͏͏ robust͏͏ performance͏͏ in͏͏ soybean,͏͏ sunflower,͏͏ and͏͏ mustard͏͏ oils.
The͏͏ strategy͏͏ of͏͏ increasing͏͏ penetration͏͏ in͏͏ under-indexed͏͏ markets͏͏ continued,͏͏ alongside͏͏ the͏͏ expansion͏͏ of͏͏ sunflower͏͏ and͏͏ mustard͏͏ oil͏͏ distribution͏͏ into͏͏ regions͏͏ beyond͏͏ their͏͏ core͏͏ areas.
Flourishing͏͏ Food and FMCG Segment:
The͏͏ Food͏͏ and͏͏ FMCG͏͏ segment͏͏ achieved͏͏ a͏͏ year-on-year͏͏ revenue͏͏ growth͏͏ of͏͏ 36%,͏͏ driven͏͏ by͏͏ greater͏͏ outlet͏͏ penetration͏͏ and͏͏ repeat͏͏ purchases͏͏ of͏͏ our͏͏ food͏͏ products.
In͏͏ the͏͏ wheat͏͏ business,͏͏ the͏͏ company͏͏ continues͏͏ to͏͏ experience͏͏ strong͏͏ growth,͏͏ particularly͏͏ in͏͏ South͏͏ India,͏͏ where͏͏ the͏͏ household͏͏ penetration͏͏ of͏͏ branded͏͏ wheat͏͏ flour͏͏ is͏͏ significant.
“Looking͏͏ ahead,͏͏ we͏͏ plan͏͏ to͏͏ enhance͏͏ our͏͏ distribution͏͏ in͏͏ smaller͏͏ towns͏͏ as͏͏ well.͏͏ Sales͏͏ were͏͏ also͏͏ boosted͏͏ by͏͏ the͏͏ introduction͏͏ of͏͏ small͏͏ pack͏͏ sizes͏͏ in͏͏ markets͏͏ with͏͏ lower͏͏ per͏͏ capita͏͏ consumption,”͏͏ he͏͏ added.
