Adani Wilmar, a major player in the FMCG industry, has surpassed INR 55,000 crore in revenue for FY23, as per a recent regulatory document. The company’s impressive growth was fueled by a close to 14% year-on-year volume increase in the last fiscal year.
The food and FMCG segment revenue of the company experienced a YoY increase of 55%, reaching INR 3,800 crore, driven by a 40% YoY volume growth. Additionally, the company explored several new avenues of growth during the year.
In a statement, the company revealed that its food business is expanding its presence throughout India and achieved a volume growth of over 40% YoY in Q4 FY23, with notable progress in the wheat and rice categories. The wheat prices in the foods segment started increasing in July 2022, leading the government to release wheat stocks in the market to address the supply shortage, ultimately resulting in the stabilization of wheat prices.
“We expect the strong growth to continue in both the products for multi-years, given the large headroom in the kitchen essential products,” it said.
The company reported that the branded sales volume of its edible oil category grew by 4% in Q4, owing to strong consumer demand as a result of lower edible oil prices. However, the overall oil sales volume was affected by reduced demand from the bakery and frying industry. The company also noted that the supply of imported edible oils was stable during Q4 FY23 compared to earlier in the year.
In FY23, the personal care category of the company witnessed remarkable growth, as the Alife brand’s soaps and handwash, launched in 2020, generated revenue exceeding INR 100 crore with an impressive YoY growth of around 75%.
Adani Wilmar reported a robust YoY volume growth of approximately 23% in FY23 for its combined portfolio of oils and foods, delivered through various channels such as e-commerce, Modern Trade, and e-B2B serving GT. These channels collectively generated revenue of about INR 2,700 crore for the company during the fiscal year. The company emphasized its steady growth across multiple channels and its commitment to providing quality products and services to its customers.
Go to market (GTM):
Adani Wilmar’s strategy includes expanding its direct coverage to more rural towns while prioritizing increased retail penetration and improved sales productivity in existing markets. The company aims to strengthen its presence in both new and existing markets to reach a wider customer base and increase its overall market share.
“In coming years, we aspire to reach 1 million retail outlets directly, from current reach of almost 0.6 million. Our rural (below 100,000 population) saliency is around 30% in both oil & foods, wherein more than three-fourth of the population resides,” the company stated.
Adani Wilmar plans to expand its direct coverage to towns with over 5,000 population, expecting that increased penetration in rural towns will result in higher productivity of new retail outlets in the future. By targeting a wider range of population centers, the company seeks to build a stronger distribution network and capture more market share in key regions.
The regulatory document highlights that Adani Wilmar’s B2B business, which sells industrial products for various industry applications, has been gaining market share and adding value-added products. The company’s oleochemicals business has also been growing well, supported by the commissioning of new capacity in Q3 FY2021 and stable demand.
The company stated that its strong presence in raw material procurement and global market has positioned it well for the long term in the castor business.
Expectations:
Despite potential macro-economic and geo-political events, the FMCG major anticipates sustained demand for packaged oils and staple foods in 2023. The company intends to navigate price fluctuations and supply chain disruptions to maintain stable operations.
The company intends to be cautious regarding the impact of El Nino in May or June 2023, which may weaken the southwest monsoon, cause heatwaves and droughts in India, and negatively affect crops. This consideration is particularly relevant for the company’s supply and pricing of commodities.
