Adani Wilmar eyes high-end clients as it looks to increase premium play

A good monsoon is expected to further bolster growth in the rural sector for staples, food, and fast-moving consumer goods (FMCG) company Adani Wilmar, which is also looking to capitalise on the trend of premiumisation to fuel growth of its edible oil business.

“We have seen robust growth in both the edible oil and food and FMCG businesses since the beginning of this financial year (2024-25), particularly in May. Comfortable prices, elections, and harvest-related migration to hometowns have notably boosted rural demand,” Angshu Mallick, chief executive officer and managing director of Adani Wilmar, told Business Standard on the sidelines of the recently held 15th edition of Ficci Foodworld.

The food and FMCG business of the company, which had recorded a revenue of Rs 4,944 crore in 2023-24, has now breached the Rs 5,000 crore mark, he said, adding that they aim to double the business in the next three years.

“The healthy consumption trend is expected to persist in the coming months. We expect a favourable monsoon, which will support agribusiness and consequently spur rural growth. Besides, a big wedding season with limited days in July is also expected to enhance large-scale out-of-home consumption of several products from our portfolio,” he said.

Discussing the edible oil category, he said, “Moving forward, edible oil growth may not match that of packed staples, as it is a highly mature category. Over the past 20 years, there has been a shift towards branded products, constituting almost 75 per cent of the total market now.”

To drive growth in the category, the company is now targeting the premium consumer.

“We are observing a distinct shift towards premiumisation. With this trend in mind, we have recently introduced our first pressed mustard oil, which is more aromatic and lighter, aimed at the urban market and priced about 10 per cent higher. We plan to expand the first-pressed line to include variants like groundnut oil in the coming months,” Mallick said.

The producer of Fortune brand besan (chickpea flour), atta (whole wheat flour), and pulses also sees huge potential in its packed staples business.

“Our food business has grown by 20 per cent year-on-year, indicating a growing preference for branded staples. The share of branded products in atta, for example, is currently only 12 per cent. This remains a relatively small market, and the share of branded products is expected to increase in the future,” he said.

Mallick declined to comment on reports of Adani Group considering divesting its stake in the joint venture with Wilmar International.

“I am not aware of it. Our responsibility is to drive growth for the company, and that is our focus,” he said.

Regarding the new government, Mallick remarked, “Overall policies are mostly stable, and we do not expect much change. India will continue to consume and grow, and there’s not much to be altered.”

When asked about any potential acquisitions, Mallick mentioned that the company is evaluating proposals to identify businesses that align with its objectives.

“We are assessing suitable candidates; and scrutinising proposals to identify businesses that offer good synergies and are also value for money.”