No change in strategy, focus: Adani Wilmar Deputy CEO & CFO, and MD & CEO

We are considering a couple of options for the name change. And of course, when Adani exists, they would certainly not like to have Adani name being associated with the company, Shrikant Kanhere said

Adani Wilmar may change its name to AWL after Adani exits the joint venture. In the October-December quarter, the company’s revenue was up 31 per cent at Rs 16,859 crore while its profit after tax stood at Rs 411 crore. ANGSHU MALLICK, managing director and chief executive officer, and SHRIKANT KANHERE, deputy chief executive officer and chief financial officer, spoke to Sharleen D’Souza in an exclusive interview. Edited excerpts:

 

Adani is in the process of exiting Adani Wilmar. What will be the new name of the company? 

Kanhere: We are considering a couple of options, which include AWL or an extension of AWL. And when Adani exists, they would certainly not like to have the “Adani” name associated with the company. At the end of the day, AWL has a legacy. The market generally calls us “AWL”. 

Will the firm’s strategy change? 

Mallick: There will be no change in strategy or focus. Whatever we have been doing for the past 25 years has been with the approval of both the promoters and when one promoter exits, the other promoter would it to continue because Wilmar’s core business and core strength are food and edible oils. They are world’s largest processors of wheat flour, rice or sugar or olio chemical edible oils and palm oils. It matches with their core strategy. AWL will continue to work in that direction. 

Do you expect growth in volumes to reach high single digits in Q4?

  Mallick: This quarter was not so good for growth in volumes. The duty hike in September led to an abrupt rise in edible oil prices so the market consumed whatever stock it had, rather than buying at higher prices. 

The additional sales we expected in November and December didn’t happen the way they did last year. But if you see our year-to-date performance, our volumes have grown by 11 per cent. If you take this after considering 5 per cent in Q3 we have still grown at 11 per cent. I’m sure in Q4 we will grow in double digits, and we should end the year having growth at 10 per cent or above.

 

There’s a lot of talk around urban demand being under pressure. Are you also experiencing that? 

Mallick: The urban middle class is under pressure. There is financial stress, particularly in middle-income households. The food basket may not grow the way it should have. Let's see what happens in the Budget. It is said that some relief can be given, or will be given to the middle class.