Consumers' purchasing power may increase further, says Dorab Mistry

India has its foot on the gas pedal to become the third-largest economy by 2030, said Dorab Mistry, non-executive chairman of Adani Wilmar, as he expected a further rise in consumer purchasing power.

“This presents a huge opportunity to cater to steeply rising demand in the food sector,” Mistry said in his letter to shareholders. He said the company is investing in its food processing capacity and expanding its product portfolio to address the growing demand.

A well-known international vegetable oil market expert, Mistry noted that Adani Wilmar is the leading player in India in the edible oil segment with a market share of 19.5 per cent, and its food business is registering high double-digit growth.

Mistry's price projections on palm oil are keenly followed across the world for their accuracy. He has been working with the Godrej group since 1976 and is currently a director of Godrej International Trading & Investments, Singapore.     

“We are witnessing a transformation of India, marked by rapid economic growth, increased adoption of technology, enhanced literacy levels, and active workforce participation by women,” Mistry said, adding, this has led to consumers making informed decisions, purchasing quality and hygienic products, providing the company a great scope to drive the conversion of unbranded to branded.

Also, out-of-home consumption is on the rise, accounting for a significant proportion of total food consumed. “The HoReCa (hotels, restaurants and catering) segment is value conscious, making it imperative that this segment is also serviced with quality ingredients at an affordable price, for a healthy growing nation,” Mistry said.

He further said: “The company is making rapid strides in bringing essential staple foods at scale to consumers across the staple food categories.”

Adani Wilmar has consciously chosen to be present in select products with a wide range of offerings and this focus on a few products is enabling the company to manage the complexity that comes with size and a wide presence across markets and customer segments, he said.

Mistry said the company will continue to extend its geographical reach and explore avenues in more food categories.

Anghsu Mallick, managing director and chief executive officer, Adani Wilmar, in his letter to shareholders, said: “Your Company is focused on improving the mix of premium brand and value-added oils around a healthy positioning to drive improvement in profitability.”