Introduction To Adani Wilmar
At the beginning of the twenty-first century, the common Indian who desired to purchase oil had limited options. Either they had to buy expensive, high-quality oils, or they had to use inexpensive, lower-quality oils. As a result of their worry for their family’s health, ordinary customers ultimately opted for the higher-quality oils, despite having to pay a premium price for a very inconsequential product for everyday usage.
During this time, there were other oil-selling brands, but Sundrop, Saffola, Sweekar, Dhara, and Gemini held the majority of the market. Sundrop and Saffola were the premium oils, while Sweekar, Dhara, Gemini, and others were the more affordable options. At this point, the Adani Group decided to enter the competition. The business titan formed a Joint venture with Wilmar International, one of Singapore’s largest agribusinesses. This joint venture was responsible for the creation of Fortune, a well-known brand in Indian families. But Rome wasn’t built in a day, and Fortune didn’t become the renowned brand it is today on the day it was founded. Slowly and gradually, by making clever moves along the road, good fortune has reached its current level.
As previously said, the Indian buyer had to choose between the price and quality of the oil. Adani Wilmars share Fortune aimed to resolve just this problem. Fortune was produced as a healthy oil that maintained the health of your wallet and pocket as well. Achieving this advantageous price while maintaining cost management was the objective. And Adani Wilmar arrived victorious-minded. Fortune earned success by utilizing a two-pronged strategy. The plan incorporated both cost-effectiveness and competitor analysis.
Adani developed a port in Mundra to cut costs. The Adani port was originally established to facilitate its coal trading industry. Later, however, it was transformed into a business hub for the Adani Group. In 2000, following the founding of the Adani Wilmar JV, one of these businesses was an edible oil refinery. A refinery located in a port meant that the oil production process did not incur any needless transportation expenses or time losses. The next step was market research. In relation to oils, sunflower was saturated with rivals, whereas soy was unexplored. Therefore, Adani Wilmar established Fortune to penetrate the soybean market.
The success of Fortune’s soyabean oil was due to its superior quality. This quality enhancement was demonstrated by the absence of a characteristic “fishy odor” in Fortune’s oil, unlike its few competitors. With this success propelling Adani Wilmar, Fortune quickly entered the oil market. Being a newcomer to the sunflower oil market was a poor decision. But joining it as a major participant in the edible oil business with the triumph of soyabean oil was a different story. Now, Fortune was not required to compete with players who had a head start.
Now, Fortune was slowly eroding competitor market share. Thanks to Fortune, Adani Wilmar is a market leader in the Indian edible oil business with an 18.30% market share in the Refined Oil in Consumer Pack segment. Fortune’s flavor has made its way into every home and become an indispensable ingredient for all rich and tasty recipes. Additionally, Fortune has made strides in the packaged food market with a variety of flours, pulses, and specialty fats.
Company’s History
Adani Wilmar Limited is one of India’s largest FMCG firms. The business offers edible oil vanaspati and specialized fats. The company offers vegetable ghee in addition to soy oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, groundnut oil, and coconut oil. It serves both individual and institutional clients. The company distributes its products through super stockists, brokers, and other trade partners. It exports its products to countries in the Middle East, Southeast Asia, Africa, Ukraine, and Ghana. The company was established in 1999 in Ahmedabad, India. Adani Wilmar Limited is a partnership formed by Adani Enterprises Ltd. and Wilmar International Limited. The firm introduced Kachhi Ghani Mustard Oil and Filtered Groundnut Oil in 2003-2004. Through its ‘Fortune’ brand, the company created one of the broadest and most pervasive distribution networks. During the course of the year, the company initiated the process of acquiring two seed processing units with refining facilities and implemented additional manufacturing facilities, including a 1,000 MT refinery, a 200 MT Vanaspati plant, an extension of packing lines, and a 3.8 MW coal-based Co-generation power plant at Mundra. Different grades of Specialty Fat products were created by the company in 2004-2005 to fulfill the needs of different market sectors. The company bought an integrated Oilseed processing complex in Mantralayam, A.P., and built a 3.80 M.W Co-generation power plant in the same year. Additionally, the company bought other Oilseed-processing facilities in Bundi, Rajasthan.
During 2006-2007, the company raised its edible oil installed capacity from 963500 MT to 1051200 MT. Additionally, the business raised Vanaspati’s installed capacity from 118625 MT to 155125 MT. Throughout the year, the company introduced the Naturelle brand of coconut oil. In 2007-2008, the business acquired a minor Gujarat refinery in the Kadi District of Mehsana. It boosted Edible Oil’s installed capacity from 1051200 MT to 1052340 MT. In addition, it expanded its Chilling and Filtration plant in Mundra and constructed a Hydrogenation plant in Haldia. During the 2008-2009 fiscal year, the business successfully implemented its Chilling Filtration and Bakery Shortening plants in Mundra, Gujarat, and its Hydrogenation plant in Haldia, West Bengal, and commenced commercial production. In the same year, the corporation debuted three new brands, including ‘King’s,’ ‘Bullet,’ and ‘Ivory.’ In addition, the company introduced “Raag Gold” Refined Palmolein oil. The company raised the installed capacity of Seed Crushing from 310250 MT to 770800 MT and the installed capacity of Vanaspati from 164125 MT to 155125 MT over the course of the year. On January 9, 2015, the business issued 4936180 Rs 10 equity shares at a premium of Rs 115 per share on a rights basis. In accordance with a resolution taken by our shareholders on 5 May 2021, the par value of the company’s equity shares was reduced from Rs 10 to Re 1. During the month of January 2022, the company issued Rs 3,600,000,000 worth of brand-new shares in a public offering. The first public offering was priced at Rs 230 per share, plus a premium of Rs 229 per share. On February 8, 2022, the authorized shares were listed on the BSE Ltd and National Stock Exchange of India Ltd(NSE). The company will allocate Rs 1900 crore for capital expenditure, Rs 1059 crore for debt repayment, and Rs 450 crore for acquisitions and investments using the revenues from the IPO.
Top Shareholder of Adani Wilmar Stocks
Below is a list of top shareholders of Adani Wilmar stocks as of June 2022.
| Shareholder | Shares | Percentage Share (%) |
| Adani Commodities LLP | 571414430 | 43.96 |
| Dhaval Bhavik Bhai Shah | 20363 | 0.0016 |
| Karan G Adani | 1000 | 0.0008 |
| Namrata P Adani | 1000 | 0.0008 |
| Pranav Vinod Bhai Adani | 1000 | 0.0008 |
| Pritiben Gautam Bhai Adani | 1000 | 0.0008 |
| Shilin Rajesh Bhai Adani | 1000 | 0.0008 |
| Alternate Investment Fund | 16500 | 0.0013 |
| Foreign Portfolio Investor | 19518577 | 1.5018 |
Management Of Adani Wilmar
Below is a list of top management of Adani Wilmar as on 15 August 2022
| Name | Designation |
| Angshu Mallick | Chief Executive Officer & Managing Director |
| Shrikant Kanhere | Chief Financial Officer |
| Rajneesh Bansal | Head-Procurement and Supply Chain |
| Biplap Pakrashi | Business Head- Oils & Fats |
| Saumin Seth | Chief Operating Officer |
| Sidhartha Ghosh | Chief Human Resource Officer |
Key Highlights From Adani Wilmar Latest Quarterly Results – Q1 FY 23
- On August 3, 2022, Adani Wilmar announced its financial results for the first quarter of fiscal year 2023. Comparing Q1 FY23 to Q1 FY22, the company’s profit after tax (PAT) increased by 10.18 percent year-over-year, reaching Rs 193.59 crore from Rs 175.70 crore.
- The increase in profits is supported by a growth in the company’s revenue from operations, which increased by 30.23 percent from Rs. 11,311.97 crore in Q1 FY22 to Rs. 14,731.62 crore in Q1 FY23. Adani Wilmar’s share EBITDA increased by 14% year-over-year to Rs. 496 crore in the quarter under review.
- The company’s sales volumes increased by 15% year-over-year to 1.19 MMT in Q1 of FY23. This was due to the outstanding performance of the FMCG and Foods businesses, which led the rise and reported a 65.81% YoY increase in revenue to Rs. 859.98 crore and a 53% YoY gain in volume.
- The Edible Oil segment’s volume increased by 6% year-over-year to 0.70 MMT. According to the company’s management, the mild rise occurred in spite of numerous headwinds in the edible oil business, where inflationary pressures are a major worry. Note that the Indian government issued a notice in the previous quarter to reduce edible oil prices in response to growing inflation. Led by castor oil exports and the oleo business, the Industry Essentials segment posted a revenue of Rs 2,353 crore and a 22% YoY increase in volumes.
- The earnings per share (EPS) decreased marginally from Rs. 1.54 in Q1 FY23 to Rs. 1.49 in the first quarter of fiscal year 2023.
- PAT, profit after tax In the first quarter of the fiscal year 2023 (FY23), the profit after tax amounted to 193,590 crore rupees, an increase of 10.18 percent year-over-year.
- Revenue from operations increased by 30.23 percent year-over-year to Rs 14,731.62 crore in the first quarter of fiscal year 2023.
- The EBITDA increased by 14% year-over-year to Rs. 496 crore in the first quarter of fiscal year 2023.
- Edible oil revenue increased 22.74% year-over-year to Rs. 11,518.72 crore in Q1 FY23 from Rs. 9,385.02 crore in Q1 FY22.
- Food and FMCG revenue increased by 65.81% Year-on-Year from Q1 FY22 to Q1 FY23, from Rs. 526.65 crore to Rs. 859.98 crore.
- Industry essentials Q1 FY23 revenue increased 67.08% year-over-year to Rs. 2,352.92 from Rs. 1408.30 crore in Q1 FY2022
Key Milestones
- In May of 2022, Adani Wilmar purchased the premium basmati brand “Kohinoor” from McCormick Switzerland GMBH. This acquisition will assist the company in consolidating its market share in the category of basmati rice as well as fostering premiumization.
- In the first quarter of the fiscal year 2023 (Q1FY23), Adani Wilmar maintained its position as the leading edible oil brand with a market share of 18.7% on a standalone basis and 19.9% with its joint venture KTV Health Foods.
- Fortune Atta (Wheat Flour) maintained its position as the No. 2 brand in India with a market share of 4.9%.
- Fortune Basmati rice maintained its position as the No. 3 brand in India with a market share of 8.4%.
- All of the company’s long-term debt has been repaid. This action is anticipated to improve credit metrics and ratios, allowing the company to pursue funding at competitive rates.
Management’s Take
Mr. Angshu Mallick, Managing Director and Chief Executive Officer of Adani Wilmar Limited, stated in the quarterly results that Adani Wilmar has continued to display a steady growth in overall volumes, spearheaded by an extraordinary performance in the foods segment. This is despite the fact that Adani Wilmar had various headwinds during the quarter, with inflation and low consumer demand being the primary areas of concern. Adani Wilmar’s share expansion has been driven by a GTM strategy that emphasizes expanded penetration in semi-urban and rural areas. This greater penetration enables Adani Wilmar to expand its food business at a quicker rate. While the bulk of basics and FMCG products are still sold through general trade, sales through e-commerce and contemporary trade have increased by double digits. The sales of Adani Wilmar’s new goods, including Poha, Khichdi, Total Balance Oil, Soya Chunks, etc., have doubled year over year, albeit from a low foundation. Due to the lowering of certain commodity prices, there are finally signs of alleviation, which may contribute to a better demand increase in the next quarter. The previous quarter’s performance of AWL can be summed up as consistent and resilient.
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FAQ On Adani Wilmar
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What is Adani Wilmars share price and what are the returns for Adani Wilmars share?
Adani Wilmars share price is INR 687.20 as of 13 October 2022.
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What are the 52-week high and low of Adani Wilmars share ?
As on 13 October 2022.:
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- 52-wk high Rs 878.00
- 52-wk low Rs. 227
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What are the key metrics to analyze Adani Wilmars Share Price?
Key metrics to analyze any share price are: 52-week high, a 52-week low, 1-year return, 5-year return, etc.
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Who are the competitors of Adani Wilmars?
Competitors of Adani Wilmar’s include Nestle, Britannia, Glaxosmith con, etc.
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What is the market cap of Adani Wilmars share ?
The market cap of Adani Wilmar is 92,063 Cr Lakh Crore as on 13 October 2022.
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