India has a new leader in its fast-moving consumer goods (FMCG) market and that is billionaire Gautam Adani’s Adani Wilmar.
The packaged food major, a joint venture between the Adani group and Wilmar International of Singapore, has dethroned the 88-year-old Hindustan Unilever (HUL) which was till now the country’s largest FMCG firm.
On May 2, Adani Wilmar reported Rs54,214 crore revenue from operations for the financial year 2021-22, up 46.2% year-on-year (YoY). This reflected a total jump of Rs37,090 crore in revenues from the last year.
HUL has reported Rs51,468 crore sales in terms of yearly revenue in the financial year 2021-22.
But what has driven Adani Wilmar’s profitability? Primarily, it’s edible oils. The company is already the largest edible oil importer, refiner, and seller in the branded segment in India.
“We have continued to improve our market share across edible oil and food categories,” said Angshu Mallick, managing director and CEO at Adani Wilmar.
Edible oil prices are skyrocketing due to the ongoing Russia-Ukraine war and Adani Wilmar has made the most out of it.
A major chunk of its revenues comes from edible oil. Edible oils contributed Rs1,289 crore at the gross level.
The company is now eyeing other areas as well.
“We will continue to invest in our brand, distribution, sourcing and manufacturing capabilities. Going forward, we will focus more on inorganic growth and strategic investments in the foods space,” Mallick said.
The company’s latest earnings are the first since Adani Wilmar’s debut on stock exchanges this February. Its share value has increased multiple folds since its debut at Rs230 to over Rs750 now.
It is expected to rise further, given the company’s expansion plans.
Walking the talk, Adani Wilmar today (May 3) announced the acquisition of several brands, including the renowned Kohinoor from McCormick Switzerland GMBH.